Document:

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                                                                    Exhibit 4.12

                              INDYMAC BANCORP, INC.
                               2002 INCENTIVE PLAN
                 AS AMENDED AND RESTATED AS OF MARCH 4, 2003

                                    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 March 4, 2003; provided that no
Awards shall be granted under Schedule 2 to Exhibit A prior to March 4, 2003.

         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 and the applicable Award
Memorandum), 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 and Exhibit A and
Exhibit B).

                                    SECTION 2
                                OPTIONS AND SARS

         2.1.     Definitions.

(a)      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 in 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 an "incentive stock option" as that term is
         described in section 422(b) of the Code.

(b)      A stock appreciation right (an "SAR") entitles the Participant to
         receive, in cash or Stock (as determined in accordance with subsection
         2.5), value equal to (or otherwise based on)
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         the excess of: (a) the Fair Market Value of a specified number of
         shares of Stock at the time of exercise; over (b) an Exercise Price
         established by the Committee.

         2.2.     Exercise Price. The "Exercise Price" of each Option and SAR
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 or
SAR 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 and an SAR 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 and SARs) shall have a minimum 1-year vesting
period and Awards granted pursuant to Section 3 (relating to Other Stock Awards)
shall have a minimum 3-year vesting period. 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.     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 2.4, 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 paragraph 2.4(c), payment may be made as soon as practicable after
         the exercise).

(b)      The Exercise Price shall be payable in cash, by promissory note, or 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, provided that any such shares used in
         payment shall have been owned by the Participant for at least six
         months prior to the date of exercise, or in any combination thereof, as
         determined by the Committee.

(c)      The Committee may permit a Participant to elect to pay the Exercise
         Price upon the exercise of an Option by irrevocably authorizing a third
         party to sell shares of Stock (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.

         2.5.     Settlement of Award. Settlement of Options and SARs is subject
to subsection 5.7.

         2.6.     Non-Employee Director Equity Awards. The Non-Employee
Directors shall receive Director Equity Awards in accordance with the
provisions of Exhibit A to this Plan.

         2.7.     Employee Option Awards. Except as otherwise provided by the
Committee, the Option Awards granted to employees of the Company or any
Subsidiary shall be subject to the provisions of Exhibit B to this Plan.

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         2.8.     Repricing. Except for either adjustments pursuant to paragraph
5.2(f) (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 granted under the Plan 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)      A "Bonus Stock" Award is a grant of shares of Stock in return for
         previously performed services, or in return for the Participant
         surrendering other compensation that may be due.

(b)      A "Stock Unit" Award is the grant of a right to receive shares of Stock
         in the future.

(c)      A "Performance Share" Award is a grant of a right to receive shares of
         Stock or Stock Units that is contingent on the achievement of
         performance or other objectives during a specified period.

(d)      A "Performance Unit" Award is a grant of a right to receive a
         designated dollar value amount of Stock that is contingent on the
         achievement of performance or other objectives during a specified
         period.

(e)      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 Bonus Stock Award, Stock Unit
Award, Restricted Stock Award, Restricted Stock Unit Award, Performance Share
Award, and Performance Unit Award shall be subject to the following:

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

(b)      The Committee may designate whether any such Award being granted to any
         Participant 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).

(c)      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

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         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 three years (subject to
         acceleration of vesting, to the extent permitted by the Committee, in
         the event of the Participant's death, disability, retirement, change in
         control or involuntary termination).

Notwithstanding any other provision of this Section 3 to the contrary, if a
Participant is subject to an Employment Agreement containing provisions which,
by their terms, govern Awards of the type described in this Section 3, such
terms shall supersede the provisions of this Section 3 with respect to such
Participant's Awards, and if a Participant is subject to an Employment Agreement
containing definitions of disability, retirement, change in control, or
involuntary termination, such definitions shall apply with respect to such
Participant's Awards granted under this Section 3. Notwithstanding the
foregoing, Awards granted pursuant to this Section 3 shall have a minimum 3-year
vesting period.

         3.3      Non-Employee Director Equity Awards. The Non-Employee
Directors shall receive Director Equity Awards in accordance with the provisions
of Exhibit A to this Plan.

                                    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
for the applicable performance period, as established by the Committee. Except
as otherwise provided in this Section 4, Cash Incentive Awards 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. For Cash Incentive Awards that are intended to
be performance-based compensation, no more than $1,500,000 may be paid to any
one individual pursuant to such Awards granted 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). The Committee may establish
overlapping performance periods; provided that, to the extent that the
performance periods applicable to any individual overlap, the limit (and the pro
rata reduction required under the preceding sentence) with respect to the second
performance period shall be based on the portion of the period that does not
overlap with the prior period. 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.
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         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.

         4.4.     Attainment of Performance Goals. 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 or disability, or if a Change in Control occurs prior to the
Participant's termination of employment, the Participant's Cash Incentive Award
shall become vested without regard to whether the Cash Incentive Award would be
performance-based compensation.

         4.6.     Non-Performance-Based Compensation. Nothing in this Section 4
shall preclude the Committee, the Company, or any Subsidiary from granting cash
incentive awards that are not intended to be performance-based compensation;
provided, however, that, at the time of grant of cash incentive awards by the
Committee, the Committee shall designate whether such amounts are intended to
constitute performance-based compensation. To the extent that the provisions
of this Section 4 reflect the requirements applicable to performance-based
compensation, such provisions shall not apply to the portion of the award, if
any, which is not intended to satisfy the performance-based compensation
requirements.

                                   SECTION 5
                          OPERATION AND ADMINISTRATION

         5.1.     Effective Date. Subject to the approval of the stockholders of
the Company at the Company's 2002 annual meeting of its stockholders, the Plan
shall be effective as of January 23, 2002 (the "Effective Date"); provided,
however, that to the extent that Awards are granted under the Plan prior to its
approval by stockholders, the Awards shall be contingent on approval of the Plan
by the stockholders of the Company at such annual meeting. The Plan shall be
unlimited in

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duration and, in the event of Plan termination, shall remain in effect as long
as any Awards under it are outstanding; provided, however, that no Awards may be
granted under the Plan after the ten-year anniversary of the Effective Date
(except for Awards granted pursuant to commitments entered into prior to such
ten-year anniversary).

         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:

(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 3,000,000 shares of Stock.

(c)      To the extent provided by the Committee, 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 forfeited, or the shares of Stock are not delivered because
         the Award is settled in cash or used to satisfy the applicable tax
         withholding obligation, 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)      If the exercise price of any Option granted under the Plan is satisfied
         by tendering shares of Stock to the Company (by either actual delivery
         or by attestation), only the number of shares of Stock issued net of
         the shares of Stock tendered shall be deemed delivered for purposes of
         determining the maximum number of shares of Stock available for
         delivery under the Plan.

(e)      Subject to paragraph 5.2(f), 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 and SARs) shall be 1,500,000 shares during any one
         calendar-year period. If an Option is in tandem with an SAR, such that
         the exercise of the Option or SAR with respect to a share of Stock
         cancels the tandem SAR or Option right, respectively, with respect to
         such share, the tandem Option and SAR rights with respect to each share
         of Stock shall be counted as covering but one share of Stock for
         purposes of applying the limitations of this paragraph (i).

         (ii)     The maximum number of shares of Stock that may be issued in
         conjunction with Awards granted pursuant to Section 3 (relating to
         Other Stock Awards) shall be 300,000 shares.

         (iii)    For Bonus Stock Awards, Stock Unit Awards, Restricted Stock
         Awards, Restricted Stock Unit Awards and Performance Share Awards that
         are intended to be

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         performance-based compensation, no more than 300,000 shares of Stock
         may be subject to such Awards granted 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.

         (iv)     For Performance Unit Awards that are intended to be
         performance-based compensation, no more than $1,500,000 may be subject
         to such Awards granted to any one individual during any
         one-calendar-year period. If, after amounts have been earned with
         respect to Performance Unit Awards, the delivery of such amounts is
         deferred, any additional amounts attributable to earnings during the
         deferral period shall be disregarded.

(f)      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, 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,
         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 Director Option Awards, 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 (including ISOs and Director
         Option Awards) 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 Director Option Awards) 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.

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(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 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 (provided that any such shares used
in payment shall have been owned by the Participant for at least six months
prior to the date of surrender); 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 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).

         5.5.     Grant and Use of Awards. In 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
2.8, 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.

         5.6.     Dividends and Dividend Equivalents. An Award (including
without limitation an Option or SAR Award) may provide the Participant with the
right to receive dividend payments or dividend equivalent payments with respect
to Stock subject to the Award (both before and after the Stock subject to the
Award is earned, vested, or acquired), which payments may be either made
currently or credited to an account for the Participant, and may be settled in
cash or Stock, as determined by the Committee. Any such settlements, and any
such crediting of dividends or 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.

         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. 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

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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 under the Plan are not transferable except as designated by
the Participant by will or by the laws of descent and distribution.

         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.

         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.

