Exhibit 10.29
INDYMAC BANK, F.S.B.
DEFERRED COMPENSATION PLAN
(AMENDED AND RESTATED EFFECTIVE AS OF JANUARY 1, 2001)
TABLE OF CONTENTS
PAGE
PURPOSE.............................................................. 1
ARTICLE 1 DEFINITIONS.......................................... 1
ARTICLE 2 SELECTION, ENROLLMENT, ELIGIBILITY................... 8
2.1 Selection by Committee................................. 8
2.2 Enrollment Requirements................................ 8
2.3 Eligibility; Commencement of Participation............. 8
2.4 Termination of Participation and/or Deferrals.......... 8
ARTICLE 3 DEFERRAL COMMITMENTS/CREDITING/TAXES................. 9
3.1 Minimum Deferral:...................................... 9
3.2 Maximum Deferral:...................................... 9
3.3 Election to Defer; Effect of Election Form:............ 10
3.4 Withholding of Annual Deferral Amounts................. 10
3.5 Annual Company Matching Amount......................... 10
3.6 Rollover Amount........................................ 11
3.7 Investment of Trust Assets............................. 11
3.8 Vesting:............................................... 11
3.9 Crediting of Account Balances.......................... 13
3.10 FICA and Other Taxes................................... 13
ARTICLE 4 SHORT-TERM PAYOUT; UNFORESEEABLE FINANCIAL
EMERGENCIES; WITHDRAWAL ELECTION..................................... 14
4.1 Short-Term Payout...................................... 14
4.2 Other Benefits Take Precedence Over Short-Term......... 14
4.3 Withdrawal Payout/Suspensions for Unforeseeable
Financial Emergencies.................................. 14
4.4 Withdrawal Election.................................... 15
ARTICLE 5 RETIREMENT BENEFIT................................... 15
5.1 Retirement Benefit..................................... 15
5.2 Payment of Retirement Benefit.......................... 15
5.3 Death Prior to Completion of Retirement Benefit........ 16
ARTICLE 6 PRE-RETIREMENT SURVIVOR BENEFIT...................... 16
6.1 Pre-Retirement Survivor Benefit........................ 16
6.2 Payment of Pre-Retirement Survivor Benefit............. 16
-i-
ARTICLE 7 TERMINATION BENEFIT.................................. 16
7.1 Termination Benefit.................................... 16
7.2 Payment of Termination Benefit......................... 17
ARTICLE 8 DISABILITY WAIVER AND BENEFIT........................ 17
8.1 Disability Waiver:..................................... 17
8.2 Continued Eligibility; Disability Benefit.............. 17
ARTICLE 9 BENEFICIARY DESIGNATION.............................. 18
9.1 Beneficiary............................................ 18
9.2 Beneficiary Designation; Change; Spousal Consent....... 18
9.3 Acknowledgment......................................... 18
9.4 No Beneficiary Designation............................. 18
9.5 Doubt as to Beneficiary................................ 19
9.6 Discharge of Obligations............................... 19
ARTICLE 10 LEAVE OF ABSENCE..................................... 19
10.1 Paid Leave of Absence.................................. 19
10.2 Unpaid Leave of Absence................................ 19
ARTICLE 11 TERMINATION, AMENDMENT OR MODIFICATION............... 19
11.1 Termination............................................ 19
11.2 Amendment.............................................. 20
11.3 Plan Agreement......................................... 21
11.4 Effect of Payment...................................... 21
ARTICLE 12 ADMINISTRATION....................................... 21
12.1 Committee Duties....................................... 21
12.2 Agents................................................. 21
12.3 Binding Effect of Decisions............................ 21
12.4 Indemnity of Committee................................. 21
12.5 Employer Information................................... 22
ARTICLE 13 OTHER BENEFITS AND AGREEMENTS........................ 22
13.1 Coordination with Other Benefits....................... 22
ARTICLE 14 CLAIMS PROCEDURES.................................... 22
14.1 Presentation of Claim.................................. 22
14.2 Notification of Decision............................... 22
14.3 Review of a Denied Claim............................... 23
14.4 Decision on Review..................................... 23
14.5 Legal Action........................................... 23
-ii-
ARTICLE 15 TRUST................................................ 24
15.1 Establishment of the Trust............................. 24
15.2 Interrelationship of the Plan and the Trust............ 24
15.3 Distributions From the Trust........................... 24
ARTICLE 16 MISCELLANEOUS........................................ 24
16.1 Status of Plan......................................... 24
16.2 Unsecured General Creditor............................. 24
16.3 Employer's Liability................................... 24
16.4 Nonassignability....................................... 25
16.5 Not a Contract of Employment........................... 25
16.6 Furnishing Information................................. 25
16.7 Terms.................................................. 25
16.8 Captions............................................... 25
16.9 Governing Law.......................................... 26
16.10 Notice................................................. 26
16.11 Successors............................................. 26
16.12 Spouse's Interest...................................... 26
16.13 Validity............................................... 26
16.14 Incompetent............................................ 26
16.15 Court Order............................................ 27
16.16 Distribution in the Event of Taxation:................. 27
16.17 Insurance.............................................. 27
16.18 Legal Fees To Enforce Rights After Change in Control... 28
-iii-
INDYMAC BANK, F.S.B.
DEFERRED COMPENSATION PLAN
(AMENDED AND RESTATED EFFECTIVE AS OF JANUARY 1, 2001)
PURPOSE
The purpose of this Plan is to provide specified benefits to a select
group of management and highly compensated Employees and Directors who
contribute materially to the continued growth, development, and future business
success of IndyMac Bank, F.S.B., a federally chartered savings bank, and its
affiliates that sponsor this Plan. This Plan shall be unfunded for tax purposes
and for purposes of Title I of ERISA.
Effective as of January 1, 2001, the INMC Mortgage Holdings, Inc.
Deferred Compensation Plan was merged into this Plan and Bancorp adopts this
Plan for the benefit of a select group of its employees and directors.
ARTICLE 1
DEFINITIONS
For purposes of this Plan, unless otherwise clearly apparent from the
context, the following phrases or terms shall have the following indicated
meanings:
1.1 "Account Balance" shall mean, with respect to a Participant, the sum
of: (i) the Deferral Account balance; (ii) the vested portion of the
Company Matching Account balance; and (iii) the Rollover Account
balance. This account, and each other specified account, shall be a
bookkeeping entry only and shall be utilized solely as a device for the
measurement and determination of the amounts to be paid to a
Participant, or his or her designated Beneficiary, pursuant to this
Plan.
1.2 "Annual Bonus" shall mean any annual cash compensation, in addition to
Base Annual Salary and Commissions, relating to services performed
during any calendar year, whether or not paid in such calendar year,
payable to a Participant under any Employer's annual bonus and cash
incentive plans.
1.3 "Annual Company Matching Amount" shall mean, for any one Plan Year, the
amount determined in accordance with Section 3.5.
1.4 "Annual Deferral Amount" shall mean that portion of a Participant's
Base Annual Salary, Annual Bonus, Commissions, and/or Directors Fees
that a Participant elects to have, and is deferred, in accordance with
Article 3, for any one Plan Year. In the event of a Participant's
Retirement, Disability (if deferrals cease in accordance with Section
8.1), death or a Termination of
- 1 -
Employment prior to the end of a Plan Year, such year's Annual Deferral
Amount shall be the actual amount withheld prior to such event.
1.5 "Annual Installment Method" shall mean equal annual installments, with
the first installment being paid within the time limits set forth in
this Plan for the various benefits available, and the next annual
installment, and all annual installments thereafter, being paid on
December 31 of each Plan Year or within a reasonable period of time
thereafter. For example, if a Participant Retires on June 30, 2001, and
he or she elects the Annual Installment Method, the first equal
installment shall be payable no later than 60 days after Retirement,
the next equal installment shall be payable on December 31, 2001, and
each remaining equal installment shall be payable on December 31 of
each consecutive year.
1.6 "Bancorp" shall mean IndyMac Bancorp, Inc. (formerly known as IndyMac
Mortgage Holdings, Inc. and INMC Mortgage Holdings, Inc.), a Delaware
corporation.
1.7 "Base Annual Salary" shall mean the annual cash compensation paid
during any calendar year, excluding the Annual Bonuses, Commissions,
overtime, fringe benefits, relocation expenses, incentive payments,
non-monetary awards, directors fees and other fees, automobile and
other allowances paid to a Participant for employment services rendered
(whether or not such allowances are included in the Employee's gross
income). Base Annual Salary shall be calculated before reduction for
compensation voluntarily deferred or contributed by the Participant
pursuant to all qualified or non-qualified plans of any Employer and
shall be calculated to include amounts not otherwise included in the
Participant's gross income under Code Sections 125, 402(e)(3), 402(h),
or 403(b) pursuant to plans established by any Employer; provided,
however, that all such amounts will be included in compensation only to
the extent that, had there been no such plan, the amount would have
been payable in cash to the Employee.
