Document:

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                                   EXHIBIT 4.3

                             THE TODD-AO CORPORATION
                             1986 STOCK OPTION PLAN

                                    ARTICLE I

                                     GENERAL

     1. PURPOSE.

     This 1986 Stock Option Plan (the "Plan") is intended to contribute to
maintaining the Company's performance by providing certain officers and key
personnel of the Company with long-term incentives in the form of options to
purchase shares of the Company's Common Stock.

     2. ADMINISTRATION.

     The Plan shall be administered by a committee to be appointed by the Board
of Directors of the Company. The Committee shall consist of at least two
directors who are "Non-Employee Directors" within the meaning of Exchange Act
Rule 16b-3. The Committee shall be entitled to take any action which it deems
appropriate to comply with Exchange Act Rule 16b-3 and related provisions (as
presently existing or hereafter amended), including without limitation
submission of any transaction to the Board of Directors or shareholders for
approval.

     The interpretation and construction by the Committee of any provisions of
the Plan or of any option granted under it shall be final. No member of the
Committee shall be liable for any action or determination made in good faith
with respect to the Plan or any option granted under it.

     3. ELIGIBILITY.

     Subject to Section 2 of this Article I, the persons who shall be eligible
to receive options under the Plan shall be such officers and key employees
(including directors who are also salaried employees) of the Company as the
Committee shall select. In addition, consultants to the Company who are not also
salaried employees of the Company shall be eligible to receive nonqualified
stock options (but such persons shall not be eligible to receive incentive stock
options). The terms "officers and key employees" as used herein shall mean
officers and assistant officers, both elective and appointive, presidents and
general managers of divisions and subsidiaries and such other key employees as
may be determined by the Committee in its sole discretion.

     Except where the context otherwise requires, the term "Company," as used
herein, shall include (i) The Todd-AO Corporation, and (ii) any of its
"subsidiary corporations" which meet the definition of subsidiary corporation
contained in Section 425(f) of the Internal Revenue Code of

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1986, as now in effect or as hereafter amended (the "Code"), and the terms
"officers and key employees of the Company," and words of similar import, shall
include officers and key employees of each such subsidiary corporation, as well
as officers and key employees of The Todd-AO Corporation.

     4. SHARES OF STOCK SUBJECT TO THE PLAN.

     The shares that may be issued under the Plan shall be authorized and
unissued or reacquired shares of the Company's common stock (the "Common
Stock"). The aggregate number of shares which may be issued under the Plan shall
not exceed 660,000 shares of Common Stock, unless an adjustment is required in
accordance with Section 3(I) of Article II hereof.

     5. AMENDMENT OF THE PLAN.

     The Committee may amend the Plan in any respect whatsoever to comply with
the requirements of any state securities or other governmental authority having
jurisdiction over the offer and sale of securities to be sold under the Plan.
The Board of Directors of the Company may, insofar as permitted by law, from
time to time, suspend or discontinue the Plan or revise or amend it in any
respect whatsoever except that no such amendment shall alter or impair any
rights or obligations under any option theretofore granted under the Plan
without the consent of the person to whom such option was granted. Furthermore,
without further shareholder approval no such amendment shall increase the number
of shares subject to the Plan (except as authorized by Section 3(I) of Article
II hereof), change the designation in Section 3 of Article I of the class of
persons eligible to receive options under the Plan, provide for the grant of
stock options having a purchase price less than the fair market value on the
date of grant (85% of fair market value with respect to nonqualified stock
options), extend the term during which stock options granted under the Plan may
be exercised, or extend the date pursuant to which options under the Plan may be
granted.

     6. APPROVAL OF SHAREHOLDERS.

     All options granted under the Plan shall be subject to approval of the Plan
by affirmative vote at the next meeting of shareholders of the Company, or any
adjournment thereof, of the holders of a majority of the outstanding shares of
Common Stock present in person or by proxy and entitled to vote at the meeting.
No option granted hereunder may become exercisable unless and until such
approval is obtained.