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(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.    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. The Board, in the exercise
of its reasonable discretion, may, but need not, make an affirmative
determination in light of all circumstances surrounding a transaction or group
of related transactions that a "Change in Control" for purposes of this Plan
will either occur or not occur. 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. If the Board does not exercise the right to make this
affirmative determination with respect to a specific transaction or group of
related transactions, then, with respect thereto, 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

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         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 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, unless such merger, consolidation, or reorganization
                  is a "Non-Control Transaction." A "Non Control Transaction"
                  shall mean a merger, consolidation or reorganization of the
                  Company where:

                  (a)      the stockholders of the Company, immediately before
                           such merger, consolidation or reorganization, own
                           directly or indirectly immediately following such
                           merger, consolidation or reorganization more than
                           fifty percent (50% ) of the combined voting power of
                           the outstanding Voting Securities of the corporation
                           resulting from such merger, consolidation or
                           reorganization (the "Surviving Corporation") in
                           substantially the same proportion as their ownership
                           of the Voting Securities immediately before such
                           merger, consolidation or reorganization; provided,
                           however, that if the stockholders of the Company,
                           immediately before such merger, consolidation or
                           reorganization, own directly or indirectly
                           immediately following such merger, consolidation or
                           reorganization forty-five percent to fifty percent
                           (45% to 50%) of the combined voting power of the
                           outstanding Voting Securities of the Surviving
                           Corporation in substantially the same proportion as
                           their ownership of the Voting Securities immediately
                           before such merger, consolidation or reorganization,
                           then a Change in Control shall be deemed to have
                           occurred unless the members of the Incumbent Board
                           who are not employees of the Company determine
                           otherwise; and

                  (b)      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
                           merger, consolidation or reorganization had
                           Beneficial Ownership of twenty-five percent (25%) or

                                       11
<PAGE>
                           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;

         (2)      The Company's stockholders approve a complete liquidation or
                  dissolution of the Company;

         (3)      The sale or other disposition of all or substantially all of
                  the assets of the Company to any Person or Persons (other than
                  a transfer to a Subsidiary); or

         (4)      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).

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 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 Action. Except as otherwise provided in Exhibit A,
prior to a Change in Control, the Committee may determine in respect of Awards
held by Participants that upon or in anticipation of the occurrence of the
Change in Control benefits under Awards shall be accelerated only for a limited
period of time, which period of time shall not be less than a period of time
reasonably necessary to realize the benefits of such acceleration nor more than
one year after the Change in Control. If such a determination is not made, then
(subject to the last sentence of this subsection 6.2) upon the occurrence of a
Change in Control and without further action by the Board or the Committee, (A)
each Option and SAR shall become immediately exercisable, and (B) outstanding
Stock Awards granted under subsection 3.1 shall immediately vest free of
restrictions, and shall become payable to the Participant. The Committee may
override the limitations on acceleration in this subsection 6.2 by express
provision in the Award Memorandum or otherwise, and 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. Any
acceleration of Awards shall comply with any applicable regulatory and financial
accounting requirements, including without limitation section 422 of the Code.

         6.3.     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

                                       12
<PAGE>
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.

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

         6.5.     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.

                                    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 2.8 and
         by Section 8) to 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

                                       13
<PAGE>
         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 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
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 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 paragraph 5.2(f) shall not be subject to the

                                       14
<PAGE>
foregoing limitations of this Section 8; and further provided that the
provisions of subsection 2.8 (relating to Option repricing) cannot be amended
unless the amendment is approved by the Company's stockholders.

                                    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, without limitation, the grant of Options, SARs, Bonus
         Stock Awards, Stock Unit Awards, Restricted Stock Awards, Restricted
         Stock Unit Awards, Performance Unit Awards, Performance Share Awards,
         and Cash Incentive Awards.

(b)      Board. The term "Board" means the Board of Directors of the Company.

(c)      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.

(d)      Director. The term "Director" means a member of the Board or the Board
         of Directors of IndyMac Bank, F.S.B.

(e)      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.

(f)      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.

(g)      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

                                       15
<PAGE>
         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 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, paragraph
         (i) next above is inapplicable, the Fair Market Value of the Stock
         shall be determined as of the next earlier business day.

(h)      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.

(i)      Performance Measures. The Performance Measures (which must be
         quantitative and objective standards and not qualitative) that may be
         used by the Committee for such Awards shall be based on any one or more
         of the following, as selected by the Committee: core earnings; net
         worth; asset quality; efficiency ratio; loan origination; deposit
         growth; interest rate risk; earnings per share; return on average
         common equity; return on average equity; net operating expense, either
         before or after amortization of intangible assets (goodwill); operating
         earnings (earnings before transaction-related expense) per diluted
         share of common stock, either before or after amortization of
         intangible assets (goodwill); return on average assets, ratio of
         non-performing assets to total assets; customer service; and regulatory
         compliance.

(j)      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.

(k)      Stock. The term "Stock" means shares of common stock of the Company.

(l)      2000 Plan. The term "2000 Plan" means the IndyMac Mortgage Holdings,
         Inc. 2000 Stock Incentive Plan.

                                       16
<PAGE>
                                    EXHIBIT A
                         OUTSIDE DIRECTORS EQUITY AWARDS

         A.1.     Award. Director Equity Awards shall be granted to Non-Employee
Directors in the form of a NQO in accordance with the provisions set forth on
Schedule 1 to this Exhibit A; provided that each Non-Employee Director may elect
to receive Restricted Stock in lieu of part or all of such NQO by filing an
Election Form pursuant to Section A.2. below. Each Non-Employee Director may
elect to receive Restricted Stock in 25% increments of such NQO, up to 100%
of such NQO. In the event that a Non-Employee Director makes any such election,
he will receive a corresponding reduction in the number of shares of Stock
covered by the NQO. The determination as to the equivalency of the number of
shares of Stock covered by the NQO shall be made by using the Black-Scholes
valuation model.

         A.2.     Election Form. In order to receive a portion of a Director
Equity Award in the form of Restricted Stock, the Director must file an
"Election Form", as provided by the Company, with the Secretary of the Company
specifying the form of the Director Equity Award the Director elects to receive.
The Election Form must be filed prior to or on the same day as the Company's
annual grant of Awards to Employees or, in the case of a new Director, before
the commencement of the Director's term of office. The Director's election shall
remain in effect for Director Equity Awards made in each subsequent year, unless
the Director files a revised Election Form or written revocation of the election
with the Secretary of the Company before the subsequent annual grant of Awards
to Employees. The Director's election shall be irrevocable after the Director
Equity Award for a particular year has been granted.

                                      A-1
<PAGE>
                             SCHEDULE 1 TO EXHIBIT A
                         OUTSIDE DIRECTORS OPTION AWARDS

                                    SECTION 1
                                  OPTION AWARDS

         1.1      Option Grant. Subject to Section A.1. and A.2. of this Exhibit
A, Director Option Awards shall be granted to Non-Employee Directors as follows:

(a)      On the same date as the annual grant of Awards to Employees
         pursuant to this Plan in each calendar year after 2001 during
         the term of the Plan (the "Regular Grant Date"), there shall be granted
         automatically (without any action by the Committee or the Board) to
         each Non-Employee Director then in office an NQO (the "Director Option
         Award") to purchase the number of shares of Stock equal to 0.025% of
         the issued and outstanding shares of Stock (excluding any Stock held in
         treasury by the Company) as of the end of the preceding fiscal year.

(b)      Upon the election of a newly elected Non-Employee Director, there shall
         be granted automatically (without any action by the Committee or the
         Board) an NQO, the grant date of which shall be the date of such
         election, to each newly elected Non-Employee Director (the "New
         Director Option Award") as follows: (i) if the Non-Employee Director is
         elected within six months after the most recent Regular Grant Date, the
         New Director Option Award shall cover the same number of shares of
         Stock for which Director Option Awards were granted to existing
         Non-Employee Directors on the most recent Regular Grant Date; and (ii)
         if the Non-Employee Director is elected more than six months after the
         most recent Regular Grant Date, but prior to the date on which Director
         Options are granted to existing Non-Employee Directors, the New
         Director Option Award shall cover one-half the number of shares of
         Stock for which the most recent Director Option Awards were granted to
         existing Non-Employee Directors on the most recent Regular Grant Date.

(c)      In no event shall a Director Option Award granted under paragraph (a)
         above cover fewer than 7,500 shares of Stock.

(d)      A Director Option Award and New Director Option Award shall entitle the
         Director to purchase shares of Stock at a price equal to the Fair
         Market Value of the Stock as of the date the Option is granted.

(e)      For all subsequent provisions of this Schedule 1, Director Option
         Awards and New Director Option Awards shall be referred to collectively
         as Director Option Awards.

         1.2.     Adjustment. Director Option Awards shall be subject to
adjustment pursuant to paragraph 5.2(f) of the Plan.

         1.3      Heirs and Successors. Awards under this Schedule 1 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 Director or benefits

                                      A1-1
<PAGE>
deliverable to the Director under such Award have not been exercised or
delivered, respectively, at the time of the Director'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 Director in a writing filed with the Committee in such form
and at such time as the Committee shall require. If a deceased Director fails to
designate a beneficiary, or if the Designated Beneficiary does not survive the
Director, any rights that would have been exercisable by the Director and any
benefits distributable to the Director shall be exercised by or distributed to
the legal representative of the estate of the Director. If a deceased Director
designates a beneficiary and the Designated Beneficiary survives the Director
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.

