Document:

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                                                                   EXHIBIT 10.31

                    EMPLOYMENT AND NON-COMPETITION AGREEMENT
                    ----------------------------------------

          THIS EMPLOYMENT AND NON-COMPETITION AGREEMENT is made as of this 18th
day of September, 1995, by and between CoastFed Business Credit Corporation, a
California corporation ("Employer" or "CBCC"), which is a wholly-owned
subsidiary of Imperial Credit Industries, Inc., a California corporation
("ICII"), and Scott B. Sampson, an individual ("Employee"), with reference to
the following facts:

                                R E C I T A L S
                                ---------------

     WHEREAS, ICII (or its assignee) is purchasing all of the outstanding
capital stock (the "Stock") of Employer pursuant to that Stock Purchase
Agreement among ICII, Coast Federal Bank, Federal Savings Bank and Employer
dated as of September 18, 1995 (the "Purchase Agreement");

     WHEREAS, Employee is knowledgeable of and skillful in Employer's business,
and has well established business relationships and contacts in the current
business of Employer which includes, but is not limited to, financial services
and loans to business borrowers (the "Business");

     WHEREAS, ICII expects to receive the benefit of the sole use of all trade
marks, service marks, tradenames or fictitious business names of Employer;

     WHEREAS, Employee is knowledgeable and responsible in part for developing
Employer's trade secrets, including confidential information concerning product
and service marketing plans and strategy, customer needs and peculiarities, and
customer lists and detail information (the "Trade Secrets");

     WHEREAS, Employee has significant business acumen and financial strength to
conduct an enterprise upon termination of his employment relationship with
Employer as described hereunder which would compete with the Business in the
markets currently served by Employer, and each of Employer and ICII desires that
Employee not participate in such a competing business;

     WHEREAS, ICII would not enter into the Purchase Agreement unless it is
assured that it will be able to operate the Business of Employer without
competition from Employee;

     WHEREAS, Employee has agreed not to compete with Employer or use any
confidential and/or proprietary business information regarding the business of
Employer to the detriment of Employer or ICII during the term of this Agreement,
in order to induce ICII to enter into the Purchase Agreement and to perform its
obligations thereunder;

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          WHEREAS, Employer desires that Employee be employed as President and
Chief Operating Officer of Employer, such employment to become effective on the
Closing Date (as that term is defined in the Purchase Agreement); and

          WHEREAS, Employee is willing to be employed by Employer as described
under the terms and conditions herein stated.

               NOW, THEREFORE, in consideration of the mutual covenants and
agreements hereinafter contained, and for other good and valuable consideration,
it is hereby agreed by and between the parties hereto as follows:

     1.   Employment, Services, and Duties. Employer hereby employs Employee and
          --------------------------------
Employee hereby accepts such employment full-time as President and Chief
Operations Officer of Employer, with the powers and duties consistent with such
position. Employee agrees to devote 100% of all working hours to rendering the
services as President and Chief Operations Officer of Employer. Employee shall
render his services to Employer by and subject to the instructions and
directions of Employer's Chief Executive Officer to whom Employee shall
directly report.

     2.   Term and Termination
          --------------------

          2.1  Unless sooner terminated pursuant to Paragraph 2.2 hereof,
Employee's employment shall commence on the Closing Date (as that term is
defined in the Purchase Agreement) and shall continue for a period of five (5)
years unless extended by the mutual agreement of Employer and Employee (the
"Term").

          2.2  Employee's employment shall terminate prior to the expiration of
the Term upon the happening of any of the following events:

               (a)  Voluntary termination by Employee which is not subject to
Section 2.2(g) herein;

               (b)  Upon the death of Employee;

               (c)  Upon dissolution and termination of the Employer;

               (d)  For cause by the Employer, that is to say only:

                    (i)  if Employee is convicted of (or pleads nolo contendere
to) or at any time prior to employment by Employer has been convicted of (or
pled nolo contendere to) a crime of dishonesty or breach of trust or crime
leading to incarceration of more than ninety (90) days (including, without

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limitation, embezzlement or theft from Employer) or the payment of a penalty or
fine of $10,000, or more;

                    (ii)  upon a determination by Employer that Employee has
engaged in willful misconduct, gross negligence, or gross or habitual neglect in
the performance of his duties under this Agreement, or has committed an act of
fraud, theft or dishonesty against Employer;

