Document:

exv4w1

 

Exhibit 4.1

INDYMAC BANCORP, INC.

2002 INCENTIVE PLAN,

AS AMENDED AND RESTATED

SECTION 1

GENERAL

     1.1. Purpose. The IndyMac Bancorp, Inc. 2002 Incentive Plan (the “Plan”) has been
established by IndyMac Bancorp, Inc. (the “Company”) to (i) attract and retain persons eligible to
participate in the Plan; (ii) motivate Participants, by means of appropriate incentives, to achieve
long-range goals; (iii) provide incentive compensation opportunities that are competitive with
those of other similar companies; and (iv) further identify Participants’ interests with those of
the Company’s other stockholders through compensation that is based on the Company’s common stock;
and thereby promote the long-term financial interest of the Company and the Subsidiaries, including
the growth in value of the Company’s equity and enhancement of long-term stockholder return. The
following provisions constitute an amendment, restatement, and continuation of the Plan as in
effect immediately prior to April 25, 2006.

     1.2. Participation. Subject to the terms and conditions of the Plan, the Committee
shall determine and designate, from time to time, from among the Eligible Individuals (including
transferees of Eligible Individuals to the extent the transfer is permitted by the Plan), those
persons who will be granted one or more Awards under the Plan, and thereby become “Participants” in
the Plan.

     1.3. Operation, Administration, and Definitions. The operation and administration of
the Plan, including the Awards made under the Plan, shall be subject to the provisions of Section 5
(relating to operation and administration). Capitalized terms in the Plan shall be defined as set
forth in the Plan (including the definition provisions of Section 9).

SECTION 2

OPTIONS

     2.1. Definitions. The grant of an “Option” entitles the Participant to purchase
shares of Stock at an Exercise Price established by the Committee. Any Option granted under this
Section 2 may be either an incentive stock option (an “ISO”) or a non-qualified option (an “NQO”),
as determined at the discretion of the Committee. An “ISO” is an Option that is intended to
satisfy the requirements applicable to an “incentive stock option” described in Section 422(b) of
the Code. An “NQO” is an Option that is not intended to be or does not qualify as an “incentive
stock option” as that term is described in Section 422(b) of the Code.

     2.2. Exercise Price. The “Exercise Price” of each Option granted under this Section 2
shall be established by the Committee or shall be determined by a method established by the
Committee at the time the Option is granted; except that the Exercise Price shall not be less than
100% of the Fair Market Value of a share of Stock on the date of grant (or, if greater, the par
value of a share of Stock).

     2.3. Exercise. An Option shall be exercisable in accordance with such terms and
conditions and during such periods as may be established by the Committee; provided, however,

 

 

that Awards granted pursuant to Section 2 (relating to Options) shall have a minimum 1-year
vesting period (subject to acceleration of vesting (i) pursuant to this Plan, or (ii) to the extent
permitted by the Committee, or pursuant to the terms of an applicable Employment Agreement, in the
event of the Participant’s death, disability, retirement, change in control or involuntary
termination). No fewer than 100 shares of Stock may be purchased on exercise of any Option at one
time unless the number purchased is the total number at the time available for purchase under the
Option.

     2.4. Vesting. Subject to the limitations of the Plan, each installment of shares
covered by an Option granted pursuant to Section 2 shall be exercisable on and after the vesting
date for such installment as established by the Committee and/or its delegates and specified in the
applicable Award Memorandum relating to the Award. Unless otherwise provided herein or in the
applicable Award Memorandum: (i) an Option granted pursuant to this Section 2 shall become fully
vested and exercisable upon the Participant’s Date of Termination, if the Date of Termination
occurs by reason of the Participant’s death, Disability, or Retirement; provided, however, that as
a condition of such acceleration of vesting upon the Participant’s Retirement, the Participant
shall execute a restrictive covenant agreement (including, but not limited to, a non-solicitation
of customers and employees covenant) satisfactory to the Company with a term equal to the longest
vesting term being accelerated, and (ii) the Option may be exercised on or after the Participant’s
Date of Termination only as to that portion of the Covered Shares for which it was exercisable as
of the Participant’s Date of Termination, after giving effect to any applicable acceleration of
vesting.

     2.5. Payment of Option Exercise Price. The payment of the Exercise Price of an Option
granted under this Section 2 shall be subject to the following:

	(a)	 	Subject to the following provisions of this subsection 2.5, the full Exercise Price for
shares of Stock purchased upon the exercise of any Option shall be paid at the time of such
exercise (except that, in the case of an exercise arrangement approved by the Committee and
described in subsection 2.5(c), payment may be made as soon as practicable after the
exercise). To the extent that an Option Award is exercisable, it may be exercised in whole or
in part by filing a written notice with the Stock Award Administrator of the Company at its
corporate headquarters prior to the date the Option expires. Such notice shall specify the
number of shares of Stock which the Participant elects to purchase, and, subject to subsection
2.5(c), shall be accompanied by payment of the Exercise Price for such shares of Stock
indicated by the Participant’s election.

	(b)	 	The Exercise Price shall be payable (i) in cash, (ii) by tendering, by either actual delivery
of shares or by attestation, shares of Stock acceptable to the Committee and valued at Fair
Market Value as of the day of exercise, (iii) by instructing the Company to withhold from the
shares of Stock acquired upon exercise of the Option that number of shares of Stock equal to
the minimum amount (and not any greater amount) required to satisfy the Exercise Price, or
(iv) in any combination thereof.

	(c)	 	Unless otherwise provided in the applicable Award Memorandum or otherwise specified by the
Committee prior to exercise, a Participant may elect to pay the Exercise Price upon the
exercise of an Option by irrevocably authorizing a third party to sell shares of Stock

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	 	 	(or a sufficient portion of the shares) acquired upon exercise of the Option and remit to
the Company a sufficient portion of the sale proceeds to pay the entire Exercise Price and
any tax withholding resulting from such exercise.
	 
	(d)	 	The Committee may provide in an Award Memorandum for any other method of payment of the
Exercise Price upon the exercise of an Option.

     2.6. Expiration. An Option shall expire on the seventh anniversary of the Grant Date,
and the Option shall not be exercisable after:

	(a)	 	except as provided in subsections (b) and (c) below, if the termination occurs for reasons
other than death, Disability, Retirement, or Cause, the three-month anniversary of the
Participant’s Date of Termination;

	(b)	 	if the termination occurs by reason of the Participant’s death, or if the Participant’s death
occurs within three months after the Date of Termination in accordance with subsection (a)
above, the one-year anniversary of the Participant’s Date of Termination;

	(c)	 	if the termination occurs by reason of the Participant’s Disability, or if the holder incurs
a Disability within three months after the Date of Termination in accordance with subsection
(a) above, the one-year anniversary of the Participant’s Date of Termination;

	(d)	 	if the termination occurs by reason of the Participant’s Retirement, the one-year anniversary
of the Participant’s Date of Termination; or

(e)  if the termination occurs by reason of Cause, the Participant’s Date of Termination.

To the extent that any Option granted pursuant to this Section 2 is not exercised prior to (i) a
dissolution of the Company or (ii) a merger or other corporate event that the Company does not
survive, and no provision is made for the assumption, conversion, substitution or exchange of the
Option, the Option shall terminate upon the occurrence of such event.

     2.7. Non-Employee Director Options. Grants of Options to Non-Employee Directors under
the Plan shall be made only in accordance with the terms, conditions and parameters for the
compensation of Non-Employee Directors as established from time to time by the Board and set forth
in writing in the Board Compensation Policy. The Committee may not make other discretionary grants
under the Plan to Non-Employee Directors.

     2.8. Employment Agreement. Notwithstanding any provision of subsection 2.4 or clauses
(a)-(e) of subsection 2.6 to the contrary, if a Participant is subject to an Employment Agreement
containing provisions which, by their terms, govern the vesting, exercisability, or other aspects
of any Options granted under the Plan, such terms shall supersede the provisions of subsection 2.4
and clauses (a)-(e) of subsection 2.6 with respect to such Participant’s Options, and if a
Participant is subject to an Employment Agreement containing definitions of cause, disability, or
retirement, such definitions shall supersede the respective definitions of this Plan with respect
to such Participant’s Options; provided, however, that the Employment Agreement shall so supersede
such provisions of this Plan only to the extent that the result would be to the Participant’s
benefit.

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     2.9. No Repricing. Except for either adjustments pursuant to subsection 5.2(g)
(relating to the adjustment of shares) or decreases approved by the Company’s stockholders, the
Exercise Price for any outstanding Option granted under the Plan may not be decreased after the
date of grant, nor may an outstanding Option be surrendered to the Company as consideration for the
grant of a new Option with a lower exercise price.

SECTION 3

OTHER STOCK AWARDS

     3.1. Definitions. A “Restricted Stock” Award is a grant of shares of Stock, and a
“Restricted Stock Unit” Award is the grant of a right to receive shares of Stock in the future,
with such shares of Stock or right to future delivery of such shares of Stock subject to a risk of
forfeiture or other restrictions that will lapse upon the achievement of one or more goals relating
to completion of service by the Participant, or achievement of performance or other objectives, as
determined by the Committee.

     3.2. Restrictions on Awards. Each Restricted Stock Award and Restricted Stock Unit
Award shall be subject to the following, to the extent applicable:

	(a)	 	Any such Award shall be subject to such conditions, restrictions and contingencies as the
Committee shall determine.

	(b)	 	Any portion of any such Award that is not vested as of a Participant’s Date of Termination
shall be forfeited without consideration, except that if a Participant’s Date of Termination
occurs by reason of the Participant’s death, Disability or Retirement, then any time-based
vesting restrictions on any such Award shall lapse as of the Date of Termination and any
performance-based criteria relating to Awards shall be deemed to be satisfied at the greater
of “target” or actual performance; provided, however, that as a condition of such acceleration
of vesting or deemed satisfaction of performance-based criteria upon the Participant’s
Retirement, the Participant shall execute a restrictive covenant agreement (including, but not
limited to, a non-solicitation of customers and employees covenant) satisfactory to the
Company with a term equal to the longest vesting term being accelerated.

	(c)	 	Awards of Restricted Stock or Restricted Stock Units may not be sold, transferred, assigned,
pledged, hypothecated or otherwise disposed of in any way (whether by operation of law or
otherwise) during the Restricted Period other than by will or by the applicable laws of
descent and distribution.

	(d)	 	Unless otherwise provided in the applicable Award Memorandum or otherwise provided by the
Committee, the following terms shall apply to Awards of Restricted Stock or Restricted Stock
Units granted under this Section 3:
	 
	 	 	(i) Vesting. The Covered Shares shall be transferred to the Participant free of all
restrictions upon the date they become fully vested. A Participant who ceases to be an
Employee shall forfeit the portion of his or her Restricted Stock or Restricted Stock Unit
Award that is not vested as of his or her Date of Termination, after giving effect to any
applicable acceleration of vesting.

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	 	 	(ii) Dividends and Dividend Equivalents. Dividends, if any, accrued on Restricted
Stock during the Restricted Period shall be credited to the Participant and held by the
Company on behalf of the Participant. The Participant’s interest in the dividends shall
vest on the same date that his or her interest in the Covered Shares vest. In the event
that any portion of the Covered Shares are forfeited, the accrued and unpaid dividends
relating to the Covered Shares also shall be forfeited. A Restricted Stock Unit Award may
provide the Participant with the right to receive dividend equivalent payments with respect
to the Covered Shares, which payments shall be credited to the Participant and held by the
Company on behalf of the Participant, and may be settled in cash or Stock, as determined by
the Committee. Any such settlements, and any such crediting of dividend equivalents or
reinvestment in shares of Stock, may be subject to such conditions, restrictions and
contingencies as the Committee shall establish, including the reinvestment of such credited
amounts in Stock equivalents. Subject to subsection 5.2(g), dividend equivalents paid in
Stock with respect to an Award of Restricted Stock Units before the Covered Shares are
earned or vested shall be deemed delivered under the Plan for purposes of applying the share
limits in subsection 5.2.
	 
	 	 	(iii) Voting. The Participant shall not be prevented from voting the Covered Shares
subject to a Restricted Stock Award merely because those shares are subject to the
restrictions imposed by this Plan; provided, however, that the Participant shall not be
entitled to vote Covered Shares with respect to record dates for any Covered Shares
occurring on or after the date, if any, on which the Participant has forfeited those shares.
	 
	 	 	(iv) Ownership of Shares. The Covered Shares issued pursuant to any Restricted
Stock Award shall be held by the Company’s stock transfer agent for the benefit of the
Participant until the end of the applicable Restricted Period. The Participant shall be
identified as the beneficial owner of the Covered Shares at the time the shares are issued.
	 
	(e)	 	The Committee may designate whether any Award being granted to any Participant under this
Section 3 is intended to be 

performance-based compensation. Any such Awards designated as
intended to be performance-based compensation shall be conditioned on the achievement of one
or more Performance Measures, to the extent required by Code Section 162(m) and the
regulations thereunder. For Awards under this Section 3 intended to be performance-based
compensation, the grant of the Awards and the establishment of the Performance Measures shall
be made during the period required under Code Section 162(m).
	 
	(f)	 	If the right to become vested in a Restricted Stock Award or Restricted Stock Unit Award
granted under this Section 3 is conditioned on the completion of a specified period of service
with the Company or the Subsidiaries, without achievement of Performance Measures or other
performance objectives being required as a condition of either grant or vesting, and without
it being granted in lieu of other compensation, then the required period of service for full
vesting shall be not less than one year (subject to acceleration of vesting (i) pursuant to
this Plan, or (ii) to the extent permitted by the Committee, or pursuant to the terms of an
applicable Employment Agreement, in the event of the Participant’s death, Disability,
Retirement, Change in Control or involuntary termination).

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     3.3 Employment Agreement. Notwithstanding any provision of subsection 3.2(b) or
3.2(d)(i) to the contrary, if a Participant is subject to an Employment Agreement containing
provisions which, by their terms, govern the vesting or other aspects of any Awards of Restricted
Stock or Restricted Stock Units granted under the Plan, such terms shall supersede the provisions
of subsection 3.2 and 3.2(d)(i) with respect to such Participant’s Awards of Restricted Stock or
Restricted Stock Units, and if a Participant is subject to an Employment Agreement containing
definitions of cause, disability, or retirement, such definitions shall supersede the respective
definitions of this Plan with respect to such Participant’s Awards of Restricted Stock or
Restricted Stock Units; provided, however, that the Employment Agreement shall so supersede such
provisions of this Plan only to the extent that the result would be to the Participant’s benefit.