         1.4.     Prior Plan. No Director Option shall be granted under the 2000
Plan to any Non-Employee Director for any calendar year for which a Director
Option Award is granted under this Plan.

                                    SECTION 2
                                     VESTING

         A Director Option Award held by a Director will become fully
exercisable on the one-year anniversary of the date of grant. A recipient of a
Director Option Award who ceases to be a Director shall forfeit the Director
Option Award if it is not exercisable immediately prior to his or her date of
termination; provided, however, that (i) if a recipient of a Director Option
Award ceases to be a Director by reason of his or her death, Disability, or
Retirement, any portion of the Director Option Award that is not then
exercisable shall become exercisable on his or her date of termination; and (ii)
any Director Option Award that is held by an individual serving as a Director on
the date of a Change in Control that is not then exercisable shall become
exercisable on the date of the Change of Control.

                                    SECTION 3
                             EXERCISE AND EXPIRATION

         3.1      Exercise. To the extent that a Director 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 Director elects to purchase, and shall be accompanied
by payment of the exercise price for such shares of Stock indicated by the
Director's election.

         3.2      Payment of Purchase Price. Upon exercise of a Director Option
Award, the exercise price shall be paid in full in cash equivalents or in shares
of Stock (by actual delivery or attestation) valued at their Fair Market Value
at the time of exercise of the Option or partly in

                                      A1-2
<PAGE>
such shares and partly in cash; provided that any such shares used in payment
shall have been owned by the Director for at least six months prior to the date
of exercise. Subject to the requirements of applicable law and any loan program
established by the Company, the Board may authorize loans to Non-Employee
Directors to finance the exercise of Director Option Awards; provided, however,
that no loan shall be made to any Non-Employee Director to finance the exercise
of a Director Option Award unless (i) such loan is made pursuant to a full
recourse promissory note, and (ii) such loan, if secured by Stock (whether
issuable under the Award in question or otherwise), is made in compliance with
Regulation U of the Federal Reserve Board. A Non-Employee Director may also
elect to pay the exercise price by irrevocably authorizing a third party to sell
shares of Stock (or a sufficient portion of the shares) acquired upon exercise
of the Director Option Award 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.

         3.3      Expiration. A Director Option Award granted to a Director
shall expire on the tenth anniversary of the grant date. However, in no event
shall the Director Option Award be exercisable after:

(a)      if the termination occurs by reason of the Director's death, Disability
         or Retirement, the one-year anniversary of the date of termination of
         the Director;

(b)      if the termination occurs by reason of Cause, the date of termination
         of the Director; and

(c)      if the termination occurs for reasons other than death, Disability,
         Retirement, or Cause, the three-month anniversary of the date of
         termination of the Director.

To the extent that any Director Option Award 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 Director Option Award
shall terminate upon the occurrence of such event.

                                    SECTION 4
                                   DEFINITIONS

         In addition to the other definitions contained in the Plan, the
following definitions shall apply to this Schedule 1:

(a)      Cause. "Cause" shall mean, with respect to any Non-Employee Director,
         termination from the Board on account of any act of (i) fraud or
         intentional misrepresentation, (ii) embezzlement, misappropriation or
         conversion of assets or opportunities of the Company or any subsidiary
         or affiliate, or (iii) conviction of a felony.

(b)      Disability. "Disability" shall mean a "permanent and total disability"
         within the meaning of section 22(e)(3) of the Code.

(c)      Non-Employee Director. Each Director who is not an employee of the
         Company or any Subsidiary shall be a "Non-Employee Director."

(d)      Retirement. "Retirement" shall mean retirement or resignation as a
         director after at least five (5) years service as a director.

                                      A1-3
<PAGE>
                             SCHEDULE 2 TO EXHIBIT A
                    OUTSIDE DIRECTORS RESTRICTED STOCK AWARDS

                                    SECTION 1
                             RESTRICTED STOCK AWARDS

         1.1      Restricted Stock Grant. Each Director who files an Election
Form in accordance with Section A.1. of this Exhibit A requesting receipt of any
portion of a Director Equity Award in Restricted Stock shall be granted a
"Director Restricted Stock Award" covering the number of shares of Stock
determined in accordance with the provisions of Section A.1. of this Exhibit A
(the "Covered Shares").

         1.2      Adjustment. Director Restricted Stock Awards shall be subject
to adjustment pursuant to paragraph 5.2(f) of the Plan.

         1.3      Heirs and Successors. Awards under this Schedule 2 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 benefits deliverable to the Director under such
Award have not been delivered at the time of the Director's death, 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 Director in a writing filed with the Committee
in such form and at such time as the Committee shall require. If a deceased
Director fails to designate a beneficiary, or if the Designated Beneficiary does
not survive the Director, any benefits distributable to the Director shall be
distributed to the legal representative of the estate of the Director. If a
deceased Director designates a beneficiary and the Designated Beneficiary
survives the Director but dies before the complete distribution of benefits to
the Designated Beneficiary under the Award, then any benefits distributable to
the Designated Beneficiary shall be distributed to the legal representative of
the estate of the Designated Beneficiary.

                                    SECTION 2
                                RESTRICTED PERIOD

         The "Restricted Period" for the Covered Shares shall begin on the
Regular Grant Date (as defined in Schedule 1 of this Exhibit A) and end  as to
one-third of each Director Restricted Stock Award on the first, second and third
anniversaries of the Regular Grant Date.

                                    SECTION 3
                        TRANSFER AND FORFEITURE OF SHARES

         A recipient of a Director Restricted Stock Award who ceases to be a
Director shall forfeit the portion of the Director Restricted Stock Award that
is not vested immediately prior to his or her date of termination; provided,
however, that (i) if a recipient of a Director Restricted Stock Award ceases to
be a Director by reason of his or her death, Disability, or Retirement, any
portion of the Director Restricted Stock Award that is not then vested shall
become vested on his or her date of termination; and (ii) any portion of a
Director Restricted Stock Award that is held by an individual serving as a
Director on the date of a Change in Control that is not then vested shall become
vested on the

                                      A3-1
<PAGE>
date of the Change of Control. In the event of (i) or (ii) above, the Covered
Shares shall be transferred to the Director free of all restrictions upon the
date they become fully vested. If the Director remains a Director on the last
day of the applicable Restricted Period, then, at the end of such Restricted
Period, the Covered Shares shall be transferred to the Director free of all
restrictions.

                                    SECTION 4
                                    DIVIDENDS

         Dividends, if any, accrued on Covered Shares during the Restricted
Period shall be credited to the Director and held by the Company on behalf of
the Director. The Director's interest in the dividends shall vest on the same
date that the Director's interest in the Covered Shares vest. In the event that
any portion of the Covered Shares are forfeited in accordance with Section 3 of
this Exhibit A, the accrued and unpaid dividends relating to the Covered Shares
also shall be forfeited.

                                    SECTION 5
                                     VOTING

         The Director shall not be prevented from voting the Covered Shares
merely because those shares are subject to the restrictions imposed by this
Plan; provided, however, that the Director 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 Director has forfeited those shares.

                                    SECTION 6
                               OWNERSHIP OF SHARES

         The Covered Shares issued pursuant to any Director Restricted Stock
Award shall be held by the Company's stock transfer agent for the benefit of the
Director until the end of the applicable Restricted Period. The Director shall
be identified as the beneficial owner of the Covered Shares at the time the
shares are issued.

                                    SECTION 7
                                   DEFINITIONS

         In addition to the other definitions contained in the Plan, the
following definitions shall apply to this Schedule 2:

(a)      Disability. "Disability" shall mean a "permanent and total disability"
         within the meaning of section 22(e)(3) of the Code.

(b)      Non-Employee Director. Each Director who is not an employee of the
         Company or any Subsidiary shall be a "Non-Employee Director."

(c)      Retirement. "Retirement" shall mean retirement or resignation as a
         director after at least five (5) years service as a director.

                                      A3-2
<PAGE>
                                    EXHIBIT B
                             EMPLOYEE OPTION AWARDS

                                    SECTION 1
                                  OPTION AWARDS

         1.1      Option Grant. Except as otherwise provided by the Committee,
the Option Awards granted to the Employees (an "Employee Option Award") shall be
subject to the provisions of this Exhibit B.

(a)      Options shall be granted to Employees (as defined below) at such time
         or times as may be determined by the Committee. The date on which any
         such Option is granted is referred to as the "Grant Date" of that
         Option.

(b)      Options shall cover such number of shares of Stock as may be determined
         by the Committee on the Grant Date. The number of shares of Stock
         covered by an Option is referred to as the "Covered Shares" of the
         Option.

(c)      Employee Option Awards shall entitle the Employee to purchase shares of
         Stock at a price equal to the Fair Market Value of the Stock as of the
         date the Option is granted.

