Document:

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                                                                EXHIBIT 10.13(a)
                         MANAGEMENT INVESTMENT AGREEMENT

                  MANAGEMENT INVESTMENT AGREEMENT (this "AGREEMENT") dated as of
October 1, 1999, between Aames Financial Corporation, a Delaware corporation
(the "COMPANY"), and Neil Notkin, an individual residing at [XXXADDRESS DELETED
FOR PRIVACYXXX] (the "MANAGEMENT INVESTOR").

                  WHEREAS, the Management Investor is a senior management
employee of the Company; and

                  WHEREAS, the Management Investor desires to purchase from the
Company, and the Company desires to sell to the Management Investor, shares of
the Company's Series C Convertible Preferred Stock, par value $0.001 per share
("SERIES C PREFERRED STOCK)," under the terms and conditions set forth in this
Agreement.
                  NOW THEREFORE, in consideration of the premises and the mutual
covenants contained in this Agreement, and other good and valuable
consideration, the sufficiency of which is hereby acknowledged, the parties
hereto agree as follows:

                  SECTION 1.  SALE AND DELIVERY.

                  (a) Upon the terms and subject to the conditions set forth
herein, and in reliance upon the representations and warranties of the
Management Investor hereinafter set forth, the Company shall issue, sell and
deliver to the Management Investor, and the Management Investor shall purchase
from the Company, 150,000 shares of Series C Preferred Stock (such shares of
Series C Preferred Stock are referred to collectively herein as the "SHARES") at
the price per share equal to $1.00.

                  (b) The purchase price for the Shares being purchased by the
Management Investor shall be paid by delivery by the Management Investor to the
Company of (i) $150,000 (the "Closing Payment") and (ii)a 6.5% recourse
promissory note having an original principal amount equal to the total purchase
price of the Shares minus the Closing Payment (the "NOTE"), which Note is
attached hereto as EXHIBIT A.

                  (c) The purchase and sale of Shares shall occur at the time
and place specified by the Company for such closing, which shall be not more
than 60 days after the date hereof (the "CLOSING DATE"), and at the closing of
such purchase and sale of Shares:

                  (i) the Company shall deliver to the Management Investor
         certificates representing the Shares (the

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         "Certificates"), duly endorsed for transfer, transferring to the
         Management Investor good and marketable title to such Shares, free
         and clear of all liens and encumbrances; and

                  (ii) the Management Investor shall deliver to the Company:
                       (A) the Closing Payment;
                       (B) the Note; and
                       (C) a pledge agreement (the "PLEDGE AGREEMENT")
                  attached hereto as EXHIBIT B, pursuant to which Pledge
                  Agreement, among other things, the Management Investor's
                  obligations under the Note shall be secured by the following:
                  (i) a pledge of (a) the Shares, (b) the shares of Common Stock
                  that may be acquired upon conversion of the Shares (the
                  "UNDERLYING COMMON SHARES"), and (c) certain other collateral
                  described therein; and (ii) delivery of the Certificates.
                  SECTION 2. REPRESENTATIONS AND WARRANTIES OF THE MANAGEMENT
INVESTOR. The Management Investor hereby represents and warrants to the Company
as follows:

                  (a) The Shares (and the Underlying Common Shares) to be
purchased by such Management Investor will be acquired for investment for the
Management Investor's own account and not with a view to the resale or
distribution of any part thereof, except in compliance with the provisions of
the Securities Act of 1933, as amended (the "SECURITIES ACT"), or an exemption
therefrom, and in compliance with the terms of this Agreement. The Management
Investor is a senior management employee of the Company and is fully familiar
with the business of the Company and with the risks associated with the purchase
of the Shares pursuant to this Agreement. The Management Investor is an
accredited investor as defined under Rule 501(a) under the Securities Act.