     3.4 Non-Employee Director Awards. Grants of Awards of Restricted Stock or Restricted
Stock Units to Non-Employee Directors under the Plan shall be made only in accordance with the
terms, conditions and parameters for the compensation of Non-Employee Directors as established from
time to time by the Board and set forth in writing in the Board Compensation Policy. The Committee
may not make other discretionary grants under the Plan to Non-Employee Directors.

SECTION 4

CASH INCENTIVE AWARDS

     4.1. Eligibility. The Committee may designate any one or more Eligible Individuals as
Participants eligible to receive Cash Incentive Awards. Subject to this Section 4, a Participant’s
right to receive Cash Incentive Awards shall be contingent on the achievement of performance goals
established by the Committee for the applicable performance period. Cash Incentive Awards granted
under the Plan are intended to be performance-based compensation, and shall comply with the
requirements of this Section 4 to the extent such compliance is determined by the Committee to be
required for the Cash Incentive Awards to be treated as performance-based compensation.

     4.2. Maximum Award. No more than $25,000,000 may be paid to any one individual
pursuant to Cash Incentive Awards granted under the Plan for any annual performance period
(provided that if a performance period is less than one year, the limit shall be subject to a
corresponding pro rata reduction). Subject to Code Section 162(m), if, after amounts have been
earned with respect to Cash Incentive Awards, the delivery of such amounts is deferred, any
additional amounts attributable to earnings during the deferral period shall be disregarded for
purposes of applying the annual dollar limit imposed by this subsection 4.2.

     4.3. Performance Goals. The performance goals established for the performance period
established by the Committee shall be objective (as that term is described in regulations under
Code Section 162(m)), and shall be established in writing by the Committee not later than 90 days
after the beginning of the performance period (but in no event after 25% of the performance period
has elapsed), and while the outcome as to the performance goals is substantially uncertain. The
performance goals established by the Committee may be with respect to corporate performance,
operating group or sub-group performance, individual company performance, other group or individual
performance, or division performance, and shall be based on one or more of the Performance
Measures.

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     4.4. Attainment of Performance Goals. Subject to subsection 4.5, a Participant
otherwise entitled to receive a Cash Incentive Award for any performance period shall not receive a
settlement of the Award until the Committee has determined that the applicable performance goal(s)
have been attained. To the extent that the Committee exercises discretion in making the
determination required by this subsection 4.4, such exercise of discretion may not result in an
increase in the amount of the payment.

     4.5. Exceptions to Performance Goal Requirement. Except as otherwise provided by the
Committee, if a Participant’s employment terminates because of death, Disability, or Retirement, or
if a Change in Control occurs prior to the Participant’s termination of employment, the
Participant’s Cash Incentive Award shall become fully vested; provided, however, that as a
condition of such acceleration of vesting upon the Participant’s Retirement, the Participant shall
execute a restrictive covenant agreement (including, but not limited to, a non-solicitation of
customers and employees covenant) satisfactory to the Company with a term equal to the longest
vesting term being accelerated.

     4.6. Employment Agreement. Notwithstanding any provision of subsection 4.5 to the
contrary, if a Participant is subject to an Employment Agreement containing provisions which, by
their terms, govern the vesting or other aspects of any Cash Incentive Awards granted under the
Plan, such terms shall supersede the provisions of subsection 4.5 with respect to such
Participant’s Cash Incentive Awards, and if a Participant is subject to an Employment Agreement
containing definitions of cause, disability, or retirement, such definitions shall supersede the
respective definitions of this Plan with respect to such Participant’s Cash Incentive Awards;
provided, however, that the Employment Agreement shall so supersede such provisions of this Plan
only to the extent that the result would be to the Participant’s benefit.

     4.7. Non-Performance-Based Cash Incentive Compensation. Nothing in this Section 4
shall preclude the Committee, the Company, or any Subsidiary from granting cash incentive awards
outside of the Plan that are not intended to be performance-based compensation.

SECTION 5

OPERATION AND ADMINISTRATION

     5.1. Effective Date. The Plan, as amended and restated hereby, shall be effective
only if and when it is approved by the stockholders of the Company at the Company’s 2006 annual
meeting of its stockholders (the “Effective Date”). If the Plan, as proposed to be amended and
restated hereby, is not approved by the stockholders at the 2006 annual meeting, the Plan shall
remain in full force and effect in accordance with its terms as in effect immediately prior to the
2006 annual meeting date, and the term “Effective Date” as used herein shall refer to the date on
which the Plan was last approved by the stockholders of the Company. No Awards may be granted
under the Plan after the ten-year anniversary of the Effective Date, but the Plan shall remain in
effect as long as any Awards under it are outstanding.

     5.2. Shares Subject to Plan. The shares of Stock for which Awards may be granted
under the Plan shall be subject to the following:

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	(a)	 	The shares of Stock with respect to which Awards may be made under the Plan shall be shares
currently authorized but unissued or currently held or, to the extent permitted by applicable
law, subsequently acquired by the Company as treasury shares, including shares purchased in
the open market or in private transactions.
	 
	(b)	 	Subject to the following provisions of this subsection 5.2, the maximum number of shares of
Stock that may be delivered to Participants and their beneficiaries under the Plan shall be
11,200,000 shares of Stock; provided, however, that each share of Stock issued under the Plan
pursuant to a Full Value Award shall reduce the number of available shares of Stock by 3.5
shares.
	 
	(c)	 	To the extent any shares of Stock covered by an Award are not delivered to a Participant or
beneficiary because the Award is forfeited, such shares shall not be deemed to have been
delivered for purposes of determining the maximum number of shares of Stock available for
delivery under the Plan.
	 
	(d)	 	To the extent provided by the Committee in its sole discretion, any Award may be settled in
cash rather than Stock. To the extent any shares of Stock covered by an Award are not
delivered to a Participant or beneficiary because the Award is settled in cash, such shares
shall be deemed to have been delivered for purposes of determining the maximum number of
shares of Stock available for delivery under the Plan (and such shares shall not be added back
to the available share pool under the Plan).
	 
	(e)	 	If outstanding shares of Stock (including shares issued on the date of grant of a Restricted
Stock Award) are tendered to the Company (by either actual delivery or by attestation), or are
withheld from the Award, to satisfy the exercise price or tax liability resulting from an
Award, such tendered or withheld shares shall be deemed to have been delivered to the
Participant for purposes of determining the maximum number of shares of Stock available for
delivery under the Plan (and such shares shall not be added back to the available share pool
under the Plan).
	 
	(f)	 	Subject to subsection 5.2(g), the following additional maximums are imposed under the Plan.
	 
	 	 	(i) The maximum number of shares that may be covered by Awards granted to any one individual
pursuant to Section 2 (relating to Options) shall be 1,500,000 shares during any one
calendar year period.
	 
	 	 	(ii) No more than 500,000 shares of Stock may be subject to Awards of Restricted Stock or
Restricted Stock Units granted under the Plan to any one individual during any one
calendar-year period. If, after shares have been earned, the delivery is deferred, any
additional shares attributable to dividends during the deferral period shall be disregarded
for purposes of applying the annual share limit imposed by this subsection 5.2(f)(ii) and
the overall share limit imposed by subsection 5.2(b).
	 
	(g)	 	If (i) the outstanding securities of the class then subject to this Plan (the “outstanding
shares”) (A) are increased, decreased, exchanged or converted as a result of a stock split
(including a split in the form of a stock dividend), reverse stock split, recapitalization,

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	 	 	spin off or similar event, or (B) are exchanged for or converted into cash, property or a
different number or kind of securities (or if cash, property or securities are distributed
in respect of the outstanding shares), as a result of a reorganization, merger,
consolidation, exchange, spin off, recapitalization, restructuring or reclassification, or
(ii) substantially all of the property and assets of the Company are sold as an entirety, or
(iii) the Company is liquidated and dissolved, then the Committee (or, in the case of Awards
made to Non-Employee Directors, the Board) shall, in such manner and to such extent (if any)
as is equitable and appropriate, make proportionate adjustments in (x) the number and type
of shares or other securities or cash or other property that may be acquired pursuant to
Options and other Awards previously granted under this Plan (and, where applicable, the
exercise price thereof so as to maintain the same aggregate exercise price), (y) the maximum
number and type of shares or other securities, cash, or property that may be issued or
delivered pursuant to Options and other Awards thereafter granted under this Plan, and (z)
such other terms as necessarily are affected by such event. In the case of an extraordinary
distribution, merger, reorganization, consolidation, combination, sale of assets, exchange
or spin off, the Committee (or the Board, in the case of Awards made to Non-Employee
Directors) may make provisions for a substitution or exchange of any or all outstanding
Options or other Awards or rights (or for the securities, cash or property deliverable upon
exercise of such outstanding Options or other Awards or rights), based upon the distribution
or consideration payable to holders of the shares of Stock upon or in respect of such event.

     5.3. General Restrictions. Delivery of shares of Stock or other amounts under the
Plan shall be subject to the following:

	(a)	 	Notwithstanding any other provision of the Plan, the Company shall have no liability to
deliver any shares of Stock under the Plan or make any other distribution of benefits under
the Plan unless such delivery or distribution would comply with all applicable laws
(including, without limitation, the requirements of the Securities Act of 1933), and the
applicable requirements of any securities exchange or similar entity.

	(b)	 	To the extent that the Plan provides for issuance of stock certificates to reflect the
issuance of shares of Stock, the issuance may be effected on a non-certificated basis, to the
extent not prohibited by applicable law or the applicable rules of any stock exchange.

     5.4. Tax Withholding. All distributions under the Plan (other than to Non-Employee
Directors) are subject to withholding of all applicable taxes, and the Committee may condition the
delivery of any shares or other benefits under the Plan on satisfaction of the applicable
withholding obligations. Except as otherwise provided by the Committee, such withholding
obligations may be satisfied (i) through cash payment by the Participant, (ii) through the
surrender, by either actual delivery of shares or by attestation, of shares of Stock acceptable to
the Committee which the Participant already owns; or (iii) through the surrender of shares of Stock
to which the Participant is otherwise entitled under the Plan; provided, however, that such shares
under this clause (iii) may only be used to satisfy the minimum amount (and not any greater amount)
required to be withheld for tax purposes.

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     5.5. Special Provisions related to Section 409A of the Code. 

	(a)	 	Notwithstanding anything in the Plan or in any Award Memorandum to the contrary, to the
extent that any amount or benefit that would constitute “deferred compensation” for purposes
of Section 409A of the Code would otherwise be payable or distributable under the Plan or any
Award Memorandum by reason of the occurrence of a Change in Control or the Participant’s
Disability or separation from service, such amount or benefit will not be payable or
distributable to the Participant by reason of such circumstance unless (i) the circumstances
giving rise to such Change in Control, Disability or separation from service meet the
description or definition of “change in control event,” “disability” or “separation from
service,” as the case may be, in Section 409A of the Code and applicable proposed or final
regulations, or (ii) the payment or distribution of such amount or benefit would be exempt
from the application of Section 409A of the Code by reason of the short-term deferral
exemption or otherwise. This provision does not prohibit the vesting of any Award or the
vesting of any right to eventual payment or distribution of any amount or benefit under the
Plan or any Award Memorandum.

	(b)	 	Notwithstanding anything in the Plan or in any Award Memorandum to the contrary, to the
extent necessary to avoid the application of Section 409A of the Code, (i) the Committee may
not amend an outstanding Option to extend the time to exercise such Award beyond the later of
the 15th day of the third month following the date at which, or December 31 of the
calendar year in which, the Award would otherwise have expired if the Award had not been
extended, based on the terms of the Award at the original Grant Date (the “Safe Harbor
Extension Period”), and (ii) any purported extension of the exercise period of an outstanding
Award beyond the Safe Harbor Extension Period shall be deemed to be an amendment to the last
day of the Safe Harbor Extension Period and no later.

     5.6. Grant and Use of Awards. Subject to subsections 2.7 and 3.4 (relating to Awards
to Non-Employee Directors), at the discretion of the Committee, a Participant may be granted any
Award permitted under the provisions of the Plan, and more than one Award may be granted to a
Participant. Subject to subsection 2.9 (relating to Option repricing), Awards may be granted as
alternatives to or replacement of awards granted or outstanding under the Plan, or any other plan
or arrangement of the Company or a Subsidiary (including a plan or arrangement of a business or
entity, all or a portion of which is acquired by the Company or a Subsidiary). Subject to the
overall limitation on the number of shares of Stock that may be delivered under the Plan, the
Committee may use available shares of Stock as the form of payment for compensation, grants or
rights earned or due under any other compensation plans or arrangements of the Company or a
Subsidiary, including the plans and arrangements of the Company or a Subsidiary assumed in business
combinations.

     5.7. Settlement of Awards. The obligation to make payments and distributions with
respect to Awards may be satisfied through cash payments, the delivery of shares of Stock, the
granting of replacement Awards, or combination thereof as the Committee shall determine.
Satisfaction of any such obligations under an Award, which is sometimes referred to as “settlement”
of the Award, may be subject to such conditions, restrictions and contingencies as
the Committee shall determine. Subject to applicable tax laws relating to deferred
compensation,

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including Code Section 409A, the Committee may permit or require the deferral of any
Award payment, subject to such rules and procedures as it may establish, which may include
provisions for the payment or crediting of interest or dividend equivalents, and may include
converting such credits into deferred Stock equivalents. Each Subsidiary shall be liable for
payment of cash due under the Plan with respect to any Participant to the extent that such benefits
are attributable to the services rendered for that Subsidiary by the Participant. Any disputes
relating to liability of a Subsidiary for cash payments shall be resolved by the Committee.

     5.8. Transferability. Except as otherwise provided by the Committee, Awards may not
be sold, transferred, assigned, pledged, hypothecated or otherwise disposed of in any way (whether
by operation of law or otherwise) except as designated by the Participant by will or by the laws of
descent and distribution. Under no event will Awards be transferable to a third party (which term
shall specifically exclude family members, as defined below) for value. Neither (i) a gift, (ii) a
transfer under a domestic relations order in settlement of marital property rights, nor (iii) a
transfer to an entity in which more than fifty percent of the voting interests are owned by a
Participant or his or her family members in exchange for an interest in that entity, shall be
deemed to be a transfer for value under this subsection 5.8. The term “family member” for purposes
of this subsection 5.8 shall have the meaning set forth in General Instruction A.1(a)(5) to Form
S-8.

