Document:

exv4w2

 

Exhibit 4.2

INDYMAC BANCORP, INC.

2002 INCENTIVE PLAN,

AS AMENDED AND RESTATED

SECTION 1

GENERAL

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

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

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

SECTION 2

OPTIONS

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

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

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

     2.4. Vesting. Subject to the limitations of the Plan, each installment of shares
covered by an Option granted pursuant to Section 2 shall be exercisable on and after the vesting
date for such installment as established by the Committee and/or its delegates and specified in the
applicable Award Memorandum

 

 

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

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

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

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

     (c) Unless otherwise provided in the applicable Award Memorandum or otherwise specified by the
Committee prior to exercise, a Participant may elect to pay the Exercise Price upon the exercise of
an Option by irrevocably authorizing a third party to sell shares of Stock (or a sufficient portion
of the shares) acquired upon exercise of the Option and remit to the Company a sufficient portion
of the sale proceeds to pay the entire Exercise Price and any tax withholding resulting from such
exercise.

     (d) The Committee may provide in an Award Memorandum for any other method of payment of the
Exercise Price upon the exercise of an Option.

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

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

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

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

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

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

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

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

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

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

SECTION 3

OTHER STOCK AWARDS

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

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

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

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

     (c) Awards of Restricted Stock or Restricted Stock Units may not be sold, transferred,
assigned, pledged, hypothecated or otherwise disposed of in any way (whether by operation of law or

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otherwise) during the Restricted Period other than by will or by the applicable laws of
descent and distribution.

     (d) Unless otherwise provided in the applicable Award Memorandum or otherwise provided by the
Committee, the following terms shall apply to Awards of Restricted Stock or Restricted Stock Units
granted under this Section 3:

     (i) Vesting. The Covered Shares shall be transferred to the Participant free
of all restrictions upon the date they become fully vested. A Participant who ceases to be
an Employee shall forfeit the portion of his or her Restricted Stock or Restricted Stock
Unit Award that is not vested as of his or her Date of Termination, after giving effect to
any applicable acceleration of vesting.

     (ii) Dividends and Dividend Equivalents. Dividends, if any, accrued on
Restricted Stock during the Restricted Period shall be credited to the Participant and held
by the Company on behalf of the Participant. The Participant’s interest in the dividends
shall vest on the same date that his or her interest in the Covered Shares vest. In the
event that any portion of the Covered Shares are forfeited, the accrued and unpaid
dividends relating to the Covered Shares also shall be forfeited. A Restricted Stock Unit
Award may provide the Participant with the right to receive dividend equivalent payments
with respect to the Covered Shares, which payments shall be credited to the Participant and
held by the Company on behalf of the Participant, and may be settled in cash or Stock, as
determined by the Committee. Any such settlements, and any such crediting of dividend
equivalents or reinvestment in shares of Stock, may be subject to such conditions,
restrictions and contingencies as the Committee shall establish, including the reinvestment
of such credited amounts in Stock equivalents. Subject to subsection 5.2(g), dividend
equivalents paid in Stock with respect to an Award of Restricted Stock Units before the
Covered Shares are earned or vested shall be deemed delivered under the Plan for purposes
of applying the share limits in subsection 5.2.

     (iii) Voting. The Participant shall not be prevented from voting the Covered
Shares subject to a Restricted Stock Award merely because those shares are subject to the
restrictions imposed by this Plan; provided, however, that the Participant shall not be
entitled to vote Covered Shares with respect to record dates for any Covered Shares
occurring on or after the date, if any, on which the Participant has forfeited those shares.

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

     (e) The Committee may designate whether any Award being granted to any Participant under this
Section 3 is intended to be performance-based compensation. Any such Awards designated as intended
to be performance-based compensation shall be conditioned on the achievement of one or more
Performance Measures, to the extent required by Code Section 162(m) and the regulations thereunder.
For Awards under this Section 3 intended to be performance-based compensation, the grant of the
Awards and the establishment of the Performance Measures shall be made during the period required
under Code Section 162(m).

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

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

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

SECTION 4

 INCENTIVE AWARDS

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

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

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

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

     4.5. Exceptions to Performance Goal Requirement. Except as otherwise provided by the
Committee, if a Participant’s employment terminates because of death, Disability, or Retirement, or
if a Change in Control occurs prior to the Participant’s termination of employment, the
Participant’s Cash Incentive Award shall become fully vested; provided, however, that as a
condition of such acceleration of vesting upon the Participant’s Retirement, the Participant shall
execute a restrictive covenant agreement

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(including, but not limited to, a non-solicitation of customers and employees covenant)
satisfactory to the Company with a term equal to the longest vesting term being accelerated.

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

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

SECTION 5

OPERATION AND ADMINISTRATION

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

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

     (a) The shares of Stock with respect to which Awards may be made under the Plan shall be
shares currently authorized but unissued or currently held or, to the extent permitted by
applicable law, subsequently acquired by the Company as treasury shares, including shares purchased
in the open market or in private transactions.

     (b) Subject to the following provisions of this subsection 5.2, the maximum number of shares
of Stock that may be delivered to Participants and their beneficiaries under the Plan shall be
11,200,000 shares of Stock; provided, however, that each share of Stock issued under the Plan
pursuant to a Full Value Award shall reduce the number of available shares of Stock by 3.5 shares.

     (c) To the extent any shares of Stock covered by an Award are not delivered to a Participant
or beneficiary because the Award is forfeited, such shares shall not be deemed to have been
delivered for purposes of determining the maximum number of shares of Stock available for delivery
under the Plan.

     (d) To the extent provided by the Committee in its sole discretion, any Award may be settled
in cash rather than Stock. To the extent any shares of Stock covered by an Award are not delivered
to a Participant or beneficiary because the Award is settled in cash, such shares shall be deemed
to have been delivered for purposes of determining the maximum number of shares of Stock available
for delivery under the Plan (and such shares shall not be added back to the available share pool
under the Plan).

     (e) If outstanding shares of Stock (including shares issued on the date of grant of a
Restricted Stock Award) are tendered to the Company (by either actual delivery or by attestation),
or are withheld from the Award, to satisfy the exercise price or tax liability resulting from an
Award, such tendered or withheld shares shall be deemed to have been delivered to the Participant
for purposes of determining the

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maximum number of shares of Stock available for delivery under the Plan (and such shares shall
not be added back to the available share pool under the Plan).

     (f) Subject to subsection 5.2(g), the following additional maximums are imposed under the
Plan.

     (i) The maximum number of shares that may be covered by Awards granted to any one
individual pursuant to Section 2 (relating to Options) shall be 1,500,000 shares during any
one calendar year period.

     (ii) No more than 500,000 shares of Stock may be subject to Awards of Restricted Stock
or Restricted Stock Units granted under the Plan to any one individual during any one
calendar-year period. If, after shares have been earned, the delivery is deferred, any
additional shares attributable to dividends during the deferral period shall be disregarded
for purposes of applying the annual share limit imposed by this subsection 5.2(f)(ii) and
the overall share limit imposed by subsection 5.2(b).

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

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

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

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

     5.4. Tax Withholding. All distributions under the Plan (other than to Non-Employee
Directors) are subject to withholding of all applicable taxes, and the Committee may condition the
delivery of any shares or other benefits under the Plan on satisfaction of the applicable
withholding obligations. Except as otherwise provided by the Committee, such withholding
obligations may be satisfied (i) through cash payment by the Participant, (ii) through the
surrender, by either actual delivery of shares or by attestation,

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of shares of Stock acceptable to the Committee which the Participant already owns; or (iii)
through the surrender of shares of Stock to which the Participant is otherwise entitled under the
Plan; provided, however, that such shares under this clause (iii) may only be used to satisfy the
minimum amount (and not any greater amount) required to be withheld for tax purposes.

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

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

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

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

     5.7. Settlement of Awards. The obligation to make payments and distributions with
respect to Awards may be satisfied through cash payments, the delivery of shares of Stock, the
granting of replacement Awards, or combination thereof as the Committee shall determine.
Satisfaction of any such obligations under an Award, which is sometimes referred to as “settlement”
of the Award, may be subject to such conditions, restrictions and contingencies as the Committee
shall determine. Subject to applicable tax laws relating to deferred compensation, including Code
Section 409A, the Committee may permit or require the deferral of any Award payment, subject to
such rules and procedures as it may establish, which may include provisions for the payment or
crediting of interest or dividend equivalents, and may include converting such credits into
deferred Stock equivalents. Each Subsidiary shall be liable for payment of cash due under the Plan
with respect to any Participant to the extent that such benefits are attributable to the services
rendered for that Subsidiary by the Participant. Any disputes relating to liability of a Subsidiary
for cash payments shall be resolved by the Committee.

     5.8. Transferability. Except as otherwise provided by the Committee, Awards may not be
sold, transferred, assigned, pledged, hypothecated or otherwise disposed of in any way (whether by
operation of

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law or otherwise) except as designated by the Participant by will or by the laws of descent
and distribution. Under no event will Awards be transferable to a third party (which term shall
specifically exclude family members, as defined below) for value. Neither (i) a gift, (ii) a
transfer under a domestic relations order in settlement of marital property rights, nor (iii) a
transfer to an entity in which more than fifty percent of the voting interests are owned by a
Participant or his or her family members in exchange for an interest in that entity, shall be
deemed to be a transfer for value under this subsection 5.8. The term “family member” for purposes
of this subsection 5.8 shall have the meaning set forth in General Instruction A.1(a)(5) to Form
S-8.

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

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

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

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

     5.13. Limitation of Implied Rights.

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

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

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

     5.15. Heirs and Successors. Awards granted under this Plan shall be binding upon, and
inure to the benefit of, the Company and its successors and assigns, and upon any person acquiring,
whether by merger, consolidation, purchase of assets or otherwise, all or substantially all of the
Company’s assets and business.

- 9 -

 

If any rights exercisable by the Participant or benefits deliverable to the Participant under
such Award have not been exercised or delivered, respectively, at the time of the Participant’s
death, such rights shall be exercisable by the Designated Beneficiary, and such benefits shall be
delivered to the Designated Beneficiary, in accordance with the provisions of the Plan. The
“Designated Beneficiary” shall be the beneficiary or beneficiaries designated by the Participant in
a writing filed with the Committee in such form and at such time as the Committee shall require. If
a deceased Participant fails to designate a beneficiary, or if the Designated Beneficiary does not
survive the Participant, any rights that would have been exercisable by the Participant and any
benefits distributable to the Participant shall be exercised by or distributed to the legal
representative of the estate of the Participant. If a deceased Participant designates a beneficiary
and the Designated Beneficiary survives the Participant but dies before the Designated
Beneficiary’s exercise of all rights under the Award or before the complete distribution of
benefits to the Designated Beneficiary under the Award, then any rights that would have been
exercisable by the Designated Beneficiary shall be exercised by the legal representative of the
estate of the Designated Beneficiary, and any benefits distributable to the Designated Beneficiary
shall be distributed to the legal representative of the estate of the Designated Beneficiary.

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

SECTION 6

CHANGE IN CONTROL

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

	(A)	 	An acquisition of any common stock or other “Voting Securities” (as hereinafter defined) of the Company by
any “Person” (as the term person is used for purposes of Section 13(d) or 14(d) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”)), immediately after which such Person has “Beneficial
Ownership” (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty five percent
(25%) or more of the then outstanding shares of the Company’s common stock or the combined voting power of
the Company’s then outstanding Voting Securities; provided, however, in determining whether a Change in
Control has occurred, Voting Securities which are acquired in a “Non-Control Acquisition” (as hereinafter
defined) shall not constitute an acquisition which would cause a Change in Control. For purposes of this
Plan, (1) “Voting Securities” shall mean the Company’s outstanding voting securities entitled to vote
generally in the election of directors and (2) a “Non-Control Acquisition” shall mean an acquisition by
(a) the Company or any of its Subsidiaries, (b) an employee benefit plan (or a trust forming a part
thereof) maintained by (x) the Company, or (y) any corporation or other Person of which a majority of its
voting power or its voting equity securities or equity interest is owned, directly or indirectly, by the
Company (for purposes of the definition in this subsection 6.1, a “Subsidiary”), or (c) any Person in
connection with a “Non-Control Transaction” (as hereinafter defined).
	 