                  (b) The Management Investor understands that the Shares and
the Underlying Common Shares are characterized as "restricted securities" under
the federal securities laws inasmuch as they are being acquired from the Company
in a transaction not involving a public offering and that under such laws and
applicable regulations such Shares (and the Underlying Common Shares) may be
resold without registration under the Securities Act only in certain limited
circumstances.

                  (c) The Management Investor further agrees that each
certificate representing the Shares (and the Underlying Common Shares) shall be
stamped or otherwise imprinted with a legend substantially in the following
form:

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                  "THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
                  REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE
                  TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS SUCH SECURITIES
                  HAVE BEEN REGISTERED UNDER ACT OR AN EXEMPTION FROM
                  REGISTRATION IS AVAILABLE.

                  THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
                  RESTRICTIONS ON TRANSFER AND TO THE OTHER TERMS SET FORTH IN
                  THAT CERTAIN MANAGEMENT INVESTMENT AGREEMENT, DATED AS OF
                  OCTOBER 1, 1999, AND BY A CERTAIN RELATED PLEDGE AGREEMENT,
                  BETWEEN THE COMPANY AND Neil Notkin, A COPY OF WHICH
                  AGREEMENTS HAVE BEEN FILED WITH THE SECRETARY OF THE COMPANY
                  AND ARE AVAILABLE UPON REQUEST."
                  SECTION 3. RESTRICTIONS ON TRANSFER OF SHARES. For a period
commencing on the Closing Date and ending on the fifth anniversary of the
Closing Date, the Management Investor may not sell, transfer, assign, pledge,
hypothecate or otherwise dispose of (each, a "TRANSFER") any of the Shares (or
the Underlying Common Shares), without the prior express written consent of the
Company, PROVIDED, HOWEVER, that the foregoing restriction on transfer shall not
apply (i) if Capital Z Financial Services Fund II. L.P. ("CAPITAL Z")
Beneficially Owns (as defined in the Purchase Agreement referred to below) less
than (A) fifty percent (50%) of the number of shares of Senior Preferred Stock
(as defined in the Purchase Agreement referred to below) purchased by Capital Z
on the Initial Closing Date (as defined in the Purchase Agreement referred to
below) (the "ORIGINAL PREFERRED SHARES") or (B) if any Original Preferred Shares
shall thereafter have been converted into Common Stock, fifty percent (50%) of
the sum of (x) the aggregate number of shares Common Stock owned by Capital Z as
a result of such conversion(s) plus (y) the aggregate number of shares Common
Stock into which any remaining Original Preferred Shares owned by Capital Z may
be converted (determined without regard to any limitations on conversion of such
shares prior to the Recapitalization (as defined in the Purchase Agreement
referred to below)), in each case subject to adjustment for splits,
combinations, reclassifications and similar events; (ii) if the Management
Investor dies, retires, is terminated by the Company, or terminates his
employment with the Company, subject to the provisions of Section 4 hereof; or
(iii) a Change of Control (as defined in the New Option Plan (as such term is
defined in the Purchase Agreement referred to below)) has occurred, but only if
a Capital Z Realization Event (as defined in the New Option Plan) has also
occurred on or prior to such Change of Control, and PROVIDED, FURTHER, that
notwithstanding the foregoing

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restriction on transfer, the Management Investor may transfer, during the
twelve-month period ending on the first anniversary of the Closing Date and
during each succeeding twelve-month period, up to 25% of the total number of
Underlying Common Shares (whether structured as a transfer of Shares,
Underlying Shares or a combination thereof) acquired hereunder (subject to
adjustment for splits, combinations, reclassifications and similar events),
it being further agreed that the Management Investor may request the
Company's Board of Directors to allow the Management Investor to transfer
Shares (or Underlying Common Shares) in excess of the 25% limitation
described in this proviso if extraordinary liquidity needs have arisen with
respect to the Management Investor, and, in such event, the Company (through
its Board of Directors) will consider such request in good faith and will not
unreasonably withhold its consent to a waiver of such limitation. The
"Purchase Agreement" referred to herein shall mean the Preferred Stock
Purchase Agreement by and between the Company and Capital Z, dated as of
December 23, 1998, as the same may be amended or modified.