1.8 "Beneficiary" shall mean one or more persons, trusts, estates or other
entities, designated in accordance with Article 9, that are entitled to
receive benefits under this Plan upon the death of a Participant.
1.9 "Beneficiary Designation Form" shall mean the form established from
time to time by the Committee that a Participant completes, signs and
returns to the Committee to designate one or more Beneficiaries.
1.10 "Board" shall mean the board of directors of the Company.
1.11 "CCI" shall mean Countrywide Credit Industries, Inc., a Delaware
corporation.
- 2 -
1.12 "Change in Control" shall mean:
(a) Approval by the shareholders of the Company and/or Bancorp of
the dissolution or liquidation of the Company and/or Bancorp;
(b) Approval by the shareholders of the Company and/or Bancorp of
an agreement of merger or consolidation, or other
reorganization, with or into one or more entities that are not
subsidiaries or affiliates, as a result of which less than
twenty-five percent (25%) of the outstanding voting securities
of the surviving or resulting entity immediately after the
reorganization are, or will be, owned by shareholders of the
Company and/or Bancorp immediately before such reorganization
(assuming for purposes of such determination that there is no
change in the record ownership of the Company's and/or
Bancorp's securities from the record date for such approval
until such reorganization);
(c) Approval by the shareholders of the Company and/or Bancorp of
the sale of substantially all of the Company's and/or
Bancorp's business and/or assets to a person or entity which
is not a subsidiary or other affiliate;
(d) Any "person" (as such term is used in Sections 13(d) and 14(d)
of the Securities Exchange Act of 1934 ("Exchange Act")
becomes the "beneficial owner" (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of
the Company and/or Bancorp representing more than twenty-five
percent (25%) of the combined voting power of the Company's
and/or Bancorp's then outstanding securities entitled to then
vote generally in the election of directors of the Company
and/or Bancorp; or
(e) During any period not longer than two consecutive years,
individuals who at the beginning of such period constituted
the Board and/or Board of Directors of Bancorp cease to
constitute at least a majority thereof, unless the election,
or the nomination for election by the Company's and/or
Bancorp's shareholders, of each new board member was approved
by a vote of at least a majority of the board members then
still in office who were board members at the beginning of
such period (including for these purposes, new members whose
election or nomination was so approved, but, in the case of
successors to such new members, without duplication).
1.13 "Claimant" shall have the meaning set forth in Section 14.1.
1.14 "Code" shall mean the Internal Revenue Code of 1986, as amended.
- 3 -
1.15 "Commissions" shall mean any cash compensation, in addition to Base
Annual Salary and Annual Bonus, paid in a calendar year by any Employer
to a Participant in the form of commissions.
1.16 "Committee" shall mean the committee described in Article 12.
1.17 "Company" shall mean IndyMac Bank, F.S.B. (the successor in interest to
IndyMac, Inc.), a federally chartered savings bank, and any successor
to all or substantially all of the Company's assets or business.
1.18 "Company Matching Account" shall mean: (i) the sum of the Participant's
Annual Company Matching Amounts; plus (ii) amounts credited in
accordance with all the applicable crediting provisions of this Plan
that relate to the Participant's Company Matching Account; less (iii)
all distributions made to the Participant or his or her Beneficiary
pursuant to this Plan that relate to the Participant's Company Matching
Account.
1.19 "Deduction Limitation" shall mean the following described limitation on
a benefit that may otherwise be distributable pursuant to the
provisions of this Plan. Except as otherwise provided, this limitation
shall be applied to all distributions that are "subject to the
Deduction Limitation" under this Plan. If an Employer determines in
good faith prior to a Change in Control that there is a reasonable
likelihood that any compensation paid to a Participant for a taxable
year of the Employer would not be deductible by the Employer solely by
reason of the limitation under Code Section 162(m), then to the extent
deemed necessary by the Employer to ensure that the entire amount of
any distribution to the Participant pursuant to this Plan prior to the
Change in Control is deductible, the Employer may defer all or any
portion of a distribution under this Plan. Any amounts deferred
pursuant to this limitation shall continue to be credited with
additional amounts in accordance with Section 3.9 below, even if such
amount is being paid out in installments. The amounts so deferred and
amounts credited thereon shall be distributed to the Participant or his
or her Beneficiary (in the event of the Participant's death) at the
earliest possible date, as determined by the Employer in good faith, on
which the deductibility of compensation paid or payable to the
Participant for the taxable year of the Employer during which the
distribution is made will not be limited by Section 162(m), or if
earlier, the effective date of a Change in Control. Notwithstanding
anything to the contrary in this Plan, the Deduction Limitation shall
not apply to any distributions made after a Change in Control.
1.20 "Deferral Account" shall mean: (i) the sum of all of a Participant's
Annual Deferral Amounts; plus (ii) amounts credited in accordance with
all the applicable crediting provisions of this Plan that relate to the
Participant's
- 4 -
Deferral Account; less (iii) all distributions made to the Participant
or his or her Beneficiary pursuant to this Plan that relate to his or
her Deferral Account.
1.21 "Director" shall mean any member of the board of directors of any
Employer.
1.22 "Directors Fees" shall mean the annual fees paid to a Participant by
any Employer, including retainer fees and meeting fees, as compensation
for serving on the board of directors.
1.23 "Disability" shall mean a period of disability during which a
Participant qualifies for permanent disability benefits under the
Participant's Employer's long-term disability plan, or, if a
Participant does not participate in such a plan, a period of disability
during which the Participant would have qualified for permanent
disability benefits under such a plan had the Participant been a
participant in such a plan, as determined in the sole discretion of the
Committee. If the Participant's Employer does not sponsor such a plan,
or discontinues to sponsor such a plan, Disability shall be determined
by the Committee in its sole discretion.
1.24 "Disability Benefit" shall mean the benefit set forth in Article 8.
1.25 "Election Form" shall mean the form established from time to time by
the Committee that a Participant completes, signs and returns to the
Committee to make an election under the Plan.
1.26 "Employee" shall mean a person who is an employee of any Employer.
1.27 "Employer(s)" shall mean the Company and/or any of its affiliates (now
in existence or hereafter formed or acquired) that have been selected
by the Board to participate in the Plan and have adopted the Plan as a
sponsor.
1.28 "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as amended.
1.29 "Participant" shall mean any Employee or Director (i) who is selected
to participate in the Plan, (ii) who elects to participate in the Plan,
(iii) who signs a Plan Agreement, an Election Form and a Beneficiary
Designation Form, (iv) whose signed Plan Agreement, Election Form and
Beneficiary Designation Form are accepted by the Committee, (v) who
commences participation in the Plan, and (vi) whose Plan Agreement has
not terminated. A spouse or former spouse of a Participant shall not be
treated as a Participant in the Plan or have an account balance under
the Plan, even if he or she has an interest in the Participant's
benefits under the Plan as a result of applicable law or property
settlements resulting from legal separation or divorce.
- 5 -
1.31 "Plan" shall mean the IndyMac Bank, F.S.B. Deferred Compensation Plan,
which shall be evidenced by this instrument and by each Plan Agreement,
as they may be amended from time to time.
1.32 "Plan Agreement" shall mean a written agreement, as may be amended from
time to time, which is entered into by and between a Participant and
the Participant's Employer. The Plan Agreement(s) executed by a
Participant and the Participant's Employer(s) shall provide for the
entire benefit to which such Participant is entitled under the Plan;
should there be more than one Plan Agreement with an Employer, the Plan
Agreement bearing the latest date of acceptance by that Employer shall
supersede all previous Plan Agreements with that Employer in their
entirety and shall govern such entitlement. The terms of any Plan
Agreement may be different for any Participant, and any Plan Agreement
may provide additional benefits not set forth in the Plan or limit the
benefits otherwise provided under the Plan; provided, however, that any
such additional benefits or benefit limitations must be agreed to by
both the Participant and the Participant's Employer.
1.33 "Plan Year" shall mean, a period beginning January 1 of each calendar
year and continuing through December 31 of such calendar year.
1.34 "Pre-Retirement Survivor Benefit" shall mean the benefit set forth in
Article 6.