	(B)	 	The individuals who, as of the Effective Date, were members of the Board (the “Incumbent Board”), cease
for any reason to constitute at least a majority of the members of the Board; provided, however, that if
the election, or nomination for election by the Company’s common stockholders, of any new director was
approved by a vote of at least two-thirds of the Incumbent Board, such new director shall, for purposes of
this Plan be considered as a member of the Incumbent Board; provided further, however, that no individual
shall be considered a member of the Incumbent Board if such individual initially assumed office as a
result of either an actual or threatened “Election Contest” (as described in Rule 14a-11 promulgated under
the Exchange Act) or other actual or threatened solicitation of proxies or consents by or on behalf of a
Person other than the Board (a “Proxy Contest”) including by reason of any agreement intended to avoid or
settle any Election Contest or Proxy Contest; or
	 
	(C)	 	The consummation of:

- 10 -

 

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

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

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

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

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

     6.3. Committee Action. Except as otherwise provided in an Award Memorandum or a
written agreement between the Company and a Participant (and approved by the Committee) to the
contrary, in the event of a Change in Control, then all outstanding Awards previously granted to
the Participant hereunder that have not already vested shall vest on the first anniversary of the
Change in Control; provided, however, that in the event that a Participant’s employment with
IndyMac or any successor employer is terminated

- 11 -

 

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

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

     6.5. Restoration of Prior Status. Any Awards that are (or but for the holder’s
rejection of the acceleration would have been) accelerated under this Section 6 and that are not
exercised or vested prior to an abandonment or termination of a transaction subject to stockholder
approval that triggered the Change in Control (as evidenced by public announcement, Board
resolution, execution of documents terminating the transaction, or other action or document
objectively confirming such abandonment or termination), shall be restored to their prior status
(except for the effects of the passage of time) as if no Change in Control had occurred.

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

SECTION 7

COMMITTEE

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

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

	(a)	 	Subject to the provisions of the Plan, the Committee
will have the authority and discretion to select from
among the Eligible Individuals those persons who shall
receive Awards, to determine the time or times of
receipt, to determine the types of Awards and the
amount or number of shares covered by the Awards, to
establish the terms, conditions, performance criteria,
restrictions, and other provisions of 

- 12 -

 

	 	 	such Awards, and
(subject to the restrictions imposed by subsection
2.9, relating to Option repricing, and by Section 8,
relating to amendments and termination) to modify,
accelerate the vesting of, cancel or suspend Awards.

	(b)	 	To the extent that the Committee determines that the
restrictions imposed by the Plan preclude the
achievement of the material purposes of the Awards in
jurisdictions outside the United States, the Committee
will have the authority and discretion to modify those
restrictions as the Committee determines to be
necessary or appropriate to conform to applicable
requirements or practices of jurisdictions outside of
the United States.
	 
	(c)	 	The Committee will have the authority and discretion to interpret the
Plan, to establish, amend and rescind any rules and regulations
relating to the Plan, to determine the terms and provisions specified
in any Award Memorandum made pursuant to the Plan, and to make all
other determinations that may be necessary or advisable for the
administration of the Plan.
	 
	(d)	 	Any interpretation of the Plan by the Committee and
any decision made by it under the Plan are final and
binding on all persons.
	 
	(e)	 	In controlling and managing the operation and
administration of the Plan, the Committee shall take
action in a manner that conforms to the certificate of
incorporation and by-laws of the Company, and
applicable state corporate law.

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

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

SECTION 8

AMENDMENT AND TERMINATION

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

- 13 -

 

SECTION 9

DEFINED TERMS

     In addition to the other definitions contained herein, the following definitions shall apply:

	(a)	 	Award. The term “Award” means any award or benefit granted under
the Plan, including, the grant of Options, Restricted Stock Awards,
Restricted Stock Unit Awards, Cash Incentive Awards, dividends
granted with respect to Restricted Stock Awards or dividend
equivalents granted with respect to Restricted Stock Unit Awards.
	 
	(b)	 	Board. The term “Board” means the Board of Directors of the Company.
	 
	(c)	 	Cause. The term “Cause” means, as determined by the Company:

     (i) Participant’s intentional and material failure to perform his or her duties with
the Company (other than any such failure resulting from incapacity due to physical or
mental illness), after a written demand for performance is delivered to the Participant by
the Company which specifically identifies the manner in which the Company believes that the
Participant has intentionally and materially failed to perform the Participant’s duties; or

     (ii) Participant’s engaging in any illegal conduct, gross misconduct, or gross
negligence which is, or is likely to be, injurious to the Company, its financial condition,
or its reputation; or

     (iii) Participant’s engaging in any act or omission to act which involves (a) fraud,
theft, misappropriation, embezzlement, or dishonesty, (b) willful violation of any law,
rule or regulation of a governmental authority, other than traffic violations, (c) regular
alcohol or drug abuse, or (d) material violation of the Company’s written policies,
including its Code of Business Conduct and Ethics; or

     (iv) Entry of an order by any state or federal regulatory agency either removing the
Participant from his or her position with the Company or its affiliates or prohibiting the
Participant from participating in the conduct of the affairs of the Company or any of its
affiliates; or

     (v) Participant’s breach of the restrictive covenants set forth in his or her
Employment Agreement with the Company, if any, or material breach of any other provisions
of his or her Employment Agreement with the Company, if any.

	(d)	 	Code. The term “Code” means
the Internal Revenue Code of
1986, as amended. A reference
to any provision of the Code
shall include reference to any
successor provision of the
Code.
	 
	(e)	 	Covered Shares. The term
“Covered Shares” means the shares of Stock that are the
subject of an Award granted
under the Plan.
	 
	(f)	 	Date of Termination. The term “Date of Termination” means
the first day occurring on or after the Grant Date on which
the Employee is not employed by the Company or any
Subsidiary, regardless of the reason for the termination of
employment; provided that a termination of employment shall
not be deemed to occur by reason of a transfer of the
Employee between the Company and a Subsidiary or between
two Subsidiaries; and further provided that the Employee’s
employment shall not be considered terminated while the
Employee is on a military or sick leave from the Company or
a Subsidiary. If an Employee is employed by an entity that
is a Subsidiary and such entity ceases to be a Subsidiary,
such event shall be deemed to be the Employee’s Date of
Termination.
	 
	(g)	 	Disability. The term
“Disability” shall mean a
“permanent and total
disability” within the meaning
of Section 22(e)(3) of the
Code.
	 
	(h)	 	Eligible Individual. For
purposes of the Plan, the term
“Eligible Individual” means
any employee, officer, or
director of the Company or a
Subsidiary, and any consultant
or other person providing
services to the Company or a
Subsidiary; provided, however,
that an ISO may only be
granted to an 

- 14 -

 

	 	 	employee of the
Company or a Subsidiary. An
Award may be granted to an
employee, in connection with
hiring, retention or
otherwise, prior to the date
the employee first performs
services for the Company or
the Subsidiaries, provided
that such Awards shall not
become vested prior to the
date the employee first
performs such services.
	(i)	 	Employee. An “ Employee” is any employee of the Company or a
Subsidiary who is granted an Award under the Plan.
	 
	(j)	 	Employment Agreement. A Participant’s “Employment Agreement” means, as
of any date, the agreement (if any) between the Participant and the
Company or a Subsidiary that governs the terms of such Participant’s
employment on that date, and may include a change in control agreement
governing the effect of a change in control with respect to such
Participant and, with respect to the Participant’s termination of
employment, may also include a severance agreement governing the terms
of such Participant’s termination from employment; provided that any
such agreement must have been approved by the Committee.
	 
	(k)	 	Fair Market Value. For purposes of determining
the “Fair Market Value” of a share of Stock as
of any date, the following rules shall apply:

     (i) (A) If shares of Stock are listed or admitted to trade on a national securities exchange,
the average of the high and low reported sales prices of the shares of Stock on the Composite Tape
on such date, as published in the Western Edition of The Wall Street Journal, on the principal
national securities exchange on which the shares of Stock are so listed or admitted to trade. (B)
If the Stock is not listed or admitted to trade on a national securities exchange, the average of
the high and low reported prices for the Stock on such date, as furnished by the National
Association of Securities Dealers, Inc. (“NASD”) through the NASDAQ National Market Reporting
System (or a similar organization, if the NASD is no longer reporting such information). (C) If the
Stock is not listed or admitted to trade on a national securities exchange and are not reported on
the National Market Reporting System, the arithmetic mean between the bid and asked prices for the
Shares on such date, as furnished by the NASD or a similar organization. (D) If the Stock is not
listed or admitted to trade on a national securities exchange nor reported on the National Market
Reporting System and if bid and asked prices for the stock are not furnished by the NASD or a
similar organization, the value as established by the Board at such time for purposes of this Plan.

     (ii) If the day is not a business day, and as a result, subsection (i) next above is
inapplicable, the Fair Market Value of the Stock shall be determined as of the next earlier
business day.

	(l)	 	Full Value Award. The term “Full Value Award” means an Award other than in the form of an Option, and which is settled by
the issuance of shares of Stock.
	 
	(m)	 	Good Reason. The term “Good Reason” shall have the meaning assigned such term in the Employment
Agreement, if any, between a Participant and the Company or an affiliate, provided, however that if
there is no such Employment Agreement in which such term is defined, and unless otherwise defined in
the applicable Award, “Good Reason” shall mean, with respect to any Employee, any of the following
acts by the Company or an affiliate, without the consent of the Participant (in each case, other than
an isolated, insubstantial and inadvertent action not taken in bad faith and which is remedied by the
Company or the affiliate promptly after receipt of notice thereof given by the Participant): (i) the
assignment to the Participant of duties materially inconsistent with, or a material diminution in,
the Participant’s position, authority, duties or responsibilities as in effect immediately prior to a
Change in Control, (ii) a reduction by the Company or an affiliate in the Participant’s base salary,
(iii) the Company or an affiliate requiring the Participant, without his or her consent, to be based
at any office or location more than 35 miles from the location at which the Participant was stationed
immediately prior to a Change in Control, (iv) the continuing material breach by the Company or an
affiliate of any Employment Agreement between the Participant and the Company or an affiliate after
the expiration of any applicable period for cure, or (v) the expiration an Employment Agreement
between the Employee and the Company or any affiliate in effect prior to a Change in Control without
renewal by the Company or its successor on or following a Change in Control on 

- 15 -

 

	 	 	terms that are substantially comparable to the terms of such Employment Agreement.
	(n)	 	Grant Date. The term “Grant Date” with respect to an Award means the date on which the Award is granted under this Plan.
	 
	(o)	 	Non-Employee Director. Each member of the Board or the Board of Directors of IndyMac Bank, F.S.B who is not an employee of the
Company or any Subsidiary shall be a “Non-Employee Director.”
	 
	(p)	 	Performance-Based Compensation. The term “performance-based compensation” shall have the meaning ascribed to it in Section
162(m) of the Code and the regulations thereunder.
	 