(d)      Each Employee Option Award shall be an ISO unless otherwise designated
         in the applicable Award Memorandum, provided, however, that an ISO may
         only be granted to an employee of the Company or a Subsidiary.

         1.2.     Adjustment. Employee Option Awards shall be subject to
adjustment pursuant to paragraph 5.2(f) of the Plan.

         1.3.     Heirs and Successors. Awards under this Exhibit B 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 Employee or benefits
deliverable to the Employee under such Award have not been exercised or
delivered, respectively, at the time of the Employee'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 Employee in a writing filed with the Committee in such form
and at such time as the Committee shall require. If a deceased Employee fails to
designate a beneficiary, or if the Designated Beneficiary does not survive the
Employee, any rights that would have been exercisable by the Employee and any
benefits distributable to the Employee shall be exercised by or distributed to
the legal representative of the estate of the Employee. If a deceased Employee
designates a beneficiary and the Designated Beneficiary survives the Employee
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.

                                      B-1
<PAGE>
         1.4.     Employment Agreement. Notwithstanding any other provision of
this Exhibit B 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 this Exhibit B 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 Exhibit B with
respect to such Participant's Options. Notwithstanding the foregoing, all Option
Awards shall have a minimum 1-year vesting period.

                                    SECTION 2
                                     VESTING

         Subject to the limitations of the Plan, each installment of Covered
Shares of an Employee Option Award 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 Option Award;
provided, however, that Option Awards shall have a minimum 1-year vesting
period.

         Notwithstanding the foregoing provisions of this Section 2, the Option
shall become fully vested and exercisable upon the Employee's Date of
Termination, if the Date of Termination occurs by reason of the Employee's
death, Disability, or Retirement. The Option may be exercised on or after the
Employee's Date of Termination only as to that portion of the Covered Shares for
which it was exercisable immediately prior to the Employee's Date of
Termination, or became exercisable upon the Employee's Date of Termination.

                                    SECTION 3
                             EXERCISE AND EXPIRATION

         3.1.     Exercise. To the extent that an Employee 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 Employee elects to purchase, and shall be accompanied
by payment of the exercise price for such shares of Stock indicated by the
Employee's election.

         3.2.     Payment of Purchase Price. Upon exercise of an Employee Option
Award, the exercise price shall be paid in full in cash equivalents or in shares
of Stock (by actual delivery or attestation) valued at their Fair Market Value
at the time of exercise of the Option or partly in such shares and partly in
cash; provided that any such shares used in payment shall have been owned by the
Employee for at least six months prior to the date of exercise. Subject to the
requirements of applicable law and any loan program established by the Company,
the Board may authorize loans to the Employee to finance the exercise of
Employee Option Awards; provided, however, that no loan shall be made to any
Employee to finance the exercise of an Employee Option Award unless (i) such
loan is made pursuant to a full recourse promissory note, and (ii) such loan, if
secured by Stock (whether issuable under the Award in question or otherwise), is
made in compliance with Regulation U of the Federal Reserve Board. An Employee
may also elect to pay the exercise price by irrevocably authorizing a third
party to sell

                                      B-2
<PAGE>
shares of Stock (or a sufficient portion of the shares) acquired upon exercise
of the Employee Option Award 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.

         3.3      Withholding Taxes. Employee Option Awards are subject to
withholding of all applicable taxes, and the delivery of any shares of Stock
upon exercise of an Employee Option Award shall be conditioned 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 (provided that any such shares used
in payment shall have been owned by the Participant for at least six months
prior to the date of surrender); 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 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).

         3.4      Expiration. An Employee Option Award granted to an Employee
shall expire on the tenth anniversary of the Grant Date. However, in no event
shall the Employee Option Award be exercisable after:

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

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

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

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

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

To the extent that any Employee Option Award 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 Employee Option Award
shall terminate upon the occurrence of such event.

                                      B-3
<PAGE>
                                    SECTION 4
                                   DEFINITIONS

         In addition to the other definitions contained in the Plan, the
following definitions shall apply to this Exhibit B:

(a)      Cause. "Cause" shall mean, with respect to any Employee, termination of
         employment with the Company or any Subsidiary on account of any act of
         (i) fraud or intentional misrepresentation, (ii) embezzlement,
         misappropriation or conversion of assets or opportunities of the
         Company or any subsidiary or affiliate, or (iii) conviction of a
         felony.

(b)      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.

(c)      Disability. "Disability" shall mean a "permanent and total disability"
         within the meaning of section 22(e)(3) of the Code.

(d)      Employee. An " Employee" is any employee of the Company or a Subsidiary
         who is granted an Option under the Plan.

(e)      Retirement. An Employee's "Retirement" shall mean retirement or
         resignation after at least five (5) consecutive years of employment
         with the Company or a Subsidiary and the attainment of age 55.

                                      B-4<PAGE>
                                                                   Exhibit 10.15

                              EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the "Agreement") has been executed as of December 1,
2000 by and between IndyMac Bank, F.S.B. ("Employer") and Richard Sommers
("Officer").

                                   WITNESSETH:

WHEREAS, Employer desires to obtain the benefit of continued services of Officer
and Officer desires to continue to render services to Employer and its
affiliates.

WHEREAS, Employer and Officer desire to set forth the terms and conditions of
Officer's employment with Employer and its affiliates under this Agreement.

NOW, THEREFORE, in consideration of the mutual promises and covenants herein
contained, the parties hereto agree as follows:

1.       TERM. Employer agrees to employ Officer and Officer agrees to serve
         Employer and its affiliates, in accordance with the terms hereof, for a
         term beginning on the date first written above and ending on December
         31, 2003, unless earlier terminated in accordance with the provisions
         hereof.

2.       POSITION, DUTIES AND RESPONSIBILITIES. Employer and Officer hereby
         agree that, subject to the provisions of this Agreement, Employer will
         employ Officer and Officer will serve Employer, as an Executive Vice
         President of Employer, or its affiliated companies, as determined by
         Employer. Affiliated companies shall include, without limitation, any
         direct or indirect subsidiary of Employer in which Employer holds less
         than 100% but at least a majority of the beneficial interest and voting
         control (a "New Public Company"). Employer agrees that Officer's duties
         hereunder shall be the usual and customary duties of such office and
         such further duties shall not be inconsistent with the provisions of
         applicable law. Officer agrees that Employer may add to or change
         Officer's duties as business considerations dictate, provided such
         changes are consistent with an Executive Vice President position of
         Employer as determined by the Chief Executive Officer of Employer.
         Officer shall have such official power and authority as shall
         reasonably be required to enable him to discharge his duties in the
         offices which he may hold. All compensation paid to Officer by Employer
         or any of its affiliates shall be aggregated in determining whether
         Officer has received the benefits provided for herein, but without
         prejudice to the allocation of costs among the entities to which
         Officer renders services hereunder.

3.       SCOPE OF THIS AGREEMENT AND OUTSIDE AFFILIATIONS. During the term of
         this Agreement, Officer shall devote his full business time and energy,
         except as expressly provided below, to the business, affairs and
         interests of Employer and its affiliates, and matters related thereto,
         and shall use his best efforts and abilities to promote their

                                      - 1 -
<PAGE>
         respective interests. Officer agrees that he will diligently endeavor
         to promote the business, affairs and interests of Employer and its
         affiliates and perform services contemplated hereby, in accordance with
         the policies established by the Board of Directors of the applicable
         entity, which policies shall be consistent with this Agreement. If so
         requested by Employer, Officer agrees to serve without additional
         remuneration as an officer of one or more (direct or indirect)
         subsidiaries, affiliates or successors of Employer, subject to
         appropriate authorization by the affiliate, subsidiary or successor
         involved and any limitation under applicable law.

         During the course of Officer's employment as a full-time officer
         hereunder, Officer shall not, without the consent of Employer, compete,
         directly or indirectly, with Employer in the business then conducted by
         Employer or any of its affiliates or successors.

         Officer may make and manage personal business investments of his choice
         and serve in any capacity with any civic, educational or charitable
         organization, or any governmental entity or trade association, without
         seeking or obtaining approval by the Board of Directors, provided such
         activities and services do not materially interfere or conflict with
         the performance of his duties hereunder.

