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                                                                    EXHIBIT 10.3

           ITLA CAPITAL CORPORATION CONSOLIDATED NONQUALIFIED DEFERRED
                                COMPENSATION PLAN
                           (Effective January 1, 1997)

ITLA Capital Corporation, a Delaware business corporation has adopted the ITLA
Capital Corporation Consolidated Nonqualified Deferred Compensation Plan (the
"Plan") effective as of January 1, 1997. The Plan is an unfunded plan, hereby
adopted, established and maintained by ITLA Capital Corporation (the "Company")
for the purpose of providing benefits for certain individuals as provided
herein.

                                    ARTICLE I

                           ELIGIBILITY TO PARTICIPATE

     1.1 Eligibility to Participate. For purposes of Title I of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), the Plan is
limited to a select group of management or highly compensated employees, and
shall at all times remain unfunded.

     1.2 Designated Participants. An executive or senior management employee of
the Company is eligible to become a Participant in the Plan provided such
employee is designated as a Participant below or such employee is later
designated by the Compensation Committee of the Board of Directors of the
Company and such designation is attached as a written amendment to the Plan
signed by a duly authorized officer of the Company. Under no circumstance shall
an employee below the level of' First Vice President be eligible to participate
in the Plan. The following individuals shall constitute the eligible
Participants as of the Plan's effective date of January 1, 1997:

         George Haligowski
         Michael Sicuro
         Tim Doyle

Once an employee becomes a Participant, he or she shall remain a Participant
until all benefits to which he or she (or to the individual the Participant
designates as his or her "Designated Beneficiary" in such Participant's
designation of beneficiary form) is entitled to under the Plan have been paid.
To the extent George Haligowski's Employment Agreement dated July 23, 1997
differs from the terms of this Agreement, George Haligowski's Employment
Agreement shall be the controlling document.

     1.3 Written Deferral Election. The individuals described in Section 1.2
shall be eligible to participate in the Plan and may do so by filing a written
deferral election with the Company in a form approved by the Company. In the
first year in which a Participant becomes eligible to participate in the Plan,
the newly eligible Participant may make an election to defer

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compensation for services to be performed subsequent to the election within
thirty (30) days after the date the person becomes eligible. For all other
years, elections to defer payment of compensation must be made before the
beginning of the calendar year for which the compensation is payable.

     1.4 Deferred Compensation Account. For each individual electing to
participate in the Plan, the Company shall establish and maintain a Deferred
Compensation Account. The amount of each Participant's deferred compensation
shall be credited to his or her Deferred Compensation Account no later than the
end of the month following the month in which the compensation would otherwise
have been paid to the Participant. The Participant's Deferred Compensation
Account shall also be credited and debited for deemed earnings and losses
attributable to the investment (or deemed investment) of such Deferred
Compensation Account under Section 2.2 of the Plan. The Deferred Compensation
Account shall also be reduced for any distributions and withdrawals made under
the Plan to a Participant. In general, the Deferred Compensation Accounts will
be valued at the end of each calendar quarter. Any Participant to whom an amount
is credited under the Plan shall be deemed a general, unsecured creditor of the
Company.

     1.5 Amount of Deferrals. Each Participant may defer all or any portion of
the compensation otherwise payable to him or her by the Company for the calendar
year beginning after the date of said election (or for the remaining portion of
the first year of participation) as specified in said written election to the
Company, and the amounts so deferred by a Participant by a Participant shall be
paid only as provided in this Plan. In no event shall the amount of compensation
deferred by a Participant exceed the amount needed to satisfy employment tax and
other required payroll withholdings. A Participant may change the amount of, or
suspend, future deferrals with respect to compensation otherwise payable to him
or her for years beginning after the date of change or suspension as specified
by written notice to the Company. If a Participant elects to suspend deferrals,
the Participant may make a new election to again become a Participant in the
Plan. Any new election to defer payment of compensation must be made before the
beginning of the next calendar year for which the compensation is payable. The
election to defer shall be irrevocable as to the deferred compensation for the
calendar year for which the election is made. In no event may a Participant
suspend or change the amount of deferrals for a calendar year once the calendar
year has commenced.

                                   ARTICLE II

                              DEFERRED COMPENSATION

     2.1 Contribution to Trust. Within thirty (30) days after each calendar
month, the Company shall transfer into the ITLA Capital Corporation Rabbi Trust
(the "Trust") an amount in cash or shares of ITLA Capital Corporation common
stock with a fair market value at the date of contribution equal to the total
amount of all Participant deferrals under the Plan for the preceding calendar
month. In addition, within fifteen (15) days of the date of a Change of

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Control the Company shall deposit in the Trust an amount in cash equal to the
difference between the total value of all Participant's Deferred Compensation
Accounts under the Plan as of the Date of the Change of Control and the total
fair market value of all assets in the Trust as of such date.

     2.2 Deemed Investments. All amounts credited under the terms of the Plan to
a Deferred Compensation Account maintained in the name of a Participant by the
Company shall be invested (or deemed invested) in ITLA Capital Corporation stock
and/or various mutual funds selected by the Company. Each Participant may select
the deemed investment for his/her Deferred Compensation Account from the
investment options selected by the Company and may change such deemed
investments at such times and in accordance with the rules adopted by the
Company. In the absence of any investment directions, Deferred Compensation
Accounts will be deemed invested in the Trustee's in-house sweep funds.
Notwithstanding that the earnings or losses on deemed investments used to
determine the value of Participant's Deferred Compensation Accounts are based on
the actual performance of certain specified investments, the Company is not
obligated to invest deferrals in any particular investments. If any investments
are made with deferrals, Participants shall have no right or interest in or with
respect to such investments. Specifically, Participants shall have no voting
rights with respect to any stock or securities held by the Plan. Any actual
investment in shares of ITLA Capital Corporation stock shall comply with federal
and state securities laws.