	(q)	 	Performance Measures. The term “Performance Measures” shall mean one or more of the following business criteria, either
alone or in combination, as selected by the Committee, which may be expressed in terms of Company-wide objectives or in
terms of objectives that relate to the performance of an affiliated company or a division, region, department or function
within the Company or an affiliated company:

	 	•	 	Revenue
	 
	 	•	 	Sales, including cross-sales
	 
	 	•	 	Profit (net profit, gross profit, operating profit, economic profit, profit margins,
mortgage banking revenue margin, thrift net interest margin or other corporate profit
measures)
	 
	 	•	 	Earnings (EBIT; EBITDA; earnings per share; operating earnings per diluted share,
either before or after amortization of intangible assets; or other corporate earnings
measures)
	 
	 	•	 	Net income (before or after taxes, operating income or other income measures)
	 
	 	•	 	Cash (cash flow, cash generation or other cash measures)
	 
	 	•	 	Assets (net worth, asset quality, ratio of non-performing assets to total assets, or
other asset measures)
	 
	 	•	 	Stock price or performance
	 
	 	•	 	Total stockholder return (stock price appreciation plus reinvested dividends divided
by beginning share price)
	 
	 	•	 	Return measures (including, but not limited to, return on assets or average assets,
capital, average or common equity, or sales, and cash flow return on assets or
average assets, capital, average or common equity, or sales)
	 
	 	•	 	Market share and market size of various consumer financial products
	 
	 	•	 	Loan origination volumes
	 
	 	•	 	Deposits
	 
	 	•	 	Interest rate risk (including, but not limited to duration gap, value at risk and
other interest rate risk measures)
	 
	 	•	 	Credit risk (including, but not limited to, other credit risk measures)
	 
	 	•	 	Expenses (net operating expense, either before or after amortization of intangible
assets; expense management; expense ratio; expense efficiency ratios, ratio of
expenses outsourced as a percent of 

- 16 -

 

	 	 	 	total expenses, cost per loan, cost per deposit or other expense measures)

	 	•	 	Ratio of headcount outsourced as a percent of total headcount
	 
	 	•	 	Revenues per headcount or the inverse ratio
	 
	 	•	 	Secondary market investor performance and/or ratings
	 
	 	•	 	Fair value of assets and/or liabilities and growth and/or decline in either or both
	 
	 	•	 	Hedge effectiveness
	 
	 	•	 	Mergers, acquisitions and start-up business activities (e.g. successful acquisition
deal completion)
	 
	 	•	 	Internal rate of return or increase in net present value
	 
	 	•	 	Regulatory compliance
	 
	 	•	 	Customer satisfaction ratings
	 
	 	•	 	Employee turnover and employee count (as a whole or by a specific subset of employees)
	 
	 	•	 	Employee morale and culture survey results
	 
	 	•	 	Customer count, revenues, retention and penetration
	 
	 	•	 	Portfolio balance and count
	 
	 	•	 	Cost of funds
	 
	 	•	 	Rating agency credit ratings
	 
	 	•	 	Third party servicer evaluations (including, but not limited to, evaluations
conducted by the GSE’s and servicer ratings published by the rating agencies)

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

	(r)	 	Restricted Period. The term “Restricted Period” means the period during which the shares of Stock subject
to an Award of Restricted Stock or a Restricted Stock Unit
Award remain unvested, as set forth in the Plan or the applicable Award Memorandum.
	 
	(s)	 	Retirement. An Employee’s “Retirement” shall mean retirement or resignation from
the Company (a)(i) if the Participant is less than 55 years of age, with at least
75 points or (ii) if the Participant is 55 years of age or older, with at least 65
points and (b) the Participant has at least five (5) consecutive years of
employment with the Company. An Employee shall receive one (1) point for every
consecutive year of employment with the Company and one (1) point for every year of
age. For example, an Employee who is 52 years of age and has worked for the Company
for 15 consecutive years has 67 points.
	 
	(t)	 	Subsidiary. The term “Subsidiary” means any company during any
period in which it is a “subsidiary corporation” (as that term is
defined in Code Section 424(f)) with respect to the Company.
	 
	(u)	 	Stock. The term “Stock” means shares of common stock of the Company.

- 17 -

 

Amendment to the

2002 Incentive Plan

(Adopted by the Board of Directors on September 19, 2006)

This Amendment to the IndyMac Bancorp, Inc. 2002 Incentive Plan, as amended and restated (the “2002
Plan”), is hereby adopted this 19th  day of September, 2006, by the Board of
Directors of IndyMac Bancorp, Inc. (the “Company”).

     The Company adopted the Plan for the purposes set forth therein, and pursuant to Section 8 of
the 2002 Plan, the Board of Directors of the Company has the right to amend the 2002 Plan with
respect to certain matters.

     The Board of Directors has approved and authorized this Amendment to the 2002 Plan.

     The 2002 Plan is hereby amended, effective as of the date hereof, in the following
particulars:

     1. By deleting Section 5.2(g) in its entirety and replacing it with the following:

     (g)(i) Mandatory Adjustments. In the event of a nonreciprocal transaction between the
Company and its stockholders that causes the per-share value of the shares of Stock to change
(including, without limitation, any stock dividend, stock split, spin-off, rights offering, or
large nonrecurring cash dividend), the authorization limits under Section 5.2 shall be adjusted
proportionately, and the Committee (or, in the case of Awards made to Non-Employee Directors, the
Board) shall make such adjustments to the Plan and Awards as it deems necessary, in its sole
discretion, to prevent dilution or enlargement of rights immediately resulting from such
transaction. Action by the Committee may include: (i) adjustment of the number and kind of shares
of Stock that may be delivered under the Plan; (ii) adjustment of the number and kind of shares of
Stock subject to outstanding Awards; (iii) adjustment of the exercise price of outstanding Awards
or the measure to be used to determine the amount of the benefit payable on an Award; and (iv) any
other adjustments that the Committee determines to be equitable. Without limiting the foregoing, in
the event of a subdivision of the outstanding shares of Stock (stock-split), a declaration of a
dividend payable in shares of Stock, or a combination or consolidation of the outstanding shares of
Stock into a lesser number of shares, the authorization limits under Section 5.2 shall
automatically be adjusted proportionately, and the Shares then subject to each Award shall
automatically, without the necessity for any additional action by the Committee, be adjusted
proportionately without any change in the aggregate purchase price therefor.

     (ii) Discretionary Adjustment. Upon the occurrence or in anticipation of any corporate
event or transaction involving the Company (including, without limitation, any merger,
reorganization, recapitalization, combination or exchange of shares, or any transaction described
in (i) above), the Committee (or, in the case of Awards made to Non-Employee Directors, the Board)
may, in its sole discretion, provide (i) that Awards will be settled in cash rather than shares of
Stock, (ii) that Awards will become immediately vested and exercisable and will expire after a
designated period of time to the extent not then exercised, (iii) that Awards will be assumed by
another party to a transaction or otherwise be equitably converted or substituted in connection
with such transaction, (iv) that outstanding Awards may be settled by payment in cash or cash
equivalents equal to the excess of the Fair Market Value of the underlying shares of Stock, as of a
specified date associated with the transaction, over the exercise price of the Award, (v) that
performance targets and performance periods for performance-based compensation will be modified,
consistent with Code Section 162(m) where applicable, or (vi) any combination of the foregoing. The
Committee’s determination need not be uniform and may be different for different Participants
whether or not such Participants are similarly situated.

     (iii) General. Any discretionary adjustments made pursuant to this Section 5.2(g)
shall be subject to the provisions of Section 8. To the extent that any adjustments made pursuant
to this Section 5.2(g) cause ISOs to cease to qualify as ISOs, such Options shall be deemed to be
NQOs.”

     All other provisions of the 2002 Plan shall remain the same.

- 18 -

 

Amendment to the

2002 Incentive Plan, as Amended and Restated

(Adopted by the Board of Directors on September 17, 2007)

     This Amendment to the IndyMac Bancorp, Inc. 2002 Incentive Plan, as Amended and Restated (the
“Plan”), was adopted on September 17, 2007 by the Board of Directors (the “Board”) of IndyMac
Bancorp, Inc. (the “Company”).

     The Plan is hereby amended, effective as of September 17, 2007, in the following particulars:

     By deleting Section 5.5 in its entirety and replacing it with the following:

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

     (a) Notwithstanding anything in the Plan or in any Award Memorandum to the contrary, to the
extent that any amount or benefit that would constitute “deferred compensation” for purposes of
Section 409A of the Code would otherwise be payable or distributable under the Plan or any Award
Memorandum by reason of the occurrence of a Change in Control or the Participant’s Disability or
separation from service, such amount or benefit will not be payable or distributable to the
Participant by reason of such circumstance unless (i) the circumstances giving rise to such Change
in Control, Disability or separation from service meet the description or definition of “change in
control event,” “disability” or “separation from service,” as the case may be, in Section 409A of
the Code and applicable final regulations (without giving effect to any elective provisions that
may be available under such definition), or (ii) the payment or distribution of such amount or
benefit would be exempt from the application of Section 409A of the Code by reason of the
short-term deferral exemption or otherwise. This provision does not prohibit the vesting of any
Award upon a Change in Control, Disability or separation from service, however defined. If this
provision prevents the payment or distribution of any amount or benefit, such payment or
distribution shall be made on the next earliest payment or distribution date or event specified in
the Award Memorandum that is permissible under Section 409A.

     (b) If any one or more Awards granted under the Plan to a Participant could qualify for any
separation pay exemption described in Treas. Reg. Section 1.409A-1(b)(9), but such Awards in the
aggregate exceed the dollar limit permitted for the separation pay exemptions, the Company (acting
through the Committee or the Head of Human Resources) shall determine which Awards or portions
thereof will be subject to such exemptions.

     (c) Notwithstanding anything in the Plan or in any Award Memorandum to the contrary, if any
amount or benefit that would constitute non-exempt “deferred compensation” for purposes of Section
409A of the Code would otherwise be payable or distributable under this Plan or any Award
Memorandum by reason of a Participant’s separation from service during a period in which the
Participant is a Specified Employee (as defined below), then, subject to any permissible
acceleration of payment by the Committee under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic
relations order), (j)(4)(iii) (conflicts of interest), or (j)(4)(vi) (payment of employment taxes):

     (i) if the payment or distribution is payable in a lump sum, the Participant’s right to
receive payment or distribution of such non-exempt deferred compensation will be delayed until the
earlier of the Participant’s death or the first day of the seventh month following the
Participant’s separation from service; and

     (ii) if the payment or distribution is payable over time, the amount of such non-exempt
deferred compensation that would otherwise be payable during the six-month period immediately
following the Participant’s separation from service will be accumulated and the Participant’s right
to receive payment or distribution of such accumulated amount will be delayed until the earlier of
the Participant’s death or the first day of the seventh month following the Participant’s
separation from service, whereupon the accumulated amount will be paid or distributed to the
Participant and the normal payment or distribution schedule for any remaining payments or
distributions will resume.

- 19 -

 

     For purposes of this Plan, the term “Specified Employee” has the meaning given such term in
Section 409A of the Code and the final regulations thereunder, provided, however, that, as
permitted in such final regulations, the Company’s Specified Employees and its application of the
six-month delay rule of Code Section 409A(a)(2)(B)(i) shall be determined in accordance with rules
adopted by the Board or any committee of the Board, which shall be applied consistently with
respect to all nonqualified deferred compensation arrangements of the Company, including this Plan.

     (d) Eligible Participants who are service providers to an affiliate may be granted Options
under this Plan only if the affiliate qualifies as an “eligible issuer of service recipient stock”
within the meaning of §1.409A-1(b)(5)(iii)(E) of the final regulations under Section 409A of the
Code.”

     By deleting subsection (D) of Section 9(k) in its entirety and replacing it with the
following:

     “(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 Fair Market Value shall be determined by such
other method as the Board determines in good faith to be reasonable and in compliance with Code
Section 409A.”