     7. TERM OF PLAN.

     Awards may be made under the Plan until August 31, 1996, the date of
termination of the Plan. Notwithstanding the foregoing, all options granted
under the Plan shall remain in effect until such options have been satisfied by
the issuance of shares, or terminated in accordance with their terms and the
terms of the Plan. Notwithstanding anything to the contrary herein: (i) all
non-qualified options outstanding under the Plan as of March 27, 1996 shall
remain exercisable until August 31, 1997 and one-half of such outstanding
non-qualified options held by each optionee shall

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remain exercisable until August 31, 1998; and (ii) all options granted under the
Plan after August 31, 1994 shall remain exercisable until a date no later than
August 31, 2004.

     8. RESTRICTIONS.

     All options granted under the Plan shall be subject to the requirement
that, if at any time the Committee shall determine, in its discretion, that the
listing, registration or qualification of the shares subject to stock options
granted under the Plan upon any securities exchange or under any state or
federal law, or the consent or approval of any government regulatory body, is
necessary or desirable as a condition of, or in connection with, the granting of
such option or the issue or purchase of shares thereunder, such option may not
be exercised in whole or in part unless such listing, registration,
qualification, consent or approval shall have been effected or obtained free of
any conditions not acceptable to the Committee.

     9. ASSIGNABILITY.

     No Incentive Option shall be assignable or transferable by the grantee
except by will or by the laws of descent and distribution or pursuant to a
qualified domestic relations order as defined in the Code. During the lifetime
of the grantee, the Incentive Option which shall be exercisable only by the
optionee, and no other person shall acquire any rights therein. The Committee in
its absolute discretion may permit assignment of the vested portion of any
Non-Qualified Stock Option outstanding under the Plan.

     10. WITHHOLDING TAXES.

     Whenever under the Plan shares of Common Stock are to be issued, the
Company shall have the right to require the grantee to remit to the Company an
amount sufficient to satisfy federal, state and local withholding tax
requirements prior to the delivery of any certificate or certificates for such
shares.

                                   ARTICLE II
                                  STOCK OPTIONS

     1. AWARD OF STOCK OPTIONS.

     Awards of stock options may be made under the Plan. It is intended that
certain options granted pursuant to the Plan shall constitute incentive stock
options within the meaning of Section 422A of the Code ("incentive stock
options"), and that certain options granted pursuant to the Plan shall not
constitute incentive stock options ("nonqualified stock options"), provided,
however, that incentive stock options may be granted only to persons selected by
the Committee who are officers or key employees (including directors who are
also salaried employees) of The Todd-AO Corporation or any of its "subsidiary
corporations" which meet the definition of subsidiary corporation contained in
Section 425(f) of the Code. In addition, (i) for incentive stock options granted
on or before December 31, 1986, the aggregate fair market value (determined as
of the date of grant) of the stock for which an officer or key employee may be
granted incentive stock options

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in any calendar year (under all incentive stock option plans of his employer
corporation and its parent and subsidiary corporations) shall not exceed
$100,000 plus any unused limit carryover for such year1 and (ii) for incentive
stock options granted after December 31, 1986, the aggregate fair market value
(determined at the time the option is granted) of the stock with respect to
which incentive stock options are exercisable for the first time by such
individual during any calendar year (under all such plans of the individual's
employer corporation and its parent and subsidiary corporations) shall not
exceed $100,000. The date on which an incentive stock option is granted shall be
the date of the Committee's authorization of such grant or such later date as
may be determined by the Committee at the time such grant is authorized.

     2. EFFECT OF TERMINATION OF OPTIONS.

     In the event that any outstanding option under the Plan terminates before
it would otherwise have expired under its terms or expires by its terms without
being fully exercised, the shares of Common Stock subject to such option not
issued pursuant to the exercise of such option shall again become available in
the pool of shares provided under the Plan.

     3. TERMS AND CONDITIONS OF OPTIONS.

     Stock options granted pursuant to the Plan shall be evidenced by agreements
in such form as the Committee shall from time to time determine, which
agreements shall comply with the following terms and conditions:

          (A) Optionee's Agreement.

               Each optionee shall agree to remain in the employ of and to
render to the Company his or her services for such period as the Committee may
determine, but such agreement shall not impose upon the Company any obligation
to retain the optionee in its employ for any period.

