Document:

exv10w11

 

Exhibit 10.11

COUNTRYWIDE FINANCIAL CORPORATION

2006 Equity Incentive Plan

Incentive Stock Option Award Terms

     The Participant specified below has been granted this Option by Countrywide Financial
Corporation, a Delaware corporation (the “Company”) under the terms of the Countrywide
Financial Corporation 2006 Equity Incentive Plan (the “Plan”). The Option shall be subject to
the Plan as well as the following terms and conditions (the “Option Terms”) and all terms and
conditions set forth on the Option Statement (the “Statement”) linked electronically hereto:

     Section 1. Award. In accordance with the Plan, the Company hereby grants an Option
for the number of Covered Shares set forth in Section 2 to the Participant, subject to Option
Terms.

     Section 2. Terms of Award. The following words and phrases relating to the grant of
the Option shall have the following meanings:

          (a) The “Participant” is the individual recipient of the Option Award on the specified Grant
Date.

          (b) The “Grant Date” is [                    ].

          (c) The number of “Covered Shares” shall be the number of shares of Stock awarded to the
Participant on the Grant Date as reflected in the corporate records and set forth on the Statement.

          (d) The “Exercise Price” is $[___] per share.

     Except where the context clearly implies to the contrary, any capitalized term in this award
shall have the meaning ascribed to that term under the Plan.

     Section 3. Incentive Stock Option. The Option is intended to constitute an “incentive
stock option” as that term is used in Code section 422. To the extent that the aggregate fair
market value (determined at the time of grant) of Shares with respect to which incentive stock
options are exercisable for the first time by the Participant during any calendar year under all
plans of the Company and its Subsidiaries exceeds $100,000, the options or portions thereof which
exceed such limit (according to the order in which they were granted) shall be treated as
nonstatutory stock options. It should be understood that there is no assurance that the Option
will, in fact, be treated as an incentive stock option.

     Section 4. Vesting. Subject to the limitations of the Option Terms, each installment
of Covered Shares of the Option (“Installment”) shall become vested and exercisable on and after
the “Vesting Date” for such Installment as described in the following schedule (but only if the
Participant’s Termination of Service has not occurred before the Vesting Date):

 

 

	 	 	 
	 	 	VESTING DATE
	INSTALLMENT	 	APPLICABLE TO INSTALLMENT
	[___] of Covered Shares

	 	[___]
	[___] of Covered Shares

	 	[___]
	[___] of Covered Shares

	 	[___]

          (a) Notwithstanding the foregoing provisions of this Section 4, the Option shall become fully
exercisable upon the earliest of the following events to occur: (i) a Change of Control that
occurs on or before the Participant’s Termination of Service; or (ii) Participant’s Termination of
Service as a result of the Participant’s Death, Disability or Retirement.

          (b) The Option may only be exercised on or after the Participant’s Termination of Service only
as to that portion of the Covered Shares for which it was exercisable immediately prior to the
Participant’s Termination of Service, or became exercisable on the date of the Participant’s
Termination of Service.

     Section 5. Expiration. The Option shall not be exercisable after the Company’s close
of business on the last business day that occurs prior to the Expiration Date. The “Expiration
Date” shall be the earliest to occur of:

          (a) the date of the Participant’s Termination of Service due to Cause;

          (b) the five-year anniversary of the Grant Date;

          (c) the twelve (12) month anniversary of the Participant’s Termination of Service if the
Termination of Service occurs due to Death, Disability or Retirement; or

          (d) the three (3) month anniversary of the Participant’s Termination of Service if the
Termination of Service occurs for reasons other than Death, Disability, Retirement or Cause;
provided, however, that if the Participant returns to employment with, or as a director or
consultant to, the Company, within three (3) months after the Termination of Service, such
termination shall have no effect on the Option and the Participant shall have the same number of
shares and the same vesting schedule as set forth in this Agreement.

     Notwithstanding the foregoing provisions of this Section 5, in the event a Participant dies
during the periods provided for in subsections (c) or (d) above, the Option shall not expire, and
shall remain exercisable, until the one (1) year anniversary of the date of Death, but in no event
beyond the expiration date provided in subsection (b) above.

     Section 6. Method of Option Exercise.