     All other provisions of the Plan shall remain the same.

- 20 -exv10w1

 

Exhibit 10.1

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

BY AND BETWEEN

INDYMAC BANCORP, INC.

AND

MICHAEL W. PERRY

EFFECTIVE SEPTEMBER 18, 2006

AMENDED AND RESTATED AS OF SEPTEMBER 17, 2007

 

 

INDEX

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Page	 
	 	1.	 	 	Term	 	 	1	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	 	2.	 	 	Position, Duties and Responsibilities	 	 	1	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	 	3.	 	 	Scope of this Agreement and Outside Affiliations	 	 	2	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	 	4.	 	 	Compensation and Benefits	 	 	2	 
	 	 	 	 	(a)	 	 	 	Base Salary
	 	 	2	 
	 	 	 	 	(b)	 	 	 	Incentive Compensation
	 	 	2	 
	 	 	 	 	(c)	 	 	 	Equity Compensation
	 	 	4	 
	 	 	 	 	(d)	 	 	 	Deferred Compensation
	 	 	4	 
	 	 	 	 	(e)	 	 	 	Additional Benefits
	 	 	4	 
	 	 	 	 	(f)	 	 	 	Travel
	 	 	5	 
	 	 	 	 	(g)	 	 	 	Certain Perquisites and Business-Related Benefits
	 	 	5	 
	 	 	 	 	(h)	 	 	 	Future Alternative compensation Structure
	 	 	6	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	 	5.	 	 	Termination	 	 	6	 
	 	 	 	 	(a)	 	 	 	Disability
	 	 	7	 
	 	 	 	 	(b)	 	 	 	Death
	 	 	8	 
	 	 	 	 	(c)	 	 	 	Cause
	 	 	8	 
	 	 	 	 	(d)	 	 	 	Other than For Cause of Disability
	 	 	10	 
	 	 	 	 	(e)	 	 	 	Good Reason
	 	 	10	 
	 	 	 	 	(f)	 	 	 	Voluntary Resignation
	 	 	11	 
	 	 	 	 	(g)	 	 	 	Change in Control
	 	 	11	 
	 	 	 	 	(h)	 	 	 	Notice of Termination
	 	 	12	 
	 	 	 	 	(i)	 	 	 	Expiration of Employment Term or Retirement
	 	 	12	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	 	6.	 	 	Certain Additional Payments by Employer	 	 	13	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	 	7.	 	 	Reimbursement of Business Expenses	 	 	15	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	 	8.	 	 	Indemnity	 	 	15	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	 	9.	 	 	Miscellaneous	 	 	16	 
	 	 	 	 	(a)	 	 	 	Successorship
	 	 	16	 
	 	 	 	 	(b)	 	 	 	Notices
	 	 	16	 
	 	 	 	 	(c)	 	 	 	Entire Agreement
	 	 	16	 
	 	 	 	 	(d)	 	 	 	Waiver
	 	 	16	 
	 	 	 	 	(e)	 	 	 	California Law
	 	 	16	 
	 	 	 	 	(f)	 	 	 	Arbitration
	 	 	16	 
	 	 	 	 	(g)	 	 	 	Confidentiality
	 	 	16	 
	 	 	 	 	(h)	 	 	 	No Solicitation
	 	 	17	 
	 	 	 	 	(i)	 	 	 	Cooperation
	 	 	17	 
	 	 	 	 	(i)	 	 	 	Consideration; Remedies of Employer
	 	 	17	 
	 	 	 	 	(k)	 	 	 	Reformation
	 	 	17	 
	 	 	 	 	(l)	 	 	 	Moral Obligation
	 	 	18	 
	 	 	 	 	(m)	 	 	 	Severability
	 	 	18	 
	 	 	 	 	(n)	 	 	 	No Obligation to Mitigate
	 	 	18	 
	 	 	 	 	(o)	 	 	 	Adjustment of Options
	 	 	18	 
	 	 	 	 	(p)	 	 	 	Legal Fees
	 	 	18	 
	 	 	 	 	(q)	 	 	 	Code Section 409A
	 	 	18	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	 	10.	 	 	Regulatory Authority	 	 	19	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	 	11.	 	 	Sarbanes-Oxley	 	 	19	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 
	Appendix A	 	 	 	 	 	 

 

 

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

     THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of
September 17, 2007 by and between IndyMac Bancorp, Inc. (“Employer”) and Michael W. Perry
(“Officer”).

WITNESSETH:

     WHEREAS, Employer, Officer and IndyMac Bank, F.S.B. (“IndyMac Bank”) have previously
entered into that certain Amended and Restated Employment Agreement, effective as of September 18,
2006 (the “Amended Agreement”), which amended and restated that certain Amended and
Restated Employment Agreement, effective as of February 1, 2002 (the “Prior Agreement”);

     WHEREAS, Employer and Officer desire to amend and restate the Prior Agreement immediately into
the form of this Agreement;

     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, including IndyMac Bank
(collectively, the “Affiliates”); and

     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.

     (a) 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 hereof and ending on December
31, 2011, unless earlier terminated in accordance with the provisions hereof (the “Employment
Term”).

     (b) On December 31, 2011, and on each of the next four (4) anniversaries thereof, this
Agreement shall automatically renew for an additional term of one (1) year from January 1 of the
next year to December 31 of such year, unless notice of non-renewal is provided by either Employer
or Officer at least twelve (12) months prior to the date of renewal. Unless extended thereafter by
mutual agreement, the Employment Term shall end on December 31, 2016.

     2. Position, Duties and Responsibilities. Employer and Officer hereby agree that, subject to
the provisions of this Agreement, Officer shall serve as Chief Executive Officer of Employer.
Employer agrees that Officer shall have the authority and duties customary for his positions in
similarly situated entities and such other duties, commensurate with his position, as assigned by
the Board of Directors of Employer (the “Board”) from time to time. Employer agrees that
Officer may serve as Chief Executive Officer and Chairman of IndyMac Bank but that any such
appointment or election is subject to the approval of and any agreement with the Board of Directors
of IndyMac Bank (the “IndyMac Bank Board”). Officer shall have such executive 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

-1-

 

benefits provided for herein, but without prejudice to the allocation of costs among the
entities to which Officer renders services hereunder.

     Employer agrees that, as long as Officer serves on the Board, he shall serve as Chairman of
the Board. Employer shall cause Officer to be nominated for election to the Board.

     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.
Officer shall report only to the Board and, if appointed to a management position at IndyMac Bank,
to the IndyMac Bank Board and shall perform his duties, subject to their authority. Officer agrees
to serve without additional remuneration as the chief executive officer or director of one or more
(direct or indirect) subsidiaries or Affiliates of Employer as the Board may from time to time
reasonably request, subject to appropriate authorization by the Affiliate or subsidiary involved
and any limitation under applicable law, provided that Officer shall be indemnified and covered
by directors’ and officers’ liability insurance of Employer as provided under Section 8 hereof with
regard to such service. Officer’s failure to discharge an order or perform a function because
Officer reasonably and in good faith believes such would violate a law or regulation or be
dishonest shall not be deemed a breach by him of his obligations or duties pursuant to any of the
provisions of this Agreement, including without limitation pursuant to Section 5(c) hereof.

     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, provided such activities and
services do not materially interfere or conflict with the performance of his duties hereunder.
Officer may serve as a director (or on the advisory committee) of corporations or other business
enterprises with prior approval of the Management Development and Compensation Committee of the
Board (the “Compensation Committee”) which shall not be unreasonably withheld, provided
such activities or services do not materially interfere or conflict with the performance of
Officer’s duties hereunder.

     4. Compensation and Benefits.

     (a) Base Salary. During the Employment Term, Employer shall pay to Officer a base salary at
the annual rate of $1,000,000 (the “Base Salary”). At the sole discretion of the
Compensation Committee, the Base Salary may be increased from time to time but shall not be
reduced. Any increased rate shall thereafter be the rate of Base Salary hereunder.

     (b) Incentive Compensation. Commencing with the 2007 fiscal year, Officer shall receive the
following incentive compensation for each fiscal year of the Employment Term:

     (i)  Short Term Annual Incentive Compensation. Pursuant to Employer’s short
term annual incentive plan, as in effect from time to time (which plan shall be intended to
be compliant with Section 162(m) of the Internal Revenue Code of 1986, as amended (the
“Code”)), subject to Section 4(b)(iv) below, Officer shall receive Short Term Annual
Incentive Compensation (“STAIC”) for each fiscal year of the Employment Term. The
STAIC shall be calculated utilizing a base level amount equal to one percent (1%) of
Employer’s prior fiscal year net income as reflected in the Employer’s financial statements
for the prior fiscal year (subject to adjustment as provided herein) (the “Base
Level”), which Base Level shall be multiplied by a percentage determined by the one-year
earnings per share growth (“EPS”) as follows (the “Base Level Multiplier”)
and with linear interpolation between each Base Level Multiplier (except if below

-2-

 

five percent (5%) or above seventeen percent (17%)), subject to this Section 4(b)(i)
and Section 4(b)(iv) below:

	 	 	 	 	 
	EPS	 	Base Level Multiplier
	Below 5%
	 	 	0%	 
	5%
	 	 	25%	 
	10%
	 	 	50%	 
	13%
	 	 	75%	 
	15%
	 	 	100%	 
	Greater than or equal to 17%
	 	 	125%	 

     The STAIC award may be adjusted downward from zero (0) to twenty percent (20%) based on
mutually agreed upon qualitative factors including, but not limited to, succession planning,
leadership, quality of earnings, quality and effectiveness of enterprise risk management and
quality of relationship and compliance with regulatory agencies that are, in good faith,
established at the beginning of the performance period by the Compensation Committee and
subjectively evaluated by the Compensation Committee at the end of the performance period.

     Notwithstanding the foregoing definition of Base Level, in the event that Employer’s net
income for a prior year was negative or, in the sole discretion of the Compensation Committee,
reflected a substantial decline from the previous year, the Compensation Committee may, in its sole
discretion, within the time period permitted by section 162(m) of the Code for setting such year’s
annual bonus goals, elect to use one percent (1%) of Employer’s current fiscal year net income (the
“Alternative Base Level”). In such event, Officer’s STAIC award for such fiscal year shall
be the greater of the amount calculated pursuant to the terms described in this Section 4(b)(i)
without regard to the prior sentence, or seventy-five percent (75%) of the Alternative Base Level.

     The STAIC shall be paid in the calendar year following the calendar year to which the STAIC
relates, but no later than March 15th of such year.

     (ii) Discretionary Annual Incentive Award. In the event the STAIC award
determined in accordance with Section 4(b)(i) above is less than $1,000,000, Officer shall
be eligible, in the sole discretion of the Compensation Committee, to a bonus in lieu of the
foregoing (which bonus in the aggregate shall not exceed $1,000,000) and shall be
conditioned on the determination by the Compensation Committee that Employer’s performance
was substantially better than that of key industry peers. Such discretionary bonus, if any,
shall be paid in the calendar year following the calendar year to which it relates, but no
later than March 15th of such year.