                  SECTION 4.  COMPANY'S OPTION TO PURCHASE SHARES.

                  (a) In the event of the death or retirement from, or
termination of employment for any reason with, the Company of the Management
Investor (a "TERMINATION DATE"), the Company shall have the option, but not the
obligation, to purchase all, or any portion, of the Shares (and any Underlying
Common Shares that may have been acquired upon conversion of the Shares) then
owned by the Management Investor at the Fair Market Value (as hereinafter
defined) per Share and/or Underlying Common Share on the Business Day
immediately prior to the date on which the Company exercises its option to
purchase in accordance with the this Section 4. The Company may exercise the
foregoing option at any time within 30 days after the Termination Date, by
written notice to the Management Investor, or his legal representative in the
case of death, stating a date and time for consummation of the purchase no less
than 10 nor more than 30 days after giving of such notice. "Fair Market Value"
per Share or per Underlying Common Share, as of any particular date, shall mean
(a) in the case of a Share, the product obtained by multiplying (I) the Formula
Number (as defined in the Certificate of Designations for the Series C

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Preferred Stock) in effect as of such date by (II) the Current Market Price
(as defined in the Certificate of Designations for the Series C Preferred
Stock) for the period of 15 consecutive Trading Days (as defined in the
Certificate of Designations for the Series C Preferred Stock) prior to such
date, or (b) in the case of an Underlying Share, the Current Market Price for
the period of 15 consecutive Trading Days prior to such date.

                  (b) At the closing of the purchase of Shares (and any
Underlying Common Shares) by the Company pursuant to Section 4(a), the
Management Investor will deliver the Shares (and any Underlying Common Shares)
to the Company against payment by the Company to the Management Investor of the
purchase price for such Shares (and any Underlying Common Shares). Such purchase
price shall be paid in cash, PROVIDED that if any principal or accrued but
unpaid interest is then outstanding under the Note, the cash portion of the
purchase price shall be reduced by the amount of such outstanding principal and
accrued interest on the Note (with such reduction being applied first to any
accrued interest and then to principal), and, if no principal or accrued
interest is then remaining on the Note, the Note shall be canceled.

                  SECTION 5. FURTHER ASSURANCES. The Management Investor shall,
upon request of the Company, execute and deliver any additional documents and
take such further actions as may reasonably be deemed by the Company to be
necessary or desirable to carry out the provisions hereof.

                  SECTION 6. NOTICES. All notices, requests, claims, demands and
other communications under this Agreement shall be sufficiently given if sent by
registered or certified mail, postage prepaid, or overnight air courier service,
or telecopy or facsimile transmission (with hard copy to follow) to the parties
at the following addresses (or at such other address for a party as shall be
specified by like notice): (i) if to the Company, to Aames Financial
Corporation, 2 California Plaza, 350 South Grand Avenue, Los Angeles, California
90071, Attention: General Counsel, telecopy number (323) 210-5026; and (ii) if
to the Management Investor, to the address set forth for the Management Investor
in the preamble to this Agreement or by telecopy to__________.

                  SECTION 7. HEADINGS. The headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

                  SECTION 8. COUNTERPARTS; EFFECTIVENESS. This Agreement may be
executed in two or more counterparts, all of which shall be considered one and
the same agreement and shall become effective when one or more counterparts have
been signed

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by each of the Company and the Management Investor and delivered to the
Company and the Management Investor.

                  SECTION 9. ENTIRE AGREEMENT. This Agreement (including the
documents and instruments referred to herein) constitutes the entire agreement,
and supersedes all prior agreements and understandings, both written and oral,
among the parties with respect to the subject matter hereof.