          (a) Method of Exercise. Subject to the Option Terms and the Plan, the Option may be exercised
in whole or in part by filing an exercise notice with the Secretary of the Company at its corporate
headquarters prior to the Company’s close of business on the last business day that occurs prior to
the Expiration Date. The notice requirement may only be satisfied by (i) the proper use of a
specified electronic medium (phone, intranet, internet or

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other), whether or not such medium is the property of, or maintained, by the Company or a
third party service provider, or (ii) any other method prescribed by the Committee; provided,
however, the Committee shall retain the right to limit or expand the method of exercise to any one
or more of the above methods with respect to any individual Participant or group or class of
Participants. Such notice shall specify the number of Covered Shares which the Participant elects
to purchase, and shall be accompanied by payment of the Exercise Price for such Covered Shares
indicated by the Participant’s election.

          (b) Payment of Exercise Price. Payment may be by cash or, subject to limitations imposed by
applicable law, by such means as the Committee from time to time may permit, including, (i) by
tendering, either actually or by attestation, shares of Common Stock acceptable to the Committee,
valued at Fair Market Value on the date of exercise; (ii) by irrevocably authorizing a third party,
acceptable to the Committee, to sell shares of the Common Stock (or a sufficient portion of the
Shares) acquired upon exercise of the Option and to remit to the Company a sufficient portion of
the sale proceeds to pay the entire Exercise Price; (iii) by personal, certified or cashiers’
check; (iv) by other property deemed acceptable by the Committee; or (v) any combination of the
above. If payment is made pursuant to clauses (i) or (ii) above, the Participant’s election must
be made on or prior to the date of exercise of the Option and must be irrevocable. The Option
shall not be exercisable if and to the extent the Company determines that such exercise would
violate applicable state or federal securities laws or the rules and regulations of any securities
exchange on which the Stock is traded and shall not be exercisable during any blackout period
established by the Company from time to time.

     Section 7. Withholding. The exercise of the Option, and the Company’s obligation to
issue shares upon exercise, is subject to withholding of all applicable taxes. At the election of
the Participant, and subject to such rules and limitations as may be established by the Committee
from time to time, such withholding obligations may be satisfied (i) through cash payment by the
Participant; or (ii) by irrevocably authorizing a third party, acceptable to the Committee, to sell
shares of the Common Stock (or a sufficient portion of the Shares) acquired upon exercise of the
Option and to remit to the Company a sufficient portion of the sale proceeds to pay any tax and
withholding resulting from such exercise; or (iii) by tendering, actually or by attestation, shares
of Common Stock acceptable to the Committee; or (iv) subject to the Committee’s discretion, through
the surrender of Covered Shares to which the Participant is otherwise entitled under the Plan;
provided, however, that such shares under this clause (iv) may be used to satisfy not more than the
Company’s minimum statutory withholding obligation (based on minimum statutory withholding rates
for federal and state tax purposes, including payroll taxes, that are applicable to such
supplemental taxable income).

     Section 8. Transferability. No portion of this Option may be assigned, transferred,
pledged or hypothecated by the Participant in any way whether by operation of law or otherwise, and
shall not be subject to execution, attachment or similar process. Any attempt at assignment,
transfer, pledge or hypothecation, or other disposition of this Option contrary to the provisions
hereof, and the levy of any attachment or similar process upon this option, shall be null and void
and without effect. Notwithstanding the above, an Option may be assigned, transferred, pledged or
hypothecated by will or the laws of descent and distribution or pursuant to a qualified domestic
relations order.

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     Section 9. Heirs and Successors. The Option Terms 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 of the Participant or benefits distributable to the
Participant under this Agreement have not been exercised or distributed, respectively, at the time
of the Participant’s Death, such rights shall be exercisable by the Designated Beneficiary, and
such benefits shall be distributed to the Designated Beneficiary, in accordance with the provisions
of this Agreement and the Plan. The “Designated Beneficiary” shall be the beneficiary or
beneficiaries designated by the Participant in a writing filed with the Committee on the form found
in HRCentral, or such other form as the Committee may require. The designation of beneficiary form
may be amended or revoked from time to time by the Participant. 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
this Agreement or before the complete distribution of benefits to the Designated Beneficiary under
this Agreement, 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.