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     (1) The unused limit carryover from any calendar year shall equal one-half
of the amount, if any, by which $100,000 exceeds the aggregate fair market value
(determined as of the time the option is granted) of the stock for which the
employee was granted incentive stock options in such calendar year (under all
incentive stock option plans of his employer corporation and its parent and
subsidiary corporations). Such unused limit carryover may be taken into account
during the three (3) succeeding calendar years, to the extent the $100,000
limitation has been used up in such calendar years, and the amount of such
carryover to be taken into account in any such succeeding calendar year shall be
the amount of such carryover reduced by the amount thereof which was taken into
account in prior calendar years. Unused limit carryovers from different calendar
years shall be taken into account in the order of the calendar years in which
such carryovers arose.

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          (B) Number of Shares.

               Each option agreement shall state the number of shares to which
the option pertains.

          (C) Option Price.

               Each option agreement shall state the option price per share,
which shall be determined by the Committee. The option price per share with
respect to an incentive stock option shall be not less than 100% of the fair
market value of a share of the Common Stock on the date that the option is
granted and with respect to a nonqualified stock option shall be not less than
85% of such fair market value. Notwithstanding the foregoing, the option price
per share of an incentive stock option granted to a person who, on the date of
such grant and in accordance with Section 425(d) of the Code, owns stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Company shall be not less than 110% of the fair market value of a
share of the Common Stock on the date that the option is granted. Fair market
value as used herein shall be the mean of the closing bid and asked prices of
the Common Stock in the over-the-counter market on the date that such option is
granted, as reported by NASDAQ, or if no report is available on the option date,
the next preceding date for which such a report is available. If the Common
Stock is hereafter listed on an exchange or exchanges, fair market value
thereafter shall be the highest closing price on any exchange for the option
date, or, if the option date is not a trading date, the trading date next
preceding the option date.

          (D) Medium and Time of Payment.

               The option price shall be payable upon the exercise of an option
in the legal tender of the United States or, in the discretion of the Committee,
in shares of the Common Stock or in a combination of such legal tender and such
shares. Upon receipt of payment, the Company shall deliver to the optionee (or
person entitled to exercise the option) a certificate or certificates for the
shares of Common Stock to which the option pertains.

          (E) Term and Exercise of Option.

               Each option shall state the time or times when it becomes
exercisable, which shall be determined by the Committee, provided, however, that
no option shall become exercisable until one (1) year has elapsed from the date
of grant. Each incentive stock option granted on or before December 31, 1986
also shall state that, notwithstanding any other provision in such option, it is
not exercisable while there is outstanding any incentive stock option which was
granted before the granting of such option to such individual to purchase stock
in the Company or its parent or subsidiary corporation, or in a predecessor
corporation of any of such corporations. An incentive stock option granted on or
before December 31, 1986 shall be treated as outstanding until such option is
exercised in full or expires by reason of lapse in time in accordance with
Section 422A(c)(7) of the Code. To the extent that an option has become
exercisable, it may be exercised in whole or in such lesser amount as authorized
by the option agreement. If exercised in part, the unexercised portion of an
option shall continue to be held by the optionee and may

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thereafter be exercised as herein provided. Notwithstanding any other provision
of the Plan, no option granted under the Plan shall be exercisable after the
expiration of ten (10) years from the date of its grant. In addition, no
incentive stock option granted under the Plan to a person who, at the time such
option is granted and in accordance with Section 425(d) of the Code, owns stock
possessing more than 10% of the total combined voting power of all classes of
stock of the Company shall be exercisable after the expiration of five (5) years
from the date of its grant. During the lifetime of the optionee, the option
shall be exercisable only by him and shall not be assignable or transferable by
him, and no other person shall acquire any rights therein.

          (F) Termination of Employment Except Disability or Death.

               In the event that an optionee shall cease to be employed by the
Company for any reason other than his death or disability, his option shall
immediately terminate, provided, however, that if such cessation of employment
is with the consent of the Board, expressed in the form of a resolution, or is
pursuant to his retirement under the provisions of any pension, profit sharing
or other retirement plan of the Company then in effect, such option may be
exercised within three (3) months after the date that he ceases to be an
employee of the Company, but only to the extent such option was exercisable on
the date of such cessation of employment or would have been exercisable on such
date but for the existence of previously-granted incentive stock options.

          (G) Disability of Optionee.