     5.9. Form and Time of Elections. Unless otherwise specified herein, each election
required or permitted to be made by any Participant or other person entitled to benefits under the
Plan, and any permitted modification, or revocation thereof, shall be in writing filed with the
senior Human Resources manager for the Company, or his or her delegates, at such times, in such
form, and subject to such restrictions and limitations, not inconsistent with the terms of the
Plan, as the senior Human Resources manager for the Company, or his or her delegates, shall
require.

     5.10. Agreement With Company. An Award under the Plan shall be subject to such terms
and conditions, not inconsistent with the Plan, as the Committee shall, in its sole discretion,
prescribe. All Awards shall be evidenced by a writing with a schedule memorializing the grant of
the Award to the Participant and setting forth certain specifics with respect to the terms and
conditions of the Award. A copy of such document shall be provided to the Participant. Such
document is referred to in the Plan as an “Award Memorandum.”

     5.11. Action by Company or Subsidiary. Any action required or permitted to be taken
by the Company or any Subsidiary shall be by resolution of its board of directors, or by action of
one or more members of the board (including a committee of the board) who are duly authorized to
act for the board, or (except to the extent prohibited by applicable law or applicable rules of any
stock exchange) by a duly authorized officer of such company.

     5.12. Gender and Number. Where the context admits, words in any gender shall include
any other gender, words in the singular shall include the plural and the plural shall include the
singular.

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     5.13. Limitation of Implied Rights.

	(a)	 	Neither a Participant nor any other person shall, by reason of participation in the Plan,
acquire any right in or title to any assets, funds or property of the Company or any
Subsidiary whatsoever, including, without limitation, any specific funds, assets, or other
property which the Company or any Subsidiary, in its sole discretion, may set aside in
anticipation of a liability under the Plan. A Participant shall have only a contractual right
to the Stock or amounts, if any, payable under the Plan, unsecured by any assets of the
Company or any Subsidiary, and nothing contained in the Plan shall constitute a guarantee that
the assets of the Company or any Subsidiary shall be sufficient to pay any benefits to any
person.

	(b)	 	The Plan does not constitute a contract of employment, and selection as a Participant will
not give any participating employee the right to be retained in the employ of the Company or
any Subsidiary, nor any right or claim to any benefit under the Plan, unless such right or
claim has specifically accrued under the terms of the Plan. Except as otherwise provided in
the Plan, no Award under the Plan shall confer upon the holder thereof any rights as a
stockholder of the Company prior to the date on which the individual fulfills all conditions
for receipt of such rights.

     5.14. Evidence. Evidence required of anyone under the Plan may be by certificate,
affidavit, document or other information which the person acting on it considers pertinent and
reliable, and signed, made or presented by the proper party or parties.

     5.15. Heirs and Successors. Awards granted under this Plan shall be binding upon, and
inure to the benefit of, the Company and its successors and assigns, and upon any person acquiring,
whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of the
Company’s assets and business. If any rights exercisable by the Participant or benefits
deliverable to the Participant under such Award have not been exercised or delivered, respectively,
at the time of the Participant’s death, such rights shall be exercisable by the Designated
Beneficiary, and such benefits shall be delivered to the Designated Beneficiary, in accordance with
the provisions of the Plan. The “Designated Beneficiary” shall be the beneficiary or beneficiaries
designated by the Participant in a writing filed with the Committee in such form and at such time
as the Committee shall require. If a deceased Participant fails to designate a beneficiary, or if
the Designated Beneficiary does not survive the Participant, any rights that would have been
exercisable by the Participant and any benefits distributable to the Participant shall be exercised
by or distributed to the legal representative of the estate of the Participant. If a deceased
Participant designates a beneficiary and the Designated Beneficiary survives the Participant but
dies before the Designated Beneficiary’s exercise of all rights under the Award or before the
complete distribution of benefits to the Designated Beneficiary under the Award, then any rights
that would have been exercisable by the Designated Beneficiary shall be exercised by the legal
representative of the estate of the Designated Beneficiary, and any benefits distributable to the
Designated Beneficiary shall be distributed to the legal representative of the estate of the
Designated Beneficiary.

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     5.16. Applicable Law. The provisions of this Agreement shall be construed in
accordance with the laws of the State of Delaware, without regard to the conflict of law provisions
of any jurisdiction.

SECTION 6

CHANGE IN CONTROL

     6.1. Determination of Change in Control. Subject to subsection 6.2 below, a “Change
in Control” shall be deemed to occur for purposes of this Plan upon the occurrence of any one of
the following events:

	(A)	 	An acquisition of any common stock or other “Voting Securities” (as hereinafter defined) of
the Company by any “Person” (as the term person is used for purposes of Section 13(d) or 14(d)
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), immediately after
which such Person has “Beneficial Ownership” (within the meaning of Rule 13d-3 promulgated
under the Exchange Act) of twenty five percent (25%) or more of the then outstanding shares of
the Company’s common stock or the combined voting power of the Company’s then outstanding
Voting Securities; provided, however, in determining whether a Change in Control has occurred,
Voting Securities which are acquired in a “Non-Control Acquisition” (as hereinafter defined)
shall not constitute an acquisition which would cause a Change in Control. For purposes of
this Plan, (1) “Voting Securities” shall mean the Company’s outstanding voting securities
entitled to vote generally in the election of directors and (2) a “Non-Control Acquisition”
shall mean an acquisition by (a) the Company or any of its Subsidiaries, (b) an employee
benefit plan (or a trust forming a part thereof) maintained by (x) the Company, or (y) any
corporation or other Person of which a majority of its voting power or its voting equity
securities or equity interest is owned, directly or indirectly, by the Company (for purposes
of the definition in this subsection 6.1, a “Subsidiary”), or (c) any Person in connection
with a “Non-Control Transaction” (as hereinafter defined).

	(B)	 	The individuals who, as of the Effective Date, were members of the Board (the “Incumbent
Board”), cease for any reason to constitute at least a majority of the members of the Board;
provided, however, that if the election, or nomination for election by the Company’s common
stockholders, of any new director was approved by a vote of at least two-thirds of the
Incumbent Board, such new director shall, for purposes of this Plan be considered as a member
of the Incumbent Board; provided further, however, that no individual shall be considered a
member of the Incumbent Board if such individual initially assumed office as a result of
either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated
under the Exchange Act) or other actual or threatened solicitation of proxies or consents by
or on behalf of a Person other than the Board (a “Proxy Contest”) including by reason of any
agreement intended to avoid or settle any Election Contest or Proxy Contest; or
	 
	(C)	 	The consummation of:

	 	(1)	 	A merger, consolidation, or reorganization involving the Company or the sale or
other disposition of all or substantially all of the assets of the Company to any

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	 	 	 	Person or Persons other than a transfer to a Subsidiary, or the sale or other
disposition of all or substantially all of the stock or assets of IndyMac Bank,
F.S.B. to any Person or Persons other than a transfer to a Subsidiary (in each case,
a “Business Transaction”), unless such Business Transaction is a “Non-Control
Transaction.” A “Non Control Transaction” shall mean a Business Transaction where:

	 	(a)	 	the stockholders of the Company, immediately before such
Business Transaction, own directly or indirectly immediately following such
Business Transaction more than sixty percent (60% ) of the combined voting
power of the outstanding Voting Securities of the corporation resulting from
such merger, consolidation or reorganization or purchasing such assets or stock
(the “Surviving Corporation”) in substantially the same proportion as their
ownership of the Voting Securities immediately before such Business
Transaction;
	 
	 	(b)	 	the individuals who were members of the Incumbent Board
immediately prior to the execution of the agreement providing for such Business
Transaction constitute at least a majority of the members of the board of
directors of the Surviving Corporation, or in the event that, immediately
following the consummation of such Business Transaction, a corporation
beneficially owns, directly or indirectly, a majority of the Voting Securities
of the Surviving Corporation, the board of directors of such corporation; and
	 
	 	(c)	 	no Person other than (i) the Company, (ii) any Subsidiary,
(iii) any employee benefit plan (or any trust forming a part thereof)
maintained by the Company, the Surviving Corporation or any Subsidiary, or (iv)
any Person who, immediately prior to such Business Transaction had Beneficial
Ownership of twenty-five percent (25%) or more of the then outstanding Voting
Securities or common stock of the Company, has Beneficial Ownership of
twenty-five percent (25%) or more of the combined voting power of the Surviving
Corporation’s then outstanding Voting Securities or its common stock; or

	(D)	 	The Company’s stockholders approve a complete liquidation or dissolution of the Company.

Notwithstanding the foregoing provisions of this subsection 6.1, a Change in Control shall not be
deemed to occur solely because any Person (the “Subject Person”) acquired Beneficial Ownership
of more than the permitted amount of the then outstanding common stock or Voting Securities as
a result of the acquisition of common stock or Voting Securities by the Company which, by
reducing the number of shares of common stock or Voting Securities then outstanding, increases
the proportional number of shares Beneficially Owned by the Subject Person; provided, however,
that if a Change in Control would occur (but for the operation of this sentence) as a result
of the acquisition of common stock or Voting Securities by the Company, and after such share
acquisition by the Company, the Subject Person becomes the Beneficial

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Owner of any additional common stock or Voting Securities which increases the percentage of the
then outstanding common stock or Voting Securities Beneficially Owned by the Subject Person, then a
Change in Control shall occur.

     6.2. Committee Discretion. Notwithstanding the provisions of this subsection 6.2, the
Board, in the exercise of its reasonable discretion, may, but need not, make an affirmative
determination prior to the consummation of a Business Transaction (as defined in subsection 6.1(C))
that, in light of all circumstances, such Business Transaction will be not be treated as a Change
in Control for purposes of this Plan, by reason of it being in essence a “combination of equals” or
for any other reason. In making any such determination, the Board shall give due consideration,
without limitation, to the likely effect of such transaction(s) on the makeup of the stockholder
base, the Board and the senior management of the Company.

     6.3. Committee Action. Except as otherwise provided in an Award Memorandum or a
written agreement between the Company and a Participant (and approved by the Committee) to the
contrary, in the event of a Change in Control, then all outstanding Awards previously granted to
the Participant hereunder that have not already vested shall vest on the first anniversary of the
Change in Control; provided, however, that in the event that a Participant’s employment with
IndyMac or any successor employer is terminated within one (1) year following a Change in Control
(i) by reason of the Participant’s Disability or death, or (ii) either by the employer without
Cause or by the Participant for Good Reason, then all outstanding Awards previously granted to the
Participant hereunder that have not already vested shall vest on the date of such termination of
employment. In the event of such acceleration of “vesting,” each Option shall become immediately
exercisable and outstanding Awards of Restricted Stock and Restricted Stock Units granted under
Section 3 shall immediately vest free of restrictions, and shall become payable to the Participant.
Notwithstanding the foregoing and anything to the contrary herein, prior to a Change in Control,
the Committee may in its sole discretion amend this subsection 6.3 to alter the acceleration of
Awards in the event of a Change in Control, including, without limitation, to provide for immediate
acceleration of awards or to prohibit or otherwise limit such acceleration. The Committee may
accord any holder of an Award a right to refuse any acceleration, whether pursuant to the Award
Memorandum or otherwise, in such circumstances as the Committee may approve. In determining
whether and in what manner to accelerate the vesting of Awards under the Plan, the Committee shall
consider the effect thereof under applicable regulatory and financial accounting principles,
including without limitation Section 422 of the Code.

     6.4. Termination or Substitution of Awards. Any Awards that are (or but for a
holder’s rejection of acceleration would have been) accelerated under this Section 6 and that are
not exercised or vested prior to a dissolution of the Company or a reorganization event described
in subsection 6.1 that the Company does not survive shall terminate, provided that if provision has
been made, consistent with the terms hereof, for the substitution, exchange or other settlement of
Awards, such Awards shall be substituted, exchanged or otherwise settled in accordance with such
provision.

     6.5. Restoration of Prior Status. Any Awards that are (or but for the holder’s
rejection of the acceleration would have been) accelerated under this Section 6 and that are not
exercised or vested prior to an abandonment or termination of a transaction subject to stockholder
approval

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that triggered the Change in Control (as evidenced by public announcement, Board resolution,
execution of documents terminating the transaction, or other action or document objectively
confirming such abandonment or termination), shall be restored to their prior status (except for
the effects of the passage of time) as if no Change in Control had occurred.

     6.6. Employment Agreement. Notwithstanding any other provision of this Section 6 to
the contrary, if a Participant is subject to an Employment Agreement containing provisions which,
by their terms, govern the effect of a change in control, such terms shall supersede the provisions
of this Section 6 with respect to such Participant’s Awards, and if a Participant is subject to an
Employment Agreement containing a definition of change in control, such definition shall supersede
the definition of Change in Control set forth in this Section 6 with respect to such Participant’s
Awards; provided, however, that the Employment Agreement shall so supersede such provisions of this
Plan only to the extent that the result would be to the Participant’s benefit.

SECTION 7

COMMITTEE

     7.1. Administration. The authority to control and manage the operation and
administration of the Plan shall be vested in a committee (the “Committee”) in accordance with this
Section 7. The Committee shall be selected by the Board, and shall consist of two or more members
of the Board. If the Committee does not exist, or for any other reason determined by the Board,
the Board may take any action under the Plan that would otherwise be the responsibility of the
Committee.

     7.2. Powers of Committee. The Committee’s administration of the Plan shall be subject
to the following:

	(a)	 	Subject to the provisions of the Plan, the Committee will have the authority and discretion
to select from among the Eligible Individuals those persons who shall receive Awards, to
determine the time or times of receipt, to determine the types of Awards and the amount or
number of shares covered by the Awards, to establish the terms, conditions, performance
criteria, restrictions, and other provisions of such Awards, and (subject to the restrictions
imposed by subsection 2.9, relating to Option repricing, and by Section 8, relating to
amendments and termination) to modify, accelerate the vesting of, cancel or suspend Awards.

	(b)	 	To the extent that the Committee determines that the restrictions imposed by the Plan
preclude the achievement of the material purposes of the Awards in jurisdictions outside the
United States, the Committee will have the authority and discretion to modify those
restrictions as the Committee determines to be necessary or appropriate to conform to
applicable requirements or practices of jurisdictions outside of the United States.