     (iii) Long Term Annual Incentive Compensation. Officer shall receive an annual
Long Term Annual Incentive Compensation (“LTAIC”) award, which LTAIC award shall
generally be made at the same time as all other annual equity awards are made to senior
managers of Employer. Each such LTAIC shall consist of the following (which the parties
acknowledge is consistent with the current LTAIC arrangements of Employer’s senior
management team):

     (A) An amount equal to twenty-five percent (25%) of the sum of Officer’s Base
Salary and prior year’s STAIC (determined prior to any reduction under Section
4(b)(iv) below), which LTAIC award shall be awarded, in the discretion of the
Compensation Committee, in either (x) restricted stock under Employer’s 2002 Stock

-3-

 

Incentive Plan, as amended and restated or any successor plan (the
“Plan”), which award shall provide for a vesting schedule of no greater than
three (3) years, or (y) a cash amount, which amount shall be credited to Officer’s
account under the terms of Employer’s deferred compensation plan established for
purposes of deferring the portion of Officer’s LTAIC under this Section
4(b)(iii)(A)(y) (the “LTAIC Deferral Plan”) and has an option to invest in
Employer stock, which award in either case shall have no forfeiture or clawback
provisions based on Officer’s post-employment activities (except as otherwise
required by applicable law); and

     (B) An amount equal to fifty percent (50%) of Officer’s prior year’s STAIC
(determined prior to any reduction under Section 4(b)(iv) below), which amount shall
be awarded in the form of stock options pursuant to the terms of the Plan (measured
on the same basis as stock options are measured for purposes of all stock option
grants to senior managers of Employer) and which shall vest ratably on each of the
three anniversaries of the grant of such stock options and shall have no forfeiture
or clawback provisions based on Officer’s post-employment activities (except as
otherwise required by applicable law).

Notwithstanding the foregoing, Officer shall be eligible to receive an LTAIC award in 2007
(for 2006) under the terms of Sections 4(b)(i) and 4(b)(iii) (including, but not limited to,
being measured on the same basis as stock options are measured for purposes of all stock
option grants to senior managers of Employer), as if such programs were already in place and
paid generally at the same time as all other annual equity awards are made to senior
managers of Employer, provided that the portion of Officer’s LTAIC award under Section
4(b)(iii)(A) shall be paid in the form of stock options pursuant to the terms of the Plan
and which shall vest ratably on each of the first three (3) anniversaries of the grant of
such stock options.

     (iv) Special Reduction. The annual STAIC payable to Officer pursuant to Section
4(b)(i) above shall be reduced by ten percent (10%). Officer understands that it is
Employer’s intent to utilize such amount to help fund a scholarship program for children of
employees of Employer (the “Scholarship Program”).

     (c) Equity Compensation. The terms and conditions regarding Officer’s equity award grants made
pursuant to the Prior Agreement shall continue to vest and otherwise remain in effect with their
terms.

     (d) Deferred Compensation. On January 1, 2003 (the “Credit Date”), Employer credited
Officer’s account under the IndyMac Bancorp, Inc. Deferred Compensation Plan (the “Deferred
Compensation Plan”) with $5 million (the “Deferred Compensation Credit”). Such amount
plus any accrued earnings thereon (the “Deferred Amount”) became fully (100%) vested on
January 1, 2007. The Deferred Amount shall become payable to Officer in accordance with the
Deferred Compensation Plan and Officer’s distribution election thereunder; provided, however, that
in the event of a distribution pursuant to Officer’s “separation from service” (as defined in Code
Section 409A), if Officer is a Specified Employee (as defined in Section 9(q)) on the date of his
separation from service, the distribution shall not be earlier than the earlier of (i) the date six
(6) months following such separation from service or (ii) Officer’s death.

     (e) Additional Benefits.

     (i) Officer shall also be entitled to participate, at a level commensurate with his
position, in any stock purchase plan, pension plan, deferred compensation plan, life and
medical insurance policy, or other plans or benefits, of Employer for senior officers
generally or for

-4-

 

employees generally and that are not duplicative of the bonuses paid under Section 4(b)
of this Agreement, during the term of this Agreement as well as any benefits or rights
specifically provided for Officer (collectively, “Additional Benefits”); provided,
however, that Employer shall have no obligation to grant any stock options or other equity
awards to Officer except as provided in Section 4(b). Officer shall be entitled to paid
vacation in accordance with Employer’s vacation policy, but in no event less than five (5)
weeks per annum.

     (ii) Employer shall also provide medical, dental and vision insurance coverage for each
of Officer’s and his spouse’s lifetime (or solely for his spouse’s lifetime in the case of
the Officer’s separation from service as a result of his death) and for any dependents until
the maximum age for a dependent allowable by Employer’s health and benefit plans offered to
all employees (“Eligible Dependents”) that, in conjunction with the coverage
available to Officer and his spouse pursuant to Medicare, if any, is substantially similar
in the aggregate (including percentage of premium cost sharing) to the coverage provided to
Officer and his spouse immediately prior to the Termination Date. The lifetime medical,
dental, and vision coverage available to Officer, his spouse and Eligible Dependents
pursuant to this Section 4(e)(ii) shall be referred to throughout this Agreement as the
“Lifetime Medical Coverage.” Employer will use its reasonable best efforts to provide the
Lifetime Medical Coverage in a manner that does not result in the inclusion of the benefit
amounts received through the Lifetime Medical Coverage from the income of Officer and his
spouse by operation of Section 105(h) of the Code. If such coverage is self-funded and not
fully insured, it is intended that Executive be deemed to have monthly taxable income in the
value of the monthly premium for such insurance. Employer’s obligations pursuant to this
Section 4(e)(ii) shall be limited to expenses incurred during Officer’s and his spouse’s
lifetime or during the dependants’ coverage period. Employer will make, or cause the
insurance company to make, any payments required under this Section 4(e)(ii) with regard to
medical benefits within 30 days after delivery of Officer’s written requests for payment,
accompanied by such evidence of expenses incurred as the Employer may reasonably require,
but in no event later than December 31 of the year following the year in which the expense
was incurred. The amount payable or reimbursable under such insurance or coverage for any
one year shall not affect the amount reimbursable in any other year. Officer’s right to
reimbursement pursuant to this Section 4(e)(ii) shall not be subject to liquidation or
exchange for another benefit. Officer, his spouse and/or Eligible Dependents shall provide
to Employer evidence of coverage under any applicable health insurance policy or Medicare
supplemental health policy.

     (iii) This Agreement shall not affect the provision of any other compensation,
retirement or other benefit program or plan of Employer, except as provided herein.

     (f) Travel. In connection with business travel, Officer shall be permitted to travel first
class, or by chartered or other private plane service where appropriate, at Employer’s expense, it
being recognized that travel by charter or other private plane service will be necessary for
security reasons.

     (g) Certain Perquisites and Business-Related Benefits.

     (i) Club Memberships. Employer shall pay standard annual and monthly membership fees
and any business related charges for Officer’s participation in the California Club, the
Annandale Golf Club, and the Shady Canyon Golf Club (including, but not limited to, the
initial fee and monthly and other assessments) and such other memberships as may be approved
by the Compensation Committee from time to time (including prior to January 1, 2007, those
memberships that exist as of the date of the Amended Agreement). In addition, Employer shall
pay standard annual and monthly membership fees, travel expenses, and any business related
charges for Officer’s participation in the Young Presidents’ Organization. Employer shall

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make any such payment or reimburse Officer for any such expense, as the case may be,
within 30 days after receipt of written request for payment accompanied by such evidence of
payments due or expenses incurred as the Employer may reasonably require, but in no event
later that December 31 of the year following the year in which the payment became due or the
expense was incurred. The amount payable or reimbursable by the Employer under this Section
4(g)(i) in any one year shall not affect the amount payable or reimbursable in any other
year.

     (ii) Car Allowance. Employer shall provide Officer with an appropriate luxury
automobile (as mutually agreed to by Officer and the Compensation Committee, but at no less
than the level of automobile provided by Employer to Officer on the Effective Date) for
Officer’s exclusive use and provide at Employer expense for car insurance, maintenance and
operating expenses. Officer shall have the right to replace the automobile every two (2)
years.

     (iii) Financial Planning Services. Employer shall pay for the financial planning and
tax services of AYCO for Officer, including a full tax gross-up for any imputed income to
Officer resulting from such benefit. The annual amount that Employer shall be required to
pay for such services shall not exceed $35,000, exclusive of the tax gross-up. Employer
shall make such payment or reimburse Officer for any such expense, as the case may be,
within 30 days after receipt of written request for payment accompanied by such evidence of
payments due or expenses incurred as the Employer may reasonably require, but in no event
later that December 31 of the year following the year in which the payment became due or the
expense was incurred. The amount payable or reimbursable by the Employer under this Section
4(g)(iii) in any one year shall not affect the amount payable or reimbursable in any other
year. Any gross-up payment shall be paid to Officer no later than December 31 of the year
after the year Officer remits the applicable tax.

     (iv) Life Insurance. In addition to the life insurance benefit provided by Employer to
all employees that Officer is eligible for and elects to avail, Employer shall provide an
additional portable term or universal life insurance policy on the life of Officer, for the
benefit of a beneficiary designated by Officer, with a death benefit equal to four (4) times
Officer’s Base Salary, with Officer not being required to make any payment thereon (other
than payment of any tax obligations).

     (v) Long Term Disability. Employer shall provide Officer long term disability coverage
which shall provide annual benefits to Officer equal to sixty-five percent (65%) of his Base
Salary during any period that Officer is disabled, if the disability arose during the
Employment Term. Any disability payments to Officer pursuant to coverage obtained pursuant
to this Section 4(f)(vi) shall not be subject to offset by severance benefits payable to
Officer pursuant to this Agreement.

     (h) Future Alternative Compensation Structure. The parties reserve the right at any time by
mutual agreement to amend this Agreement to provide for an alternative compensation structure that
they believe better reflects an identity of interest between Officer and stockholders.

     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. For purposes
of this Agreement, a termination shall be deemed to occur only upon a separation from service, and
the term “separation from service” shall have the same meaning as set forth in Code Section 409A
and the Final 409A Regulations, as defined in Section 9(q).

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     (a) Disability. In the event that Officer shall fail, because of illness, injury or similar
incapacity, to render for six (6) consecutive months or for shorter periods aggregating one hundred
eighty (180) or more business days in any twelve (12) month period, the material services
contemplated by this Agreement (“Disability”), Officer’s full-time employment hereunder may
be terminated, by written Notice of Termination from Employer to Officer while Officer remains so
incapacitated; and thereafter, upon Officer’s separation from service:

     (i) Employer shall pay Officer a single severance payment as soon as practicable after
the Termination Date, but, subject to Section 9(q), in no event later than thirty (30) days
thereafter, an amount in cash equal to two (2) times the sum of: (A) the average of the Base
Salary in effect for the two (2) years immediately preceding the Termination Date, plus (B)
an amount equal to Officer’s prior year’s Base Level STAIC; provided however , that in no
event shall the aggregate amount payable under this Section 5(a)(i) be less than $7 million,

     (ii) Employer shall pay Officer an amount equal to Officer’s STAIC, pro-rated from
January 1 of the year in which the separation from service occurs through the Termination
Date, based on Employer’s actual performance for the year of separation from service (with
no discretionary factor reduction), payable, subject to Section 9(q), in the calendar year
following the calendar year in which the Termination Date occurs at such time or times when
Employer would have paid such bonus to Officer if he had continued employment (the “Pro
Rata Annual Bonus”),

     (iii) Employer shall pay Officer an amount equal to Officer’s LTAIC, pro-rated from
January 1 of the year in which the separation from service occurs through the Termination
Date, based on Employer’s actual performance for the year of separation from service,
payable, subject to Section 9(q), in the calendar year following the calendar year in which
the Termination Date occurs at such time or times when Employer would have paid such
compensation to Officer if he had continued employment (the “Pro Rata Long Term
Bonus”),

     (iv) Any of Officer’s outstanding unvested options and any other equity grants shall
become immediately vested, any vested options granted after the date hereof shall remain
exercisable until their full-term expiration date and any vested options granted prior to
the date hereof shall remain exercisable in accordance with the terms of the grant and the
Prior Agreement (the “Equity Treatment”),

     (v) Officer, his spouse and Eligible Dependents shall be entitled to Lifetime Medical
Coverage,