               If an optionee shall cease to be employed by the Company by
reason of his becoming permanently and totally disabled within the meaning of
Section 22(e)(3) of the Code and shall not have fully exercised his option, such
option may be exercised to the extent it was exercisable immediately prior to
the optionee's disability (or would have been exercisable but for the existence
of previously-granted incentive stock options) at any time within one (1) year
after cessation of employment due to such disability.

          (H) Death of Optionee and Transfer of Option.

               If an optionee should die while in the employ of the Company, or
within a period of three (3) months after a termination of his employment with
the Company during which he is still permitted to exercise an option in
accordance with Subsection 3(F) of this Article II and shall not have fully
exercised his option, such option may be exercised to the extent it was
exercisable immediately prior to the optionee's death (or would have been
exercisable but for the existence of previously-granted incentive stock
options), at any time within one (1) year after the optionee's death, by the
executors or administrators of the optionee's estate or by any person or persons
who shall have acquired the option directly from the optionee by his will or the
applicable law of descent and distribution.

          (I) Recapitalizations and Reorganizations.

               The number of shares of Common Stock covered by the Plan, and
each outstanding option hereunder and the price per share thereof, shall be
proportionately adjusted for

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any increase or decrease in the number of issued and outstanding shares of
Common Stock resulting from a subdivision or consolidation of shares or the
payment of a stock dividend in excess of 2% or any other increase or decrease in
the number of issued and outstanding shares of Common Stock effected without
receipt of consideration by the Company.

               If the Company shall be the surviving corporation in any merger
or consolidation, each outstanding option shall pertain to and apply to the
securities to which a holder of the same number of shares of Common Stock that
are subject to that option would have been entitled. A dissolution or
liquidation of the Company or a merger or consolidation in which the Company is
not the surviving corporation, shall cause each outstanding option to terminate,
unless the agreement of merger or consolidation shall otherwise provide,
provided that each optionee shall in such event have the right immediately prior
to such dissolution or liquidation, or merger or consolidation, to exercise his
option in whole or in part without regard to any limitations on exercisability,
except for limitations set forth in the Code.

               To the extent that the foregoing adjustments relate to stock or
securities of the Company, such adjustments shall be made by the Committee,
whose determination in that respect shall be final, binding and conclusive.

               The grant of an option pursuant to the Plan shall not affect in
any way the right or power of the Company to make adjustments,
reclassifications, reorganizations or changes of its capital or business
structure or to merge or to consolidate or to dissolve, liquidate or sell, or
transfer all or any part of its business or assets.

          (J) Rights as a Shareholder.

               An optionee or a transferee of an option shall have no rights as
a shareholder with respect to any shares covered by his option until the date of
the receipt of payment by the Company and the issuance of a stock certificate to
him for such shares pursuant to Section 3(D) of this Article II. No adjustment
shall be made for dividends (ordinary or extraordinary, whether in cash,
securities or other property) or distributions or other rights for which the
record date is prior to such date, except as provided in Section 3(I) of this
Article II.

          (K) Modification, Extension and Renewal of Options.

               Subject to the terms and conditions and within the limitations of
the Plan, the Committee may modify, extend, renew or cancel outstanding options
granted under the Plan. Notwithstanding the foregoing, however, no modification
of an option shall, without the consent of the optionee, alter or impair any
rights or obligations under any option theretofore granted under the Plan.

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          (L) Other Provisions.

               The option agreements authorized under the Plan shall contain
such other provisions, including, without limitation, restrictions upon the
exercise of the option or restrictions required by any applicable securities
laws, as the Committee shall deem advisable.

          (M) Agreement to Govern.

               In the event of any inconsistency between the terms of the option
agreement and the description thereof contained herein, the terms of the
agreement shall prevail.

4. APPLICATION OF FUNDS.

     The proceeds received by the Company from the sale of Common Stock pursuant
to options will be used for general corporate purposes.

5. NO OBLIGATION TO EXERCISE OPTION.

     The granting of an option shall impose no obligation upon the optionee to
exercise such option.

                                              Effective November 4, 1986
                                              Amended February 7, 1995,
                                              March 27, 1996 and
                                              February 25, 1997

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                                                                EXHIBIT 10.42

                              EMPLOYMENT AGREEMENT

        AGREEMENT made as of the 14th day of July 1999, by and between Central
Financial Acceptance Corporation, a Delaware corporation with its principal
offices at 5480 East Ferguson Drive, Commerce, California 90022 (the
"Corporation"), and Gary M. Cypres (the "Executive").