	(c)	 	The Committee will have the authority and discretion to interpret the Plan, to establish,
amend and rescind any rules and regulations relating to the Plan, to determine the terms and
provisions specified in any Award Memorandum made pursuant to the Plan, and to

- 16 -

 

	 	 	make all other determinations that may be necessary or advisable for the administration of
the Plan.

	(d)	 	Any interpretation of the Plan by the Committee and any decision made by it under the Plan
are final and binding on all persons.

	(e)	 	In controlling and managing the operation and administration of the Plan, the Committee shall
take action in a manner that conforms to the certificate of incorporation and by-laws of the
Company, and applicable state corporate law.

     7.3. Delegation by Committee. Except to the extent prohibited by applicable law or
the applicable rules of a stock exchange, the Committee may allocate all or any portion of its
responsibilities and powers to any one or more of its members and may delegate all or any part of
its responsibilities and powers to any person or persons selected by it. The Committee also may
delegate to certain officers of the Company the authority to grant Awards pursuant to the
provisions of the Plan, provided that such delegation is set forth in writing and includes all
applicable limitations and parameters to such Awards, and provided further that such Awards are
subsequently ratified by the Committee. Any such allocation or delegation may be revoked by the
Committee at any time. Subject to the foregoing, and except as to the grant of Awards under the
Plan and establishment of the terms of grant under the Plan, all ministerial, non-discretionary
powers of the Committee under the Plan are delegated to the senior Human Resources manager for the
Company and his or her delegates.

     7.4. Information to be Furnished to Committee. The Company and its Subsidiaries shall
furnish the Committee with such data and information as it determines may be required for it to
discharge its duties. The records of the Company and its Subsidiaries as to an employee’s or
Participant’s employment or period of service, termination of employment or service, leave of
absence, reemployment and compensation shall be conclusive on all persons unless determined to be
incorrect. Participants and other persons entitled to benefits under the Plan must furnish the
Committee such evidence, data or information as the Committee considers desirable to carry out the
terms of the Plan.

SECTION 8

AMENDMENT AND TERMINATION

     The Board may, at any time, amend or terminate the Plan, and may amend any Award Memorandum,
provided that no amendment or termination may, in the absence of written consent to the change by
the affected Participant (or, if the Participant is not then living, the affected beneficiary),
adversely affect the rights of any Participant or beneficiary under any Award granted under the
Plan prior to the date such amendment is adopted by the Board; and further provided that
adjustments pursuant to subsection 5.2(g) shall not be subject to the foregoing limitations of this
Section 8; and further provided that the provisions of subsection 2.9 (relating to Option
repricing) cannot be amended unless the amendment is approved by the Company’s stockholders.

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SECTION 9

DEFINED TERMS

	 	 	In addition to the other definitions contained herein, the following definitions shall apply:
	 
	(a)	 	Award. The term “Award” means any award or benefit granted under the Plan,
including, the grant of Options, Restricted Stock Awards, Restricted Stock Unit Awards, Cash
Incentive Awards, dividends granted with respect to Restricted Stock Awards or dividend
equivalents granted with respect to Restricted Stock Unit Awards.
	 
	(b)	 	Board. The term “Board” means the Board of Directors of the Company.
	 
	(c)	 	Cause. The term “Cause” means, as determined by the Company:
	 
	 	 	(i) Participant’s intentional and material failure to perform his or her duties with the
Company (other than any such failure resulting from incapacity due to physical or mental
illness), after a written demand for performance is delivered to the Participant by the
Company which specifically identifies the manner in which the Company believes that the
Participant has intentionally and materially failed to perform the Participant’s duties; or
	 
	 	 	(ii) Participant’s engaging in any illegal conduct, gross misconduct, or gross negligence
which is, or is likely to be, injurious to the Company, its financial condition, or its
reputation; or
	 
	 	 	(iii) Participant’s engaging in any act or omission to act which involves (a) fraud, theft,
misappropriation, embezzlement, or dishonesty, (b) willful violation of any law, rule or
regulation of a governmental authority, other than traffic violations, (c) regular alcohol
or drug abuse, or (d) material violation of the Company’s written policies, including its
Code of Business Conduct and Ethics; or
	 
	 	 	(iv) Entry of an order by any state or federal regulatory agency either removing the
Participant from his or her position with the Company or its affiliates or prohibiting the
Participant from participating in the conduct of the affairs of the Company or any of its
affiliates; or
	 
	 	 	(v) Participant’s breach of the restrictive covenants set forth in his or her Employment
Agreement with the Company, if any, or material breach of any other provisions of his or her
Employment Agreement with the Company, if any.
	 
	(d)	 	Code. The term “Code” means the Internal Revenue Code of 1986, as amended. A
reference to any provision of the Code shall include reference to any successor provision of
the Code.
	 
	(e)	 	Covered Shares. The term “Covered Shares” means the shares of Stock that are the
subject of an Award granted under the Plan.

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	(f)	 	Date of Termination. The term “Date of Termination” means the first day occurring on
or after the Grant Date on which the Employee is not employed by the Company or any
Subsidiary, regardless of the reason for the termination of employment; provided that a
termination of employment shall not be deemed to occur by reason of a transfer of the Employee
between the Company and a Subsidiary or between two Subsidiaries; and further provided that
the Employee’s employment shall not be considered terminated while the Employee is on a
military or sick leave from the Company or a Subsidiary. If an Employee is employed by an
entity that is a Subsidiary and such entity ceases to be a Subsidiary, such event shall be
deemed to be the Employee’s Date of Termination.
	 
	(g)	 	Disability. The term “Disability” shall mean a “permanent and total disability”
within the meaning of Section 22(e)(3) of the Code.
	 
	(h)	 	Eligible Individual. For purposes of the Plan, the term “Eligible Individual” means
any employee, officer, or director of the Company or a Subsidiary, and any consultant or other
person providing services to the Company or a Subsidiary; provided, however, that an ISO may
only be granted to an employee of the Company or a Subsidiary. An Award may be granted to an
employee, in connection with hiring, retention or otherwise, prior to the date the employee
first performs services for the Company or the Subsidiaries, provided that such Awards shall
not become vested prior to the date the employee first performs such services.
	 
	(i)	 	Employee. An “ Employee” is any employee of the Company or a Subsidiary who is
granted an Award under the Plan.
	 
	(j)	 	Employment Agreement. A Participant’s “Employment Agreement” means, as of any date,
the agreement (if any) between the Participant and the Company or a Subsidiary that governs
the terms of such Participant’s employment on that date, and may include a change in control
agreement governing the effect of a change in control with respect to such Participant and,
with respect to the Participant’s termination of employment, may also include a severance
agreement governing the terms of such Participant’s termination from employment; provided that
any such agreement must have been approved by the Committee.
	 
	(k)	 	Fair Market Value. For purposes of determining the “Fair Market Value” of a share of
Stock as of any date, the following rules shall apply:
	 
	 	 	(i) (A) If shares of Stock are listed or admitted to trade on a national securities
exchange, the average of the high and low reported sales prices of the shares of Stock on
the Composite Tape on such date, as published in the Western Edition of The Wall Street
Journal, on the principal national securities exchange on which the shares of Stock are so
listed or admitted to trade. (B) If the Stock is not listed or admitted to trade on a
national securities exchange, the average of the high and low reported prices for the Stock
on such date, as furnished by the National Association of Securities Dealers, Inc. (“NASD”)
through the NASDAQ National Market Reporting System (or a similar organization, if the NASD
is no longer reporting such information). (C) If the Stock is not listed or admitted to
trade on a national securities exchange and are not reported on the National

- 19 -

 

	 	 	Market Reporting System, the arithmetic mean between the bid and asked prices for the Shares
on such date, as furnished by the NASD or a similar organization. (D) If the Stock is not
listed or admitted to trade on a national securities exchange nor reported on the National
Market Reporting System and if bid and asked prices for the stock are not furnished by the
NASD or a similar organization, the value as established by the Board at such time for
purposes of this Plan.
	 
	 	 	(ii) If the day is not a business day, and as a result, subsection (i) next above is
inapplicable, the Fair Market Value of the Stock shall be determined as of the next earlier
business day.
	 
	(l)	 	Full Value Award. The term “Full Value Award” means an Award other than in the form
of an Option, and which is settled by the issuance of shares of Stock.
	 
	(m)	 	Good Reason. The term “Good Reason” shall have the meaning assigned such term in the
Employment Agreement, if any, between a Participant and the Company or an affiliate, provided,
however that if there is no such Employment Agreement in which such term is defined, and
unless otherwise defined in the applicable Award, “Good Reason” shall mean, with respect to
any Employee, any of the following acts by the Company or an affiliate, without the consent of
the Participant (in each case, other than an isolated, insubstantial and inadvertent action
not taken in bad faith and which is remedied by the Company or the affiliate promptly after
receipt of notice thereof given by the Participant): (i) the assignment to the Participant of
duties materially inconsistent with, or a material diminution in, the Participant’s position,
authority, duties or responsibilities as in effect immediately prior to a Change in Control,
(ii) a reduction by the Company or an affiliate in the Participant’s base salary, (iii) the
Company or an affiliate requiring the Participant, without his or her consent, to be based at
any office or location more than 35 miles from the location at which the Participant was
stationed immediately prior to a Change in Control, (iv) the continuing material breach by the
Company or an affiliate of any Employment Agreement between the Participant and the Company or
an affiliate after the expiration of any applicable period for cure, or (v) the expiration an
Employment Agreement between the Employee and the Company or any affiliate in effect prior to
a Change in Control without renewal by the Company or its successor on or following a Change
in Control on terms that are substantially comparable to the terms of such Employment
Agreement.
	 
	(n)	 	Grant Date. The term “Grant Date” with respect to an Award means the date on which
the Award is granted under this Plan.
	 
	(o)	 	Non-Employee Director. Each member of the Board or the Board of Directors of IndyMac
Bank, F.S.B who is not an employee of the Company or any Subsidiary shall be a “Non-Employee
Director.”
	 
	(p)	 	Performance-Based Compensation. The term “performance-based compensation” shall have
the meaning ascribed to it in Section 162(m) of the Code and the regulations thereunder.

- 20 -

 

	(q)	 	Performance Measures. The term “Performance Measures” shall mean one or more of the
following business criteria, either alone or in combination, as selected by the Committee,
which may be expressed in terms of Company-wide objectives or in terms of objectives that
relate to the performance of an affiliated company or a division, region, department or
function within the Company or an affiliated company:

	 	•	 	Revenue
	 
	 	•	 	Sales, including cross-sales
	 
	 	•	 	Profit (net profit, gross profit, operating profit, economic profit, profit
margins, mortgage banking revenue margin, thrift net interest margin or other
corporate profit measures)
	 
	 	•	 	Earnings (EBIT; EBITDA; earnings per share; operating earnings per diluted
share, either before or after amortization of intangible assets; or other corporate
earnings measures)
	 
	 	•	 	Net income (before or after taxes, operating income or other income measures)
	 
	 	•	 	Cash (cash flow, cash generation or other cash measures)
	 
	 	•	 	Assets (net worth, asset quality, ratio of non-performing assets to total
assets, or other asset measures)
	 
	 	•	 	Stock price or performance
	 
	 	•	 	Total stockholder return (stock price appreciation plus reinvested dividends
divided by beginning share price)
	 
	 	•	 	Return measures (including, but not limited to, return on assets or average
assets, capital, average or common equity, or sales, and cash flow return on assets
or average assets, capital, average or common equity, or sales)
	 
	 	•	 	Market share and market size of various consumer financial products
	 
	 	•	 	Loan origination volumes
	 
	 	•	 	Deposits
	 
	 	•	 	Interest rate risk (including, but not limited to duration gap, value at risk
and other interest rate risk measures)
	 
	 	•	 	Credit risk (including, but not limited to, other credit risk measures)
	 
	 	•	 	Expenses (net operating expense, either before or after amortization of
intangible assets; expense management; expense ratio; expense efficiency ratios,
ratio of expenses outsourced as a percent of total expenses, cost per loan, cost
per deposit or other expense measures)
	 
	 	•	 	Ratio of headcount outsourced as a percent of total headcount
	 
	 	•	 	Revenues per headcount or the inverse ratio
	 
	 	•	 	Secondary market investor performance and/or ratings
	 
	 	•	 	Fair value of assets and/or liabilities and growth and/or decline in either or both
	 
	 	•	 	Hedge effectiveness
	 
	 	•	 	Mergers, acquisitions and start-up business activities (e.g. successful
acquisition deal completion)
	 
	 	•	 	Internal rate of return or increase in net present value
	 
	 	•	 	Regulatory compliance
	 
	 	•	 	Customer satisfaction ratings

- 21 -

 

	 	•	 	Employee turnover and employee count (as a whole or by a specific subset of
employees)
	 
	 	•	 	Employee morale and culture survey results
	 
	 	•	 	Customer count, revenues, retention and penetration
	 
	 	•	 	Portfolio balance and count
	 
	 	•	 	Cost of funds
	 
	 	•	 	Rating agency credit ratings
	 
	 	•	 	Third party servicer evaluations (including, but not limited to, evaluations
conducted by the GSE’s and servicer ratings published by the rating agencies)

Performance goals with respect to the foregoing business criteria may be specified in absolute
terms, in percentages, or in terms of growth from period to period or growth rates over time.
Performance Goals need not be based upon an increase or positive result under a business criterion
and could include, for example, the maintenance of the status quo or the limitation of economic
losses (measured, in each case, by reference to a specific business criterion).

	(r)	 	Restricted Period. The term “Restricted Period” means the period during which the
shares of Stock subject to an Award of Restricted Stock or a Restricted Stock Unit Award
remain unvested, as set forth in the Plan or the applicable Award Memorandum.

	(s)	 	Retirement. An Employee’s “Retirement” shall mean retirement or resignation from the
Company (a)(i) if the Participant is less than 55 years of age, with at least 75 points or
(ii) if the Participant is 55 years of age or older, with at least 65 points and (b) the
Participant has at least five (5) consecutive years of employment with the Company. An
Employee shall receive one (1) point for every consecutive year of employment with the Company
and one (1) point for every year of age. For example, an Employee who is 52 years of age and
has worked for the Company for 15 consecutive years has 67 points.

	(t)	 	Subsidiary. The term “Subsidiary” means any company during any period in which it is
a “subsidiary corporation” (as that term is defined in Code Section 424(f)) with respect to
the Company.