                    (iii) if Employee has materially breached any of the terms
of this Agreement or any other material legal obligation to Employer including,
without limitation, a breach of trust or fiduciary duty involving Employer or a
material violation of policies or procedures of Employer and has not cured any
such breach within thirty (30) days after having been given written notice
thereof by Employer; or

                    (iv)  Any determination of "cause" as used in this Section
2.2(d) shall be made only in good faith by an affirmative majority vote of the
Board of Directors (not counting Employee, if a director) of the Employer;

               (e)  By mutual agreement between Employer and Employee;

               (f)  Upon the good faith determination of the Board of Directors
of Employer that Employee has become so physically or mentally disabled as to be
incapable of satisfactorily performing his duties hereunder for a period of one
hundred and eighty (180) consecutive days, such determination based upon a
certificate as to such physical or mental disability issued by a licensed
physician and/or psychiatrist (as the case may be) employed by Employer; or

               (g)  Without cause by Employer.

          2.3  Except as set forth in Sections 4, 5, 6 and 7 herein, in the
event that Employee's employment is terminated pursuant to Sections 2.2(a), (b),
(c), (d), (e) or (f) herein, neither Employer nor Employee shall have any
remaining duties or obligations hereunder, except that Employer shall pay to
Employee, or his representatives, on the date of termination of employment
("Termination Date"),

                    (i)   such compensation as is due pursuant to Section 3.1(a)
herein, prorated through the Termination Date; and

                    (ii)  expense reimbursements and car allowances due and
owing to Employee as of the Termination Date.

          2.4  Except as set forth in Sections 4, 5, 6 and 7 herein, in the
event that Employee's employment is terminated pursuant to Section 2.2(g)
herein, neither Employer nor Employee

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shall have any remaining duties or obligations hereunder, except that Employer
shall pay to Employee, or his representatives, on the Termination Date,

                    (i)   all such compensation as is due pursuant Section
3.1(a) through the Term;

                    (ii)  whatever non-discretionary bonus or incentive
compensation is provided by any plan for the year of termination, prorated
through the Termination Date; and

                    (iii) expense reimbursements and car allowances due and
owing to Employee as of the Termination Date.

          2.5  This Agreement shall terminate (and Employee's employment shall
not in any way have been deemed to have commenced hereunder) in the event of the
termination of the Purchase Agreement pursuant to Section 9.1 therein.

          2.6  In the event that ICII, Employer or any assignee or affiliate
thereof causes the physical location of Employer to be moved to an area outside
of a ten mile radius from that address known as 12121 wilshire Boulevard, Los
Angeles, California 90025-1174, Employee may deem this Agreement terminated by
giving written notice to Employer. In such event, Employee's sole remedy and
rights hereunder shall be limited to the right to receive from Employer all such
compensation as is referenced in section 2.4 (i), (ii) and (iii) herein.

          2.7  This Agreement shall not be terminated by any:

               (a)  Merger, whether the Employer is or is not the surviving
corporation; or

               (b)  Transfer of all or substantially all of the assets or
capital stock of the Employer.

               In the event of any such merger, transfer of assets or capital
stock, dissolution, liquidation, or consolidation, the surviving corporation or
transferee, as the case may be, shall be bound by and shall have the benefits
of this Agreement, and the Employer shall take all action to ensure that such
corporation or transferee is bound by the provisions of this Agreement.

     3.   Compensation
          ------------

          3.1  As the total consideration for the services which Employee agrees
to render hereunder, Employee is entitled to the following:

               (a)  A salary of Two Hundred Thousand Dollars ($200,000) per year
("Salary"), payable in equal installments

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twice monthly on those days when Employer normally pays its employees;

               (b)  An annual incentive bonus in an amount equal to 1.50% of
CBCC's annual pre-tax profit as determined in accordance with generally accepted
accounting principles consistently applied ("GAAP") prior to payment of bonuses
to Employee and Jack Baruch and amortization of goodwill. Payment of said bonus
shall be contingent upon the Company's annual net profit equalling or exceeding
an amount equal to the equivalent of 2.00% of Employer's average assets, not
including goodwill, or a pre-tax return on capital of 20.00%, each as determined
in accordance with GAAP. For purposes of this section 3.1(b), capital shall be
deemed to be equal to Twelve Million Dollars ($12,000,000) and Seller's cost of
funds in making calculations hereunder shall be deemed to be the rate that Bank
of America announces from time to time as its prime lending rate, as in effect
on the first date of each calendar month, less two percent.