1.35 "Retirement", "Retire(s)" or "Retired" shall mean, with respect to an
Employee, severance from employment from all Employers for any reason
other than a leave of absence, death or Disability on or after the
earlier of the attainment of (a) age sixty-two (62) or (b) age
fifty-five (55) with five (5) Years of Service; and shall mean with
respect to a Director who is not an Employee, severance of his or her
directorships with all Employers on or after the later of (y) the
attainment of age sixty (60), or (z) in the sole discretion of the
Committee, an age later than age sixty (60). If a Participant is both
an Employee and a Director, Retirement shall not occur until he or she
Retires as both an Employee and a Director; provided, however, that
such a Participant may elect, at least one year prior to Retirement and
in accordance with the policies and procedures established by the
Committee, to Retire for purposes of this Plan at the time he or she
Retires as an Employee, which Retirement shall be deemed to be a
Retirement as an Employee.
1.36 "Retirement Benefit" shall mean the benefit set forth in Article 5.
1.37 "Rollover Account" shall mean: (i) the sum of a Participant's Rollover
Amount; plus (ii) amounts credited in accordance with all the
applicable crediting provisions of this Plan that relate to the
Participant's Rollover Account; less (iii)
- 6 -
all distributions made to the Participant or his or her Beneficiary
pursuant to this Plan that relate to his or her Rollover Account.
1.38 "Rollover Amount" shall mean the amount determined in accordance with
Section 3.6.
1.39 "Short-Term Payout" shall mean the payout set forth in Section 4.1.
1.40 "Termination Benefit" shall mean the benefit set forth in Article 7.
1.41 "Termination of Employment" shall mean the severing of employment with
all Employers or service as a Director with all Employers, voluntarily
or involuntarily, for any reason other than Retirement, Disability,
death or an authorized leave of absence. If a Participant is both an
Employee and a Director, a Termination of Employment shall occur only
upon the termination of the last position held; provided, however, that
such a Participant may elect, at least one year before Termination of
Employment and in accordance with the policies and procedures
established by the Committee, to be treated for purposes of this Plan
as having experienced a Termination of Employment at the time he or she
ceases employment with an Employer as an Employee.
1.42 "Trust" shall mean the Master Trust Agreement for IndyMac Bank, F.S.B.
Deferred Compensation Plan.
1.43 "Unforeseeable Financial Emergency" shall mean an unanticipated
emergency that is caused by an event beyond the control of the
Participant that would result in severe financial hardship to the
Participant resulting from (i) a sudden and unexpected illness or
accident of the Participant or a dependent of the Participant, (ii) a
loss of the Participant's property due to casualty, or (iii) such other
extraordinary and unforeseeable circumstances arising as a result of
events beyond the control of the Participant, all as determined in the
sole discretion of the Committee.
1.44 "Years of Service" shall mean the total number of full years in which a
Participant has been employed by or in the service of one or more
Employers. For purposes of this definition, a year of employment or
service shall be a 365-day period (or 366-day period in the case of a
leap year) that, for the first year of employment or service, commences
on the Employee's or Director's effective date of hire or service and
that, for any subsequent year, commences on January 1. Any partial year
of employment or service shall not be counted. For purposes of this
definition, the total number of full years in which the Participant was
employed by or in the service of: (i) CCI prior to 1997; and/or (ii)
Bancorp prior to 2001, shall be counted.
- 7 -
ARTICLE 2
SELECTION, ENROLLMENT, ELIGIBILITY
2.1 SELECTION BY COMMITTEE. Participation in the Plan shall be limited to a
select group of management and highly compensated Employees, and
Directors, as determined by the Committee in its sole discretion. From
that group, the Committee shall select, in its sole discretion,
Employees and/or Directors to participate in the Plan.
2.2 ENROLLMENT REQUIREMENTS. As a condition to participation, each selected
Employee and/or Director shall complete, execute and return to the
Committee a Plan Agreement, an Election Form and a Beneficiary
Designation Form, all within 30 days after he or she is selected to
participate in the Plan. In addition, the Committee shall establish
from time to time such other enrollment requirements as it determines
in its sole discretion are necessary.
2.3 ELIGIBILITY; COMMENCEMENT OF PARTICIPATION. Provided an Employee and/or
Director selected to participate in the Plan has met all enrollment
requirements set forth in this Plan and required by the Committee,
including returning all required documents to the Committee within the
specified time period, that Employee and/or Director shall commence
participation in the Plan on the first day of the month following the
month in which the Employee and/or Director completes all enrollment
requirements. If an Employee and/or Director fails to meet all such
requirements within the period required, in accordance with Section
2.2, that Employee and/or Director shall not be eligible to participate
in the Plan until the first day of the Plan Year following the delivery
to and acceptance by the Committee of the required documents.
2.4 TERMINATION OF PARTICIPATION AND/OR DEFERRALS. If the Committee
determines in good faith that a Participant no longer qualifies as a
member of a select group of management or highly compensated employees,
as membership in such group is determined in accordance with Sections
201(2), 301(a)(3) and 401(a)(1) of ERISA, the Committee shall have the
right, in its sole discretion, to (i) terminate any deferral election
the Participant has made for the remainder of the Plan Year in which
the Participant's membership status changes, (ii) prevent the
Participant from making future deferral elections and/or (iii)
immediately distribute the Participant's then Account Balance as a
Termination Benefit and terminate the Participant's participation in
the Plan.
- 8 -
ARTICLE 3
DEFERRAL COMMITMENTS/CREDITING/TAXES
3.1 MINIMUM DEFERRAL:
(a) BASE ANNUAL SALARY, ANNUAL BONUS, COMMISSIONS, AND DIRECTORS
FEES. Subject to Section 3.3 below, for each Plan Year, a
Participant may elect to defer his or her Base Annual Salary,
Annual Bonus, Commissions, and/or Directors Fees, provided
that the amounts so elected for that Plan Year total, in the
aggregate, at least $2,000. If no election is made, the amount
deferred shall be zero.
(b) SHORT PLAN YEAR. If a Participant first becomes a Participant
after the first day of a Plan Year, the minimum deferral shall
be an amount equal to $2,000, multiplied by a fraction, the
numerator of which is the number of complete months remaining
in the Plan Year and the denominator of which is 12.
3.2 MAXIMUM DEFERRAL:
(a) For each Plan Year, a Participant may elect to defer, as his
or her Annual Deferral Amount, Base Annual Salary, Annual
Bonus, Commissions, and/or Directors Fees up to the following
maximum percentages for each deferral elected:
- ------------------------------------------
Deferral Maximum Amount
- ------------------------------------------
Base Annual Salary 50%
- ------------------------------------------
Annual Bonus 100%
- ------------------------------------------
Commissions 100%
- ------------------------------------------
Directors Fees 100%
- ------------------------------------------
(b) Notwithstanding the foregoing, if a Participant first becomes
a Participant after the first day of a Plan Year, for that
Plan Year only, a Participant may elect to defer, as his or
her Annual Deferral Amount, with respect to Base Annual
Salary, Annual Bonus, Commissions, and/or Directors Fees that
accrue after the date of entry into the Plan, a dollar amount
up to an amount equal to the limits set forth above multiplied
by such Participant's total amount of Base Annual Salary,
Annual Bonus, Commissions, and/or Directors Fees for the
entire Plan Year. However,
- 9 -
if a Participant, prior to the first date that he or she
entered the Plan, performed services related to the Annual
Bonus that the Participant earned for the Plan Year that he or
she first entered the Plan, then such Participant may not
defer any portion of the Annual Bonus that the Participant
earned for the Plan Year that he or she first entered the
Plan.
3.3 ELECTION TO DEFER; EFFECT OF ELECTION FORM:
(a) FIRST PLAN YEAR. In connection with a Participant's
commencement of participation in the Plan, the Participant
shall make an irrevocable deferral election for the Plan Year
in which the Participant commences participation in the Plan,
along with such other elections as the Committee deems
necessary or desirable under the Plan. For these elections to
be valid, the election forms must be completed and signed by
the Participant, timely delivered to the Committee (in
accordance with Section 2.2 above) and accepted by the
Committee.
(b) SUBSEQUENT PLAN YEARS. For each succeeding Plan Year, an
irrevocable deferral election for that Plan Year, and such
other elections as the Committee deems necessary or desirable
under the Plan, shall be made by timely delivering to the
Committee, in accordance with its rules and procedures, before
the end of the Plan Year preceding the Plan Year for which the
election is made, a new Election Form. If no such Election
Form is timely delivered for a Plan Year, the Annual Deferral
Amount shall be zero for that Plan Year.