	(u)	 	Stock. The term “Stock” means shares of common stock of the Company.

- 22 -<PAGE>
                                                                   Exhibit(4)(a)

                     FIRST SUNAMERICA LIFE INSURANCE COMPANY
                 A STOCK COMPANY         LOS ANGELES, CALIFORNIA

CONTRACT  NUMBER  P9999999999

OWNER       JOHN DOE

                     EXECUTIVE OFFICE          ANNUITY SERVICE CENTER
               733 THIRD AVENUE, 4th FLOOR          PO BOX 54299
                    NEW YORK, NY 10017       LOS ANGELES, CA 90054-0299

FIRST SUNAMERICA LIFE INSURANCE COMPANY ("We", "Us", the "Company", or "First
SunAmerica") agrees to provide benefits to the Owner in accordance with the
provisions set forth in this Contract and in consideration of the Application or
confirmation thereof and Purchase Payments We received.

THE VALUE OF AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DURING THE ACCUMULATION
AND ANNUITY PERIODS IS NOT GUARANTEED, AND WILL INCREASE OR DECREASE BASED UPON
THE INVESTMENT EXPERIENCE OF THE VARIABLE PORTFOLIOS YOU CHOOSE.

THE SEPARATE ACCOUNT CHARGE IS CHARGED AGAINST THE ASSETS OF THE SEPARATE
ACCOUNT. THIS CHARGE INCLUDES FEES FOR MORTALITY AND EXPENSE RISK AND THE
DISTRIBUTION EXPENSE. ON AN ANNUALIZED BASIS THE CHARGE EQUALS 0.85%. THESE
CHARGES ARE ASSESSED, ON A SIMPLE INTEREST BASIS, AS A PERCENTAGE OF THE AVERAGE
DAILY ENDING VALUE OF THE ASSETS ATTRIBUTABLE TO THE ACCUMULATION UNITS OF THE
VARIABLE PORTFOLIOS TO WHICH YOUR CONTRACT VALUE IS ALLOCATED. THE DAILY CHARGE
IS 1/365TH OF THE ANNUALIZED CHARGE. THUS, THE SMALLEST ANNUAL EFFECTIVE RATE OF
THE INVESTMENT RETURN THAT WOULD HAVE TO BE EARNED ON ASSETS OF THE SEPARATE
ACCOUNT SO THAT THE DOLLAR AMOUNT OF VARIABLE ANNUITY PAYMENTS WILL NOT DECREASE
IS 4.39%, COMPOUNDED DAILY. THE CONTRACT'S RATE OF RETURN IS BASED ON COMPOUND
INTEREST.

THE FIXED ACCOUNT OPTIONS, DOLLAR COST AVERAGING PROGRAM OR ONE OR MORE FIXED
ACCOUNT GUARANTEE PERIODS MAY NOT BE AVAILABLE ON THE ISSUE DATE. PLEASE CHECK
WITH YOUR REGISTERED REPRESENTATIVE FOR AVAILABILITY OF THESE OPTIONS.

RIGHT TO EXAMINE - IF, WITHIN 10 DAYS OF RECEIPT OF THIS CONTACT (60 DAYS IF THE
CONTRACT REPLACES ANY OTHER LIFE INSURANCE AND ANNUITY CONTRACT(s)) YOU ARE NOT
SATISFIED WITH IT YOU MAY RETURN THIS CONTRACT TO OUR ANNUITY SERVICE CENTER OR
TO THE AGENT THROUGH WHOM THE CONTRACT WAS PURCHASED. THE COMPANY WILL REFUND
THE GROSS PURCHASE PAYMENT OR THE CONTRACT VALUE, INCLUDING ANY SALES CHARGE,
WHICHEVER IS GREATER CALCULATED AS OF THE BUSINESS DAY DURING WHICH WE RECEIVE
THE CONTRACT. UPON SUCH REFUND, THE CONTRACT SHALL BE VOID.

For Individual Retirement Annuities, or if a refund of the Gross Purchase
Payment(s) is otherwise required, We reserve the right to allocate Your Purchase
Payment(s) to the Cash Management Portfolio until the end of the Right To
Examine period. Thereafter, allocations will be made as selected by You on Your
Application.

With 30 days advance notice, we may cease offering Fixed Account Guarantee
Period Options and/or Dollar Cost Averaging Options if market conditions are
such that we are not able to credit the Minimum Guarantee Rate shown on the
Contract Data Page.

                 THIS IS A LEGAL DOCUMENT. READ IT CAREFULLY.

                               /s/ Jay S. Wintrob
                             -----------------------
                                 Jay S. Wintrob
                                    President

                              INDIVIDUAL FIXED AND
                            VARIABLE ANNUITY CONTRACT
                                Nonparticipating

                                       1
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<S>                                                                    <C>
CONTRACT DATA PAGE......................................................PAGE 3

DEFINITIONS.............................................................PAGE 4

PURCHASE PAYMENT PROVISIONS.............................................PAGE 7

ACCUMULATION PROVISIONS.................................................PAGE 8

CHARGES AND DEDUCTIONS..................................................PAGE 9

TRANSFER PROVISIONS.....................................................PAGE 9

WITHDRAWAL PROVISIONS..................................................PAGE 10

DEATH PROVISIONS.......................................................PAGE 11

ANNUITY PROVISIONS.....................................................PAGE 12

GENERAL PROVISIONS.....................................................PAGE 14

ANNUITY PAYMENT OPTIONS ...............................................PAGE 17

FIXED ANNUITY PAYMENT OPTIONS TABLE....................................PAGE 18

VARIABLE ANNUITY PAYMENT OPTIONS TABLE.................................PAGE 21
</TABLE>

                                       2
<PAGE>
                               CONTRACT DATA PAGE

<TABLE>
<S>                                        <C>
CONTRACT NUMBER:                           ANNUITY SERVICE CENTER:
      [P9999999999]                        P. O. BOX 54299
                                           LOS ANGELES, CA 90054-0299

OWNER:                                     AGE AT ISSUE:   [35]
      [JOHN DOE]
                                           INITIAL GROSS PURCHASE PAYMENT:

                                           [$10,000.00]

ANNUITANT:
      [JOHN DOE]                           CONTRACT DATE:   [December 1, 2005]

SPECIFIED ANNUITY DATE:                    CURRENT INTEREST RATE FOR FIXED ACCOUNT
      [December 1, 2051]                   OPTIONS:
                                                 1 Year Guarantee Period: [1.00%]
LATEST ANNUITY DATE:                             6-Month DCA Account: [1.00%]
      [December 1, 2060]                         12-Month DCA Account: [1.00%]

BENEFICIARY:                               MINIMUM GUARANTEE RATE FOR FIXED ACCOUNT
      As named by You                      OPTIONS:    [1.0% - 3.0%]

SEPARATE ACCOUNT:                          With 30 days advance notice, we may cease offering
[FS VARIABLE SEPARATE ACCOUNT]             the Fixed Account Options, Fixed  Account Guarantee
                                           Period Options and/or Dollar Cost Averaging Account
SEPARATE ACCOUNT CHARGE: [0.85%]           Options if market conditions are such that we are not
                                           able to credit the Minimum Guarantee Rate shown on
TRANSFER FEE:                              this page.
      Current: [$25.00]. Maximum: $25.00
      Waived for systematic transfers      ANNUAL CONTRACT MAINTENANCE FEE:
      (i.e. DCA)and for the first 15             Current:   [$30.00]   Maximum: $50.00
      transfers in any Contract Year.

OPTIONAL BENEFITS ELECTED:                       OPTIONAL ELECTION CHARGES:

      Maximum Anniversary Value                                0.00%
      GMWB                                                     0.00%
</TABLE>

                              SALES CHARGE SCHEDULE

<TABLE>
<CAPTION>
      TOTAL AMOUNT OF OWNER'S   MAXIMUM SALES CHARGE
        INVESTMENT RECEIVED        AS A PERCENTAGE
                                  OF GROSS PURCHASE
                                       PAYMENT
<S>                             <C>
        [Less than $50,000]            [5.75%]
         [$50,000-$99,999]             [4.75%]
        [$100,000-$249,999]            [3.50%]
        [$250,000-$499,999]            [2.50%]
        [$500,000-$999,999]            [2.00%]
       [$1,000,000 and over]*          [0.50%]
</TABLE>

      *A withdrawal charge of [0.50%] applied to Gross Purchase Payments subject
      to a [0.50%] Sales Charge if invested less than [12] months at the time of
      withdrawal.

                                  FOR INQUIRIES
                               CALL 1-800-996-9786

                                       3
<PAGE>
                                   DEFINITIONS

Defined in this section are some of the words and phrases used in this Contract.
These terms are capitalized when used in the Contract with the meaning set forth
below.

ACCUMULATION UNIT
A unit of measurement used to compute the portion of the Contract Value
attributable to a Variable Portfolio prior to the Annuity Date.

AGE
Age as of last birthday. In the case of a Joint Owner/Annuitant, the age of the
older person will be used to determine any age-driven benefit.

ANNUITANT
The natural person or persons whose lives is(are) used to determine the annuity
benefits under the Contract. If the Contract is in force and the Annuitant(s)
is(are) alive on the Annuity Date, We will begin payments to the Payee. This
Contract cannot have Joint Annuitants if it is issued in connection with a
tax-qualified retirement plan.

ANNUITY DATE
The date on which annuity payments ("income payments") to the Payee begin. This
date cannot be later than the Latest Annuity Date.

ANNUITY SERVICE CENTER
As specified on the Contract Data Page.

ANNUITY UNIT
A unit of measurement determined on or after the Annuity Date used to compute
annuity payments from the Variable Portfolio(s).

BENEFICIARY
The person(s) or entity as named by You at issue to receive the death benefit
under this Contract upon your death. You may later change Your Beneficiary in a
written request to Us at Our Annuity Service Center.

CONTINUATION DATE
The Date on which We receive, at Our Annuity Service Center: (a) the Spousal
Beneficiary's written request to continue the Contract, and (b) Due Proof of
Death of the Owner. If We receive (a) and (b) on different dates, the
Continuation Date will be the later date.

CONTRACT DATE
The date Your Contract is issued, as shown on the Contract Data Page. It is the
date from which Contract Years and anniversaries are measured.

CONTRACT VALUE
The sum of: (1) Your share of the Variable Portfolios' Accumulation Unit Values
and (2) the value of amounts if any, allocated to any available Fixed Account
Options.

                                       4
<PAGE>
CONTRACT YEAR
One year starting from the Contract Date or subsequent contract anniversary in
one calendar year and ending on the day preceding the anniversary of such date
in the succeeding calendar year.

DOLLAR COST AVERAGING (DCA)
An optional program under which You authorize the systematic transfer of
specified amounts or percentages from any Variable Portfolio(s) or any available
Fixed Account Option into any Variable Portfolio(s) other than the source
account.

DUE PROOF OF DEATH
Due Proof of Death means:

            1.    a certified copy of a death certificate; or
            2.    a certified copy of a decree of a court of competent
                  jurisdiction as to the finding of death; or
            3.    a written statement by a medical doctor who attended the
                  deceased Owner at the time of death; or
            4.    any other proof satisfactory to Us.

FIXED ACCOUNT OPTIONS
The investment options, if available under this Contract, that become part of
the Company's general asset account and are credited with a fixed rate of
interest declared by the Company. The general asset account contains all the
assets of the Company except for the Separate Account and other segregated asset
accounts. The amount You have in any Fixed Account Option at any time is a
result of any Purchase Payment You have allocated to it or any part of Your
Contract Value You have transferred to it.

FIXED ANNUITIZATION
A series of periodic income payments of predetermined amounts that do not vary
with investment experience. Such payments are made from the Company's general
asset account. This Contract provides several fixed annuity payment options.

GROSS PURCHASE PAYMENTS
Payments in U.S. currency made by or on behalf of the Owner to the Company to
fund the Contract.  Gross Purchase Payments do not reflect the deduction of
the Sales Charge.  The amount of Your initial Gross Purchase Payment is shown
on the Contract Data Page.

GUARANTEE PERIOD
The period for which interest is credited to amounts allocated to any available
Fixed Account Option. We determine in our sole discretion the periods, if any,
that will be offered.

IRC
The Internal Revenue Code of 1986, as amended, or as it may be amended or
superseded.

JOINT OWNER
Any person named as Joint Owner on the Application or confirmation thereof and
listed on the Contract Data Page, unless subsequently changed. The Joint Owner,
if any, possesses an undivided interest in this Contract in conjunction with the
Owner. All references within this contract to Owner will also apply to the Joint
Owner.

                                       5
<PAGE>
LATEST ANNUITY DATE
The later of the Owner's 90th birthday or ten years after the Contract Date. In
the case where a non-natural person is named the Owner, it is the later of the
Annuitant's 90th birthday or ten years after the Contract Date.

NYSE
New York Stock Exchange.

OWNER
The person or entity named in the Contract who is entitled to exercise all
rights and privileges of ownership under the Contract. Owner means both Joint
Owners, if applicable.

PAYEE
The person receiving payment of annuity benefits under this Contract.

PURCHASE PAYMENTS
Payments in U.S. currency made by or on behalf of the Owner to the Company to
fund the Contract. A Purchase Payment corresponds to a Gross Purchase Payment,
and equals the Gross Purchase Payment less any applicable Sales Charge.

REQUIRED DOCUMENTATION
Is: (a) Due Proof of Death that the Owner or the Spousal Beneficiary died
before the Annuity Date; and, (b) an election form specifying the payment
options and (c) any other documentation We may require.

SEPARATE ACCOUNT
A segregated asset account named on the Contract Data Page. The Separate Account
consists of several Variable Portfolios, each investing in shares of the
Underlying Fund(s) of the trust(s). The assets of the Separate Account are not
commingled with the general assets and liabilities of the Company. The value of
amounts allocated to the Variable Portfolios of the Separate Account is not
guaranteed.

SPECIFIED ANNUITY DATE
The anticipated Annuity Date specified by You as shown on the Application. This
date may be changed by You in writing prior to the Annuity Date, but in no event
can it be later than the Latest Annuity Date. If this date is not specified, the
Specified Annuity Date will be the Latest Annuity Date.

SPOUSAL BENEFICIARY
The original deceased Owner's surviving spouse who is designated as the primary
Beneficiary at the time of the Owner's death who may continue the Contract as
the Owner on the Continuation Date.