               (c)  Reimbursement for reasonable and necessary business and
entertainment expenses incurred by him in connection with the performance of his
duties hereunder. Employer shall reimburse the Employee for all such expenses
upon presentation by the Employee, from time to time, of an itemized account of
such expenditures. In the event that any Federal, state or local government
agency or authority determines to disallow any such expenses which are
reimbursed to Employee, Employee agrees, to the extent that such determination
involves the Employee, to reimburse Employer for all such disallowed expenses
and for all penalties incurred by Employer;

               (d)  Employee shall be entitled to four (4) weeks vacation time
each year without loss of compensation. Employee may be absent from his
employment only at such times as Employer shall determine from time to time.
Employee's vacation shall be under Employer's usual policies applicable to all
employees;

               (e)  Employee shall be entitled to a monthly car allowance of
Five Hundred Dollars ($500) payable by the fifth day of each month;

               (f)  On the Closing Date (as that term is defined in the Purchase
Agreement), ICII shall grant Employee incentive stock options to purchase ten
thousand (10,000) shares of ICII's Common Stock under ICII's Stock Option Plan
(the "Plan"), such options to be governed by the terms of the Plan;

               (g)  Employer agrees to provide Employee with insurance coverages
and other benefits available to all employees of Employer under its group plans;
and

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               (h)  Such other benefits as the Board of Directors of Employer,
in its sole discretion, may from time to time provide.

          3.2  Employer shall have the right to deduct from the compensation due
to Employee hereunder any and all sums required for social security and
withholding taxes and for any other federal, state, or local tax or charge which
may be in effect or hereafter enacted or required as a charge on the
compensation of Employee.

     4.   Non-Competition
          ---------------

          (a)  During Employee's employment hereunder, and for a period of one
(1) year following a termination of this Agreement by Employee hereunder,
Employee shall not, directly or indirectly, engage or participate in, prepare or
set up, assist or have any interest in any person, partnership, corporation,
firm, association, or other business organization, entity or enterprise (whether
as an employee, officer, director, agent, security holder, creditor, consultant
or otherwise) that engages in any activity, which is the same as, similar to, or
competitive with any activity now engaged in by Employer or in any way relating
to the Business currently conducted by Employer in those geographic areas where
Employer conducts the Business.

          (b)  Nothing contained in this Agreement shall be deemed to preclude
Employee from purchasing or owning, directly or beneficially, as a passive
investment, one percent (1%) or less of any class of a publicly traded
securities or any entity if he does not actively participate in or control,
directly or indirectly, any investment or other decisions with respect to such
entity.

     5.   Confidentiality.
          ---------------

          Employee shall keep all Trade Secrets confidential; use Trade Secrets
only in the course of his duties hereunder; maintain in trust, as Employer's
property, all documents concerning Employer's Business, including his own work
papers of any kind including telephone directories and notes, and any and all
copies thereof in his possession or under his control; and transfer to Employer
all documents that belong to Employer and any and all copies that are in his
possession or under his control when his Employment terminates, or at any other
time upon request by Employer.

     6.   Injunctive Relief
          -----------------

          Employee hereby acknowledges and agrees that it would be difficult to
fully compensate Employer for damages resulting from the breach or threatened
breach of Sections 4 and 5, herein and, accordingly, that Employer shall be
entitled to temporary

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and injunctive relief, including temporary restraining orders, preliminary
injunctions and permanent injunctions, to enforce such Sections without the
necessity of proving actual damages therewith. This provision with respect to
injunctive relief shall not, however, diminish Employer's right to claim and
recover damages or enforce any other of its legal and/or equitable rights or
defenses.

     7.   Severable Provisions
          --------------------

          The provisions of this Agreement are severable and if any one or more
provisions may be determined to be illegal or otherwise unenforceable, in whole
or in part, the remaining provisions, and any partially unenforceable provisions
to the extent enforceable, shall nevertheless be binding and enforceable.