3.4 WITHHOLDING OF ANNUAL DEFERRAL AMOUNTS. For each Plan Year, the Base
Annual Salary portion of the Annual Deferral Amount shall be withheld
from each regularly scheduled Base Annual Salary payroll in equal
amounts, as adjusted from time to time for increases and decreases in
Base Annual Salary. The Annual Bonus, Commissions, and/or Directors
Fees portion of the Annual Deferral Amount shall be withheld at the
time the Annual Bonus, Commissions, and/or Directors Fees are or
otherwise would be paid to the Participant, whether or not this occurs
during the Plan Year itself.
3.5 ANNUAL COMPANY MATCHING AMOUNT. For each Plan Year, a Participant's
Employer, in its sole discretion, may, but is not required to, credit
any amount it desires to that Participant's Company Matching Account,
which amount shall be for that Participant the Annual Company Matching
Amount for that Plan Year. The amount so credited to a Participant may
be smaller or larger than the amount credited to any other Participant,
and the amount credited to a Participant for a Plan Year may be zero,
even though one or more other Participants receive an Annual Company
Matching Amount for that Plan Year. The Annual Company Matching Amount,
if any, shall be credited as of the last
- 10 -
day of the Plan Year. If a Participant is not employed by that Employer
as of the last day of a Plan Year other than by reason of his or her
Retirement or death while employed, the Annual Company Matching Amount
for that Plan Year shall be zero.
3.6 ROLLOVER AMOUNT. If a Participant transfers employment from CCI to the
Company, and if the Participant had an account balance in the
Countrywide Credit Industries, Inc. Deferred Compensation Plan (the
"CCI Plan") as of the date of such transfer, the Participant's CCI Plan
account balance, as determined as of that date, shall be transferred on
such date to and added to the Participant's Account Balance, and shall
thereafter be governed by the terms and conditions of this Plan, and
shall be referred to as the "Rollover Amount." In addition, any
elections made by the Participant with respect to his or her account
balance under the CCI Plan shall apply to the Rollover Amount under
this Plan and any elections made by the Participant with respect to his
or her annual deferral amount for the plan year of transfer under the
CCI Plan shall apply to the Participant's Annual Deferral Amount for
the Plan Year of transfer under this Plan.
3.7 INVESTMENT OF TRUST ASSETS. The trustees of the Trust shall be
authorized, upon written instructions received from the Committee or
investment manager appointed by the Committee, to invest and reinvest
the assets of the Trust in accordance with the applicable Trust
agreement, including the disposition of stock and reinvestment of the
proceeds in one or more investment vehicles designated by the
Committee.
3.8 VESTING:
(a) DEFERRAL ACCOUNT AND ROLLOVER ACCOUNT. A Participant shall at
all times be 100% vested in his or her Deferral Account and
Rollover Account.
(b) COMPANY MATCHING ACCOUNT. Except as provided in Section
3.8(c), a Participant shall be vested in each of his or her
Annual Company Matching Amounts, if any, and interest thereon,
if any, as follows:
- 11 -
- ------------------------------------------------------------
Vested Percentage of
Annual Company
Matching Amount
Years of Service and Interest Thereon
- ------------------------------------------------------------
Less than 1 year 0%
1 year or more, but less than 2 20%
2 years or more, but less than 3 40%
3 years or more, but less than 4 60%
4 years or more, but less than 5 80%
5 years or more 100%
- ------------------------------------------------------------
Notwithstanding anything to the contrary contained in this
Section 3.8(b), in the event of his or her Retirement,
Disability or a Change in Control, a Participant's Company
Matching Account shall immediately become 100% vested.
(c) FORFEITURE. Notwithstanding anything to the contrary contained
in Section 3.8(b) above or any other Section of this Plan that
may be construed to the contrary, the Participant's Employer,
in its discretion, shall have the right to suspend and/or
cause the Participant to forfeit all rights to receive any or
all payments otherwise due hereunder in respect of such
Participant's Company Matching Account, if such Participant,
at any time, whether or not employed by that Employer:
(i) works for or conducts or maintains any business,
enterprise, or organization that is in the same line
of business or enterprise as any of the Employers and
competes directly or indirectly with any of the
Employers, in violation of the terms of any
contractual provisions between the Company, or any
Employer, and the Participant;
(ii) divulges confidential information of any Employer to
competitors of any Employer or any other party not
authorized to receive such information;
(iii) is convicted of a misdemeanor which results in a jail
sentence of one year of more; or
(iv) is convicted of a felony.
The foregoing shall apply without regard to whether the
Participant's work, business, release of information, or
conviction, as the case may be, has any demonstrable adverse
effect on the Company or any Employer.
- 12 -
Any determination made by the Participant's Employer with
regard to suspension and/or forfeitures under this Section
3.8(c) shall be final and conclusive.
3.9 CREDITING OF ACCOUNT BALANCES. In accordance with, and subject to, the
rules and procedures that are established from time to time by the
Committee, in its sole discretion, amounts shall be credited to a
Participant's Account Balance in accordance with the following rules:
(a) PRIOR TO DISTRIBUTION. Prior to a distribution of any portion
of the Participant's Account Balance under Articles 4, 5, 6,
7, or 8 below, the Participant's Account Balance shall be
credited with interest and such interest shall be credited
daily. The interest rate used to credit the Participant's
Account Balance shall be the rate provided for in Subsection
(c) below. If a distribution is made under this Plan, the
Participant's Account Balance shall be credited with interest
until the date on which the distribution is made.
(b) INSTALLMENT DISTRIBUTION. If a Participant's Account Balance
is to be paid under the Annual Installment Method, such
payments shall be determined by amortizing the Participant's
Account Balance over the number of years elected, using the
interest rate specified in the following sentence. The
interest rate to be used to calculate installment payment
amounts shall be a fixed interest rate that is determined by
averaging the interest rate provided for in Subsection (c)
below for the Plan Year in which installment payments commence
and the interest rate provided for in Subsection (c) below for
the two preceding Plan Years. This rate shall be treated as
the nominal rate for making such calculations. If a
Participant has completed fewer than three Plan Years, this
average shall be determined using the interest rate provided
for in Subsection (c) below for the Plan Years during which
the Participant participated in the Plan.
(c) INTEREST RATE. The rate of interest for a Plan Year shall be
determined and announced by the Committee before such Plan
Year.
3.10 FICA AND OTHER TAXES. Each Plan Year, the Participant's Employer shall
determine the amount of FICA and other employment taxes that the
Employer must withhold for such Participant. The Employer shall
withhold this amount from that portion of the Participant's Base Annual
Salary, Annual Bonus and/or Commissions that is not being deferred. If
necessary, the Committee shall reduce the Annual Deferral Amount in
order to comply with this Section. In addition, the Participant's
Employer and/or trustee of the Trust shall withhold from any payments
made to the Participant under this Plan all federal, state and
- 13 -
local income, employment and other taxes required to be withheld in
connection with such payments, in amounts and in a manner to be
determined in the sole discretion of that Employer.
ARTICLE 4
SHORT-TERM PAYOUT; UNFORESEEABLE FINANCIAL EMERGENCIES; WITHDRAWAL ELECTION
4.1 SHORT-TERM PAYOUT. In connection with each election to defer an Annual
Deferral Amount, a Participant may irrevocably elect to receive a
future "Short-Term Payout" from the Plan with respect to all of that
Annual Deferral Amount. Subject to the Deduction Limitation, the
Short-Term Payout shall be equal to the Annual Deferral Amount elected
to be paid as a Short-Term Payout, plus amounts credited in the manner
provided in Section 3.9 above on that amount. The Short-Term Payout
amount shall be payable in a lump sum. Subject to the other terms and
conditions of this Plan, the lump sum payment shall be made, subject to
the Deduction Limitation, within 60 days after the first day of the
Plan Year elected by the Participant; provided that no election shall
be effective unless the Plan Year elected is at least five Plan Years
after the last day of the Plan Year to which the Annual Deferral Amount
relates. By way of example, if a Short-Term Payout is elected for
amounts that are deferred in the Plan Year commencing January 1, 2001,
the Short-Term Payout can become payable no earlier than the 60 day
period commencing on January 1, 2006.
4.2 OTHER BENEFITS TAKE PRECEDENCE OVER SHORT-TERM. Should an event occur
that triggers a benefit under Article 5, 6, 7 or 8, any Annual Deferral
Amount, plus amounts credited thereon, that is subject to a Short-Term
Payout election under Section 4.1 shall not be paid in accordance with
Section 4.1 but shall be paid in accordance with the other applicable
Article.