SUBSEQUENT GROSS PURCHASE PAYMENTS
Gross Purchase Payments made after the initial Gross Purchase Payment.

UNDERLYING FUND
The variable investment options of the trusts in which the corresponding
Variable Portfolio(s) invest.

VARIABLE ANNUITIZATION
A series of periodic income payments which vary in amount according to the
investment experience of one or more Variable Portfolios, as selected by You.
Such payments are made from the Company's Separate Account. This contract
provides several variable annuity payment options.

                                       6
<PAGE>
VARIABLE PORTFOLIO
One or more divisions of the Separate Account which provides for the variable
investment options available under this Contract. Each Variable Portfolio has
its own investment objective and is invested in the Underlying Fund(s) of the
trusts. A Variable Portfolio is not chargeable with liabilities arising out of
any other Variable Portfolio. The available Variable Portfolios are shown on the
Application or confirmation thereof. Additional Variable Portfolios may become
available in the future.

WE, OUR, US, THE COMPANY
First SunAmerica Life Insurance Company.

WITHDRAWAL(S)
Amount(s) withdrawn from the Contract Value including any charges and fees
applicable to each such Withdrawal.

YOU, YOUR
The Owner.

                           PURCHASE PAYMENT PROVISIONS

PURCHASE PAYMENTS
Purchase Payments are flexible. This means that, subject to Company disclosed
restrictions, You may change the amounts, frequency and/or timing of Purchase
Payments. Purchase Payments will be allocated in accordance with instructions
from You to the Variable Portfolio(s) and/or Fixed Account Option(s), if
available. The minimum Purchase Payment that may be allocated to a Variable
Portfolio or available Fixed Account Option under the Contract is $100. Subject
to prior Company approval, the maximum of all Purchase Payments made to the
Contract may not exceed $1,000,000.

DCA FIXED ACCOUNT
Any portion of a Purchase Payment allocated to the DCA Fixed Account Option(s)
must be transferred out to the Variable Portfolio(s) within the specified DCA
Fixed Account Option period. Upon termination of the DCA program, any amounts
remaining in the DCA Fixed Account Option(s) will be transferred to the DCA
target allocation(s) for the program being terminated. Upon annuitization, any
amounts remaining in the DCA Fixed Account Option(s) will be applied to a Fixed
Annuitization. The unit values credited and applied to Your Contract are
determined on each date of transfer. The minimum amount that may be allocated to
the 6-month DCA Fixed Account Option is $600. The minimum amount that may be
allocated to the $12-month DCA Fixed Account Option is $1,200. If market
conditions exist such that we are not able to credit at least the Minimum
Guarantee Rate for Fixed Account Options shown on the Contract Data Page, we
reserve the right to cease offering DCA Fixed Account Options. We will notify
you 30 days before the end of a Fixed Account Option if we exercise this right.

SUBSTITUTION OF VARIABLE PORTFOLIO
If the shares of an Underlying Fund should no longer be available for investment
by the Separate Account, then We may substitute shares of another Underlying
Fund, for shares already purchased, or to be purchased in the future.
Substitutions of securities will be carried out in accordance with any
applicable state and/or federal laws or regulations.

                                       7
<PAGE>
                             ACCUMULATION PROVISIONS

Prior to the Annuity Date, the Contract Value is the sum of the Separate Account
Accumulation Value and the Fixed Account Accumulation Value.

SEPARATE ACCOUNT ACCUMULATION VALUE
The Separate Account Accumulation Value under the Contract shall be the sum of
the values of the Accumulation Units held in the Variable Portfolios for the
Owner.

NUMBER OF ACCUMULATION UNITS
Your Contract is credited with Accumulation Units of the Separate Account when
amounts are allocated to the Variable Portfolio(s). For that portion of each
Purchase Payment and/or transfer amount allocated to a Variable Portfolio, the
number of Accumulation Units credited is equal to the sum of each Purchase
Payment and/or transfer amount allocated to the Variable Portfolio reduced by
premium taxes, if any:

Divided by

The Accumulation Unit Value for that Variable Portfolio for the NYSE business
day in which the Purchase Payment or transfer amount is allocated.

The number of Accumulation Units will be reduced for Withdrawals of Contract
Value, annuitizations, amounts transferred out of a Variable Portfolio, the
Contract Maintenance Fee and applicable charges for elected features as set
forth in endorsements to this contract. Reductions will be made as of the NYSE
business day in which We receive all requirements for the transaction, as
appropriate.

ACCUMULATION UNIT VALUE (AUV)
The AUV of a Variable Portfolio for any NYSE business day is calculated by
subtracting (2) from (1) and dividing the result by (3) where:

(1)   is the total value at the end of the given NYSE business day of the assets
      attributable to the Variable Portfolio minus any applicable liabilities
      other than those owed to the Contractholders;
(2)   is the amount equal to the daily Separate Account Charge plus the daily
      charge for any optional features that impose a daily charge;
(3)   is the number of Accumulation Units outstanding at the end of the given
      NYSE business day.

FIXED ACCOUNT ACCUMULATION VALUE
The Fixed Account Accumulation Value, if any, shall be the sum of all monies
allocated or transferred to the Fixed Account Option(s), if available, reduced
by any applicable premium taxes, plus all interest credited on the Fixed Account
Option(s) during the period that You have Contract Value allocated to the Fixed
Account Option(s). This amount shall be adjusted for Withdrawals,
annuitizations, transfers, the deduction of the Contract Maintenance Fee and any
charges for elected optional benefits as applicable. The Fixed Account
Accumulation Value shall not be less than the minimum values required by law in
the state of New York.

FIXED ACCOUNT GUARANTEE PERIOD OPTIONS AND INTEREST CREDITING
The portion of Your Contract Value within the Fixed Account Option(s), if any,
is credited with interest at rates guaranteed by Us for the Guarantee Period(s)
selected. Interest is credited on a daily basis at the then applicable effective
interest rate for the applicable Guarantee Period. You may select from one or
more Guarantee Periods which we may offer at any particular time. We reserve the
right at any time to add or delete Guarantee Periods. We also reserve the right
to cease offering Guarantee Periods if market conditions are such that we are
not able to credit the Minimum Guarantee Rate for Fixed Account Options shown on
the Contract Data Page. We will notify You 30 days before the end of a Guarantee

                                       8
<PAGE>
Period if we exercise this right. If You have allocated any part of Your initial
Purchase Payment to a Guarantee Period, the amount allocated, as well as the
duration of the Guarantee Period is shown on the Application as completed by You
or confirmation thereof. The interest rate applicable to an allocation of
Purchase Payment or transfer of Contract Value to a Guarantee Period is the rate
in effect for that Guarantee Period at the time of the allocation or transfer.
If You have allocated or transferred amounts at different times to the Fixed
Account Option(s), each allocation or transfer may have a unique effective
interest rate associated with that amount. We guarantee the effective annual
rate of interest for the Fixed Account Option(s), including any of the
Guaranteed Periods. The minimum guarantee rate under Your Contract as referenced
on the Contract Data Page is at least equal to the lesser of: (a) 3% per annum;
or (b) the three-month average value of the five-year Constant Maturity Treasury
Rate reported by the Federal Reserve, rounded up to the nearest 1/4th of 1%, for
the second, third and fourth month preceding the first day of the calendar
quarter during which the Contract is issued, reduced by 1.25% and where the
resulting interest rate is not less than 1%.

                             CHARGES AND DEDUCTIONS

We will deduct the following charges from the Contract:

CONTRACT MAINTENANCE FEE
The charge specified on the Contract Data Page, will be deducted on each
Contract anniversary that occurs on or prior to the Annuity Date. It will also
be deducted when the Contract Value is withdrawn in full if the Withdrawal is
not on the Contract anniversary. We reserve the right to waive the fee for
certain Contract Values of $50,000.00 and up.

SALES CHARGE
A Sales Charge may be deducted from each Gross Purchase Payment. The Sales
Charge is based on the Gross Purchase Payment and is equal to a percentage of
such Gross Purchase Payment at the time it is received. We will not
retroactively reduce Sales Charges unless purchase payments are received within
90 days after contract issue. The Sales Charge Schedule is shown on the Contract
Data Page.

SEPARATE ACCOUNT CHARGE
This charge, as shown on the Contract Data Page, on an annualized basis equals a
percentage of the average daily ending value of the assets attributable to the
Accumulation Units of the Variable Portfolio(s) to which the Contract is
allocated. This charge compensates Us for mortality and expense risks,
distribution, and administration expenses associated with the Contract. We
subtract this charge daily.

                               TRANSFER PROVISIONS

Prior to the Annuity Date, You may transfer all or part of Your Contract Value
from any Variable Portfolio to any other Variable Portfolio(s) or available
Fixed Account Options subject to applicable restrictions. The minimum amount
that can be transferred is $100 and the amount that can remain in a Variable
Portfolio or available Fixed Account Option is $100. We reserve the right to
charge a fee, as shown on the Contract Data Page, for transfers if the number
exceeds a limit of fifteen (15) in any Contract Year. Automatic asset
rebalancing and/or transfers arising out of the DCA program are not counted
against the 15 allowable free transfers. We further reserve the right to
restrict Your transfer privileges, including possible termination of those
privileges if we determine that a pattern of transfers reflects a market timing
strategy or is potentially harmful to other contract owners.

                                       9
<PAGE>
TRANSFERS OF ACCUMULATION AND ANNUITY UNITS BETWEEN VARIABLE PORTFOLIOS AND
FIXED ACCOUNT OPTIONS
Prior to the Annuity Date, transfers are subject to certain restrictions. You
may transfer all or a portion of Your Contract Value from one Variable Portfolio
to another Variable Portfolio(s) or any available Fixed Account Option(s) other
than the DCA Fixed Account Options. You may also transfer from any available
Fixed Account Option(s) to the Variable Portfolio(s) and/or any available Fixed
Account Option(s) of the Contract. A transfer from a Variable Portfolio will
result in the redemption of Accumulation Units in that Variable Portfolio and
the purchase of Accumulation Units in the other Variable Portfolio. Transfers
will be effected at the end of the NYSE business day in which We receive Your
completed request for the transfer.

After the Annuity Date, transfers into and out of any available Fixed Account
Option(s) are not allowed. You may transfer all or a portion of Your Contract
Value from one Variable Portfolio to another Variable Portfolio(s). A transfer
will result in the redemption of Annuity Units in a Variable Portfolio and the
purchase of Annuity Units in the other Variable Portfolio. Transfers will be
effected on the last NYSE business day of the month in which We receive Your
request for the transfer.

                              WITHDRAWAL PROVISIONS

On or before the Annuity Date and while You are living, You may withdraw all or
part of Your Contract Value under this Contract by informing Us in writing at
Our Annuity Service Center, subject to the requirement that the amount remaining
after the withdrawal must be at least $500. For a full withdrawal, this Contract
must be returned to Our Annuity Service Center. The minimum amount that can be
withdrawn $1,000, subject to the minimums set forth by the laws of the State of
New York.

Unless You tell Us otherwise in writing, Withdrawals will be deducted from the
Contract Value in proportion to their allocation among any available Fixed
Account Option(s) and the Variable Portfolios. Withdrawals will be based on
values for the NYSE business day in which the request for withdrawal and (in the
case of a full withdrawal) the Contract, are received at Our Annuity Service
Center. Unless the SUSPENSION OF PAYMENTS or DEFERMENT OF PAYMENTS sections are
in effect, payment of withdrawals will be made within seven calendar days.

For the purposes of determining the amount of any applicable withdrawal charge,
Withdrawals are assumed to be taken from earnings first, then Purchase Payments.
Purchase Payments are assumed to be withdrawn on a first-in-first-out (FIFO)
basis. The withdrawal charge is shown on the Contract Data Page.

Unless otherwise required, for the purposes of determining tax liability under
the IRC, Withdrawals of Contract Value are treated on a last-in-first out (LIFO)
basis.

SYSTEMATIC WITHDRAWAL PROGRAM
On or before the Annuity Date, You may elect to participate in a Systematic
Withdrawal Program by informing Us at Our Annuity Service Center. The Systematic
Withdrawal Program allows You to make automatic withdrawals from Your account
monthly, quarterly, semiannually or annually. The minimum systematic withdrawal
amount is $100, provided the Contract Value amount remaining after withdrawal is
$500. You may terminate Your participation in the Systematic Withdrawal Program
at any time by sending Us a written request. We reserve the right to modify,
suspend or terminate the Systematic Withdrawal Program at any time.

                                       10
<PAGE>
                                DEATH PROVISIONS

Notwithstanding any provision of this Contract to the contrary, all payments of
benefits under this Contract will be made in a manner that satisfies the
requirements of IRC Section 72(s), as amended from time to time, and complies
with requirements set forth by the laws of the State of New York. If the
Contract is owned by a trust or other non-natural person, We will treat the
death of any Annuitant as the death of the "Primary Annuitant" and as the death
of any Owner.

DEATH OF OWNER BEFORE THE ANNUITY DATE
We will pay a death benefit to the Beneficiary upon Our receiving all Required
Documentation. Unless You have previously designated a payment option on behalf
of the Beneficiary, the Beneficiary must select one of the following options:

      1.    Immediately collect the death benefit in a lump sum payment. If a
            lump sum payment is elected, payment will be in accordance with any
            applicable laws and regulations governing payments on death; or
      2.    Collect the death benefit in the form of one of the Annuity Payment
            Options. If an Annuity Payment Option is desired, an option must be
            elected within 60 days of Our receipt of: (a) Due Proof of Death of
            the Owner; (b) an election form specifying the payment option; and
            (c) any other documentation We may require. The payments must be
            over the life of the Beneficiary or over a period not extending
            beyond the life expectancy of the Beneficiary. Payments under this
            option must commence within one year after the Owner's death,
            otherwise, the death benefit will be paid in accordance with option
            1 above; or
      3.    If eligible, continue the Contract as the Spousal Beneficiary. If
            this option is elected, no death benefit is paid as a lump sum.
            Instead, on the Continuation Date, We will contribute to the
            Contract any amount by which the Death Benefit exceeds the Contract
            Value, calculated as of the Owner's date of death. This amount is
            not considered a Purchase Payment except in the calculation of
            certain death benefits upon the death of the Spousal Beneficiary.