     8.   Reference Provision
          -------------------

          (a)  Each controversy, dispute or claim between the parties arising
out of or relating to this Agreement, which controversy, dispute or claim is not
settled in writing within thirty (30) days after the "Claim Date" (defined as
the date on which a party subject to the Agreement gives written notice to the
other that a controversy, dispute or claim exists), will be settled by binding
arbitration in Los Angeles, California in accordance with the provisions of the
American Arbitration Association, which shall constitute the exclusive remedy
for the settlement of any controversy, dispute or claim, and the parties waive
their rights to initiate any legal proceedings against each other in any court
or jurisdiction other than the Superior Court of Los Angeles (the "Court"). Any
decision rendered by the arbitrator and such arbitration will be final, binding
and conclusive and judgment shall be entered pursuant to CCP Section 644 in any
court in the State of California having jurisdiction.

          (b)  Except as expressly set forth in this Agreement, the arbitrator
shall determine the manner in which the proceeding is conducted, including the
time and place of all hearings, the order of presentation of evidence, and all
other questions that arise with respect to the course of the proceeding. All
proceedings and hearings conducted before the arbitrator, except for trial,
shall be conducted without a court reporter, except that when any party so
requests, a court reporter will be used at any hearing conducted before the
arbitrator. The party making such a request shall have the obligation to arrange
for any pay for the court reporter. The costs of the court reporter shall be
borne equally by the parties.

          (c)  The arbitrator shall be required to determine all issues in
accordance with existing case law and the statutory laws of the State of
California. The rules of evidence applicable to proceedings at law in the State
of California will

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be applicable to the reference proceeding. The arbitrator shall be empowered to
enter equitable as well as legal relief, to provide all temporary and/or
provisional remedies and to enter equitable orders that will be binding upon the
parties. The arbitrator shall issue a single judgement at the close of the
proceeding which shall dispose of all of the claims of the parties that are the
subject of the proceeding. The parties hereto expressly reserve the right to
contest or appeal from the final judgment or any appealable order or appealable
judgement entered by the arbitrator. The parties hereto expressly reserve the
right to findings of fact, conclusions of law, a written statement of decision,
and the right to move for a new trial or a different judgment, which new trial,
if granted, is also to be a proceeding governed under this provision.

     9.   Binding Agreement
          -----------------

          This Agreement shall inure to the benefit of and shall be binding upon
Employer, its successors and assigns. In the event that ICII assigns its rights
to purchase the Stock under Section 1.6 of the Purchase Agreement, all
references to Employer set forth herein shall mean such assignee.

     10.  Captions
          --------

          The Section captions are inserted only as a matter of convenience and
reference and in no way define, limit or describe the scope of this Agreement or
the intent of any provisions hereof.

     11.  Entire Agreement
          ----------------

          This Agreement contains the entire agreement of the parties relating
to the subject matter hereof, and the parties hereto have made no agreements,
representations or warranties relating to the subject matter of this Agreement
that are not set forth otherwise herein. This Agreement supersedes any and all
prior agreements, written or oral, between Employee and Employer and its
affiliates. Any such prior agreements are hereby terminated and of no further
effect and Employee by the execution hereof agrees that any compensation
provided for under any such prior agreement(s) is specifically superseded and
replaced by the provision of this Agreement. No modification of this Agreement
shall be valid unless made in writing and signed by the parties hereto and
unless such writing is made by an executive officer of Employer. The parties
hereto agree that in no event shall an oral modification of this Agreement be
enforceable or valid.

     12.  Governing Law
          -------------

          This Agreement shall be governed and construed in accordance with the
laws of the State of California.

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     13.  Notices. All notices and other communications under this Agreement
          -------
shall be in writing (including, without limitation, telegraphic, telex,
telecopy or cable communication) and mailed, telegraphed, telexed, telecopied,
cabled or delivered by hand or by a nationally recognized courier service
guaranteeing overnight delivery to a party at the following address (or to such
other address as such party may have specified by notice given to the other
party pursuant to this provision):

          If to the Employee, to:

          Scott B. Sampson
          CoastFed Business Credit Corporation
          12121 wilshire Boulevard, Suite 114
          Los Angeles, California 90025
          Telephone: (310) 820-6681
          Facsimile: (310) 826-2884

          with a copy to:

          ___________________________________
          ___________________________________
          ___________________________________
          Telephone: ________________________
          Facsimile: ________________________
          Attention: ________________________

          If to the Employer or ICII, to:

          Imperial Credit Industries, Inc.
          3701 Skypark Drive, Building #6, Suite 130
          Torrance, California 90505
          Telephone: (310) 791-8222
          Facsimile: (310) 791-8226
          Attention: H. Wayne Snavely,
          Chairman of the Board

          with a copy to:

          Freshman, Marantz, Orlanski, Cooper & Klein
          Eighth Floor, East Tower
          9100 Wilshire Boulevard
          Beverly Hills, California 90212
          Telephone: (310) 273-1870
          Facsimile: (310) 274-8293
          Attention: Thomas J. Poletti, Esq.

All such notices and communications shall, when mailed, telegraphed, telexed,
telecopied, cabled or delivered, be effective three days after deposit in the
mails, delivered to the telegraph company, confirmed by telex answerback,
telecopied with confirmation of receipt, delivered to the cable company,
delivered by hand to the addressee or one day after delivery to the courier
service.

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     14.  Attorney's Fees. In the event that any party shall bring an action or
          ---------------
proceeding in connection with the performance, breach or interpretation hereof,
then the prevailing party in such action as determined by the court or other
body having jurisdiction shall be entitled to recover from the losing party in
such action, as determined by the court or other body having jurisdiction, all
reasonable costs and expense of litigation or arbitration, including reasonable
attorney's fees, court costs, costs of investigation and other costs reasonably
related to such proceeding.

          IN WITNESS WHEREOF, this Employment Agreement is executed as of the
day and year first above written.

                                        "EMPLOYER"

                                        CoastFed Business Credit
                                        Corporation

                                        By: /s/ Jack Baruch
                                           ---------------------------------
                                           Name:  Jack Baruch
                                           Title: CEO

                                        "EMPLOYEE"

                                        /s/ Scott B. Sampson
                                        ------------------------------------
                                        SCOTT B. SAMPSON

                                       10<PAGE>

                                                                   EXHIBIT 10.32

                                   AMENDMENT
                               TO EMPLOYMENT AND
                           NON-COMPETITION AGREEMENT

     THIS AMENDMENT TO EMPLOYMENT AND NON-COMPETITION AGREEMENT (the
"Amendment"), is made as of September 1, 1998 by and among Southern Pacific
Bank, a California corporation (the "Employer", as successor employer for
purposes of this Amendment to CoastFed Business Credit Corporation), which is a
wholly-owned subsidiary of Imperial Credit Industries, Inc., a California
corporation ("ICII"), and Scott B. Sampson, an individual ("Employee"), with
reference to the following facts:

                                    RECITAL

     WHEREAS, the parties previously entered into that  certain Employment and
Non-Competition Agreement (the "Agreement") dated as of the 18th day of
September 1995 in connection with the purchase by ICII of all of the outstanding
capital stock of CoastFed Business Credit Corporation as of that date; and

     WHEREAS, Employee, the President and Chief Operating Officer of Employer's
Coast Business Credit Division, has been instrumental in building a profitable
and growing business, in part due to his business relationships and contacts and
his development of Employer's Trade Secrets (as defined in the Agreement), and
Employer and ICII desire to extend and enhance the term of Employee's retention
in such capacity; and

     WHEREAS, Employee is willing to continue his employment by Employer under
the terms and conditions herein stated.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
hereinafter contained and for other good and valuable consideration, it is
hereby agreed by and among the parties hereto as follows:

     1.    The Agreement is amended as follows:

     Section 2.1 is amended in its entirety to read:

     "2.1  Unless sooner terminated pursuant to paragraph 2.2 hereof, Employee's
employment shall continue until September 1, 2001, unless extended by the mutual
agreement of Employer and Employee (the "Term")."