4.       COMPENSATION AND BENEFITS.

         a.       BASE SALARY. Employer shall pay to Officer a base salary in
                  respect of the fiscal year of Employer (a "Fiscal Year")
                  ending December 31, 2000 at the annual rate as set forth on
                  Appendix A (the "Annual Rate"). In respect of the Fiscal Years
                  ending in 2001, 2002 and 2003, the Chief Executive Officer of
                  Employer may increase the Annual Rate. While any such increase
                  shall be at the discretion of the Chief Executive Officer, it
                  is anticipated that, for any Fiscal Year, if Employer obtains
                  its earnings per share goal and the Officer receives a
                  performance rating of "meets expectations consistently," the
                  Annual Rate would possibly be increased between 0% and 10%.
                  During the term of this Agreement, Employer may not decrease
                  the Annual Rate below the amount set forth in Appendix A.

         b.       INCENTIVE COMPENSATION. Employer shall pay to Officer for each
                  of the Fiscal Years ending during the term of this Agreement
                  an incentive compensation award in an amount determined
                  pursuant to the Annual Incentive Plan attached hereto as
                  Appendix A. The terms of the Annual Incentive Plan shall be
                  determined in the first quarter of each Fiscal year during the
                  term of this Agreement, as mutually agreed upon by Employer
                  and Officer. If a new annual incentive plan is not executed by
                  Employer and Officer for any reason by the end of the first
                  quarter of the Fiscal Year, then the maximum incentive
                  compensation award for the new Fiscal Year shall be deemed set
                  at 25% of Officer's base salary. In order to be eligible for
                  the incentive compensation award, Officer must still be
                  employed as of March 31st of the Fiscal Year following the
                  relevant Fiscal Year. The incentive compensation award payable
                  to Officer for any Fiscal Year shall be paid no later than
                  thirty (30) days after

                                        2
<PAGE>
                  completion and publication of the applicable audited financial
                  statements for such Fiscal Year.

         c.       GUARANTEED MINIMUM ANNUAL COMPENSATION. For each of the Fiscal
                  Years ending during the term of this Agreement, Officer shall
                  receive a guaranteed minimum annual cash compensation equal to
                  125% of the base salary, the components of which shall include
                  his base salary for such Fiscal Year and any incentive
                  compensation award applicable to such Fiscal Year, provided
                  Officer is still employed by Employer as of March 31 of the
                  following Fiscal Year.

         d.       STOCK OPTIONS AND RESTRICTED STOCK. Beginning with the 2001
                  Fiscal Year and in respect of each of the following Fiscal
                  Years during the term of this Agreement, Employer's public
                  company affiliate, IndyMac Bancorp, Inc., or any successor
                  public company ("Public Company"), may grant to Officer stock
                  options and/or restricted stock for such number of shares of
                  the Public Company's common stock as the Compensation
                  Committee of the Board of Directors of the Public Company
                  ("Compensation Committee") in its sole discretion determines,
                  taking into account Officer's and the Public Company's
                  performance and the competitive practices then prevailing
                  regarding the granting of stock options. Subject to the
                  foregoing, it is anticipated that the number of shares in
                  respect of each annual stock option and/or restricted stock
                  grant shall be in accordance with the number of shares granted
                  to officers of Employer at a level similar to Officer's level.
                  The stock options and/or restricted stock described in this
                  Section 4(d) in respect of a Fiscal Year shall be granted at
                  the same time as the Public Company grants stock options
                  and/or restricted stock to its other officers in respect of
                  such Fiscal Year.

                  Officer agrees that any stock options or restricted stock
                  granted to him under his prior Employment Agreement(s), or
                  granted separate from any such Employment Agreement(s), shall
                  be subject to the terms of the 2000 Stock Option Plan except
                  as may be expressly provided otherwise in this Agreement.

                  All stock options and restricted stock granted in accordance
                  with this Section 4(d): (i) shall be granted pursuant to the
                  Public Company's current stock option plan, or such other
                  stock option plan or plans as may be or come into effect
                  during the term of this Agreement, (ii) shall be priced and
                  vest in accordance with the terms set by the Compensation
                  Committee, (iii) shall be subject to such other reasonable
                  terms and conditions as may be determined by the Compensation
                  Committee and set forth in the agreement or other document
                  evidencing the award, (iv) in the event that Officer's
                  employment is terminated due to death or Disability, shall, if
                  then unvested, become immediately and fully vested, (v) in the
                  event that Officer's employment is terminated through
                  resignation or by Employer for either Cause (as defined in
                  Section 5(c)) or Poor Performance (as defined in Section
                  5(d)), shall, if not then vested, immediately terminate, and
                  (vi) in the event that Officer's employment is terminated by
                  Employer other than for Cause (as defined in Section 5(e)),
                  shall, if not then vested, become immediately and fully vested
                  only to

                                        3
<PAGE>
                  the extent that such restricted stock or stock options would,
                  under the terms of such restricted stock or stock options,
                  vest within one (1) year of such termination.

                  All stock options granted in accordance with this Section 4(d)
                  shall give Officer the right, upon termination of his
                  employment hereunder, other than for Cause or Poor Performance
                  (as defined in Section 5(e)), to exercise such options for a
                  period of between 3 months and 12 months after such
                  termination as provided hereinafter (but in no event later
                  than their expiration date). In the event the vested options
                  held by Officer immediately after such termination represent
                  shares of common stock in an amount equal to or greater than
                  500,000, then the maximum period for the exercise of any
                  options shall be 12 months. In the event the vested options
                  held by Officer immediately after such termination represent
                  shares of common stock in an amount equal to or greater than
                  100,000 but less than 500,000, then the maximum period for the
                  exercise of any options shall be 6 months. In the event the
                  vested options held by Officer immediately after such
                  termination represent shares of common stock in an amount less
                  than 100,000, then the maximum period for their exercise shall
                  be 3 months.

                  If the Board of Directors of Employer determines, in its sole
                  and absolute discretion, that Officer is exhibiting "Poor
                  Performance," as described in Section 5(d), but there is not a
                  resulting termination of Officer's employment, the
                  Compensation Committee may, in its sole and absolute
                  discretion, cancel any outstanding, but unvested stock options
                  or restricted stock that were previously granted to Officer.

                  In the event that a New Public Company is formed and Officer
                  is assigned by the Chief Executive Officer to be employed by
                  that New Public Company, if such New Public Company is traded
                  on the New York Stock Exchange or the NASDAQ, then, in the
                  discretion of the Chief Executive Officer, up to 50% of the
                  not-yet-vested stock options and restricted stock of Officer
                  (whether previously granted hereunder or otherwise) may be
                  terminated and replaced with such alternate incentive
                  compensation (which may include stock options and/or
                  restricted stock of the New Public Company) as the Chief
                  Executive Officer may determine in his sole and absolute
                  discretion, provided such replacement compensation is
                  equivalent to the value of the replaced stock options and
                  restricted stock. Such alternate incentive compensation may be
                  granted on such terms and conditions as determined by the
                  Chief Executive Officer, which terms and conditions may differ
                  from those in this Agreement for comparable compensation,
                  provided such terms and conditions provide an equivalent value
                  to the replaced compensation. The Company shall select and
                  retain a nationally recognized firm to determine the value of
                  the stock options and restricted stock to be replaced and the
                  value of the replacement compensation, and such firm's final
                  valuation shall be accepted by both parties.

                                        4
<PAGE>
         e.       ADDITIONAL BENEFITS. Officer shall also be entitled to all
                  rights and benefits for which he is otherwise eligible under
                  any bonus plan, stock purchase plan, participation or extra
                  compensation plan, executive compensation plan, pension plan,
                  profit-sharing plan, deferred compensation plan, life and
                  medical insurance policy, or other plans or benefits, which
                  Employer or its subsidiaries may provide for him, or provided
                  he is eligible to participate therein, for senior officers
                  generally or for employees generally, during the term of this
                  Agreement (collectively, "Additional Benefits"). Officer shall
                  also be entitled to three (3) weeks of vacation each Fiscal
                  Year, subject to all applicable policies of Employer relating
                  to vacation time. This Agreement shall not affect the
                  provision of any other compensation, retirement or other
                  benefit program or plan of Employer. If Officer's employment
                  is terminated hereunder, pursuant to Section 5(a), 5(b) or
                  5(e), Employer shall continue for the period specified in
                  Section 5(a), 5(b) or 5(e) hereof, to provide benefits
                  substantially equivalent to the life, disability and medical
                  insurance policies on behalf of Officer and his dependents and
                  beneficiaries which were being provided to them immediately
                  prior to Officer's Termination Date, but only to the extent
                  that Officer is not entitled to comparable benefits from other
                  employment.

         f.       CLUB MEMBERSHIP. Employer shall pay standard annual and
                  monthly membership fees and any business related charges for
                  Officer's participation in the San Gabriel Country Club.

5.       TERMINATION. The compensation and benefits provided for herein and the
         employment of Officer by Employer shall be terminated only as provided
         for below in this Section 5:

         a.       DISABILITY. In the event that Officer shall fail (with or
                  without reasonable accommodation), because of illness, injury
                  or similar incapacity ("Disability"), to render for four (4)
                  consecutive calendar months, or for shorter periods
                  aggregating eighty (80) or more business days in any twelve
                  (12) month period, services contemplated by this Agreement,
                  Officer's full-time employment hereunder may be terminated, by
                  written Notice of Termination from Employer to Officer; and
                  thereafter, Employer shall continue, from the Termination Date
                  until Officer's death or December 31, 2003, whichever first
                  occurs (the "Disability Payment Period"), (i) to pay
                  compensation to Officer, in the same manner as in effect
                  immediately prior to the Termination Date, in an amount equal
                  to (1) fifty percent (50%) of the then existing base salary
                  payable immediately prior to the termination, minus (2) the
                  amount of any cash payments due to him under the terms of
                  Employer's disability insurance or other disability benefit
                  plans (which are paid for by Employer) or Employer's
                  tax-qualified Defined Benefit Pension Plan, and any
                  compensation he may receive pursuant to any other employment,
                  and (ii) to provide during the Disability Payment Period the
                  additional benefits specified in the last sentence of Section
                  4(e) hereof. To the extent not otherwise vested, all
                  outstanding stock options and restricted stock granted to
                  Officer pursuant to Section 4(d) will vest upon his
                  termination because of Disability.