4.3 WITHDRAWAL PAYOUT/SUSPENSIONS FOR UNFORESEEABLE FINANCIAL EMERGENCIES.
If the Participant experiences an Unforeseeable Financial Emergency,
the Participant may petition the Committee to (i) suspend any deferrals
required to be made by a Participant and/or (ii) receive a partial or
full payout from the Plan. The payout shall not exceed the lesser of
the Participant's Account Balance, calculated as if such Participant
were receiving a Termination Benefit, or the amount reasonably needed
to satisfy the Unforeseeable Financial Emergency. If, subject to the
sole discretion of the Committee, the petition for a suspension and/or
payout is approved, suspension shall take effect upon the date of
approval and any payout shall be made within 60 days of the date of
approval. The payment of any amount under this Section shall not be
subject to the Deduction Limitation.
- 14 -
4.4 WITHDRAWAL ELECTION. A Participant (or, after a Participant's death,
his or her Beneficiary) may elect, at any time, to withdraw all of his
or her Account Balance, calculated as if there had occurred a
Termination of Employment as of the day of the election, less a
withdrawal penalty equal to 10% of such amount (the net amount shall be
referred to as the "Withdrawal Amount"). This election can be made at
any time, before or after Retirement, Disability, death or Termination
of Employment, and whether or not the Participant (or Beneficiary) is
in the process of being paid pursuant to an installment payment
schedule. If made before Retirement, Disability or death, a
Participant's Withdrawal Amount shall be his or her Account Balance
calculated as if there had occurred a Termination of Employment as of
the day of the election. No partial withdrawals of the Withdrawal
Amount shall be allowed. The Participant (or his or her Beneficiary)
shall make this election by giving the Committee advance written notice
of the election in a form determined from time to time by the
Committee. The Participant (or his or her Beneficiary) shall be paid
the Withdrawal Amount within 60 days of his or her election. Once the
Withdrawal Amount is paid, the Participant's participation in the Plan
shall terminate and the Participant shall not be eligible to
participate in the Plan again during the remainder of that Plan Year
and the next three (3) Plan Years. The payment of this Withdrawal
Amount shall not be subject to the Deduction Limitation.
ARTICLE 5
RETIREMENT BENEFIT
5.1 RETIREMENT BENEFIT. Subject to the Deduction Limitation, a Participant
who Retires shall receive, as a Retirement Benefit, his or her Account
Balance.
5.2 PAYMENT OF RETIREMENT BENEFIT. A Participant, in connection with his or
her commencement of participation in the Plan, shall elect on an
Election Form to receive the Retirement Benefit in a lump sum or
pursuant to an Annual Installment Method of 5, 10, 15 or 20 years. The
Participant may annually change his or her election to an allowable
alternative payout period by submitting a new Election Form to the
Committee, provided that any such Election Form is submitted at least
one year prior to the Participant's Retirement and is accepted by the
Committee in its sole discretion. The Election Form most recently
accepted by the Committee shall govern the payout of the Retirement
Benefit. If a Participant does not make any election with respect to
the payment of the Retirement Benefit, then such benefit shall be
payable in a lump sum. The lump sum payment shall be made, or
installment payments shall commence, no later than 60 days after the
date the Participant Retires. Any payment made shall be subject to the
Deduction Limitation.
- 15 -
5.3 DEATH PRIOR TO COMPLETION OF RETIREMENT BENEFIT. If a Participant dies
after Retirement but before the Retirement Benefit is paid in full, the
Participant's unpaid Retirement Benefit payments shall continue and
shall be paid to the Participant's Beneficiary (a) over the remaining
number of months and in the same amounts as that benefit would have
been paid to the Participant had the Participant survived, or (b) in a
lump sum, if requested by the Beneficiary and allowed in the sole
discretion of the Committee, that is equal to the Participant's unpaid
remaining Account Balance.
ARTICLE 6
PRE-RETIREMENT SURVIVOR BENEFIT
6.1 PRE-RETIREMENT SURVIVOR BENEFIT. Subject to the Deduction Limitation,
the Participant's Beneficiary shall receive a Pre-Retirement Survivor
Benefit equal to the Participant's Account Balance if the Participant
dies before he or she Retires, experiences a Termination of Employment
or suffers a Disability.
6.2 PAYMENT OF PRE-RETIREMENT SURVIVOR BENEFIT. A Participant, in
connection with his or her commencement of participation in the Plan,
shall elect on an Election Form whether the Pre-Retirement Survivor
Benefit shall be received by his or her Beneficiary in a lump sum or
pursuant to an Annual Installment Method of 5, 10, 15 or 20 years. The
Participant may annually change this election to an allowable
alternative payout period by submitting a new Election Form to the
Committee, which form must be accepted by the Committee in its sole
discretion. The Election Form most recently accepted by the Committee
prior to the Participant's death shall govern the payout of the
Participant's Pre-Retirement Survivor Benefit. If a Participant does
not make any election with respect to the payment of the Pre-Retirement
Survivor Benefit, then such benefit shall be paid in a lump sum.
Despite the foregoing, if the Participant's Account Balance at the time
of his or her death is less than $25,000, payment of the Pre-Retirement
Survivor Benefit may be made, in the sole discretion of the Committee,
in a lump sum or pursuant to an Annual Installment Method of not more
than 5 years. The lump sum payment shall be made, or installment
payments shall commence, no later than 60 days after the date the
Committee is provided with proof that is satisfactory to the Committee
of the Participant's death. Any payment made shall be subject to the
Deduction Limitation.
ARTICLE 7
TERMINATION BENEFIT
7.1 TERMINATION BENEFIT. Subject to the Deduction Limitation, the
Participant shall receive a Termination Benefit, which shall be equal
to the Participant's Account Balance.
- 16 -
7.2 PAYMENT OF TERMINATION BENEFIT. If the Participant's Account Balance at
the time of his or her Termination of Employment is less than $25,000,
payment of his or her Termination Benefit shall be paid in a lump sum.
If his or her Account Balance at such time is equal to or greater than
that amount, the Committee, in its sole discretion, may cause the
Termination Benefit to be paid in a lump sum or pursuant to an Annual
Installment Method of not more than fifteen (15) years. The lump sum
payment shall be made, or installment payments shall commence, no later
than 60 days after the date the date of the Participant's Termination
of Employment. Any payment made shall be subject to the Deduction
Limitation.
ARTICLE 8
DISABILITY WAIVER AND BENEFIT
8.1 DISABILITY WAIVER:
(a) WAIVER OF DEFERRAL. A Participant who is determined by the
Committee to be suffering from a Disability shall be excused
from fulfilling that portion of the Annual Deferral Amount
commitment that would otherwise have been withheld from a
Participant's Base Annual Salary, Annual Bonus, Commissions
and/or Directors Fees for the Plan Year during which the
Participant first suffers a Disability. During the period of
Disability, the Participant shall not be allowed to make any
additional deferral elections, but will continue to be
considered a Participant for all other purposes of this Plan.
(b) RETURN TO WORK. If a Participant returns to employment or
service as a Director, with any Employer after a Disability
ceases, the Participant may elect to defer an Annual Deferral
Amount for the Plan Year following his or her return to
employment or service and for every Plan Year thereafter while
a Participant in the Plan; provided such deferral elections
are otherwise allowed and an Election Form is delivered to and
accepted by the Committee for each such election in accordance
with Section 3.3 above.
8.2 CONTINUED ELIGIBILITY; DISABILITY BENEFIT. A Participant suffering a
Disability shall, for benefit purposes under this Plan, continue to be
considered to be employed or in the service of an Employer as a
Director, and shall be eligible for the benefits provided for in
Articles 4, 5, 6 or 7 in accordance with the provisions of those
Articles. Notwithstanding the above, the Committee shall have the right
to, in its sole and absolute discretion and for purposes of this Plan
only, and must in the case of a Participant who is otherwise eligible
to Retire, deem the Participant to have experienced a Termination of
Employment, or in the case of a Participant who is eligible to Retire,
to have Retired, at any time
- 17 -
(or in the case of a Participant who is eligible to Retire, as soon as
practicable) after such Participant is determined to be suffering a
Disability, in which case the Participant shall receive a Disability
Benefit equal to his or her Account Balance at the time of the
Committee's determination; provided, however, that should the
Participant otherwise have been eligible to Retire, he or she shall be
paid in accordance with Article 5. The Disability Benefit shall be paid
in a lump sum or, upon a Participant's request and in the Committee's
sole discretion, installment payments over not more than 5 years. The
lump sum payment shall be made, or installment payments shall commence,
within 60 days of the Committee's exercise of its right to deem a
Participant to have experienced a Termination of Employment. Any
payment made shall be subject to the Deduction Limitation.