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     Section 3.1(a) is amended in its entirety to read:

     "(a)    A salary of Three Hundred Thousand Dollars ($300,000) per year
("Salary"), payable in equal installments bi-weekly on those days when Employer
normally pays its employees;"

     Section 3.1(b) is amended in its entirety to read:

     "(b)(i) An annual incentive bonus in an amount equal to 1.5% of Employer's
Coast Business Credit Division's annual pre-tax profit as determined in
accordance with generally accepted accounting principles consistently applied
("GAAP") prior to payment of bonuses to Employee and Jack Baruch and
amortization of goodwill. Payment of said bonus shall be contingent upon the
Coast Business Credit Division's annual net profit equalling or exceeding (i) an
amount equal to 2% of said Division's average assets for the calendar year, not
including goodwill, or (ii) a pre-tax return on capital for the calendar year of
20%, each as determined in accordance with GAAP. For purposes of this Section
3.1(b), the amount of capital assigned to the Division shall be calculated
quarterly for the measurement year in accordance with bank regulatory risk-
adjusted capital guidelines and related Call Report requirements, but in no
event shall be less than that percentage of the Employer's consolidated capital
that the Division's average assets (and related off-balance sheet items)
represent as a percentage of the Employer's average total assets (including its
off-balance sheet exposure) for that year. The Coast Business Credit Division's
cost of funds in making calculations hereunder shall be deemed to be the rate
that Bank of America or its successor announces from time to time as its prime
or reference lending rate as in effect on the first day of each calendar month,
less 2%.

     (ii)    Effective the date of this Amendment, Employee shall receive a
stock option grant entitling Employee to purchase 50,000 shares of common stock
of Imperial Credit Industries, Inc. pursuant to a separate Stock Option
Agreement to be executed between ICII and Employee. In addition, Employee shall
have the vesting of all previously awarded and outstanding grants of options to
acquire ICII's common stock immediately accelerated, with the result that all of
such existing options (not including the current grant of options to acquire
50,000 shares) may be exercised at any time on or after the date of this
Amendment."

     Section 4 is amended in its entirety to read:

     "4.1 Non-Competition
          ---------------

     The Employee acknowledges and recognizes the highly competitive nature of
the business of Employer, including all of its divisions and affiliates, as well
as his significant participation in the ownership of the common stock of ICII.
If Employee terminates his employment hereunder, then until the second
anniversary of the Employee's termination of

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employment (such date being hereafter referred to as the "Restricted Date"), the
following shall apply:

     (a) The Employee will not directly or indirectly engage (as owner,
stockholder, partner or otherwise, except as a holder of fewer than 5% of the
outstanding shares or other equity interests of a company whose shares or other
equity interests are publicly traded) in any business which competes with the
business of the Employer at the time of the Employee's resignation.

     (b) The Employee will not directly or indirectly induce any employee of the
Employer to engage in any activity in which the Employee is prohibited from
engaging by paragraph (a) above or to terminate his employment with the
Employer, and will not directly or indirectly employ or offer employment to any
person who was employed by the Employer unless such person shall have been
terminated without cause or ceased to be employed by the Employer for a period
of at least 12 months.

     (c) Except for actions which Employee may take or maintain to enforce or
assert rights hereunder or be compelled to take or maintain pursuant to judicial
or regulatory proceedings, the Employee will not make any statement or take any
action intended to impair the goodwill or the business reputation of the
Employer, or to be otherwise detrimental to the interests of the Employer,
including any action or statement intended, directly or indirectly, to benefit a
competitor of the Employer.

     (d) It is expressly understood and agreed that although the Employee and
the Employer consider the restrictions contained in this Section 4.1 to be
reasonable, if a final judicial determination is made by a court of competent
jurisdiction that the time or territory or any other restriction contained in
this Agreement is an unenforceable restriction against the Employee, the
provisions of this Agreement shall not be rendered void but shall be deemed
amended to apply as to such maximum time and territory and to such maximum
extent as such court may judicially determine or indicate to be enforceable.
Alternatively, if any court of competent jurisdiction finds that any restriction
contained in this Agreement is unenforceable, and such restriction cannot be
amended so as to make it enforceable, such finding shall not affect the
enforceability of any of the other restrictions contained herein.