                                        5
<PAGE>
                  The determination of Disability shall be made only after 30
                  days' notice to Officer (which may run concurrently with the
                  Notice of Termination). In order to determine Disability, both
                  Employer and Officer shall have the right to provide medical
                  evidence to support their respective positions, with the
                  ultimate decision regarding Disability to be made by a
                  majority of the members of Employer's Benefits Committee.

         b.       DEATH. In the event that Officer shall die during the term of
                  this Agreement, Employer shall pay to such person or persons
                  as Officer shall have directed in writing or, in the absence
                  of a designation, to his estate (the "Beneficiary") an amount
                  equal to two times the guaranteed annual compensation as
                  defined in Section 4(c). Such payment shall be made within 45
                  days of the death of Officer. Employer shall also provide
                  during the twelve-month period following the date of Officer's
                  death the additional benefits specified in the last sentence
                  of Section 4(e) hereof. If Officer's death occurs while he is
                  receiving payments for Disability under Section 5(a) above,
                  such payments shall cease and the Beneficiary shall be
                  entitled to the payments and benefits under this Section 5(b).
                  This Agreement in all other respects will terminate upon the
                  death of Officer; provided, however, that (i) the termination
                  of the Agreement shall not affect Officer's entitlement to all
                  other benefits in which he has become vested or which are
                  otherwise payable in respect of periods ending prior to its
                  termination, and (ii) to the extent not otherwise vested, all
                  outstanding stock options and restricted stock granted to
                  Officer pursuant to Section 4(d) will vest upon his death.

         c.       CAUSE. Employer may terminate Officer's employment under this
                  Agreement for "Cause." A termination for Cause is a
                  termination by reason of (i) a material breach of this
                  Agreement by Officer (other than as a result of incapacity due
                  to physical or mental illness) which is committed in bad faith
                  or without reasonable belief that such breach is in the best
                  interests of Employer, (ii) Officer's breach of the terms of
                  any promissory note executed by the Officer for any loan to
                  the Officer made by Employer pursuant to the Employer's Loan
                  Plan, including a failure to meet a margin call (iii) an act
                  or omission to act by the Officer involving (a) negligence or
                  misconduct resulting in a material loss or material loss in
                  revenue (material to be determined in the sole discretion of
                  the CEO) (negligence or misconduct shall include, but not be
                  limited to, the failure to properly supervise staff, the
                  failure to establish, maintain and enforce proper written
                  policies and procedures, and the failure to properly staff and
                  train to ensure the proper and consistent enforcement of
                  policies and procedures), (b) gross negligence, (c) gross
                  misconduct with respect to or intentional failure to perform
                  Officer's stated duties, (d) commission of a fraud, theft,
                  dishonesty, or any knowing or deliberate action or inaction in
                  contravention of a direct order from the Officer's direct
                  supervisor which is within the scope of this Agreement and
                  does not involve the performance of an illegal act or omission
                  to act, (iv) Officer's willful violation of any law, rule or
                  regulation of a governmental authority (other than traffic
                  violations or similar offenses) or final cease-and-desist
                  order, or (v)

                                        6
<PAGE>
                  entry of an order duly issued by any federal or state
                  regulatory agency having jurisdiction in the matter removing
                  Officer from office of Employer or its affiliates or
                  permanently prohibiting him from participation in the conduct
                  of the affairs of Employer of any of its affiliates. If
                  Officer shall be convicted of a felony or misdemeanor carrying
                  a jail term, or shall be removed from office and/or suspended
                  or temporarily prohibited from participating in the conduct of
                  Employer's or any of its affiliates' affairs by any federal or
                  state regulatory authority having jurisdiction in the matter,
                  Employer's obligations under Sections 4(a), 4(b), 4(c), and
                  4(d) hereof shall be automatically suspended; provided,
                  however, that if the charges resulting in such removal or
                  prohibition are finally dismissed or if a final judgment on
                  the merits of such charges is issued in favor of Officer, or
                  if the conviction is overturned on appeal, then Officer shall
                  be reinstated in full with back pay for the removal period
                  plus accrued interest at the rate then payable on judgments.
                  During the period that Employer's obligations under Sections
                  4(a), 4(b), 4(c), and 4(d) hereof are suspended, Officer shall
                  continue to be entitled to receive Additional Benefits under
                  Section 4(e) until the conviction of the felony, or
                  misdemeanor carrying a jail term, or removal from office has
                  become final and non-appealable. When the conviction of the
                  felony or removal from office has become final and
                  non-appealable, all of Employer's obligations hereunder shall
                  terminate; provided, however, that the termination of
                  Officer's employment pursuant to this Section 5(c) shall not
                  affect Officer's entitlement to all benefits in which he has
                  become vested or which are otherwise payable in respect of
                  periods ending prior to his termination of employment.
                  Following a termination for Cause, Officer shall be entitled
                  to payment of his base salary through his last day of
                  employment, and any accrued vacation pay, but no other
                  payments or benefits hereunder or otherwise whatsoever.

         d.       POOR PERFORMANCE. Employer may terminate Officer's employment
                  under this Agreement for "Poor Performance." Poor Performance
                  is a failure of the Officer to properly meet the duties and
                  responsibilities of his position in a competent fashion, as
                  determined by the Chief Executive Officer. Following a
                  termination for Poor Performance, the Officer shall be
                  entitled to payment of his base salary through his last day of
                  employment, and, within 30 days after such last day, a single
                  payment in an amount equal to the guaranteed minimum annual
                  compensation as defined in Section 4(c), but no other payments
                  or benefits hereunder or otherwise whatsoever, subject to the
                  terms of Section 5(e)(iii).

         e.       TERMINATION OTHER THAN FOR CAUSE OR POOR PERFORMANCE.

                  (i)      Except as provided in Section 5(e)(ii) below, if
                           during the term of this Agreement, Officer's
                           employment shall be terminated by Employer other than
                           for Cause or Poor Performance, then Officer shall be
                           entitled to:

                                        7
<PAGE>
                           (1)      payment of his base salary through his last
                                    day of employment, but no payment on account
                                    of any further incentive compensation
                                    hereunder, and

                           (2)      within 30 days after such last day, a single
                                    payment in an amount equal to an amount in
                                    cash equal to two times the guaranteed
                                    minimum annual compensation as defined in
                                    Section 4(c); provided, however, if such
                                    termination shall occur within two (2) years
                                    after a change in control, as declared by
                                    the Board of Directors, and during the term
                                    of this Agreement, then such payment shall
                                    be in an amount equal to an amount in cash
                                    equal to two (2) times Officer's total
                                    compensation (base salary plus bonus) for
                                    the Fiscal Year proceeding such termination,
                                    and

                           (3)      for a period of one year following such last
                                    day, the benefits specified in the last
                                    sentence of Section 4(e) hereof.

                  (ii)     Not withstanding anything in this Agreement to the
                           contrary, in the event it shall be determined that
                           any payment or distribution by Employer or any other
                           person or entity to or for the benefit of Officer
                           (within the meaning of Section 280G(b)(2) of the
                           Internal Revenue Code of 1986, as amended (the
                           "Code")), whether paid or payable or distributed or
                           distributable pursuant to the terms of this Agreement
                           or otherwise in connection with, or arising out of,
                           his employment with Employer or a change in ownership
                           or effective control of Employer or a substantial
                           portion of its assets (a "Payment"), would be subject
                           to the excise tax imposed by Section 4999 of the Code
                           (the "Excise Tax"), the Payments shall include
                           gross-up for any excise taxes due under IRC 280G or
                           similar "golden parachute" provisions plus any
                           excise, income, or payroll taxes owed on the payment
                           on the excise payment amount.

                  (iii)    In order to receive the amounts provided by Sections
                           5(d) or 5(e), other than Base Salary through the last
                           day of employment, Officer agrees that for a period
                           of one year after termination of employment either
                           for Poor Performance or other than for Cause, Officer
                           shall not engage in any business, whether as an
                           employee, consultant, partner, principal, agent,
                           representative or stockholder (other than as a
                           stockholder of less than 1% equity interest) or in
                           any other corporate or representative capacity with
                           any other business whether in corporate,
                           proprietorship, or partnership form or otherwise,
                           where such business is engaged in any activity which
                           competes with the business of Employer or its
                           subsidiaries or affiliates, as conducted on the date
                           Officer's employment terminated or which will compete
                           with any proposed business activity of Employer or
                           its subsidiaries or affiliates, in the planning stage
                           on such date.