ARTICLE 9
BENEFICIARY DESIGNATION
9.1 BENEFICIARY. Each Participant shall have the right, at any time, to
designate his or her Beneficiary(ies) (both primary as well as
contingent) to receive any benefits payable under the Plan to a
beneficiary upon the death of a Participant. The Beneficiary designated
under this Plan may be the same as or different from the Beneficiary
designation under any other plan of the Participant's Employer in which
the Participant participates.
9.2 BENEFICIARY DESIGNATION; CHANGE; SPOUSAL CONSENT. A Participant shall
designate his or her Beneficiary by completing and signing the
Beneficiary Designation Form, and returning it to the Committee or its
designated agent. A Participant shall have the right to change a
Beneficiary by completing, signing and otherwise complying with the
terms of the Beneficiary Designation Form and the Committee's rules and
procedures, as in effect from time to time. If the Participant names
someone other than his or her spouse as a Beneficiary, a spousal
consent, in the form designated by the Committee, must be signed by
that Participant's spouse and returned to the Committee. Upon the
acceptance by the Committee of a new Beneficiary Designation Form, all
Beneficiary designations previously filed shall be canceled. The
Committee shall be entitled to rely on the last Beneficiary Designation
Form filed by the Participant and accepted by the Committee prior to
his or her death.
9.3 ACKNOWLEDGMENT. No designation or change in designation of a
Beneficiary shall be effective until received, accepted and
acknowledged in writing by the Committee or its designated agent.
9.4 NO BENEFICIARY DESIGNATION. If a Participant fails to designate a
Beneficiary as provided in Sections 9.1, 9.2 and 9.3 above or, if all
designated Beneficiaries predecease the Participant or die prior to
complete distribution of the
- 18 -
Participant's benefits, then the Participant's designated Beneficiary
shall be deemed to be his or her surviving spouse. If the Participant
has no surviving spouse, the benefits remaining under the Plan to be
paid to a Beneficiary shall be payable to the executor or personal
representative of the Participant's estate.
9.5 DOUBT AS TO BENEFICIARY. If the Committee has any doubt as to the
proper Beneficiary to receive payments pursuant to this Plan, the
Committee shall have the right, exercisable in its discretion, to cause
the Participant's Employer to withhold such payments until this matter
is resolved to the Committee's satisfaction.
9.6 DISCHARGE OF OBLIGATIONS. The payment of benefits under the Plan to a
Beneficiary shall fully and completely discharge all Employers and the
Committee from all further obligations under this Plan with respect to
the Participant, and that Participant's Plan Agreement(s) shall
terminate upon such full payment of benefits.
ARTICLE 10
LEAVE OF ABSENCE
10.1 PAID LEAVE OF ABSENCE. If a Participant is authorized by the
Participant's Employer for any reason to take a paid leave of absence
from the employment of the Employer, the Participant shall continue to
be considered employed by that Employer and the Annual Deferral Amount
shall continue to be withheld during such paid leave of absence in
accordance with Section 3.3.
10.2 UNPAID LEAVE OF ABSENCE. If a Participant is authorized by the
Participant's Employer for any reason to take an unpaid leave of
absence from the employment of the Employer, the Participant shall
continue to be considered employed by that Employer and the Participant
shall be excused from making deferrals until the earlier of the date
the leave of absence expires or the Participant returns to a paid
employment status. Upon such expiration or return, deferrals shall
resume for the remaining portion of the Plan Year in which the
expiration or return occurs, based on the deferral election, if any,
made for that Plan Year. If no election was made for that Plan Year, no
deferral shall be withheld.
ARTICLE 11
TERMINATION, AMENDMENT OR MODIFICATION
11.1 TERMINATION. Each Employer reserves the right to discontinue its
sponsorship of the Plan and/or to terminate the Plan at any time with
respect to any or all of its participating Employees and Directors by
action of its board of directors. Upon the termination of the Plan with
respect to any Employer, the Plan
- 19 -
Agreements of the affected Participants who are employed by that
Employer or in the service of that Employer as a Director, shall
terminate and their Account Balances, determined as if they had
experienced a Termination of Employment on the date of Plan termination
or, if Plan termination occurs after the date upon which a Participant
was eligible to Retire, then with respect to that Participant as if he
or she had Retired on the date of Plan termination, shall be paid to
the Participants as follows: (a) prior to a Change in Control: (i) if
the Plan is terminated with respect to all of its Participants, the
Employer shall have the right, in its sole discretion, and
notwithstanding any elections made by the Participant, to pay such
benefits in a lump sum or pursuant to an Annual Installment Method of
up to 15 years, with amounts credited during the installment period as
provided herein; (ii) if the Plan is terminated with respect to less
than all of its Participants, the Employer shall be required to pay
such benefits in a lump sum; (b) after a Change in Control, the
Employer shall be required to pay such benefits in a lump sum. The
termination of the Plan shall not adversely affect any Participant or
Beneficiary who has become entitled to the payment of any benefits
under the Plan as of the date of termination; provided, however, that
the Employer shall have the right to accelerate installment payments
without a premium or prepayment penalty by paying the Account Balance
in a lump sum or pursuant to an Annual Installment Method using fewer
years (provided that the present value of all payments that will have
been received by a Participant at any given point of time under the
different payment schedule shall equal or exceed the present value of
all payments that would have been received at that point in time under
the original payment schedule). The applicable interest rate to be used
as the discount rate for determining such present value shall be a
reasonable discount rate selected by the Committee from time to time.
11.2 AMENDMENT. Any Employer may, at any time, amend or modify the Plan in
whole or in part with respect to that Employer by the action of its
board of directors; provided, however, that no amendment or
modification shall be effective to decrease or restrict the value of a
Participant's Account Balance in existence at the time the amendment or
modification is made, calculated as if the Participant had experienced
a Termination of Employment as of the effective date of the amendment
or modification or, if the amendment or modification occurs after the
date upon which the Participant was eligible to Retire, the Participant
had Retired as of the effective date of the amendment or modification.
The amendment or modification of the Plan shall not affect any
Participant or Beneficiary who has become entitled to the payment of
benefits under the Plan as of the date of the amendment or
modification; provided, however, that the Employer shall have the right
to accelerate installment payments by paying the Account Balance in a
lump sum or pursuant to an Annual Installment Method using fewer years
(provided that the present value
- 20 -
of all payments that will have been received by a Participant at any
given point of time under the different payment schedule shall equal or
exceed the present value of all payments that would have been received
at that point in time under the original payment schedule, using a
reasonable discount rate selected by the Committee from time to time).
11.3 PLAN AGREEMENT. Despite the provisions of Sections 11.1 and 11.2 above,
if a Participant's Plan Agreement contains benefits or limitations that
are not in this Plan document, the Participant's Employer may only
amend or terminate such provisions with the consent of the Participant.
11.4 EFFECT OF PAYMENT. The full payment of the applicable benefit under
Articles 4, 5, 6, 7 or 8 of the Plan shall completely discharge all
obligations to a Participant and his or her designated Beneficiaries
under this Plan and the Participant's Plan Agreement shall terminate.
ARTICLE 12
ADMINISTRATION
12.1 COMMITTEE DUTIES. This Plan shall be administered by a Committee, which
shall consist of the Board, or such committee as the Board shall
appoint. Members of the Committee may be Participants under this Plan.
The Committee shall also have the discretion and authority to (i) make,
amend, interpret, and enforce all appropriate rules and regulations for
the administration of this Plan and (ii) decide or resolve any and all
questions including interpretations of this Plan, as may arise in
connection with the Plan. Any individual serving on the Committee who
is a Participant shall not vote or act on any matter relating solely to
himself or herself. When making a determination or calculation, the
Committee shall be entitled to rely on information furnished by a
Participant or the Company.
12.2 AGENTS. In the administration of this Plan, the Committee may, from
time to time, employ agents and delegate to them such administrative
duties as it sees fit (including acting through a duly appointed
representative) and may from time to time consult with counsel who may
be counsel to any Employer.
12.3 BINDING EFFECT OF DECISIONS. The decision or action of the Committee
with respect to any question arising out of or in connection with the
administration, interpretation and application of the Plan and the
rules and regulations promulgated hereunder shall be final and
conclusive and binding upon all persons having any interest in the
Plan.
12.4 INDEMNITY OF COMMITTEE. All Employers shall indemnify and hold harmless
the members of the Committee, and any Employee to whom the duties of
the
- 21 -
Committee may be delegated, against any and all claims, losses,
damages, expenses or liabilities arising from any action or failure to
act with respect to this Plan, except in the case of willful misconduct
by the Committee or any of its members or any such Employee.