     Section 10. Administration. The authority to manage and control the operation and
administration of the Option Terms and the Plan shall be vested in the Committee, and the Committee
shall have all powers with respect to the Option Terms as it has with respect to the Plan. Any
interpretation of the Option Terms or the Plan by the Committee and any decision made by it with
respect to the Option Terms or the Plan are final and binding on all persons.

     Section 11. Plan Governs. Notwithstanding anything in the Option Terms to the
contrary, the Option Terms shall be subject to the terms of the Plan, a copy of which may be
obtained by the Participant from the office of the Secretary of the Company; and the Option Terms
are subject to all interpretations, amendments, rules and regulations promulgated by the Committee
from time to time pursuant to the Plan. Notwithstanding anything in the Option Terms to the
contrary, in the event of any discrepancies between the corporate records and the Statement, the
corporate records shall control.

     Section 12. Not An Employment Contract. The Option will not confer on the Participant
any right with respect to continuance of employment or other service with the Company, nor will it
interfere in any way with any right the Company would otherwise have to terminate or modify the
terms of such Participant’s employment or other service at any time.

     Section 13. No Rights As Shareholder. The Participant shall not have any rights of a
shareholder with respect to the Covered Shares, until a stock certificate has been duly issued
following exercise of the Option as provided herein.

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     Section 14. Amendment. The Option Terms may be amended in accordance with the
provisions of the Plan, and may otherwise be amended by written agreement of the Participant and
the Company without the consent of any other person.

     Section 15. Section 409A Amendment. The Committee reserves the right (including the
right to delegate such right) to unilaterally amend this Agreement without the consent of the
Participant in order to maintain an exclusion from the application of, or to maintain compliance
with, Code Section 409A. Participant’s acceptance of this Award constitutes acknowledgement and
consent to such rights of the Committee.

     Section 16. Statement and Modifications. The Option granted to the Participant under
the Option Terms set forth in this Agreement shall be set forth on the Statement. The Participant
hereby acknowledges and agrees that the Statement may be revised from time to time by the Company
to reflect additional grants of Options, exercises of Options and any permitted modifications to
the Plan and Options granted thereunder. Unless the Participant provides written notice to the
Company’s Stock Option Administrator within thirty (30) days of receipt of the Statement at the
principal office of the Company in Calabasas, California, or such other addresses as may be
communicated to the Participant, the Statement (including any revisions incorporated therein) shall
be binding on the Participant, without further notice to or acknowledgement by the Participant. If
no notice is received from the Participant within the thirty (30) day period, then the Participant
shall be deemed to have acknowledged that the Statement is binding with respect to the information
contained therein.

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     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed in its name and on
its behalf, all as of the Grant Date and, by clicking the Accept Button below, the Participant
acknowledges acceptance of the terms and conditions of this Agreement.

COUNTRYWIDE FINANCIAL CORPORATION

	 	 	 	 	 
	By:

	 	 	 	 
	 	 	 	 	 
	Its:
	 	 	 	 
	 	 	 	 	 

Yes, I do accept

(Click here to view grant information. Use your HRCentral password to log in)

No, I do not accept

(Click here to reject and void the grant)

6exv10w12

 

Exhibit 10.12

SECOND AMENDMENT TO

RIGHTS AGREEMENT

          This SECOND AMENDMENT TO AMENDED AND RESTATED RIGHTS AGREEMENT (this “Amendment”) is entered
into as of June 14, 2006 between Countrywide Financial Corporation (formerly known as Countrywide
Credit Industries, Inc.), a Delaware corporation (the “Company”), and American Stock Transfer &
Trust Company, as rights agent (the “Rights Agent”).

W I T N E S S E T H

          WHEREAS, the Company and the Rights Agent are parties to that certain Amended and Restated
Rights Agreement, dated as of November 27, 2001, as amended by the Substitution of Rights Agent and
Amendment to Amended and Restated Rights Agreement, dated as of December 8, 2005 (together, and
including any further amendments or supplements thereto, the “Rights Agreement”); and

          WHEREAS, capitalized terms used not otherwise defined in this Amendment shall have the
meanings assigned to them in the Rights Agreement; and

          WHEREAS, the Board of Directors of the Company has determined that this Amendment is necessary
and desirable and has approved this Amendment; and

          WHEREAS, Section 27 of the Rights Agreement permits the Company to amend the Rights Agreement
on the terms set forth in this Amendment;

          NOW, THEREFORE, in consideration of the premises and mutual agreements herein set forth, the
parties hereby agree as follows:

          1. Each reference in the Agreement to “Countrywide Credit Industries, Inc.” is hereby deleted
and replaced with “Countrywide Financial Corporation”.