You cannot change any elected death benefit option specified on the Contract
Data Page. Your Spousal Beneficiary may discontinue any optional death benefit
option on the Continuation Date but cannot change the death benefit option
elected by you on the Application. Upon the Spousal Beneficiary's death, the
entire interest of the Contract must be distributed immediately under option 1
or 2 as provided under DEATH OF OWNER BEFORE THE ANNUITY DATE.

In any event, the entire interest in the Contract will be distributed within
five years from the date of death of the Owner unless payment option 2 or 3 was
selected under DEATH OF OWNER BEFORE THE ANNUITY DATE.

AMOUNT OF DEATH BENEFIT
If the Owner dies prior to the Annuity Date, the Death Benefit will be the
Contract Value as of the later of: (a) the date of death of the Owner; and (b)
the NYSE business day during which We receive all Required Documentation at Our
Annuity Service Center.

                                       11
<PAGE>
SPOUSAL BENEFICIARY CONTINUATION
On the Continuation Date, the Death Benefit will be the Contract Value as of the
later of: (a) the date of death of the Owner; and (b) the NYSE business day
during which We receive all Required Documentation at Our Annuity Service
Center.

DEATH OF OWNER OR ANNUITANT ON OR AFTER THE ANNUITY DATE
If any Owner or Annuitant dies on or after the Annuity Date and before the
entire interest in the Contract has been distributed, We will pay any remaining
guaranteed annuity payments of the selected annuity payment option to the
Beneficiary upon Our receipt of all Required Documentation. For further
information pertaining to death of the Annuitant, see ANNUITY PAYMENT OPTIONS.

BENEFICIARY
The Beneficiary is selected by the Owner. While the Owner is living and before
the Annuity Date, the Owner may change the Beneficiary by written notice in a
form satisfactory to Us. A change in Beneficiary will take effect on the date
the notice is signed by the Owner, subject to any action We have taken before
receipt of such notice. If two or more persons are named as Beneficiaries under
the Contract those surviving the Owner will share equally unless otherwise
stated; and each must elect to receive their respective portions of the death
benefit according to the options listed under DEATH OF OWNER BEFORE THE ANNUITY
DATE. If the Annuitant survives the Owner, and there are no surviving
Beneficiaries, the Annuitant will be deemed the Beneficiary.

Joint Owners, if applicable, shall be each other's primary Beneficiary. Joint
Annuitants, if any, when the Owner is a non-natural person, shall be each
other's primary Beneficiary. Any other Beneficiary designation will be treated
as a contingent Beneficiary.

If the Owner is also the Annuitant and there are no surviving Beneficiaries,
upon Our receipt of all Required Documentation, We will calculate the Death
Benefit and it will be paid to the estate of the Owner in accordance with option
1, under DEATH OF OWNER BEFORE THE ANNUITY DATE.

                               ANNUITY PROVISIONS

ANNUITY DATE
The Owner specifies an anticipated Annuity Date (the date on which the annuity
payments are to begin) at the time of application. The Owner may change the
Specified Annuity Date at any time, at least seven days prior to the Annuity
Date, by written notice to the Company at its Annuity Service Center. The
Annuity Date must always be the first day of the calendar month and must be at
least thirteen (13) months after the Contract Date but not beyond the Latest
Annuity Date. If no Annuity Date is specified on the Application, the Annuity
Date will be the Latest Annuity Date, as set by the Company.

PAYMENTS TO OWNER
Unless You request otherwise, We will make annuity payments to You. If You want
the annuity payments to be made to some other Payee, We will make such payments
subject to receipt of a written request signed by You filed at the Annuity
Service Center no later than thirty (30) days before the due date of the first
annuity payment. All payments will comply with the laws of the State of New
York.

Any such request is subject to the rights of any assignee. No payments available
to or being paid to the Payee while the Annuitant is alive can be transferred,
commuted, anticipated or encumbered.

                                       12
<PAGE>
BETTERMENT OF RATES
The amount of the Owner's monthly payment will be at least equal to the monthly
payment produced by the application of an amount equal to the Contract Value of
this Contract to purchase any single consideration immediate annuity contract
offered by the Company at the same time to the same class of annuitants. We are
not currently offering any single premium immediate annuity contracts.

FIXED ANNUITIZATION
If a Fixed Annuitization has been elected, the Contract Value less any
applicable premium taxes shall be applied to the payment of the fixed annuity
payment option elected at rates which are at least equal to the annuity rates
based upon the applicable tables in the Contract. In no event will the Fixed
Annuitization be changed once it begins.

AMOUNT OF FIXED ANNUITY PAYMENTS
The amount of each fixed annuity payment will be determined by applying the
portion of the Contract Value allocated by You for Fixed Annuitization, less any
applicable premium taxes, to the annuity table applicable to the fixed annuity
payment option chosen.

AMOUNT OF VARIABLE ANNUITY PAYMENTS
(a)   FIRST VARIABLE ANNUITY PAYMENT:  The dollar amount of the first
      Variable Annuitization payment will be determined by applying the
      portion of the Contract Value allocated to the Variable Portfolio(s),
      less any applicable premium taxes, to rates which are at least equal to
      the annuity rates based upon the annuity table applicable to the
      variable annuity payment option chosen.  If the Contract Value is
      allocated to more than one Variable Portfolio, the value of Your
      interest in each Variable Portfolio is applied separately to the
      variable annuity payment option table to determine the amount of the
      first annuity payment attributable to each Variable Portfolio.
(b)   NUMBER OF VARIABLE ANNUITY UNITS: The number of Annuity Units for each
      applicable Variable Portfolio is the amount of the first annuity payment
      attributable to that Variable Portfolio divided by the value of the
      applicable Annuity Unit for that Variable Portfolio as of the Annuity
      Date. The number of Annuity Units will not change as a result of
      investment experience.
(c)   VALUE OF EACH VARIABLE ANNUITY UNIT: The value of an Annuity Unit may
      increase or decrease from one month to the next. For any month, the value
      of an Annuity Unit of a particular Variable Portfolio is the value of that
      Annuity Unit as of the last NYSE business day of the preceding month,
      multiplied by the Net Investment Factor for that Variable Portfolio for
      the last NYSE business day of the current month.

The Net Investment Factor for any Variable Portfolio for a certain month is
determined by dividing (1) by (2) and multiplying by (3) where:
            (1)   is the Annuity Unit Value of the Variable Portfolio determined
                  as of the last business day at the end of that month, and
            (2)   is the Annuity Unit Value of the Variable Portfolio determined
                  as of the last business day at the end of the preceding month.
            (3)   is a factor that neutralizes the assumed investment rate of
                  3.5% per annum upon which the annuity payment tables are
                  based. The monthly factor that neutralizes the assumed
                  investment rate of 3.5% per annum is:
                  {1/[1.035(1/12)]=0.99713732}.

                                       13
<PAGE>
(d)   SUBSEQUENT VARIABLE ANNUITY PAYMENTS: After the first Variable
      Annuitization payment future payments will vary in amount according to the
      investment performance of the applicable Variable Portfolio(s) to which
      Your Purchase Payments are allocated as of the Annuity Date. The amount
      may change from month to month. The amount of each subsequent payment for
      each Variable Portfolio is:

The number of Annuity Units for each Variable Portfolio as determined for the
first annuity payment

Multiplied by

The value of an Annuity Unit for that Variable Portfolio at the end of the month
immediately preceding the month in which payment is due.

We guarantee that the amount of each Variable Annuitization payments will not be
affected by variations in expenses or mortality experience.

                               GENERAL PROVISIONS

ENTIRE CONTRACT
The Entire Contract between You and Us consists of this Contract, this
Application completed by You and attached to this Contract, and any attached
endorsement(s) or rider(s). An agent cannot change the terms or conditions of
this Contract. Any change must be in writing and approved by Us. Only Our
President, Secretary, or one of Our Vice-Presidents can give Our approval.

CHANGE OF ANNUITANT
If the Owner is an individual, the Owner may change the Annuitant(s) at any time
prior to the Annuity Date. To make a change, the Owner must send a written
notice to Us at least 30 days before the Annuity Date. This change will become
effective on the notice is signed by the Owner, subject to any action We have
taken before receipt of such notice. If the Owner is a non-natural person, the
Owner may not change the Annuitant.

DEATH OF ANNUITANT
If the natural Owner and Annuitant are different, and the Annuitant dies before
the Annuity Date, the Owner becomes the Annuitant until the Owner elects a new
Annuitant. If there are Joint Annuitants, upon the death of any Annuitant prior
to the Annuity Date, the Owner may elect a new Joint Annuitant. However, if the
Owner is a non-natural person, We will treat the death of any Annuitant as the
death of the "Primary Annuitant" and as the death of the Owner, see DEATH
PROVISIONS.

MISSTATEMENT OF AGE OR SEX
If the Age or sex of any Annuitant has been misstated, future annuity payments
will be adjusted using the correct Age and sex, according to Our rates in effect
on the date that annuity payments were determined. Any overpayment plus interest
at the rate of 4% per year will be deducted from the next payment(s) due. Any
underpayment plus interest at the rate of 4% per year will be paid in full with
the next payment due.

PROOF OF AGE, SEX, OR SURVIVAL
The Company may require satisfactory proof of correct Age or sex at any time. If
any payment under this Contract depends on the Annuitant being alive, the
Company may require satisfactory proof of survival.

                                       14
<PAGE>
DEFERMENT OF PAYMENTS
We may defer making payments from the available Fixed Account Option(s) for up
to six (6) months. Interest, subject to state requirements, will be credited
during the deferral period.

SUSPENSION OF PAYMENTS
We may suspend or postpone any payments from the Variable Portfolios if any of
the following occur:

(a)   the NYSE is closed;
(b)   trading on the NYSE is restricted;
(c)   an emergency exists such that it is not reasonably practical to dispose
      of securities in the Variable Portfolios or to determine the value of
      its assets; or
(d)   the Securities and Exchange Commission, by order, so permits for the
      protection of Owners.

Conditions in (b) and (c) will be decided by or in accordance with rules of the
Securities and Exchange Commission.

CONFORMITY WITH STATE LAWS
The provisions of this Contract will be interpreted by the laws of the State of
New York, the state in which this Contract is delivered. Any provision which, on
the Contract Date, is in conflict with the law of such state is amended to
conform to the minimum requirements of such law.

CHANGES IN LAW
If the laws governing this Contract or the taxation of benefits under the
Contract change, We reserve the right to amend this Contract, subject to New
York Insurance Department approval, to comply with any changes.

ASSIGNMENT
You may assign this Contract before the Annuity Date, but We will not be bound
by an assignment unless it is received by Us in writing. Your rights and those
of any other person referred to in this Contract will be subject to the
assignment. Certain assignments may be taxable. We do not assume any
responsibility for the validity or tax consequences of any assignment. We
reserve the right to not recognize assignments if it changes the risk profile of
the Owner of the Contract as determined in Our sole discretion.

CLAIMS OF CREDITORS
To the extent permitted by law, no right or proceeds payable under this Contract
will be subject to claims of creditors or legal process.

PREMIUM TAXES OR OTHER TAXES
The Company may deduct from Your Contract Value any premium tax or other taxes
payable to a state or other government entity, if applicable. Should We advance
any amount so due, We are not waiving any right to collect such amount at a
later date. The Company will deduct any withholding taxes required by applicable
law.

WRITTEN NOTICE
Any notice We send to You will be sent to Your address shown in the Application
unless You request otherwise. Any written request or notice to Us must be sent
to Our Annuity Service Center, as specified on the Contract Data Page.

                                       15
<PAGE>
PERIODIC REPORTS
At least once during each Contract Year, We will send You a statement of the
account activity of the Contract. The statement will include all transactions
which have occurred during the accounting period shown on the statement.

INCONTESTABILITY
This Contract will be incontestable after it has been in force for a period of
two years from the Contract Date during your lifetime or during the lifetimes of
each of the persons who are required to provide Us with information concerning
their age, sex and identity. The incontestability of this Contract applies to
any statements You make, except as otherwise stated in the Misstatement of Age
or Sex provision. Accurate statements as to Your age, sex and identity are
required as a condition of issuing this Contract.

NONPARTICIPATING
This Contract does not share in Our surplus.

WAIVER
Our waiver of any of the terms and conditions under this Contract will not be
deemed to constitute waiver of the right to enforce strict compliance.

                                       16
<PAGE>
                             ANNUITY PAYMENT OPTIONS

During the Annuitant's life, upon written election and the return of this
Contract to the Company at its Annuity Service Center, the Contract Value may be
applied to provide one of the following options or any annuity payment option
that is mutually agreeable. After one year from the Contract Date, and prior to
the Annuity Date, You can choose one of the options described below. If no
option has been selected by the Annuity Date, You will automatically receive
option 4, below, with 10 years of monthly payments guaranteed.

OPTIONS 1 & 1V - LIFE ANNUITY, LIFETIME PAYMENTS GUARANTEED
Payments payable to a Payee during the lifetime of the Annuitant. No further
payments are payable after the death of the Annuitant.

OPTIONS 2 & 2V - JOINT AND SURVIVOR LIFE ANNUITY
Payments payable to the Payee during the lifetime of the Annuitant and during
the lifetime of a designated second person. No further payments are payable
after the deaths of both the Annuitant and the designated second person.

OPTIONS 3 & 3V - JOINT AND SURVIVOR LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 10
OR 20 YEARS
Payments payable to the Payee during the lifetime of the Annuitant and during
the lifetime of a designated second person. If, at the death of the survivor,
payments have been made for less than 10 or 20 years as selected at the time of
annuitization, the remaining guaranteed annuity payments will be continued to
the Beneficiary.

OPTIONS 4 & 4V - LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 10 OR 20 YEARS
Payments payable to the Payee during the lifetime of the Annuitant. If, at the
death of the Annuitant, payments have been made for less than the 10 or 20
years, as selected at the time of annuitization, the remaining guaranteed
annuity payments will be continued to the Beneficiary.

OPTIONS 5 & 5V - FIXED PAYMENTS FOR A SPECIFIED PERIOD CERTAIN
Payments payable to the Payee for any specified period of time for five (5)
years or more, but not exceeding thirty (30) years, as selected at the time of
annuitization. The selection must be made for full twelve-month periods. In the
event of death of the Annuitant, any remaining annuity payments will be
continued to the Beneficiary. If Variable Annuity Payments are elected under
this Annuity Payment Option, any remaining guaranteed Variable Annuity payments
may be redeemed for a discounted value determined by Us.