12.5 EMPLOYER INFORMATION. To enable the Committee to perform its functions,
each Employer shall supply full and timely information to the Committee
on all matters relating to the compensation of its Participants, the
date and circumstances of the Retirement, Disability, death or
Termination of Employment of its Participants, and such other pertinent
information as the Committee may reasonably require.
ARTICLE 13
OTHER BENEFITS AND AGREEMENTS
13.1 COORDINATION WITH OTHER BENEFITS. The benefits provided for a
Participant and Participant's Beneficiary under the Plan are in
addition to any other benefits available to such Participant under any
other plan or program for employees of the Participant's Employer. The
Plan shall supplement and shall not supersede, modify or amend any
other such plan or program except as may otherwise be expressly
provided.
ARTICLE 14
CLAIMS PROCEDURES
14.1 PRESENTATION OF CLAIM. Any Participant or Beneficiary of a deceased
Participant (such Participant or Beneficiary being referred to below as
a "Claimant") may deliver to the Committee a written claim for a
determination with respect to the amounts distributable to such
Claimant from the Plan. If such a claim relates to the contents of a
notice received by the Claimant, the claim must be made within 60 days
after such notice was received by the Claimant. All other claims must
be made within 180 days of the date on which the event that caused the
claim to arise occurred. The claim must state with particularity the
determination desired by the Claimant.
14.2 NOTIFICATION OF DECISION. The Committee shall consider a Claimant's
claim within a reasonable time, and shall notify the
Claimant in writing:
(a) that the Claimant's requested determination has been made, and
that the claim has been allowed in full; or
(b) that the Committee has reached a conclusion contrary, in whole
or in part, to the Claimant's requested determination, and
such notice must set forth in a manner calculated to be
understood by the Claimant:
- 22 -
(i) the specific reason(s) for the denial of the claim,
or any part of it;
(ii) specific reference(s) to pertinent provisions of the
Plan upon which such denial was based;
(iii) a description of any additional material or
information necessary for the Claimant to perfect the
claim, and an explanation of why such material or
information is necessary; and
(iv) an explanation of the claim review procedure set
forth in Section 14.3 below.
14.3 REVIEW OF A DENIED CLAIM. Within 60 days after receiving a notice from
the Committee that a claim has been denied, in whole or in part, a
Claimant (or the Claimant's duly authorized representative) may file
with the Committee a written request for a review of the denial of the
claim. Thereafter, but not later than 30 days after the review
procedure began, the Claimant (or the Claimant's duly authorized
representative):
(a) may review pertinent documents;
(b) may submit written comments or other documents; and/or
(c) may request a hearing, which the Committee, in its sole
discretion, may grant.
14.4 DECISION ON REVIEW. The Committee shall render its decision on review
promptly, and not later than 60 days after the filing of a written
request for review of the denial, unless a hearing is held or other
special circumstances require additional time, in which case the
Committee's decision must be rendered within 120 days after such date.
Such decision must be written in a manner calculated to be understood
by the Claimant, and it must contain:
(a) specific reasons for the decision;
(b) specific reference(s) to the pertinent Plan provisions upon
which the decision was based; and
(c) such other matters as the Committee deems relevant.
14.5 LEGAL ACTION. A Claimant's compliance with the foregoing provisions of
this Article 14 is a mandatory prerequisite to a Claimant's right to
commence any legal action with respect to any claim for benefits under
this Plan.
- 23 -
ARTICLE 15
TRUST
15.1 ESTABLISHMENT OF THE TRUST. The Company established the Trust, and each
Employer may transfer over to the Trust such assets as the Employer
determines, in its sole discretion.
15.2 INTERRELATIONSHIP OF THE PLAN AND THE TRUST. The provisions of the Plan
and the Plan Agreement shall govern the rights of a Participant to
receive distributions pursuant to the Plan. The provisions of the Trust
shall govern the rights of the Employers, Participants and the
creditors of the Employers to the assets transferred to the Trust. Each
Employer shall at all times remain liable to carry out its obligations
under the Plan.
15.3 DISTRIBUTIONS FROM THE TRUST. Each Employer's obligations under the
Plan may be satisfied with Trust assets distributed pursuant to the
terms of the Trust, and any such distribution shall reduce the
Employer's obligations under this Plan.
ARTICLE 16
MISCELLANEOUS
16.1 STATUS OF PLAN. The Plan is intended to be a plan that is not qualified
within the meaning of Code Section 401(a) and that "is unfunded and is
maintained by an employer primarily for the purpose of providing
deferred compensation for a select group of management or highly
compensated employees" within the meaning of ERISA Sections 201(2),
301(a)(3) and 40l(a)(1). The Plan shall be administered and interpreted
to the extent possible in a manner consistent with that intent.
16.2 UNSECURED GENERAL CREDITOR. Participants and their Beneficiaries,
heirs, successors and assigns shall have no legal or equitable rights,
interests or claims in any property or assets of any Employer. For
purposes of the payment of benefits under this Plan, any and all of an
Employer's assets shall be, and remain, the general, unpledged assets
of that Employer. An Employer's obligation under the Plan shall be
merely that of an unfunded and unsecured promise to pay money in the
future.
16.3 EMPLOYER'S LIABILITY. If an Employer enters into a Plan Agreement with
a Participant, then only that Employer shall be liable for the benefits
that the Participant earns during the time that the Plan Agreement is
in effect with that Employer. The other Employers shall not be liable
for any of the benefits that the Participant earns during this period.
Notwithstanding the foregoing, only the Company (and not Bancorp) shall
be liable for the benefits that the
- 24 -
participants of the INMC Mortgage Holding, Inc. Deferred Compensation
Plan earned under such plan prior to January 1, 2001.
16.4 NONASSIGNABILITY. Neither a Participant nor any other person shall have
any right to commute, sell, assign, transfer, pledge, anticipate,
mortgage or otherwise encumber, transfer, hypothecate, alienate or
convey in advance of actual receipt, the amounts, if any, payable
hereunder, or any part thereof, which are, and all rights to which are
expressly declared to be, unassignable and non-transferable. No part of
the amounts payable shall, prior to actual payment, be subject to
seizure, attachment, garnishment or sequestration for the payment of
any debts, judgments, alimony or separate maintenance owed by a
Participant or any other person, be transferable by operation of law in
the event of a Participant's or any other person's bankruptcy or
insolvency or be transferable to a spouse as a result of a property
settlement or otherwise.
16.5 NOT A CONTRACT OF EMPLOYMENT. The terms and conditions of this Plan
shall not be deemed to constitute a contract of employment between any
Employer and a Participant. Such employment is hereby acknowledged to
be an "at will" employment relationship that can be terminated at any
time for any reason, or no reason, with or without cause, and with or
without notice, unless expressly provided in a written employment
agreement. Nothing in this Plan shall be deemed to give a Participant
the right to be retained in the service of any Employer as an Employee
or a Director, or to interfere with the right of any Employer to
discipline or discharge the Participant at any time.
16.6 FURNISHING INFORMATION. A Participant or his or her Beneficiary will
cooperate with the Committee by furnishing any and all information
requested by the Committee and take such other actions as may be
requested in order to facilitate the administration of the Plan and the
payments of benefits hereunder, including but not limited to taking
such physical examinations as the Committee may deem necessary.
16.7 TERMS. Whenever any words are used herein in the masculine, they shall
be construed as though they were in the feminine in all cases where
they would so apply; and whenever any words are used herein in the
singular or in the plural, they shall be construed as though they were
used in the plural or the singular, as the case may be, in all cases
where they would so apply.
16.8 CAPTIONS. The captions of the articles, sections and paragraphs of this
Plan are for convenience only and shall not control or affect the
meaning or construction of any of its provisions.
- 25 -
16.9 GOVERNING LAW. Subject to ERISA, the provisions of this Plan shall be
construed and interpreted according to the internal laws of the State
of California without regard to its conflicts of law principles.
16.10 NOTICE. Any notice or filing required or permitted to be given to the
Committee under this Plan shall be sufficient if in writing and
hand-delivered, or sent by registered or certified mail, to the address
below:
Committee DCP
IndyMac Bank, F.S.B.
155 N. Lake Avenue
Pasadena, CA 91101
Such notice shall be deemed given as of the date of delivery or, if
delivery is made by mail, as of the date shown on the postmark on the
receipt for registration or certification.
Any notice or filing required or permitted to be given to a Participant
under this Plan shall be sufficient if in writing and hand-delivered,
or sent by mail, to the last known address of the Participant.