     (vi) All unvested amounts, including any earnings, credited to Officer’s accounts under
the Deferred Compensation Plan and the LTAIC Deferral Plan shall immediately become vested
and nonforfeitable. The amounts in Officer’s accounts shall be payable to Officer in
accordance with Officer’s distribution election under the Deferred Compensation Plan and the
LTAIC Deferral Plan, subject to Section 9(q) (the “Deferred Compensation
Treatment”),

     (vii) To the full extent permitted by law, so long as Employer (or a successor)
maintains directors’ and officers’ liability insurance for its executives or directors,
Employer shall continue to provide Officer following the Termination Date with directors’
and officers’ liability insurance insuring Officer against insurable events which occur or
have occurred while Officer was a director or officer of Employer or an Affiliate or a
fiduciary of an employee benefit plan of any of the foregoing, such insurance to have policy
limits aggregating not less than the amount in effect immediately prior to the Termination
Date or, if higher, that provided to other officers or directors of Employer. In addition,
Officer’s rights of indemnification hereunder or otherwise

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with regard to service on behalf of Employer or an Affiliate or a fiduciary of an
employee benefit plan of any of the foregoing prior to such termination (“Rights of
Indemnification”) shall continue (the “Coverage Protection”), and

     (viii) Officer shall be entitled to his accrued rights, including but not limited to
earned but unpaid Base Salary, accrued but unused vacations and earned but unpaid STAIC or
LTAIC for any prior completed fiscal year and any earned but unpaid benefits under any plan
or program of Employer, the STAIC and LTAIC being payable in the calendar year in which the
Termination Date occurs at such time or times when Employer would have paid such STAIC or
LTAIC compensation, as the case may be, to Officer had he continued employment, but no later
than March 15th of such year, and the remaining accrued rights being paid within
30 days following the Termination Date (“Accrued Amounts”).

The determination of Disability shall be made only after Officer has failed to render services for
the above stated time periods and shall be made only after thirty (30) days notice to Officer
(which may run concurrently with the Notice of Termination). Prior to a separation from service as
a result of Disability, Officer shall continue to receive his full compensation and benefits during
any period of incapacity.

     (b) Death. In the event of Officer’s death during the term of this Agreement, the Officer’s
estate shall be entitled to the following, which for purposes of this Section 5(b) shall not be
subject to Section 9(q):

     (i) The Pro Rata Annual Bonus,

     (ii) The Pro Rata Long Term Bonus,

     (iii) The Deferred Compensation Treatment,

     (iv) The Equity Treatment,

     (v) The Lifetime Medical Coverage (limited to Officer’s spouse and Eligible
Dependents),

     (vi) The Coverage Protection, and

     (vii) The Accrued Amounts.

     (c) Cause. Employer may terminate Officer’s employment under this Agreement for “Cause.” A
termination for Cause is a separation from service 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) that
is committed in bad faith or without reasonable belief that such breach is in the best interests of
Employer and which, for any breach that is remediable, or can be cured going forward, is not
remedied or cured within a reasonable period of time after receipt of written notice from Employer
specifying such breach, or (ii) Officer’s conviction by a court of competent jurisdiction of a
felony involving acts of fraud, embezzlement, dishonesty or moral turpitude, or (iii) entry of a
final non-appealable order duly issued by any federal or state regulatory agency having
jurisdiction in the matter removing Officer from office of IndyMac Bank or permanently prohibiting
him from participating in a material portion of the affairs of IndyMac Bank, provided that the
order resulted from act(s) of Officer which were committed in bad faith and without reasonable
belief that such act(s) were in the best interests of Employer.

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     Notwithstanding the foregoing, Officer’s employment shall not be deemed to have been
terminated for Cause unless and until there have been delivered to Officer a copy of a resolution
duly adopted by the affirmative vote of not less than two-thirds of the non-employee directors of
the Board (the “Outside Directors”) (after reasonable notice to Officer and an opportunity
for Officer, together with Officer’s counsel, to be heard before the Outside Directors), finding
that in the Outside Directors’ good faith opinion Officer was guilty of conduct set forth above in
this Section 5(c) and specifying the particulars thereof in reasonable detail.

     If Officer shall be (A) convicted of a felony of a type set forth above or (B) shall be
suspended and/or temporarily prohibited from participating in the conduct of IndyMac Bank’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)) by any federal or state regulatory authority having jurisdiction in the
matter, by the affirmative vote of two-thirds of the Outside Directors (after reasonable notice to
Officer and an opportunity for Officer, together with Officer’s counsel, to be heard before the
Outside Directors), provided that the provisions of the next paragraph have been complied with,
the Outside Directors may suspend Officer from some or all of his duties and authority while such
suspension or prohibition or conviction is in effect and, if they elect to do so and reasonably
anticipate that making such payments will violate applicable law, shall also during such period
suspend Officer’s right to some or, if no duties are to be performed, all of Officer’s Base Salary,
STAIC and LTAIC accruing during such suspension period to the extent they reasonably anticipate
making such payment or portion of such payment, as the case may be, will violate applicable law;
provided, further that that if the conviction is overturned on appeal or if the charges resulting
in such suspension or prohibition are finally dismissed or if a final judgment on the merits of
such charges is issued in favor of Officer, then Officer shall be reinstated in full with back
amounts for the suspension period plus accrued interest at the rate then payable on judgments.
Notwithstanding the foregoing, any payment of back amounts shall be made at the earliest date at
which Employer reasonably anticipates that making such payment will not cause a violation of
applicable law.

     With regard to clause (B) above, (1) Employer shall use its best efforts to oppose and defend
against any such notice of charges as to which there are reasonable defenses and to permit Officer
to participate in such effort by counsel of his selection fully paid by Employer; (2) 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 shall promptly make such payment
hereunder; and (3) during the period of suspension, the vested rights of the contracting parties
shall not be affected except to the extent precluded by such notice.

     During the period that Employer’s obligations under Sections 4(a), 4(b), 4(d), 4(e) and 4(g)
hereof are suspended, Officer shall continue to be entitled to receive Additional Benefits under
Section 4(e) until the conviction of the felony has become final and non-appealable. When the
conviction of the felony 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 Date. To the full extent permitted by law, so long as Employer (or a successor)
maintains directors’ and officers’ liability insurance for its executives or directors, Employer
shall continue to provide Officer following the Termination Date with directors’ and officers’
liability insurance insuring Officer against insurable events which occur or have occurred while
Officer was a director or officer of Employer or an Affiliate or a fiduciary of an employee benefit
plan of any of the foregoing, such insurance to have policy limits aggregating not less than the
amount in effect immediately prior to the Termination Date or, if higher, that provided to other
officers or directors of Employer. In addition, Officer’s Rights of Indemnification shall continue.
Officer shall also be entitled to his Accrued Amounts.

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     Upon termination for Cause, Officer is not entitled to any severance or bonus and all options
shall expire on the Termination Date. Anything herein to the contrary notwithstanding, termination
for Cause shall not include termination by reason of Officer’s job performance or a job performance
rating given to Officer for his job performance or the financial performance of Employer or any
affiliated company.

     (d) Other Than For Cause or Disability (not in connection with a Change in Control). If during
the term of this Agreement, Officer’s Employer shall cause Officer to have a separation from
service other than for Cause or Disability (other than in connection with a Change in Control as
provided in Section 5(g)), then:

     (i) Employer shall pay Officer in a single severance payment as soon as practicable
after the Termination Date, but, subject to Section 9(q), in no event later than thirty (30)
days thereafter, an amount in cash equal to two and one-half (2.5) times the sum of: (A) the
average Base Salary in effect for the two years immediately preceding the Termination Date
and (B) an amount equal to Officer’s prior year’s Base Level STAIC; provided however, that
in no event shall the aggregate amount payable under this Section 5(d)(i) be less than $7
million,

     (ii) Employer shall pay Officer the Pro Rata Annual Bonus,

     (iii) Employer shall pay Officer the Pro Rata Long Term Bonus,

     (iv) Officer shall be entitled to the Equity Treatment,

     (v) Officer shall be entitled to the Deferred Compensation Treatment,

     (vi) Officer, Officer’s spouse and Eligible Dependents shall be entitled to the
Lifetime Medical Coverage,

     (vii) Officer shall be entitled to the Protection Coverage, and

     (viii) Officer shall be entitled to his Accrued Amounts.

     (e) Good Reason. Officer may terminate Officer’s employment at any time for “Good Reason.”
“Good Reason” means that any one or more of the following have occurred without Officer’s written
consent (other than as a result of Officer’s Disability or termination of Officer’s employment for
Cause) which is not cured by Employer within thirty (30) days after written notice thereof is given
to Employer by Officer:

     (i) Other than temporarily as a result of Officer’s suspension as provided in Section
5(c), any diminution in Officer’s then titles or positions, including with IndyMac Bank, or
any material diminution in Officer’s then powers, reporting requirements, duties or
responsibilities, including with IndyMac Bank,

     (ii) Shareholders of Employer do not elect Officer to the Board or Officer is not
elected to the IndyMac Bank Board or Officer is removed from the Board or the IndyMac Bank
Board,

     (iii) Officer is not re-elected as Chairman of the Board and of the IndyMac Bank Board,

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     (iv) Officer is required to relocate place of employment to a location which is more
than fifty (50) miles from IndyMac Bank’s current headquarters,

     (v) Officer resigning at the request of the majority of the Board for Officer to
resign,

     (vi) Employer gives to Officer a notice of non-renewal pursuant to Section 1(b), or

     (vii) Any material breach by Employer of the terms of this Agreement.

If during the term of this Agreement, Officer is separated from service on account of
Officer’s resignation for Good Reason (other than in connection with a Change in Control as
provided in Section 5(g)), Officer shall receive the payments and benefits described in Section
5(d).

     (f) Voluntary Resignation (other than Retirement or Expiration of the Employment Term). If
during the term of this Agreement, Officer shall resign other than for Good Reason or pursuant to
Retirement, then upon such separation from service:

     (i) All of his 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,

     (ii) Any unvested options shall expire immediately, and

     (A) Any vested stock options or other equity grants made to Officer after the
Effective Date of the Prior Agreement shall remain exercisable until the earlier of
three (3) months following the Termination Date or their full-term expiration, and

     (B) All vested options granted to Officer pursuant to the Prior Agreement shall
remain exercisable until the earlier of twelve (12) months following the Termination
Date or their full-term expiration,

     (iii) Officer shall be entitled to the Protection Coverage, and

     (iv) Officer shall be entitled to his Accrued Amounts.

     (g) Change in Control. During the term of this Agreement, if within two (2) years after a
Change in Control Officer has a separation from service (x) by Employer other than for Cause or
Disability or (y) by Officer for Good Reason, then:

     (i) Employer shall pay Officer in a single severance payment as soon as practicable
after the Termination Date, but, subject to Section 9(q), in no event later than thirty (30)
days thereafter, an amount in cash equal to three (3) times the sum of (A) the average Base
Salary in effect for the two (2) years immediately preceding separation from service and (B)
an amount equal to Officer’s prior year’s Base Level STAIC; provided however , that in no
event shall the aggregate amount payable under this Section 5(g)(i) be less than $11
million,

     (ii) Officer shall be entitled to the Pro Rata Annual Bonus, which for purposes of this
Section 5(g) shall be calculated based on the greatest of (A) Employer’s actual performance,
(B) the prior year’s Base Level, or (C) the current year’s Base Level,

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     (iii) Officer shall be entitled to the Pro Rata Long Term Bonus, which for purposes of
this Section 5(g) shall be calculated based on the greatest of (A) Employer’s actual
performance, (B) the prior year’s Base Level, or (C) the current year’s Base Level,

     (iv) Officer shall be entitled to the Equity Treatment,

     (v) Officer shall be entitled to the Deferred Compensation Treatment,

     (vi) Officer, Officer’s spouse and Eligible Dependents shall be entitled to the
Lifetime Medical Coverage,

     (vii) Officer shall be entitled to the Protection Coverage, and

     (viii) Officer shall be entitled to his Accrued Amounts.