                              W I T N E SS E T H :

        In consideration of the mutual covenants contained herein, the parties
hereto agree as follow:

        1.     TERM: The Corporation hereby employs the Executive as Chairman
               of the Board and Chief Executive Officer of the Corporation, and
               the Executive agrees to serve the Corporation as such, upon the
               terms and conditions hereof for a period of five years
               commencing on the date hereof.

        2.     DUTIES:

               (a) Executive shall serves as the Chairman of the Board of the
               Corporation, with such duties and authority as are generally
               incident to such positions, or shall serve in such other senior
               management positions as the Corporation shall determine, provided
               that such other positions shall be comparable in authority and
               responsibility to the positions specified above. The Executive
               will hold such senior offices in the Corporation and/or its
               subsidiaries or affiliates to which he may be elected or
               appointed from time to time, provided that such offices shall not
               be inconsistent with his duties and authority as aforesaid.

               (b) The Executive agrees that he will devote substantially all of
               his time and attention to the affairs of the Corporation, and
               will use his best efforts to promote the business and interests
               of the Corporation. It is understood, however, that the foregoing
               will not prohibit the Executive from engaging, conducting, or
               participating, either directly or indirectly, in businesses that
               do business with or are related to Banner's Central Electric,
               Inc., West Coast Private Equity Partners, L.P., Central Rents
               Holdings, Inc., Central Rents, Inc. and/or any of their
               subsidiaries or affiliates. It is further understood that the
               terms of this Agreement will not prohibit the Executive from
               engaging in personal investment and business activities for
               himself and his family which do not interfere with the
               performance of his duties hereunder.

        3.     COMPENSATION: The Corporation will pay the Executive a salary as
               set forth below, payable in equal installments in accordance with
               customary payroll practices for senior executives of the
               Corporation, in consideration for all services to be rendered by
               the Executive hereunder (including, without limitation, all
               services to be rendered by him as an officer of the Corporation
               and/or its Subsidiaries and affiliates).

                                                                 BASE SALARY
                                                                 -----------
               September 16, 1999 to September 15, 2000            $245,000
               September 16, 2000 to September 15, 2001            $270,000
               September 16, 2001 to September 15, 2002            $295,000
               September 16, 2002 to September 15, 2003            $320,000

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               September 16, 2003 to September 15, 2004            $345,000

               The Company may also pay the Executive an annual bonus with
               respect to each fiscal year of the Corporation, either on an "ad
               hoc" basis, or pursuant to any bonus plan or arrangement for
               senior executives of the Corporation as may be established at the
               Corporation's discretion.

               Nothing contained herein shall prohibit the Board of Directors of
               the Corporation, in its sole discretion, from increasing the
               compensation payable to the Executive pursuant to this Agreement
               and/or making available to the Executive other benefits in
               addition to those benefits which the Executive is entitled to
               hereunder.

        4.     EXPENSES: The Executive shall be entitled to reimbursement by the
               Corporation, in accordance with the Corporation's policies then
               applicable to senior executives at the Executive's level, against
               appropriate vouchers or other receipts for authorized travel,
               entertainment and other business expenses reasonably incurred by
               him in the performance of his duties hereunder.