                                       17
<PAGE>
                       FIXED ANNUITY PAYMENT OPTIONS TABLE

BASIS OF COMPUTATION
The actuarial basis for the Table of Annuity Rates is the Annuity 2000 Mortality
Table with a guaranteed interest rate of [1.50%], with quinquennial age
setbacks. For every five years that the Contract has been in effect at the time
of annuitization, the Annuitant's age will be set back by one year to determine
the applicable factors. The Fixed Annuity Payment Options Table does not include
any applicable premium tax.

            OPTIONS 1 & 4 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.

    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)

<TABLE>
<CAPTION>
               OPTION 1             OPTION 4                   OPTION 4
                                  LIFE ANNUITY               LIFE ANNUITY
  AGE OF                         (W/120 PAYMENTS           (W/240 PAYMENTS
 ANNUITANT   LIFE ANNUITY          GUARANTEED)               GUARANTEED)

             MALE   FEMALE      MALE        FEMALE        MALE        FEMALE
<S>          <C>    <C>         <C>         <C>           <C>         <C>
    55       3.68    3.38       3.64         3.35         3.48         3.27
    56       3.77    3.46       3.73         3.43         3.55         3.34
    57       3.87    3.54       3.82         3.51         3.62         3.40
    58       3.98    3.63       3.92         3.60         3.69         3.47
    59       4.09    3.73       4.02         3.69         3.76         3.54
    60       4.21    3.83       4.13         3.78         3.83         3.62
    61       4.34    3.93       4.24         3.89         3.90         3.69
    62       4.47    4.05       4.36         3.99         3.97         3.77
    63       4.62    4.17       4.49         4.10         4.04         3.84
    64       4.77    4.30       4.62         4.22         4.10         3.92
    65       4.93    4.44       4.76         4.35         4.17         4.00
    66       5.11    4.58       4.90         4.48         4.24         4.07
    67       5.30    4.74       5.05         4.62         4.30         4.15
    68       5.49    4.91       5.20         4.76         4.36         4.22
    69       5.71    5.09       5.36         4.92         4.41         4.29
    70       5.93    5.29       5.53         5.08         4.47         4.36
    71       6.17    5.50       5.70         5.25         4.51         4.42
    72       6.43    5.73       5.87         5.43         4.56         4.48
    73       6.70    5.98       6.05         5.62         4.60         4.53
    74       6.99    6.24       6.23         5.81         4.63         4.58
    75       7.31    6.53       6.41         6.01         4.67         4.62
    76       7.64    6.84       6.59         6.21         4.69         4.65
    77       8.00    7.18       6.78         6.41         4.72         4.69
    78       8.38    7.55       6.96         6.62         4.74         4.71
    79       8.79    7.94       7.13         6.83         4.75         4.74
    80       9.23    8.37       7.31         7.03         4.77         4.75
    81       9.70    8.84       7.47         7.23         4.78         4.77
    82       10.20   9.34       7.63         7.42         4.79         4.78
    83       10.73   9.88       7.78         7.60         4.80         4.79
    84       11.30  10.47       7.93         7.77         4.80         4.80
    85       11.90  11.10       8.06         7.93         4.81         4.80
</TABLE>

                                       18
<PAGE>
             OPTION 2 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
   (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)
                       JOINT & 100% SURVIVOR LIFE ANNUITY

<TABLE>
<CAPTION>
   AGE OF
    MALE
  ANNUITANT                        AGE OF FEMALE ANNUITANT
  ---------                        -----------------------
                  55        60        65       70       75       80       85
<S>              <C>       <C>       <C>      <C>      <C>      <C>      <C>
     55          3.01      3.18      3.33     3.45     3.54     3.60     3.64
     60          3.12      3.36      3.59     3.78     3.94     4.05     4.12
     65          3.21      3.51      3.83     4.13     4.40     4.61     4.75
     70          3.27      3.63      4.03     4.46     4.89     5.26     5.53
     75          3.32      3.70      4.18     4.74     5.35     5.95     6.45
     80          3.34      3.76      4.29     4.95     5.75     6.62     7.45
     85          3.36      3.79      4.35     5.09     6.05     7.20     8.44
</TABLE>

              OPTION 3 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
         JOINT & 100% SURVIVOR LIFE ANNUITY (W/120 PAYMENTS GUARANTEED)

<TABLE>
<CAPTION>
   AGE OF
    MALE
  ANNUITANT                         AGE OF FEMALE ANNUITANT
  ---------                         -----------------------
                  55        60        65       70       75       80       85
<S>              <C>       <C>       <C>      <C>      <C>      <C>      <C>
     55          3.01      3.18      3.33     3.45     3.53     3.59     3.62
     60          3.12      3.36      3.58     3.78     3.93     4.03     4.09
     65          3.21      3.51      3.82     4.12     4.38     4.56     4.67
     70          3.27      3.62      4.02     4.44     4.84     5.16     5.36
     75          3.31      3.70      4.16     4.70     5.26     5.76     6.11
     80          3.33      3.74      4.25     4.88     5.59     6.28     6.80
     85          3.35      3.77      4.31     4.99     5.81     6.66     7.35
</TABLE>

              OPTION 3 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
         JOINT & 100% SURVIVOR LIFE ANNUITY (W/240 PAYMENTS GUARANTEED)

<TABLE>
<CAPTION>
   AGE OF
    MALE
  ANNUITANT                         AGE OF FEMALE ANNUITANT
  ---------                         -----------------------
                  55        60        65       70       75       80       85
<S>              <C>       <C>       <C>      <C>      <C>      <C>      <C>
     55          3.00      3.16      3.30     3.39     3.45     3.47     3.48
     60          3.11      3.33      3.53     3.68     3.77     3.81     3.82
     65          3.18      3.46      3.72     3.94     4.08     4.15     4.17
     70          3.23      3.54      3.86     4.14     4.33     4.43     4.46
     75          3.26      3.59      3.94     4.27     4.50     4.62     4.66
     80          3.27      3.61      3.98     4.33     4.58     4.71     4.76
     85          3.27      3.62      3.99     4.35     4.61     4.75     4.80
</TABLE>

                                       19
<PAGE>
              OPTION 5 - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
                       FIXED PAYMENT FOR SPECIFIED PERIOD

<TABLE>
<CAPTION>
   NUMBER       MONTHLY   NUMBER     MONTHLY   NUMBER     MONTHLY   NUMBER    MONTHLY
  OF YEARS      PAYMENT  OF YEARS    PAYMENT  OF YEARS    PAYMENT  OF YEARS   PAYMENT
  --------      -------  --------    -------  --------    -------  --------   -------
<S>             <C>       <C>        <C>       <C>        <C>      <C>        <C>
                            10         8.96      17        5.55      24        4.13
                            11         8.21      18        5.27      25        3.99
      5          17.28      12         7.58      19        5.03      26        3.86
      6          14.51      13         7.05      20        4.81      27        3.75
      7          12.53      14         6.59      21        4.62      28        3.64
      8          11.04      15         6.20      22        4.44      29        3.54
      9          9.89       16         5.85      23        4.28      30        3.44
</TABLE>

                                       20
<PAGE>
                     VARIABLE ANNUITY PAYMENT OPTIONS TABLE

BASIS OF COMPUTATION
The actuarial basis for the Table of Annuity Rates is the Annuity 2000 Mortality
Table with an effective annual Assumed Investment Rate of 3.50%, with
quinquennial age setbacks. For every five years that the Contract has been in
effect at the time of annuitization, the Annuitant's age will be set back by one
year to determine the applicable factors. The Variable Annuity Payment Options
Table does not include any applicable premium tax.

            OPTIONS 1V& 4V - TABLE OF MONTHLY INSTALLMENTS PER $1,000

    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)

<TABLE>
<CAPTION>
              OPTION 1V            OPTION 4V                  OPTION 4V
                                 LIFE ANNUITY               LIFE ANNUITY
AGE OF                          (W/120 PAYMENTS            (W/240 PAYMENTS
ANNUITANT   LIFE ANNUITY          GUARANTEED)                GUARANTEED)

            MALE   FEMALE      MALE        FEMALE        MALE         FEMALE
<S>         <C>    <C>         <C>         <C>           <C>          <C>
    55      4.80    4.48       4.74         4.45         4.54          4.34
    56      4.89    4.56       4.82         4.52         4.60          4.40
    57      4.99    4.64       4.91         4.60         4.67          4.46
    58      5.09    4.73       5.01         4.68         4.73          4.53
    59      5.21    4.82       5.11         4.77         4.79          4.59
    60      5.33    4.92       5.21         4.86         4.86          4.66
    61      5.45    5.03       5.32         4.96         4.92          4.73
    62      5.59    5.14       5.44         5.06         4.98          4.80
    63      5.73    5.26       5.56         5.17         5.05          4.87
    64      5.89    5.39       5.69         5.29         5.11          4.94
    65      6.06    5.53       5.83         5.41         5.17          5.01
    66      6.24    5.68       5.97         5.54         5.23          5.08
    67      6.43    5.84       6.11         5.67         5.29          5.14
    68      6.63    6.01       6.26         5.82         5.34          5.21
    69      6.84    6.19       6.42         5.97         5.39          5.28
    70      7.07    6.39       6.57         6.12         5.44          5.34
    71      7.32    6.60       6.74         6.29         5.48          5.39
    72      7.58    6.84       6.91         6.46         5.52          5.45
    73      7.86    7.09       7.08         6.64         5.56          5.49
    74      8.16    7.36       7.25         6.83         5.59          5.54
    75      8.47    7.65       7.42         7.02         5.62          5.57
    76      8.82    7.97       7.59         7.22         5.64          5.61
    77      9.18    8.31       7.77         7.41         5.67          5.64
    78      9.57    8.69       7.94         7.61         5.68          5.66
    79      9.99    9.09       8.11         7.81         5.70          5.68
    80      10.43   9.53       8.27         8.00         5.71          5.70
    81      10.91  10.00       8.43         8.19         5.72          5.71
    82      11.42  10.51       8.58         8.38         5.73          5.72
    83      11.96  11.07       8.72         8.55         5.74          5.73
    84      12.53  11.67       8.85         8.71         5.74          5.74
    85      13.15  12.31       8.98         8.86         5.75          5.74
</TABLE>

                                       21
<PAGE>
         OPTION 2V - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY
        INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)
                       JOINT & 100% SURVIVOR LIFE ANNUITY

<TABLE>
<CAPTION>
  AGE OF
   MALE
 ANNUITANT                        AGE OF FEMALE ANNUITANT
 ---------                        -----------------------
               55         60        65       70        75       80        85
<S>           <C>        <C>       <C>      <C>       <C>      <C>       <C>
    55        4.09       4.25      4.40     4.52      4.62     4.69      4.74
    60        4.20       4.42      4.64     4.84      5.00     5.13      5.21
    65        4.29       4.56      4.87     5.17      5.45     5.67      5.83
    70        4.35       4.68      5.07     5.49      5.92     6.30      6.60
    75        4.40       4.77      5.23     5.78      6.38     6.99      7.50
    80        4.43       4.83      5.34     6.00      6.79     7.66      8.50
    85        4.45       4.87      5.42     6.15      7.10     8.25      9.49
</TABLE>

              OPTION 3V - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
        JOINT AND 100% SURVIVOR LIFE ANNUITY (W/120 PAYMENTS GUARANTEED)

<TABLE>
<CAPTION>
  AGE OF
   MALE
 ANNUITANT                         AGE OF FEMALE ANNUITANT
 ---------                         -----------------------
               55         60        65       70        75       80        85
<S>           <C>        <C>       <C>      <C>       <C>      <C>       <C>
    55        4.08       4.25      4.40     4.52      4.61     4.68      4.71
    60        4.19       4.41      4.63     4.83      4.99     5.10      5.16
    65        4.28       4.56      4.86     5.15      5.41     5.61      5.73
    70        4.35       4.68      5.05     5.46      5.86     6.18      6.40
    75        4.39       4.76      5.20     5.72      6.27     6.76      7.11
    80        4.42       4.81      5.30     5.91      6.60     7.26      7.77
    85        4.44       4.84      5.36     6.03      6.82     7.63      8.29
</TABLE>

              OPTION 3V - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
    (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST)
        JOINT AND 100% SURVIVOR LIFE ANNUITY (W/240 PAYMENTS GUARANTEED)

<TABLE>
<CAPTION>
  AGE OF
   MALE
 ANNUITANT                         AGE OF FEMALE ANNUITANT
 ---------                         -----------------------
               55         60        65       70        75       80        85
<S>           <C>        <C>       <C>      <C>       <C>      <C>       <C>
    55        4.07       4.22      4.36     4.45      4.51     4.53      4.54
    60        4.17       4.38      4.56     4.71      4.80     4.84      4.85
    65        4.25       4.50      4.74     4.95      5.08     5.14      5.17
    70        4.30       4.58      4.88     5.14      5.31     5.40      5.43
    75        4.32       4.63      4.96     5.25      5.46     5.57      5.61
    80        4.34       4.65      4.99     5.31      5.54     5.66      5.70
    85        4.34       4.66      5.00     5.33      5.57     5.69      5.74
</TABLE>

                                       22
<PAGE>
              OPTION 5V - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
                         PAYMENTS FOR A SPECIFIED PERIOD
<TABLE>
<CAPTION>
  NUMBER     MONTHLY    NUMBER   MONTHLY   NUMBER   MONTHLY   NUMBER   MONTHLY
 OF YEARS    PAYMENT   OF YEARS  PAYMENT  OF YEARS  PAYMENT  OF YEARS  PAYMENT
 --------    -------   --------  -------  --------  -------  --------  -------
<S>          <C>       <C>       <C>      <C>       <C>      <C>       <C>
                          10       8.96      17       5.55      24       4.13
                          11       8.21      18       5.27      25       3.99
     5        17.28       12       7.58      19       5.03      26       3.86
     6        14.51       13       7.05      20       4.81      27       3.75
     7        12.53       14       6.59      21       4.62      28       3.64
     8        11.04       15       6.20      22       4.44      29       3.54
     9        9.89        16       5.85      23       4.28      30       3.44
</TABLE>

                                       23
<PAGE>
                     FIRST SUNAMERICA LIFE INSURANCE COMPANY
                  A STOCK COMPANY            NEW YORK, NEW YORK

                              INDIVIDUAL FIXED AND
                            VARIABLE ANNUITY CONTRACT

                                Nonparticipating

                                       24

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]