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EXHIBIT 10.12

Non-Management Director Compensation

 

2003

2004

2005

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Annual retainer to each director (1)

 

$24,000

 

$24,000

 

$36,000

Additional annual retainer to Chair of Company Board (2)

2,500

 

2,500

 

2,500

 

Additional annual retainer to Chair of Downey Savings Board (2)

2,500

 

2,500

 

2,500

 

Additional annual retainer to Chair of Audit Committee

5,000

 

30,000

(3)

30,000

 

Additional annual retainer to Chair of Compensation Committee

3,000

 

5,000

(3)

5,000

 

Additional annual retainer to Chair of Nominating and Corporate Governance
Committee

-

 

5,000

(3)

5,000

 

Company and/or Downey Savings Board meeting fee (per day -

 

 

 

 

 

 

     typically both Boards meet on the same day)

1,000

 

1,000

 

3,000

 

Committee meeting fee (per meeting)

N/A

 

N/A

 

1,000

 

Committee meeting fee (per day, other than on Board meeting day)

1,000

 

1,000

 

N/A

 

DSL Board meeting fee (per day) (4)

1,000

 

1,000

 

1,000

 

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(1)  Each director of the Company is also a director of Downey Savings. The
annual retainer listed is for service on both Boards.

(2)  The Company and Downey Savings’ Chairman has declined to accept the $2,500
per year additional annual retainer from the Company or Downey Savings.

(3)  Approved in 2005, made retroactive to January 1, 2004.

(4)  There is no annual retainer paid to DSL Board members. Typically, a DSL
Board meeting occurs on the same day as a Company and/or Downey Savings Board
meeting, in which case no DSL Board meeting fee is paid. If there is a DSL Board
meeting on a different day than a Company and/or Downey Savings Board meeting,
then a $1,000 DSL Board meeting fee is paid.

      Non-employee directors who review the Thrift Financial Reports and
Consolidated Maturity/Rate Schedules required to be filed quarterly with the
Office of Thrift Supervision receive a fee of $500 per quarter. Directors are
reimbursed for reasonable out-of-pocket expenses and are entitled to receive the
same medical coverage benefits provided to Downey Savings’ employees. Eligible
directors are also entitled to participate in the Director Retirement Benefits
Plan described in the Company’s proxy statement. Employee directors receive no
compensation for Board service.

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