        5.     EXECUTIVE BENEFITS:

               (a) SERP PLAN BENEFITS: The Executive shall continue to
               participate in the Corporation's Supplemental Executive
               Retirement Plan (the "SERP Plan"), and is fully vested in the
               SERP Plan (including credit for five Post-Effective Date Years of
               Service, as such term is defined in the SERP Plan) and his Normal
               Retirement Date for all purposes shall be deemed to be December
               31, 2000. If the Executive is terminated without "cause", as
               defined in Paragraph 8 below, becomes disabled, or dies at any
               time after the date hereof, then the Corporation will commence
               immediately to pay the Executive or his estate under the SERP
               Plan a benefit equal to his full vested interest (including
               credit for five Post-Effective Date Years of Service) as if he
               had worked to his Normal Retirement Date (the first day of the
               month after the Executive attains age 60). Thus, by way of
               example of the above contained provisions, if Executive retires
               on December 31, 2000, the numerator of the fraction referred to
               in the definition of Accrued Benefits in Section 2 (a) of the
               SERP Plan shall be 13 and the denominator shall be 13. Further,
               for purposes of the definition of Final Average Compensation in
               Section 2 (j) of the SERP Plan, if the Executive's Final Average
               Compensation must be calculated before July 14, 2004, his Final
               Average Compensation shall be the higher of (i) as determined
               pursuant to the SERP Plan and the provisions of this Agreement;
               (ii) if he dies or becomes disabled, $245,000, or his then
               current salary on an annualized basis, plus a pro rata estimate
               of his bonus award for the current year pursuant to the Company's
               Incentive Bonus Plan; or, (iii) if he is terminated without
               cause, $345,000, plus an estimate of his bonus award for the
               current year pursuant to the Company's Incentive Bonus Plan, but
               in no event shall the bonus be less than $30,000. To the extent
               of any inconsistency between this Agreement and the SERP Plan,
               the terms of this Agreement shall prevail.

               (b) GENERAL BENEFITS: The Executive shall be entitled to
               participate in, and receive benefits under, any pension, profit
               sharing, insurance, hospitalization, medical,

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               disability, vacation or other employee benefit plan, program or
               policy of the Corporation which may be in effect at any time
               during the course of his employment by the Corporation, and which
               shall be generally available to senior executives of the
               Corporation occupying positions of comparable status or
               responsibility, subject to the terms of such plans, programs or
               policies. Notwithstanding the foregoing, the Corporation may in
               its discretion and at any time, change or evoke any of its
               employee benefits plans, programs or policies, other than the
               SERP Plan and the Executive shall not be deemed, by virtue of
               this Agreement, to have any vested interest in any such plans,
               programs or policies, except as otherwise provided herein. The
               Corporation will also provide the Executive, at the Corporation's
               expense, with an automobile reasonably appropriate to the
               Executive's position, as determined by the Corporation, for use
               by the Executive in connection with the performance of his duties
               hereunder.

               (c) STOCK OPTIONS: The Executive is awarded an additional grant
               of 100,000 at $5.00 per share, stock options pursuant to the
               provision of the Company's 1996 Stock Option Plan, as amended.
               Vesting in such options shall accrue over a five year period in
               equal yearly amounts. Should the Company terminate the Executive
               without cause during the term of the contract, then the remaining
               unvested portion of such options shall vest immediately.

        6.     WITHHOLDING: All payment required to be made by the Corporation
               to the Executive hereunder shall be subject to the withholding
               of such amounts relating to taxes and other governmental
               assessments as the Corporation may reasonable determine it is
               obligated to withhold pursuant to any applicable law, rule or
               regulation.

        7.     DEATH; PERMANENT DISABILITY: This Agreement shall terminate upon
               the death of the Executive during the term of this Agreement,
               except as otherwise provided herein. If the Executive fails to
               perform the services required hereunder during the term of this
               Agreement because of illness or other incapacity for any
               consecutive period of more than 180 days, or for shorter periods
               aggregating more than 180 days in any consecutive twelve-month
               period (any such illness or incapacity being hereinafter
               referred to as "permanent disability"), then the Corporation, in
               its discretion, may at any time thereafter terminate this
               Agreement upon not less than 10 days written notice thereof to
               the Executive, and this agreement shall terminate and come to an
               end upon the date set forth in said notice as if said date were
               the termination date of this Agreement; provided, however, that
               such termination shall not become effective if, prior to the
               date when such notice is given, the Executive's illness or
               incapacity shall end and he shall be physically and mentally
               able to perform the services required hereunder, and shall have
               taken up and begun performing such duties.

               If the Executive's employment shall be terminated by reason of
               his death or permanent disability, the Corporation shall be
               obligated to pay the Executive or his estate, commencing
               immediately, (i) a lump sum payment equal to the Executive's
               base salary for the remaining term of this Agreement; (ii) a pro
               rata portion of any annual bonus which the Executive would
               otherwise have been entitled to receive

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               pursuant to any bonus plan or arrangement for senior executives
               of the Corporation (such pro rata portion to be payable at the
               time such annual bonus would otherwise have been payable to the
               Executive); and, (iii) subject to the terms thereof, any
               benefits which may be due to the Executive on the date of
               termination by reason of death or disability under the
               provisions of this Agreement, or any employee benefit plan,
               program or policy.