                  SECTION 10. GOVERNING LAW. This Agreement shall be governed
by, and construed in accordance with, the laws of the State of Delaware, without
regard to any applicable conflicts of law principles of such State.

                  SECTION 11. SUCCESSORS AND ASSIGNS. Neither this Agreement nor
any of the rights, interests or obligations under this Agreement shall be
assigned, in whole or in part, by operation of law or otherwise, by any of the
parties without the prior written consent of the other parties. Any assignment
in violation of the foregoing shall be void.

                  SECTION 12. ENFORCEMENT. Each party agrees that irreparable
damage would occur and that the other party hereto would not have any adequate
remedy at law in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached. It
is accordingly agreed that each party shall be entitled to an injunction or
injunctions to prevent breaches by the other party hereto of this Agreement and
to enforce specifically the terms and provisions of this Agreement in any court
of the United States located in the State of Delaware or in Delaware State
court, this being in addition to any other remedy to which they are entitled at
law or in equity. In addition, each of the parties hereto (i) consents to submit
such party to the personal jurisdiction of any Federal court located in the
State of Delaware or any Delaware State court in the event any dispute arises
out of this Agreement or any of the transactions contemplated hereby, (ii)
agrees that such party will not attempt to deny or defeat such personal
jurisdiction by motion or other request for leave from any such court and (iii)
agrees that such party will not bring any action relating to this Agreement or
any of the transactions contemplated hereby in any court other than a Federal
court sitting in the State of Delaware of in Delaware State court.

                  SECTION 13. SEVERABILITY. If any term or provision hereof, or
the application thereof to any circumstance, shall, to any extent, be held by a
court of competent jurisdiction to

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be invalid or unenforceable with respect to such jurisdiction, and only to
such extent, and the remainder of the terms and provisions hereof, and the
application thereof to any other circumstance, shall remain in full force and
effect, shall not in any way be affected, impaired or invalidated, and shall
be enforced to the fullest extent permitted by law, and the parties hereto
shall reasonably negotiate in good faith a substitute term or provision that
comes as close as possible to the invalidated or unenforceable term or
provision, and that puts each party in a position as nearly comparable as
possible to the position each such party would have been in but for the
finding of invalidity or unenforceability, while remaining valid and
enforceable.

                  SECTION 14. AMENDMENT; MODIFICATION; WAIVER. No amendment,
modification or waiver in respect of this Agreement shall be effective against
any party unless it shall be in writing and signed by such party.

                  SECTION 15. EXPENSES. The Company and the Management Investor
shall each bear their own legal fees and other costs and expenses with respect
to the negotiation, execution and delivery of this Agreement and consummation of
the transactions contemplated hereby.

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                  IN WITNESS WHEREOF, the Company and the Management Investor
have caused this Agreement to be duly executed and delivered as of the date
first written above.

                                            AAMES FINANCIAL CORPORATION

                                            By:      /s/ DAVID A. SKLAR
                                                ------------------------------
                                            Name:  David A. Sklar
                                            Title: Executive Vice President

                                            MANAGEMENT INVESTOR:

                                            /s/ Neil Notkin
                                            ----------------------------------<PAGE>

                                                                EXHIBIT 10.13(b)

                             SECURED PROMISSORY NOTE

$150,000                                                      October 1, 1999
-------

         FOR VALUE RECEIVED, Neil Notkin(the "Maker"), hereby promises to pay to
the order of Aames Financial Corporation, a Delaware corporation ("Aames"), 2
California Plaza, 350 South Grand Avenue, Los Angeles, CA 90071 or such address
as Aames shall have given to the Maker, the principal sum of ONE HUNDRED AND
FIFTY THOUSAND DOLLARS and 00/100 ($150,000), plus interest, which shall accrue
from the date hereof, on the unpaid principal balance of this Note at such
address, at the rate of 6.5% per annum (computed on the basis of a 360-day year)
until the principal amount hereof has been repaid in full, on October 1, 2004.