          2. Paragraph (b) of Section 7 of the Rights Agreement is hereby deleted in its entirety and
replaced with the following new paragraph (b):

          “(b) The Purchase Price for each one two-thousandth share of Preferred Stock pursuant
to the exercise of a Right shall initially be $624, shall be subject to adjustment from time
to time as provided Sections 11 and 13 hereof and shall be payable in lawful money of the
United States of America in accordance with paragraph (c) below.”

          3. The first paragraph of text in the Form of Rights Certificate attached as Exhibit B to the
Rights Agreement is hereby deleted in its entirety and replaced with the following new paragraph:

     “This certifies that                     , or registered assigns, is the registered owner of the number of Rights set forth
above, each of

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which entitles the owner thereof, subject to the terms, provisions and
conditions of the Amended and Restated Rights Agreement, dated as of November 27,
2001, as amended (the “Rights Agreement”), between Countrywide Financial
Corporation, a Delaware corporation (the “Company”), and American Stock Transfer &
Trust Company, as rights agent (the “Rights Agent”), to purchase from the Company at
any time after the Distribution Date (as such term is defined in the Rights
Agreement) and prior to 5:00 P.M. (Los Angeles time) on February 28, 2012 at the
principal office of the Rights Agent in Los Angeles, California, one two-thousandth
of a fully paid, nonassessable share of Series A Participating Preferred Stock (the
“Preferred Stock”) of the Company, at a purchase price of $624 per one
two-thousandth of a share (the “Purchase Price”), upon presentation and surrender of
this Rights Certificate with the appropriate Form of Election to Purchase duly
executed. The number of Rights evidenced by this Rights Certificate (and the number
of shares which may be purchased upon exercise thereof) set forth above, and the
Purchase Price set forth above, are the number and Purchase Price as of June 14,
2006, based on the Preferred Stock as constituted at such date.”

          4. To the extent that the terms and provisions of the Rights Agreement do not conflict with
the terms and provisions of this Amendment, then such terms and provisions shall remain in full
force and legal effect. To the extent that there is a conflict between the terms and provisions of
the Rights Agreement and this Amendment, the terms and provisions of this Amendment shall govern
for purposes of the subject matter of this Amendment only.

          5. This Amendment and the Rights Agreement constitute the entire understanding and agreement
with respect to the subject matter of this Amendment and the Rights Agreement, and supersede any
and all prior or contemporaneous representations, understandings, and agreements whether oral or
written between the parties relating to the subject matter of this Amendment or the Rights
Agreement, all of which are merged in to this Amendment. This Amendment may be executed in
counterparts, each of which shall be deemed an original and all of which together shall constitute
one and the same document.

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed, all as
of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	COUNTRYWIDE FINANCIAL CORPORATION	 	 
	 
	 	 	 	 	 	 
	[SEAL]
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Anne D. McCallion	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	Anne D. McCallion	 	 
	 

	 	Title:	 	Senior Managing Director and Chief
of Financial Operations and Planning	 	 
	Attest:
	 	 	 	 	 	 

	 	 	 	 	 
	By:

	 	/s/ Michael S. Udovic 	 	 
	 	 	 	 	 
	Name:
	 	Michael S. Udovic 	 	 
	Title:
	 	Senior Vice President, Chief
Governance Officer and Assistant Secretary 	 	 

	 	 	 	 	 	 	 
	 	 	AMERICAN STOCK TRANSFER & TRUST COMPANY,

 as Rights Agent	 	 
	 
	 	 	 	 	 	 
	[SEAL]
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Herbert J. Lemmer	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	Herbert J. Lemmer	 	 
	 

	 	Title:	 	Vice President	 	 
	Attest:
	 	 	 	 	 	 

	 	 	 	 	 
	By:

	 	/s/ Susan Silber	 	 
	 	 	 	 	 
	Name:
	 	Susan Silber	 	 
	Title:
	 	Assistant Secretary	 	 

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