     Notwithstanding anything contained herein, if a Change in Control occurs and Officer
has a separation from service other than for Cause or Disability or a Good Reason event
occurs prior to the Change in Control, and if such separation from service or event was at
the request, suggestion or initiative of a third party who has taken steps reasonably
calculated to effect the Change in Control, then Officer upon occurrence of the Change in
Control shall be entitled to receive the payments and benefits set forth in this Section
5(g), in lieu of the payments and benefits set forth in Section 5(d).

     (h) Notice of Termination. Any purported termination by Employer or by Officer 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 of termination or separation from service, as the case may be, which shall be
specified in the Notice of Termination, and shall be no less than thirty (30) or more than sixty
(60) days from the date of the Notice of Termination.

     (i) Expiration of Employment Term or Retirement. At the Officer’s separation from service
following the expiration of the Employment Term, or upon separation from service due to Retirement
as defined in Section 5(j), then:

     (i) Officer shall be entitled to the Pro Rata Annual Bonus,

     (ii) Officer shall be entitled to the Pro Rata Long Term Bonus,

     (iii) Officer shall be entitled to the Equity Treatment,

     (iv) Officer shall be entitled to the Deferred Compensation Treatment,

     (v) Officer, Officer’s spouse and Eligible Dependents shall be entitled to the Lifetime
Medical Coverage,

     (vi) Officer shall be entitled to the Protection Coverage, and

     (vii) Officer shall be entitled to his Accrued Amounts.

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     (j) Retirement. Officer may terminate employment and may incur a separation from service for
reason of Retirement at any time after satisfying the conditions for Retirement set forth below and
shall be entitled to the compensation and benefits described in Section 5(i) above. For purposes of
this Agreement, “Retirement” shall mean Officer’s retirement or resignation from the Company:
(i)(1) if Officer is less than 55 years of age, with at least 75 points or (2) if Officer is 55
years of age or older, with at least 65 points, and (ii) Officer has at least five (5) consecutive
years of employment with Employer. Officer shall receive one (1) point for every consecutive year
of employment with Employer and one (1) point for every year of age. Based upon Officer’s age and
employment start date of January 4, 1993, Officer would be eligible for Retirement in 2015. This
definition of Retirement is the same definition as currently utilized in the Employer’s 2002 Stock
Incentive Plan.

     6. Certain Additional Payments by Employer. Anything in this Agreement to the contrary
notwithstanding, if it shall be determined that any payment or distribution to Officer or for
Officer’s benefit (whether paid or payable or distributed or distributable) pursuant to the terms
of this Agreement or otherwise pursuant to or by reason of any other agreement, policy, plan,
program or arrangement, including without limitation any stock option, stock appreciation right or
similar right, or the lapse or termination of any restriction on or the vesting or exercisability
of any of the foregoing (the “Payments”) would be subject to the excise tax imposed by
section 4999 of the Code by reason of being “contingent on a change in the ownership or control” of
Employer, within the meaning of Section 280G of the Code or to any similar tax imposed by state or
local law, or any interest or penalties with respect to such excise tax (such tax or taxes,
together with any such interest or penalties, are collectively referred to as the “Excise
Tax”), then Officer shall be entitled to receive from Employer an additional payment (the
“Gross-Up Payment”) in an amount such that the net amount of the Payments and the Gross-Up
Payment retained by Officer after the calculation and deduction of all Excise Taxes (including any
interest or penalties imposed with respect to such taxes) on the payment and all federal, state and
local income tax, employment tax and Excise Tax (including any interest or penalties imposed with
respect to such taxes) on the Gross-Up Payment provided for in this Section 6, and taking into
account any lost or reduced tax deductions on account of the Gross-Up Payment, shall be equal to
the Payments;

     (a) All determinations required to be made under this Section 6, including whether and when
the Gross-Up Payment is required and the amount of such Gross-Up Payment, and the assumptions to be
utilized in arriving at such determinations shall be made by the Accountants (as defined below)
which shall provide Officer and Employer with detailed supporting calculations with respect to such
Gross-Up Payment within fifteen (15) business days of the receipt of notice from Officer or
Employer that Officer has received or will receive a Payment. For purposes of making the
determinations and calculations required herein, the Accountants may make reasonable assumptions
and approximations concerning applicable taxes and may rely on reasonable, good faith
interpretations concerning the application of Section 280G and 4999 of the Code, provided that the
Accountant’s determinations must be made on the basis of “substantial authority” (within the
meaning of Section 6662 of the Code). For the purposes of this Section 6, the “Accountants” shall
mean Employer’s independent certified public accountants serving immediately prior to the Change in
Control. In the event that the Accountants are also serving as accountant or auditor for the
individual, entity or group effecting the Change in Control, Officer shall appoint another
nationally recognized public accounting firm to make the determinations required hereunder (which
accounting firm shall then be referred to as the Accountants hereunder). All fees and expenses of
the Accountants shall be borne solely by Employer.

     (b) For the purposes of determining whether any of the Payments will be subject to the Excise
Tax and the amount of such Excise Tax, such Payments will be treated as “parachute payments” within
the meaning of section 280G of the Code, and all “parachute payments” in excess of the “base
amount”(as defined under section 280G(b)(3) of the Code) shall be treated as subject to the Excise
Tax, unless and except to the extent that in the opinion of the Accountants such Payments (in whole
or in part)

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either do not constitute “parachute payments” or represent reasonable compensation for
services actually rendered (within the meaning of section 280G(b)(4) of the Code) in excess of the
“base amount,” or such “parachute payments” are otherwise not subject to such Excise Tax. For
purposes of determining the amount of the Gross-Up Payment Officer shall be deemed to pay Federal
income taxes at the highest applicable marginal rate of Federal income taxation for the calendar
year in which the Gross-Up Payment is to be made and to pay any applicable state and local income
taxes at the highest applicable marginal rate of taxation for the calendar year in which the
Gross-Up Payment is to be made, net of the maximum reduction in Federal income taxes which could be
obtained from the deduction of such state or local taxes if paid in such year (determined without
regard to limitations on deductions based upon the amount of Officer’s adjusted gross income); and
to have otherwise allowable deductions for Federal, state and local income tax purposes at least
equal to those disallowed because of the inclusion of the Gross-Up Payment in Officer’s adjusted
gross income. To the extent practicable, any Gross-Up Payment with respect to any Payment shall be
paid by Employer at the time Officer is entitled to receive the Payments and in no event will any
Gross-Up Payment be paid later than five days after the receipt by Officer of the Accountant’s
determination. Any determination by the Accountants shall be binding upon Employer and Officer.

     (c) As a result of uncertainty in the application of section 4999 of the Code at the time of
the initial determination by the Accountants hereunder, it is possible that the Gross-Up Payment
made will have been an amount less than Employer should have paid pursuant to this Section 6 (the
“Underpayment”). In the event that Employer exhausts its remedies pursuant to Section 6(e)
and Officer is required to make a payment of any Excise Tax, the Underpayment shall be promptly
paid by Employer to or for Officer’s benefit, but no later than December 31 of the year after the
year in which Officer remits the Excise Tax.

     (d) Officer and Employer shall each provide the Accountants access to and copies of any books,
records and documents in the possession of Employer or Officer, as the case may be, reasonably
requested by the Accountants, and otherwise cooperate with the Accountants in connection with the
preparation and issuance of the determination contemplated by this Section 6.

     (e) Officer shall notify Employer in writing of any claim by the Internal Revenue Service
that, if successful, would require the payment by Employer of the Gross-Up Payment. Such
notification shall be given as soon as practicable after Officer is informed in writing of such
claim and shall apprise Employer of the nature of such claim and the date on which such claim is
requested to be paid. Officer shall not pay such claim prior to the expiration of the 30-day period
following the date on which Officer give such notice to Employer (or such shorter period ending on
the date that any payment of taxes, interest and/or penalties with respect to such claim is due).
If Employer notifies Officer in writing prior to the expiration of such period that it desires to
contest such claim, Officer shall:

     (i) give Employer any information reasonably requested by Employer relating to such
claim;

     (ii) take such action in connection with contesting such claim as Employer shall
reasonably request in writing from time to time, including, without limitation, accepting
legal representation with respect to such claim by an attorney reasonably selected by
Employer;

     (iii) cooperate with Employer in good faith in order to effectively contest such claim;
and

     (iv) permit Employer to participate in any proceedings relating to such claims;
provided, however, that Employer shall bear and pay directly all costs and expenses
(including additional interest and penalties) incurred in connection with such contest and
shall indemnify

-14-

 

Officer for and hold Officer harmless from, on an after-tax basis, any Excise Tax or
income tax (including interest and penalties with respect thereto) imposed as a result of
such representation and payment of all related costs and expenses. Employer will make any
payments required under this Section 6(e)(iv) as provided above, or if not so provided,
within 30 days after delivery of Officer’s written requests for payment, accompanied by such
evidence of expenses incurred as the Employer may reasonably require, but in any event all
payments will be made no later than December 31 of the year following the year in which the
expense was incurred or the tax was remitted, as the case may be. The amount reimbursable
for any one year shall not affect the amount reimbursable in any other year, and Officer’s
right to reimbursement pursuant to this Section 6(e)(iv) shall not be subject to liquidation
or exchange for another benefit. Without limiting the foregoing provisions of this Section
6, Employer shall control all proceedings taken in connection with such contest and, at its
sole option, may pursue or forgo any and all administrative appeals, proceedings, hearings
and conferences with the taxing authority in respect of such claim and may, at its sole
option, either direct Officer to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and Officer agree to prosecute such contest to a
determination before any administrative tribunal, in a court of initial jurisdiction and in
one or more appellate courts, as Employer shall determine; provided, however, that if
Employer directs Officer to pay such claim and sue for a refund, Employer shall advance the
amount of such payment to Officer, on an interest-free basis, and shall indemnify Officer
for and hold Officer harmless from, on an after-tax basis, any Excise Tax or income tax
(including interest or penalties with respect thereto) imposed with respect to such advance
or with respect to any imputed income with respect to such advance (including as a result of
any forgiveness by Employer of such advance); provided, further that any extension of the
statute of limitations relating to the payment of taxes for the taxable year of Officer with
respect to which such contested amount is claimed to be due is limited solely to such
contested amount. Furthermore, Employer’s control of the contest shall be limited to issues
with respect to which a Gross-Up Payment would be payable hereunder and Officer shall be
entitled to settle or contest, as the case may be, any other issue raised by the Internal
Revenue Service or any other taxing authority.

     (f) Nothing in this Section 6 is intended to violate the Sarbanes-Oxley Act of 2002 and to the
extent that any advance or repayment obligation hereunder would so, such obligation shall be
modified so as to make the advance a nonrefundable payment to Officer and the repayment obligation
null and void to the extent required by such Act.

     These rights shall be deemed fully vested rights, not subject to suspension or forfeiture and
shall survive any termination of employment.

     7. Reimbursement of Business Expenses. During the term of this Agreement, Employer shall
reimburse Officer promptly for all reasonable and appropriate business expenditures to the extent
that such expenditures are substantiated by Officer as required by the Internal Revenue Service and
rules and policies of Employer. Employer will make any payments required under this Section 7
within 30 days after delivery of Officer’s written requests for payment, accompanied by such
evidence of expenses incurred as the Employer may reasonably require, but in no event later than
December 31 of the year following the year in which the expense was incurred. The amount
reimbursable for any one year shall not affect the amount reimbursable in any other year, and
Officer’s right to reimbursement pursuant to this Section 7 shall not be subject to liquidation or
exchange for another benefit.