16.11 SUCCESSORS. The provisions of this Plan shall bind and inure to the
benefit of the Participant's Employer and its successors and assigns
and the Participant and the Participant's designated Beneficiaries.
16.12 SPOUSE'S INTEREST. The interest in the benefits hereunder of a spouse
of a Participant who has predeceased the Participant shall
automatically pass to the Participant and shall not be transferable by
such spouse in any manner, including but not limited to such spouse's
will, nor shall such interest pass under the laws of intestate
succession.
16.13 VALIDITY. In case any provision of this Plan shall be illegal or
invalid for any reason, said illegality or invalidity shall not affect
the remaining parts hereof, but this Plan shall be construed and
enforced as if such illegal or invalid provision had never been
inserted herein.
16.14 INCOMPETENT. If the Committee determines in its discretion that a
benefit under this Plan is to be paid to a minor, a person declared
incompetent or to a person incapable of handling the disposition of
that person's property, the Committee may direct payment of such
benefit to the guardian, legal representative or person having the care
and custody of such minor, incompetent, or incapable person. The
Committee may require proof of minority, incompetence, incapacity or
guardianship, as it may deem appropriate prior to distribution of the
benefit. Any payment of a benefit shall be a payment for the account of
the
- 26 -
Participant and the Participant's Beneficiary, as the case may be, and
shall be a complete discharge of any liability under the Plan for such
payment amount.
16.15 COURT ORDER. The Committee is authorized to make any payments directed
by court order in any action in which the Plan or the Committee has
been named as a party. In addition, if a court determines that a spouse
or former spouse of a Participant has an interest in the Participant's
benefits under the Plan in connection with a property settlement or
otherwise, the Committee, in its sole discretion, shall have the right,
notwithstanding any election made by a Participant, to immediately
distribute the spouse's or former spouse's interest in the
Participant's benefits under the Plan to that spouse or former spouse.
16.16 DISTRIBUTION IN THE EVENT OF TAXATION:
(a) IN GENERAL. If, for any reason, all or any portion of a
Participant's benefits under this Plan becomes taxable to the
Participant prior to receipt, a Participant may petition the
Committee before a Change in Control, or the trustees of the
Trust after a Change in Control, for a distribution of that
portion of his or her benefit that has become taxable. Upon
the grant of such a petition, which grant shall not be
unreasonably withheld (and, after a Change in Control, shall
be granted), a Participant's Employer shall distribute to the
Participant immediately available funds in an amount equal to
the taxable portion of his or her benefit (which amount shall
not exceed a Participant's unpaid Account Balance under the
Plan). If the petition is granted, the tax liability
distribution shall be made within 90 days of the date when the
Participant's petition is granted. Such a distribution shall
affect and reduce the benefits to be paid under this Plan.
(b) TRUST. If the Trust terminates in accordance with Section
3.6(e) of the Trust and benefits are distributed from the
Trust to a Participant in accordance with that Section, the
Participant's benefits under this Plan shall be reduced to the
extent of such distributions.
16.17 INSURANCE. The Employers, on their own behalf or on behalf of the
trustees of the Trust, and, in their sole discretion, may apply for and
procure insurance on the life of the Participant, in such amounts and
in such forms as the Trust may choose. The Employers or the trustees of
the Trust, as the case may be, shall be the sole owner and beneficiary
of any such insurance. The Participant shall have no interest
whatsoever in any such policy or policies, and at the request of the
Employers shall submit to medical examinations and supply such
information and execute such documents as may be required by the
insurance company or companies to whom the Employers have applied for
insurance.
- 27 -
16.18 LEGAL FEES TO ENFORCE RIGHTS AFTER CHANGE IN CONTROL. The Company and
each Employer is aware that upon the occurrence of a Change in Control,
the Board or the board of directors of a Participant's Employer (which
might then be composed of new members) or a shareholder of the Company
or the Participant's Employer, or of any successor corporation might
then cause or attempt to cause the Company, the Participant's Employer
or such successor to refuse to comply with its obligations under the
Plan and might cause or attempt to cause the Company or the
Participant's Employer to institute, or may institute, litigation
seeking to deny Participants the benefits intended under the Plan. In
these circumstances, the purpose of the Plan could be frustrated.
Accordingly, if, following a Change in Control, it should appear to any
Participant that the Company, the Participant's Employer or any
successor corporation has failed to comply with any of its obligations
under the Plan or any agreement thereunder or, if the Company, such
Employer or any other person takes any action to declare the Plan void
or unenforceable or institutes any litigation or other legal action
designed to deny, diminish or to recover from any Participant the
benefits intended to be provided, then the Company and the
Participant's Employer irrevocably authorize such Participant to retain
counsel of his or her choice at the expense of the Company and the
Participant's Employer (who shall be jointly and severally liable) to
represent such Participant in connection with the initiation or defense
of any litigation or other legal action, whether by or against the
Company, the Participant's Employer or any director, officer,
shareholder or other person affiliated with the Company, the
Participant's Employer or any successor thereto in any jurisdiction.
IN WITNESS WHEREOF, the Company has amended and restated this Plan
document as of January 1, 2001.
"Company"
IndyMac Bank, F.S.B., a federally chartered
savings bank
Date:______________________ By:________________________________________
Title:_____________________________________
- 28 -
AMENDMENT NO. 1
TO THE
INDYMAC BANK, F.S.B. DEFERRED COMPENSATION PLAN
Effective as of January 1, 2001, Section 1.44 of the IndyMac
Bank, F.S.B. Deferred Compensation Plan is amended and restated to read as
follows:
"1.44 'Years of Service' shall mean the total number of full years in which a
Participant has been employed by or in the service of one or more
Employers. For purposes of this definition, a year of employment or
service shall be a 12 month period that commences on the Employee's or
Director's effective date of hire or service and that, for any
subsequent year, commences on an anniversary of that effective date of
hire or service. Any partial year of employment or service shall not be
counted. For purposes of this definition, the total number of full
years in which the Participant was employed by or in the service of:
(i) CCI prior to 1997; and/or (ii) Bancorp prior to 2001, shall be
counted."
IN WITNESS WHEREOF, IndyMac Bank, F.S.B. has executed this
Amendment this ______ day of ___, 2001.
INDYMAC BANK, F.S.B.
By: _______________________________
Its: _______________________________
- 29 -
AMENDMENT NO. 2
TO THE
INDYMAC BANK, F.S.B. DEFERRED COMPENSATION PLAN
IndyMac Bank, F.S.B. (the "Company") hereby amends the
above-named plan (the "Plan"), effective as of January 1, 2003, as follows:
1. The definition of "Employer(s)" in Section 1.27 of the Plan
shall be amended and restated to read as follows:
"'Employer(s)' shall mean the Company and/or any of its
affiliates (now in existence or hereafter formed or acquired) that have been
designated by the Committee to participate in the Plan."
2. The table provided for in Subsection 3.2(a) of the Plan shall
be amended and restated to read as follows:
- -----------------------------------------------------
Deferral Maximum Amount
- -----------------------------------------------------
Base Annual Salary 0%
- -----------------------------------------------------
Annual Bonus 50%
- -----------------------------------------------------
Commissions 50%
- -----------------------------------------------------
Directors Fees 50%
- -----------------------------------------------------
4. The first sentence in Section 11.2 of the Plan shall be
amended and restated to read as follows:
"The Committee may, at any time, amend or modify the Plan in
whole or in part; provided, however, that no amendment or modification shall be
effective to decrease or restrict the value of a Participant's Account Balance
in existence at the time the amendment or modification is made, calculated as if
the Participant had experienced a Termination of Employment as of the effective
date of the amendment or modification or, if the amendment or modification
occurs after the date upon which the Participant was eligible to Retire, the
Participant had Retired as of the effective date of the amendment or
modification."
5. The first sentence in Section 12.1 of the Plan shall be
amended and restated to read as follows:
"This Plan shall be administered by the Employee Benefits
Fiduciary Committee (the "Committee")."
- 30 -
6. The last sentence in Section 16.3 of the Plan shall be amended
and restated to read as follows:
"Notwithstanding the foregoing, the Company shall be liable
for the benefits that the participants of the INMC Mortgage Holdings, Inc.
Deferred Compensation Plan earned under such plan prior to January 1, 2001, and
the Company shall be liable for IndyMac Resources, Inc.'s obligations under the
Plan in the event IndyMac Resources, Inc. fails to perform them."
* * * *
The Company has caused this Amendment No. 2 to be signed on
the date indicated below, to be effective as indicated above.
INDYMAC BANK, F.S.B.
Dated: December __, 2002 By: ______________________________________
Its: ______________________________________
- 31 -