         The Maker shall have the option to prepay the principal amount and
accrued interest on this Note, in whole or in part, at any time, without payment
of premium or penalty. During the period in which this Note is outstanding, the
Maker shall make an annual mandatory prepayment against the outstanding
principal balance of, and accrued interest on, this Note an amount equal to 25%
of the aggregate cash bonuses (if any) paid to Maker in respect of the fiscal
year ended immediately prior to such payment date, net of income taxes payable
thereon, such payments to be made within two business days after receipt of the
cash bonus paid at the end of such fiscal year and to be applied FIRST, against
any accrued and unpaid interest on this Note and THEN, to the outstanding
principal balance of this Note. In addition, upon receipt by the Maker of any
proceeds from the transfer of the securities pledged under the Pledge Agreement
(as defined below) or dividends, interest payments or other distributions of
cash in respect of such pledged securities, the Maker shall make an immediate
prepayment in respect of the Note in an amount equal to the after tax amount of
such proceeds, dividends, payments or distributions, with such prepayments to be
applied first to the payment of all interest accrued on, and then to the payment
of unpaid principal of, this Note.

         Payments of principal and interest shall be made in such currency of
the United States as at the time of payment shall be legal tender for the
payment of public and private debts.

         Aames and the Maker have entered into a pledge agreement dated the date
hereof (the "PLEDGE AGREEMENT") providing, among other things, for the securing
of this Note by a pledge of the Pledged Collateral (as defined in the Pledge
Agreement).

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If any of the following events (each, an "EVENT OF DEFAULT") shall occur:

         (a) the Maker shall default in the payment of any part of the principal
     or interest on this Note when the same shall become due and payable,
     whether at maturity, by acceleration or otherwise and such default
     continues for more than 10 days after receipt of notice from Aames;

         (b) the Maker's employment with Aames shall have ceased for any reason
     whatsoever or for no reason, whether such cessation is voluntary or
     involuntary, and regardless of whether the Maker may claim such cessation
     of employment constitutes a wrongful termination of employment;

         (c) the Maker shall (i) become insolvent or be unable, or admit in
     writing his inability, to pay his debts as they mature; (ii) make a general
     assignment for the benefit of creditors; (iii) be adjudicated as bankrupt
     or insolvent or file a voluntary petition in bankruptcy; (iv) file a
     petition or an answer seeking an arrangement with creditors to take
     advantage of any insolvency law; or (v) file an answer admitting to the
     material obligations or consent to, or default in answering, or fail to
     have dismissed within 60 days after the filing thereof, a petition filed
     against him in any bankruptcy or insolvency proceeding; or

         (d) any breach of the Maker's obligations under the Pledge Agreement
     shall have occurred and be continuing or any representation or warranty
     made thereunder shall be false in any material respect,

         then, the holder of this Note may at any time by written notice to the
Maker, declare the entire unpaid principal of and the interest accrued on this
Note through the date of such Event of Default to be forthwith due and payable,
without other notices or demands of any kind, all of which are hereby waived by
the Maker.

         The Maker agrees to pay to the holder hereof all expenses incurred by
such holder, including reasonable attorneys' fees, in enforcing and collecting
this Note.

         The Maker hereby forever waives presentment, demand, presentment for
payment, protest, notice of protest, notice of dishonor of this Note and all
other demands and notices in connection with the delivery, acceptance,
performance and enforcement of this Note.

         This Note shall be paid without deduction by reason of any set-off,
defense or counterclaim of the Maker.

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         This Note shall be governed by and construed in accordance with the
laws of the State of New York, without giving effect to conflicts of law
principles thereof, shall be binding upon the heirs or legal representatives of
the Maker and shall inure to the benefits of the successors and assigns of
Aames.

                                                     /s/ NEIL NOTKIN
                                                     -------------------------
                                                     Neil Notkin

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