     8. Indemnity. To the fullest 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 indemnify
Officer and hold him harmless for actions or inactions as an Officer or Director of Employer or any

-15-

 

Affiliate or as a fiduciary of any employee benefit plan of any of the foregoing and shall
maintain coverage for him under liability insurance policies of a minimum amount of $80 million, or
such higher amount as provided for any other officers or directors of Employer. This provision
shall in all events survive any termination of this Agreement.

     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 all or
substantially all the assets of Employer or similar transaction to or with a company with a larger
net worth, higher credit rating and greater profit than Employer. The failure of any successor to
or assignee of Employer’s business and/or assets in such transaction to expressly assume all
obligations of Employer hereunder in a writing promptly delivered to Officer shall be deemed a
material breach of this Agreement by Employer.

     (b) Notices. Any notices provided for in this Agreement shall be sent to Employer at its
corporate headquarters, Attention: Corporate Counsel/Secretary, with a copy to the Chairman of the
Compensation Committee 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. Notices may be delivered personally or by overnight service.

     (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 (except to the extent specifically provided herein); provided,
however, that the parties hereby expressly acknowledge that the parties have executed IndyMac
Bank’s standard Mutual Agreement to Arbitrate Claims which is not replaced or superseded by this
Agreement; provided, further that this Agreement does not supersede any outstanding equity grants
or awards or existing rights under any plan or program except as specifically provided herein. 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 principles of conflict of laws.

     (f) Arbitration. Any disagreement, dispute, controversy or claim arising out of or relating to
this Agreement or the interpretation of this Agreement or arrangements relating to this Agreement
or contemplated in this Agreement shall be settled by arbitration in accordance with the terms of
IndyMac Bank’s Mutual Agreement to Arbitrate Claims, as executed by Officer and IndyMac Bank on the
date hereof.

     (g) Confidentiality. Officer agrees that he will not divulge or otherwise disclose, directly
or indirectly, any trade secret or other 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) decided in good faith by Officer to

-16-

 

be necessary or desirable to the performance of Officer’s duties, (ii) required by applicable
law or in response to an inquiry from a governmental or regulatory authority, (iii) lawfully
obtainable from other sources, or (iv) authorized by Employer or IndyMac Bank. The provisions of
this subsection shall survive the expiration, suspension or termination, for any reason, of this
Agreement.

     (h) No Solicitation. Officer agrees that during employment and for a period of one (1) year
following an early termination of this Agreement, pursuant to the terms described in Section 5(a),
5(c), (d), (e), (f), (g), (i) or (j) hereof, Officer shall not: (i) solicit, or cause to be
solicited, any customers of Employer or IndyMac Bank or their subsidiaries if it is for the
purposes of promoting or selling any products or services competitive with those of Employer or
IndyMac Bank, (ii) solicit business from, or perform services for, any company or other business
entity which at any time during the two (2) year period immediately preceding Officer’s termination
of employment with Employer was a customer of Employer, IndyMac Bank or their subsidiaries, or
(iii) 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 Affiliates on the
date Officer’s employment terminated, unless Officer shall have received the prior written consent
of Employer or IndyMac Bank, such person has ceased for six (6) months to be employed by Employer
or its Affiliates or Officer was not involved, directly or indirectly, in the termination of such
person’s employment with Employer or its Affiliates. The foregoing clauses (i) through (iii) shall
be violated only by the personal solicitation or personally directed and targeted solicitation by
Officer and not by (A) general marketing or solicitation, (B) solicitation by other employees of
entities employing Officer of companies, other business entities or individuals who are not
specifically identified by Officer, or (C) the providing of services by Officer’s new employer to
companies or other business entities not so solicited by Officer.

     (i) Cooperation. Upon the receipt of reasonable notice from Employer (including outside
counsel), Officer agrees that while employed by Employer and thereafter, Officer will reasonably
provide information and reasonable assistance to Employer, its Affiliates and their respective
representatives in defense of any claims that may be made against Employer or its Affiliates, to
the extent that such claims may relate to the period of Officer’s employment with Employer (or any
predecessor), provided that Officer shall need not cooperate to the extent his counsel, in good
faith, advises that Officer’s interests may differ from those of Employer. Furthermore, Employer
shall reimburse all reasonable expenses incurred by Officer, including, but not limited to, those
for separate counsel.

     (j) Consideration; Remedies Of Employer. The consideration for Officer’s covenants set forth
in Sections 9(g), (h) and (i), 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). 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 seek 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.

     (k) Reformation. The provisions of Sections 9(g), (h) and (i) are intended to restrict Officer
only to the extent permitted by law in the jurisdiction where Officer is then a resident. To the
extent any of such 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 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 covenants,
then Employer and Officer understand and agree that the foregoing covenants are of no effect.

-17-

 

     (l) Moral Obligation. The parties recognize that a non-competition provision would be
desirable and equitable in this Agreement, but that one cannot be included because of applicable
law. The parties further recognize that, notwithstanding the foregoing and legal unenforceability
of such a provision, Officer should and does have a moral and ethical obligation to Employer, its
shareholders and its employees not to compete with Employer within one (1) year after any
resignation from his position.

     (m) 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 circumstance.

     (n) 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 no payment
hereunder shall be offset or reduced by the amount of any compensation or benefits provided to
Officer in any subsequent employment except as expressly otherwise provided by Section 5.
Employer’s obligation to make any payment provided for in this Agreement shall not be subject to
set-off, counterclaim or recoupment.

     (o) Adjustment of Options. The number of shares of common stock subject to the stock options
granted to Officer pursuant to the Prior Agreement shall be equitably adjusted by the Committee
pursuant to Section 6 of the Plan in the event of the occurrence of any of the events described
therein.

     (p) Legal Fees. Employer shall promptly (and in any event prior to March 15, 2008) pay
Officer’s reasonable legal fees and costs associated with amending this Agreement, and to the
extent such payment is taxed to Officer, Employer shall provide Officer a full tax gross-up for any
imputed income to Officer resulting from such payment. Any such gross-up payment shall be paid to
Officer no later than December 31 of the year after the year Officer remits the applicable tax.

     (q) Code Section 409A. Notwithstanding anything in this Agreement to the contrary, if any
amount or benefit specified herein as “subject to Section 9(q)” would be payable or distributable
under this Agreement by reason of Officer’s separation from service at a time at which he is a
Specified Employee (as defined below), then, subject to any permissible acceleration of payment by
Employer under Treas. Reg. Section 1.409A-3(j)(4)(ii) (domestic relations order), (j)(4)(iii)
(conflicts of interest), or (j)(4)(vi) (payment of employment taxes):

     (a) if the payment or distribution is payable in a lump sum, Officer’s right to receive
payment or distribution of such non-exempt deferred compensation will be delayed until the earlier
of Officer’s death or the first day of the seventh month following Officer separation from service;
and

     (b) if the payment or distribution is payable over time, the amount of such non-exempt
deferred compensation that would otherwise be payable during the six-month period immediately
following Officer’s separation from service will be accumulated and Officer’s right to receive
payment or distribution of such accumulated amount will be delayed until the earlier of Officer’s
death or the first day of the seventh month following Officer’s separation from service, whereupon
the accumulated amount will be paid or distributed to Officer and the normal payment or
distribution schedule for any remaining payments or distributions will resume.

     For purposes of this Agreement, the term “Specified Employee” has the meaning given such term
in Code Section 409A and the final regulations thereunder (“Final 409A Regulations”), in accordance
with rules adopted by the Board of Directors or a committee thereof, which shall be applied
consistently

-18-

 

with respect to all nonqualified deferred compensation arrangements of Employer, including
this Agreement, as to the determination of Specified Employees.

     If any provision of this Agreement (or of any award of compensation, including equity
compensation or benefits) would cause Officer to incur any additional tax or interest under Code
Section 409A or the Final 409A Regulations, Employer shall, after consulting with Officer, amend
such provision to comply with Code Section 409A, provided that Employer agrees to maintain, to
the maximum extent practicable, the original intent and economic benefit Officer of the applicable
provision without violating the provisions of Code Section 409A. Employer shall indemnify and hold
Officer harmless, on an after-tax basis, for any additional tax (including interest and penalties
with respect thereto) that may be imposed on Officer by Code Section 409A. Any such gross-up
payment shall be paid to Officer no later than December 31 of the year after the year Officer
remits the applicable tax.

     10. Regulatory Authority. Any payments made to Officer pursuant to this Agreement or otherwise
are subject to and conditioned upon their not being in violation of 12 U.S.C. Section 1828(k) and
FDIC regulation 12 C.F.R. Part 359, Golden Parachutes and Indemnification Payments, as applicable.

     11. Sarbanes-Oxley. Officer acknowledges he has been informed that pursuant to Section 304 of
the Sarbanes-Oxley Act of 2002, Officer may be subject in certain circumstances to an obligation to
pay back to Employer:

     (a) Any bonus or other incentive-based or equity-based compensation received by Officer from
Employer during the twelve (12)-month period following the first public issuance or filing with the
Securities and Exchange Commission (whichever first occurs) of the financial document embodying
such financial reporting requirement; and

     (b) Any profits realized from the sale of securities of Employer during such twelve (12)-month
period.

[Remainder of Page Left Blank]

-19-

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written.

	 	 	 	 	 
	 	EMPLOYER 

 	 
	 	By:  	/s/ Sen. John F. Seymour (ret.)
 	 
	 	 	Name:  	Sen. John F. Seymour (ret.)                             	 
	 	 	Title:  	Chairman, Management Development and
Compensation Committee 	 
	 
	 	OFFICER 

 	 
	 	By:  	/s/ Michael W. Perry
 	 
	 	 	Michael W. Perry                                                              	 
	 	 	 	 
	 

-20-

 

APPENDIX A

     A “Change in Control” shall mean the occurrence during the term of the Agreement, of any one
of the following events:

     A. An acquisition of any common stock or other “Voting Securities”(as hereinafter defined) of
IndyMac Bancorp, Inc. (“Employer”) 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 Employer’s common stock or the combined voting power of Employer’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 Agreement, (1) “Voting Securities” shall mean Employer’s outstanding voting securities
entitled to vote generally in the election of directors and (2) a “Non-Control Acquisition” shall
mean an acquisition by (i) an employee benefit plan (or a trust forming a part thereof) maintained
by (A) Employer or (B) 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 Employer (for
purposes of this definition; a “Subsidiary”), (ii) Employer or any of its Subsidiaries, or
(iii) any Person in connection with a “Non-Control Transaction”(as hereinafter defined).

     B. The individuals who, as of the date of the Agreement are 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 Employer’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 Agreement, be considered as a member
of the Incumbent Board; provided, 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:

     (i) A merger, consolidation, or reorganization involving Employer, unless such merger,
consolidation, or reorganization is a “Non-Control Transaction.” A “Non Control Transaction” shall
mean a merger, consolidation or reorganization of Employer where:

     (a) the stockholders of Employer, 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 Parent, 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

A-1

 

unless the members of the Incumbent Board who are not employees of Parent determine
otherwise; and

     (b) no Person other than (i) Employer, (ii) any Subsidiary, (iii) any employee benefit
plan (or any trust forming a part thereat) maintained by Employer, 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 more of the then
outstanding Voting Securities or common stock of Employer, 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;

     (ii) Employer’s stockholders approve a complete liquidation or dissolution of Employer;

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

     (iv) 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, 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 Employer 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 of Control would
occur (but for the operation of this sentence) as a result of the acquisition of common stock or
Voting Securities by Employer, and after such share acquisition by Employer, 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.

A-2

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