                                        8
<PAGE>
                           If the foregoing agreement is determined invalid or
                           unenforceable by a Court in an interpretation of this
                           Agreement, then Officer agrees that he shall return
                           the amounts received pursuant to Sections 5(d) and
                           5(e), other than the Base Salary through the last day
                           of employment.

         f.       RESIGNATION. If during the term of this Agreement, Officer
                  shall resign voluntarily, Officer shall be entitled to payment
                  of his base salary through his last day of employment, but all
                  other rights to payment or benefits hereunder shall
                  immediately terminate; provided, however, that the termination
                  of Officer's employment pursuant to this Section 5(f) shall
                  not affect Officer's entitlement to all benefits in which he
                  has become vested or which are otherwise payable in respect of
                  periods ending prior to his termination of employment, and all
                  obligations of Officer under Sections 9(f) and 9(j) shall
                  expressly survive such termination. If Officer resigns as a
                  result of a material breach by Employer, which breach is not
                  cured by Employer within 30 days' receipt of written notice,
                  then Officer's resignation will be considered as a Termination
                  Other Than For Cause pursuant to Section 5(e) for all purposes
                  of this Agreement.

         g.       NOTICE OF TERMINATION. Any purported termination by Employer
                  or by Officer (including any resignation) shall be
                  communicated by a written Notice of Termination to the other
                  party hereto which indicates the specific termination
                  provision in this Agreement, if any, relied upon and which
                  sets forth in reasonable detail the facts and circumstances,
                  if any, claimed to provide a basis for termination of
                  Officer's employment under the provision so indicated. For
                  purposes of this Agreement, no such purported termination
                  shall be effective without such Notice of Termination. The
                  "Termination Date" shall mean the date specified in the Notice
                  of Termination, which shall be no less than 30 or more than 60
                  days from the date of the Notice of Termination.
                  Notwithstanding any other provision of this Agreement, in the
                  event of any termination of Officer's employment hereunder for
                  any reason, Employer shall pay Officer his full base salary
                  through the Termination Date, plus any Additional Benefits
                  which have been earned or become payable, but which have not
                  yet been paid, as of such Termination Date.

6.       LOCATION OF SERVICES. Officer is required to perform his services under
         this Agreement at such present or future business location of Company
         as may be designated by the Chief Executive Officer in the Counties of
         Los Angeles, Orange or Ventura, California or wherever the Corporate
         Headquarters of Employer may be located.

         a.       IN GENERAL. If Employer requests Officer to relocate outside
                  of the locations referenced above, Officer shall have the
                  option of agreeing to such relocation and the terms of this
                  Agreement shall continue in full force and effect. If Officer
                  declines to relocate outside of the locations referenced
                  above, either the Officer or Employer shall provide the other
                  party with a Notice of Termination in accordance with Section
                  5(g) and the Officer will be deemed to have been terminated
                  pursuant to Section 5(e).

                                        9
<PAGE>
         b.       CHANGE IN CONTROL. For two years following a change in control
                  of the Company, as declared by the Board of Directors,
                  Employer may only require Officer to relocate within the three
                  counties identified above and only if such relocation is to
                  the Corporate Headquarters location of Employer. During this
                  time period, if Employer requests that Officer relocate
                  outside of the three counties identified above, or within the
                  three counties, but not to the Corporate Headquarters
                  location, Officer shall have the option of agreeing to such
                  relocation and the terms of this Agreement shall continue in
                  full force and effect. If Officer declines to relocate outside
                  of the locations referenced above, either the Officer or
                  Employer shall provide the other party with a Notice of
                  Termination in accordance with Section 5(g) and the Officer
                  will be deemed to have been terminated pursuant to Section
                  5(e).

7.       REIMBURSEMENT OF BUSINESS EXPENSES. During the term of this Agreement,
         Employer shall reimburse Officer promptly for all business expenditures
         to the extent that such expenditures meet the requirements of the Code
         for deductibility by Employer for federal income tax purposes or are
         otherwise in compliance with the rules and policies of Employer and are
         substantiated by Officer as required by the Internal Revenue Service
         and rules and policies of Employer.

8.       INDEMNITY. To the extent permitted by applicable law, the Certificate
         of Incorporation and the By-Laws of Employer (as from time to time in
         effect) and any indemnity agreements entered into from time to time
         between Employer and Officer, Employer shall defend and indemnify
         Officer and hold him harmless for any acts or decisions made by him in
         good faith while performing services for Employer (including any
         subsidiary or affiliate of Employer), and shall use reasonable efforts
         to obtain coverage for him under liability insurance policies now in
         force or hereafter obtained during the term of this Agreement covering
         the other officers or directors of Employer.

9.       MISCELLANEOUS.

         a.       SUCCESSORSHIP. This Agreement shall inure to the benefit of
                  and shall be binding upon Employer, its successors and
                  assigns, but without the prior written consent of Officer,
                  this Agreement may not be assigned other than in connection
                  with a merger or sale of Employer or the sale of substantially
                  all the assets of Employer or similar transaction.
                  Notwithstanding the foregoing, Employer may assign, whether by
                  assignment agreement, merger, operation of law or otherwise,
                  this Agreement to the Public Company or to any successor or
                  affiliate of Employer or the Public Company, subject to such
                  assignee's express assumption of all obligations of Employer
                  hereunder. The failure of any successor to or assignee of the
                  Employer's business and/or assets in such transaction to
                  expressly assume all obligations of Employer hereunder shall
                  be deemed a Termination Other Than For Cause pursuant to
                  Section 5(e).

                  The obligations and duties of Officer hereby shall be personal
                  and not assignable.

                                       10
<PAGE>
         b.       NOTICES. Any notices provided for in this Agreement shall be
                  sent to Employer at its corporate headquarters, Attention:
                  General Counsel, with a copy to the Director of Human
                  Resources at the same address, or to such other address as
                  Employer may from time to time in writing designate, and to
                  Officer at such address as he may from time to time in writing
                  designate (or his business address of record in the absence of
                  such designation). All notices shall be deemed to have been
                  given two (2) business days after they have been deposited as
                  certified mail, return receipt requested, postage paid and
                  properly addressed to the designated address of the party to
                  receive the notices.

         c.       ENTIRE AGREEMENT. This instrument contains the entire
                  agreement of the parties relating to the subject matter
                  hereof, and it replaces and supersedes any prior agreements
                  between the parties relating to said subject matter; provided,
                  however, that all provisions of Employer's Employee Handbook
                  shall be incorporated herein by this reference and Officer
                  hereby expressly acknowledges that all provisions of the
                  Employee Handbook are applicable to his employment
                  relationship with Employer, except to the extent that any such
                  provisions directly conflict with any term contained in this
                  Agreement; provided, further, that Officer hereby expressly
                  acknowledges that Officer has executed Employer's standard
                  Arbitration Agreement which generally requires that any
                  dispute under this Agreement will be arbitrated. No
                  modifications or amendments of this Agreement shall be valid
                  unless made in writing and signed by the parties hereto.

         d.       WAIVER. The waiver of the breach of any term or of any
                  condition of this Agreement shall not be deemed to constitute
                  the waiver of any other breach of the same or any other term
                  or condition.

         e.       CALIFORNIA LAW. This Agreement shall be construed and
                  interpreted in accordance with the laws of California, without
                  reference to its conflicts of laws principles.

         f.       CONFIDENTIALITY. Officer hereby acknowledges and agrees that
                  Employer and its affiliates have developed and own valuable
                  information related to their business, personnel and
                  customers, including, but not limited to, concepts, ideas,
                  customer lists, business lists, business and strategic plans,
                  financial data, accounting procedures, secondary marketing and
                  hedging models, trade secrets, computer programs and plans,
                  and information related to officers, directors, employees and
                  agents. Officer hereby agrees that all such information, and
                  all codes, concepts, copies and forms relating to such
                  information, Employer's plans and intentions with respect
                  thereto, and any information provided by Employer or its
                  affiliates to Officer with respect to any of the foregoing,
                  shall be considered "Confidential Information" for the purpose
                  of this Agreement. Officer acknowledges and agrees that all
                  such Confidential Information is a valuable asset of Employer,
                  and if developed by Officer, is developed by Officer in the
                  course of Officer's employment with Employer, and is the sole
                  property of Employer. Officer agrees that he will not

                                       11
<PAGE>
                  divulge or otherwise disclose, directly or indirectly, any
                  Confidential Information concerning the business or policies
                  of Employer or any of its affiliates which he may have learned
                  as a result of his employment during the term of this
                  Agreement or prior thereto as an employee, officer or director
                  of or consultant to Employer or any of its affiliates, except
                  to the extent such use or disclosure is (i) necessary or
                  appropriate to the performance of this Agreement and in
                  furtherance of Employer's best interests, (ii) required by
                  applicable law or in response to a lawful inquiry from a
                  governmental or regulatory authority, (iii) lawfully
                  obtainable from other sources, or (iv) authorized by Employer.
                  Furthermore, in order to protect the trade secret or
                  confidential information of Employer, Officer hereby agrees
                  not to accept any employment or engage in any activities
                  competitive with the Employer for a period of one year after
                  termination of employment if the loyal and complete
                  fulfillment of the duties of the competitive employment or
                  activities would inherently call upon Officer to reveal or use
                  any of the trade secret or Confidential Information of
                  Employer to which Officer had access during employment by
                  Employer. The provisions of this subsection shall survive the
                  expiration, suspension or termination, for any reason, of this
                  Agreement.