        8.     TERMINATION:

               (a) TERMINATION FOR CAUSE: The Corporation may at any time during
               the term of this Agreement terminate the employment of the
               Executive for cause. Termination for cause shall be by written
               notice which specifies the cause for termination, and termination
               of employment shall be immediately effective upon the Corporation
               giving the Executive such notice. For purposes of this Agreement,
               "cause" shall mean (i) willful failure, gross neglect, or
               unreasonable refusal to perform the Executive's duties hereunder;
               and, (ii) conviction in connection with any felony involving
               moral turpitude. If the Executive is terminated for cause, the
               Corporation will be obligated to pay the Executive (i) only his
               base salary up to the date upon which the Corporation notifies
               him of his termination for cause, and (ii) subject to the terms
               thereof, any benefits which may be due to the Executive under the
               provisions of this Agreement, or any employee benefit plan,
               program, or policy.

               (b) TERMINATION WITHOUT CAUSE: If the Executive is terminated
               without cause, then the Corporation will be obligated to pay him
               or his estate, commencing immediately, his base salary, plus a
               reasonable estimate of the Executive's bonus pursuant to the
               Company's Incentive Bonus Plan for the remaining term of this
               Agreement, in addition to any other compensation and /or benefits
               herein provided. If the Executive becomes disabled or dies, then
               the Company will be obligated to pay him or his estate,
               commencing immediately, a lump sum payment equal to his base
               salary for the remaining term of this Agreement, in addition to
               any other compensation and/or benefits herein provided.

        9.     INSURANCE:

               The Executive agrees that the Corporation may insure the life of
               the Executive in such amounts as the Corporation may in its
               discretion determine, and may designate the Corporation as the
               beneficiary under such policy or policies. The Executive agrees
               that he will submit to a physical examination upon the
               Corporation's request, and will execute any applications or other
               documents as may be required to procure such life insurance.

        10.    NON-COMPETITION; SOLICITATION:

               (a) The Executive agrees that during his employment with the
               Corporation and for any period following his termination which
               period is greater than 12 months and for which the Executive has
               been paid a lump sum by the Corporation in accordance with this
               Agreement, he shall not, without the written consent of the
               Corporation and except as otherwise provided herein, directly or
               indirectly, either individually or as

                                       4
<PAGE>   5

               an employee, agent, partner, shareholder, option holder, lender
               of money, or guarantor, participate in, engage in or have a
               financial interest or management position or other interest in
               any business, firm, corporation or management position or other
               interest in any business, firm, corporation or other entity if
               it competes directly with any business operation conducted by
               the Corporation or its subsidiaries or affiliates or any
               successor or assignor thereof, during the employment period or
               at the time of termination. The foregoing provisions of this
               Section 10(a) shall not prohibit the ownership by the Executive
               of 10% or less of any class of capital stock of a corporation
               which is regularly traded on a national securities exchange or
               over-the-counter on the NASDAQ System.

               (b) The Executive further agrees that at any time during his
               employment with the Corporation and for any period following his
               resignation or termination which period is greater than 12 months
               and for which the Executive has been paid a lump sum by the
               Corporation in accordance with this Agreement, he shall not
               solicit (or assist or encourage the solicitation of ) any
               employee of the Corporation or any of its subsidiaries or
               affiliates to work for Executive or for any business, firm,
               corporation or other entity in which the Executive, directly or
               indirectly, in any capacity described in Section 10(a) hereof,
               participates or engages (or expects to participate or engage) or
               has (or expects to have) a financial interest or management
               position.

               (c) If any covenant contained in this Section 10, or any part
               thereof, is held by a court of competent jurisdiction to be
               unenforceable because of the duration of such provision, the
               activity limited by such provision, or the subject and /or area
               covered by such provision, then the court making such
               determination shall construe such restriction so as to thereafter
               limit or reduce the scope or duration of such provision or part
               thereof to be valid and enforceable to the greatest extent
               permissible under applicable law.

