Downey Financial Corporation – January 20, 2004 (March 5th, 2004)
Congratulations! On behalf of Downey Financial Corp. ("DFC"), I am pleased to offer you the position of Chief Executive Officer of DFC and Downey Savings and Loan Association, F.A. ("Downey Savings" and with DFC, collectively, "Downey"), pending approval of the Downey Board of Directors. You will also be appointed to the Board of Directors of DFC and Downey Savings, pending the approval of the DFC shareholders at our next annual shareholders meeting. Unless mutually agreed upon, we expect you to start no later than February 2, 2004, in our Newport Beach offices. You will report directly to the Chairman of Downey. This letter outlines the terms of your new position.