         g.       REMEDIES OF EMPLOYER. Officer acknowledges that the services
                  he is obligated to render under the provisions of this
                  Agreement are of a special, unique, unusual, extraordinary and
                  intellectual character, which gives this Agreement peculiar
                  value to Employer. The loss of these services cannot be
                  reasonably or adequately compensated in damages in an action
                  at law and it would be difficult (if not impossible) to
                  replace these services. By reason thereof, Officer agrees and
                  consents that if he violates any of the material provisions of
                  this Agreement, Employer, in addition to any other rights and
                  remedies available under this Agreement or under applicable
                  law, shall be entitled during the remainder of the term to
                  seek injunctive relief, from a tribunal of competent
                  jurisdiction, restraining Officer from committing or
                  continuing any violation of this Agreement. The provisions of
                  this subsection shall survive the expiration, suspension or
                  termination, for any reason, of this Agreement.

         h.       SEVERABILITY. If any provision of this Agreement is held
                  invalid or unenforceable, the remainder of this Agreement
                  shall nevertheless remain in full force and effect, and if any
                  provision is held invalid or unenforceable with respect to
                  particular circumstances, it shall nevertheless remain in full
                  force and effect in all other circumstances.

         i.       NO OBLIGATION TO MITIGATE. Officer shall not be required to
                  mitigate the amount of any payment provided for in this
                  Agreement by seeking other employment or otherwise and, except
                  as provided in Section 5(a) hereof, no payment hereunder shall
                  be offset or reduced by the amount of any compensation or
                  benefits provided to Officer in any subsequent employment.

                                       12
<PAGE>
         j.       NO SOLICITATION.

                  (i)      IN GENERAL. Officer agrees that during employment and
                           for a period of one year after termination of such
                           employment, Officer shall not:

                           (1)      Solicit, or cause to be solicited, any
                                    customers of Employer for purposes of
                                    promoting or selling any products or
                                    services competitive with those of Employer;

                           (2)      Solicit business from, or perform services
                                    for, any company or other business entity
                                    which at any time during the two year period
                                    immediately preceding Officer's termination
                                    of employment with Employer was a client of
                                    Employer, or its subsidiaries or affiliates;
                                    or

                           (3)      Solicit for employment, offer, or cause to
                                    be offered, employment, either on a full
                                    time, part time, or consulting basis, to any
                                    person who was employed by Employer or its
                                    subsidiaries or affiliates on the date
                                    Officer's employment terminated, unless
                                    Officer shall have received the prior
                                    written consent of Employer.

                  (ii)     CONSIDERATION. The consideration for the foregoing
                           covenants, the sufficiency of which is hereby
                           acknowledged, is Employer's agreement to continue to
                           employ Officer and provide compensation and benefits
                           pursuant to this Agreement, including but not limited
                           to Section 5 (d), (e), and (f).

                  (iii)    EQUITABLE RELIEF AND OTHER REMEDIES. Officer
                           acknowledges and agrees that Employer's remedies at
                           law for a breach or threatened breach of any of the
                           provisions of this Section would be inadequate and,
                           in recognition of this fact, Officer agrees that, in
                           the event of such a breach or threatened breach, in
                           addition to any remedies at law, Employer, without
                           posting any bond, shall be entitled to obtain
                           equitable relief in the form of specific performance,
                           a temporary restraining order, a temporary or
                           permanent injunction or any other equitable remedy
                           which may then be available.

                  (iv)     REFORMATION. The foregoing No Solicitation provisions
                           are intended to restrict Officer only to the extent
                           permitted by law in the jurisdiction where Officer is
                           then a resident. To the extent the No Solicitation
                           Provisions would otherwise be determined invalid or
                           unenforceable by a Court of competent jurisdiction,
                           such Court shall exercise its discretion in reforming
                           the provisions of this Section to the end that
                           Officer shall be subject to reasonable no
                           solicitation provisions that are enforceable by
                           Employer under the laws of the jurisdiction where
                           Officer is then a resident. If the laws of the state
                           where the Officer is then a resident completely
                           prohibit any form of the foregoing

                                       13
<PAGE>
                  covenants, then Employer and Officer understand and agree that
                  the foregoing covenants are of no effect.

10.      REGULATORY INTERVENTION. Notwithstanding anything in this Agreement to
         the contrary, this Agreement is subject to the following terms and
         conditions:

                  (i)      If Officer is suspended and/or temporarily prohibited
                           from participating in the conduct of Employer's
                           affairs by a notice served under Section 8(e)(3) or
                           (g)(1) of the Federal Deposit Insurance Act (12
                           U.S.C. 1818 (e)(3) and (g)(1)), Employer's
                           obligations hereunder shall be suspended as of the
                           date of service unless stayed by appropriate
                           proceedings. If the charges in the notice are
                           dismissed, Employer shall (x) pay Officer all or part
                           of the compensation withheld while Employer's
                           contract obligations were suspended, and (y)
                           reinstate any of Employer's obligations which were
                           suspended.

                  (ii)     If Officer is removed and/or permanently prohibited
                           from participating in the conduct of Employer's
                           affairs by an order issued under Section 8(e)(4) or
                           (g)(1) of the Federal Deposit Insurance Act (12
                           U.S.C. 1818 (e)(4) and (g)(1)), all obligations of
                           Employer under this Agreement shall terminate as of
                           the effective date of the order, but vested rights of
                           the parties shall not be affected.

                  (iii)    If Employer is in default (as defined in Section
                           3(x)(1) of the Federal Deposit Insurance Act (12
                           U.S.C. 1813 (x)(1)), all obligations under this
                           Agreement shall terminate as of the date of default,
                           but any vested rights of Officer shall not be
                           affected.

                  (iv)     All obligations under this Agreement shall be
                           terminated, except to the extent determined that
                           continuation of the contract is necessary for the
                           continued operation of Employer, (x) by the Office of
                           Thrift Supervision ("OTS") at the time the Federal
                           Deposit Insurance Corporation ("FDIC") enters into an
                           agreement to provide assistance to or on behalf of
                           Employer under the authority contained in Section
                           13(c) of the Federal Deposit Insurance Act (12 U.S.C.
                           1823 (c)); or (y) by the OTS at the time the OTS
                           approves a supervisory merger to resolve problems
                           related to operation of Employer or when Employer is
                           determined by the OTS to be in an unsafe or unsound
                           condition. Any rights of Officer that shall have
                           vested under this Agreement shall not be affected by
                           such action.

                  (v)      With regard to the provisions of this Section 10(i)
                           through (iv):

                      A.   Employer agrees to use its best efforts to oppose any
                           such notice of charges as to which there are
                           reasonable defenses;

                                       14
<PAGE>
                      B.   In the event the notice of charges is dismissed or
                           otherwise resolved in a manner that will permit
                           Employer to resume its obligations to pay
                           compensation hereunder, Employer will promptly make
                           such payment hereunder; and

                      C.   During the period of suspension, the vested rights of
                           the contracting parties shall not be affected except
                           to the extent precluded by such notice.

                  (vi)     Any payments made to Officer by Employer pursuant to
                           this Agreement, or otherwise, are subject to and
                           conditioned upon their compliance with 12 U.S.C.
                           1828(k) and any regulations promulgated there under.

                                       15
<PAGE>
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first above written.

EMPLOYER

By: ______________________________________

Name:         Michael W. Perry

Title:        Vice Chairman and Chief Executive Officer

Officer:

__________________________________________

in his individual capacity

                             PARENT COMPANY GUARANTY

IndyMac Bancorp, Inc. ("Bancorp") is the parent holding company of Employer and
benefits directly from the strength and continuity of the management of
Employer. Accordingly, Bancorp hereby assures and guaranties the full and timely
satisfaction of all monetary and other obligations of Employer to Officer under
the Agreement. This guaranty is a guaranty of payment and not collection. This
guaranty shall continue in full force and effect notwithstanding any future
modifications, extensions or renewals to the Agreement that may be made by
Employer. Bancorp hereby waives any and all suretyship or other similar defenses
that may be available to it with respect to this guaranty to the full extent
permitted by applicable law.

IndyMac Bancorp, Inc.

By: _________________________

    _________________________
      Printed Name and Title

Date: _________________________

                                       16
<PAGE>
                                   APPENDIX A
                                  COST CENTER
                             ANNUAL INCENTIVE PLAN
                              (Richard L. Sommers)

Annual Rate for 2000:    $200,000           Annual Grant of Stock Options:
Target Bonus for 2000:   $100,000           25% of Total Comp (# of shares to be
Maximum Bonus for 2000:  $211,200           calculated by dividing Total Comp by
                                            Black Scholes Value of Options)

Annual Incentive Award:

     Officer shall be eligible for an Annual Incentive Award which shall be
     comprised of the following two components:

          1. Meeting Specific Goals and Objectives
          2. Leadership Qualities (Adjustment Factors)

          These components shall be measured as follows: Measurement of
          Components Intentionally Omitted.

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