        11.    TRADE SECRETS, ETC.: The Executive agrees that he shall not,
               during or after the termination of this Agreement, divulge,
               furnish or make accessible to any person, firm, corporation or
               other business entity, any information, trade secrets, technical
               data or know-how relating to the business, business practices,
               methods, products, processes, equipment, clients' prices or
               other confidential or secret aspect of the business of the
               Corporation and/or any subsidiary or affiliate, except as may be
               required in good faith in the course of his employment with the
               Corporation or by law, without the prior written consent of the
               Corporation, unless such information shall become public
               knowledge (other than by reason of Executive's breach of the
               provisions hereof).

        12.    ACCEPTANCE BY EXECUTIVE: The Executive accepts all of the terms
               and provisions of this Agreement and agrees to perform all of
               the covenants on his part to be performed hereunder.

        13.    EQUITABLE REMEDIES: The Executive acknowledges that he has been
               employed for his unique talents and that his leaving the employ
               of the Corporation would seriously hamper the business of the
               Corporation and that the Corporation will suffer irreparable
               damage if any provisions of Sections 10 or 11 hereof are not
               performed strictly in accordance with their terms or are
               otherwise breached. The Executive

                                       5
<PAGE>   6

                hereby expressly agrees that the Corporation shall be entitled
                as a matter of right to injunctive or other equitable relief, in
                addition to all other remedies permitted by law, to prevent a
                breach or violation by the Executive and to secure enforcement
                of the provisions of Sections 10 or 11 hereof. Resort to such
                equitable relief, however, shall not constitute a waiver or any
                other rights or remedies which the Corporation may have.

        14.     ENTIRE AGREEMENT: This Agreement constitutes the entire
                agreement between the parties hereto and there are no other
                terms other than those contained herein. No variation hereof
                shall be deemed valid unless in writing and signed by the
                parties hereto, and no discharge of the terms hereof shall be
                deemed valid unless by full performance of the parties hereto or
                by a writing signed by the parties hereto. No waiver by the
                Corporation or any breach by the Executive of any provision or
                condition of this agreement to be performed by him shall be
                deemed a waiver of a breach of a similar or dissimilar provision
                or condition at the same time or any prior or subsequent time.

        15.     SEVERABILITY: The validity and enforceability of the remaining
                provisions of this Agreement shall not in any way be affected or
                impaired in the event that any provision in this agreement shall
                be declared invalid, illegal or unenforceable by any court of
                competent jurisdiction.

        16.     NOTICES: All notices, request, demands and other communications
                provided for by this Agreement shall be in writing and shall be
                deemed to have been given at the time when mailed in the United
                States enclosed in a registered or certified post-paid envelope,
                return receipt requested, and addressed to the appropriate
                parties at the address stated below, or to such changed
                addresses as such parties may designate by notice;

                      Correspondence to:    5480 E. Ferguson Drive, 3rd Floor
                                            Commerce, CA  90022

                provided, however, that any notice of change of address shall be
                effective only upon receipt.

        17.     SUCCESSORS AND ASSIGNS: This Agreement in personal in its nature
                and neither of the parties hereto shall, without the consent of
                the other, assign or transfer this Agreement or any rights or
                obligations hereunder (except for an assignment or transfer by
                the Corporation to a successor as contemplated by the following
                proviso); provided, however, that the provisions hereto shall
                inure to the benefit of, and be binding upon, any successor of
                the Corporation, whether by merger, consolidation, transfer of
                all or substantially all of the assets of the Corporation, or
                otherwise, and upon the Executive, his heirs, executors,
                administrators and legal representatives.

        18.     GOVERNING LAW: This agreement and its validity, construction and
                performance shall be governed in all respects by the internal
                laws of the State of California without giving effect to any
                principles of conflict of laws.

                                       6
<PAGE>   7

        19.     HEADINGS: The headings in this agreement are for convenience of
                reference only and shall not control or affect the meaning or
                construction of this Agreement.

                IN WITNESS WHEREOF, the parties hereto have hereunder set their
                hands and seals the day and year first above written.

                                    CENTRAL FINANCIAL ACCEPTANCE CORPORATION

                                    By:
                                       -----------------------------------------
                                          Gary M. Cypres, Chairman of the Board

                                          --------------------------------------
                                          Executive

                                       7

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