     4.2 Proprietary Information
         -----------------------

     Through the Restricted Date, the Employee shall not use for his personal
benefit, or disclose, communicate or divulge to, or use for the direct or
indirect benefit on any person, firm, association or company other than the
Employer, any Proprietary Information. "Proprietary Information" means
information relating to the properties, prospects, products, services or
operations of the Employer or any direct or indirect affiliate thereof that is
not generally known, is proprietary to the Employer or such affiliate and is
made known to the Employee or learned or acquired by the Employee while in the
employ of the Employer,

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including, without limitation, information concerning Trade Secrets of the
Employer, or any of the Employer's affiliates and any improvements relating to
the products of the Employer in accounting, marketing, selling, financing and
other business methods and techniques. However, Proprietary Information shall
not include (A) at the time of disclosure to the Employee such information that
was in the public domain or later entered the public domain other than as a
result of a breach of an obligation herein; or (B) subsequent to disclosure to
the Employee, Employee received such information from a third party under no
obligation to maintain such information in confidence, and the third party came
into possession of such information other than as a result of a breach of an
obligation herein. All materials or articles of information of any kind
furnished to the Employee by the Employer or developed by the Employee in the
course of his employment thereunder are and shall remain the sole property of
the Employer; and if the Employer requests the return of such information at any
time during, upon or after the termination of the Employee's employment
hereunder, the Employee shall immediately deliver the same to the Employer.

     4.3. Ownership of Proprietary Information
          ------------------------------------

     The Employee agrees that all Proprietary Information shall be the sole
property of the Employer and its assigns, and the Employer and its assigns shall
be the sole owner of all licenses and other rights in connection with such
Proprietary Information. At all times, until the Restricted Date, the Employee
will keep in the strictest confidence and trust all Proprietary Information and
will not use or disclose such Proprietary Information, or anything relating to
such information, without the prior written consent of the Employer, except as
many be necessary in the ordinary course of performing his duties under this
Agreement.

     4.4  Documents and Other Property
          ----------------------------

     All materials or articles of information of any kind furnished to the
Employee in the course of his employment hereunder are and shall remain the sole
property of the Employer; and if the Employer requests the return of such
information at any time during, upon or after the termination of the Employee's
employment hereunder, the Employee shall immediately deliver the same to the
Employer. The Employee will not, without the prior written consent of the
Employer, retain any documents, data or property, or any reproduction thereof of
any description, belonging to the Employer or pertaining to any Proprietary
Information.

     4.5  Customer Lists
          --------------

     The Employee will not during, or for a period of two years after the
termination of, his employment (i) disclose the Employer's customer lists or any
part thereof to any person, firm, corporation, association or other entity for
any reason or purpose whatsoever, (ii) assist in

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obtaining any of the Employer's existing customers for any competing business,
or (iii) encourage any customer to terminate its relationship with the
Employer."

     Section 13 is amended in its entirety to read:

     "All notices and other communications under the Agreement shall be in
writing, and mailed, telecopied or delivered by hand or by a nationally
recognized courier service to a party at the following address:

          If to the Employee:   Coast Business Credit
                                12121 Wilshire Boulevard
                                Suite 1111
                                Los Angeles, CA 90025
                                Attn: Scott Sampson

          If to the Employer:   Southern Pacific Bank
                                12300 Wilshire Boulevard
                                Suite 100
                                Los Angeles, CA 90025
                                Attn:  Stephen Shugerman

          If to ICII:           Imperial Credit Industries, Inc.
                                Building One, Suite 110
                                23550 Hawthorne Boulevard
                                Torrance, CA 90505
                                Attn:  H. Wayne Snavely

          With cc to:           Irwin L. Gubman

     All such notices and communications shall, when mailed, telecopied or
delivered, be effective (i) three days after deposit in the mails, (ii) when
telecopied with telephonic confirmation of receipt, (iii) when delivered by hand
to the addressee or (iv) one day after delivery to the courier service."

     2.   All other terms, conditions and provisions of the Agreement shall
remain in full force and effect throughout the Term, unless amended in a writing
signed by all parties hereto. All future references to the Agreement shall mean
the Agreement as amended by this Amendment, the parties intending that the
Agreement and the Amendment be read and interpreted as one instrument.

                                       5
<PAGE>

     IN WITNESS WHEREOF, this Amendment is executed as of the day and year first
above written.

Employee:                         Employer:

                                  SOUTHERN PACIFIC BANK

_____________________________     By:__________________________________________
Scott B. Sampson                  Name:  Stephen Shugerman
                                  Title: President and Chief Executive Officer

                                  IMPERIAL CREDIT INDUSTRIES, INC.

                                  By:___________________________________________
                                  Name:  H. Wayne Snavely
                                  Title: Chairman, President and Chief Executive
                                         Officer

                                       6

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