                                   ARTICLE III

                                  DISTRIBUTION

     3.1 Distribution of Deferred Compensation Accounts. On the first day of the
month next following the date on which a Participant's employment with the
Company and all other related employers of the Company (as determined under
Section 414 of the Internal Revenue Code of 1986, as amended (the "Code"))
terminates for any reason including death, distribution of the amount credited
to the Participant's Deferred Compensation Account in accordance with this Plan
shall commence in accordance with one of the alternatives set forth below as
selected by the Participant. Selection of the method of distribution shall be
made at the time the Participant first elects to defer compensation under the
Plan for any given calendar year. The alternative forms of distribution shall
be:

          a) lump sum equal to the Participant's total Deferred Compensation
          Account at termination of employment; or

          b) ten equal annual installments. The amount of each such annual
          installment will be calculated based upon the amortization of the
          value of the Participant's Deferred Compensation Account balance as
          the date of his or her termination of employment at a credited
          interest rate equal to 125% of the Company's cost of funds. Interest
          credited to a Participant's Deferred Compensation Account as of the
          valuation date preceding the date of the next

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          distribution shall be added to the Participant's Deferred Compensation
          Account and distributed as a part of the next installment. The final
          installment will be the balance of the Participant's Deferred
          Compensation Account and interest credited to the Account.

Except as set forth above with respect to interest crediting, a Participant's
Deferred Compensation Account shall not be adjusted for any deemed earnings or
losses after the date of the Participant's termination of employment. If the
Participant fails to select the distribution method at the time of initial
participation in the Plan, distribution shall be made in a single lump sum
payment. The Compensation Committee of the Board of Directors of the Company
shall determine whether the distribution is made in cash or in-kind. Any
distribution of stock, including ITLA Capital Corporation Stock from the Plan
shall comply with all applicable federal and state securities laws. All
distributions under the Plan shall be less applicable tax and other required or
authorized withholdings. Notwithstanding the distribution election made by a
Participant and notwithstanding that distributions have commenced in
installments, the distribution of the Participant's total remaining Deferred
Compensation Account shall be made in a lump sum upon a Change of Control or
terminaton of the Plan.

     3.2 Participant's Death. If a Participant should die before distribution of
the full amount of the Deferred Compensation Account described in this Plan has
been made to the Participant, any remaining amounts shall be distributed to the
Participant's Designated Beneficiary by the method designated by the Participant
in writing and delivered to the Company at the time the Participant first
elected to become a Participant in the Plan. If a Participant has no Designated
Beneficiary at the time of death, then, notwithstanding any provision herein to
the contrary, such amounts shall be distributed to such Participant's estate in
a lump sum distribution as soon as administratively feasible following such
Participant's death.

     3.3 Advance Distribution for Financial Hardship. In the event a Participant
(or the Participant's Designated Beneficiary, if such Designated Beneficiary is
currently receiving benefits under the Plan) incurs an Unforeseeable Financial
Emergency, such individual may make a written request to the Company for a
hardship withdrawal from his or her Deferred Compensation Account established
under the Plan, provided that the entire amount requested by the Participant is
not reasonably available from other resources. An "Unforeseeable Financial
Emergency" shall mean an unforeseeable, severe financial hardship to such
Participant or Designated Beneficiary resulting from a sudden and unexpected
illness or accident of the Participant or the Designated Beneficiary or a family
member of the Participant or the Designated Beneficiary, loss of property of the
Participant or the Designated Beneficiary due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events
beyond the control of the Participant or the Designated Beneficiary. Withdrawals
of amounts because of an unforeseeable emergency are only permitted to the
extent reasonably needed to satisfy the emergency need. This Section shall be
interpreted in a manner consistent with Section 1.457-2(h)(4) and 1.457-2(h)(5)
of the Treasury Regulations. The Compensation Committee of the Board of
Directors shall determine in its sole discretion whether an advance withdrawal
shall be permitted due to an Unforeseeable Financial Emergency. The
Participant's

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Deferred Compensation Account shall be reduced by the amount of any advance
distribution for hardship.

     3.4 Change of Control. Upon a Change of Control of the Company, as defined
in Section 6.7 of the Plan, the Deferred Compensation Accounts of all
Participants shall be distributed in a lump sum as soon as practicable to the
Participants or to the Designated Beneficiaries of any deceased Participants.

     3.5 Distribution for Tax Purposes. Anything herein to the contrary
notwithstanding, if, at any time, a court or the Internal Revenue Service
determines that an amount in a Participant's Deferred Compensation Account is
includable in the gross income of the Participant and subject to tax, the
Compensation Committee of the Board of Directors of the Company may, in its sole
discretion, permit a lump sum distribution of an amount equal to the amount
determined to be includable in the Participant's gross income.

     3.6 Limitation on Distribution to Covered Employees. Notwithstanding any
other provision of the Plan, in the event that the Participant is a "covered
employee" as defined in Section 162(m)(3) of the Internal Revenue Code, or would
be a covered employee if the Participant's Deferred Compensation Account were
distributed in accordance with the other provisions of Article III, the maximum
amount which may be distributed from the Participant's Deferred Compensation
Account in any Plan Year shall not exceed one million ($1,000,000) less the
amount of compensation paid by the Company to the Participant in such Plan Year
which is not "performance-based" (as defined in Code Section 162(m)(4)(C)). The
amount of compensation which is not "performance-based" shall be reasonably
determined by the Company at the time of the proposed distribution. Any amount
which is not distributed to the Participant in a Plan Year as a result of the
limitation set forth in Section 3.6 shall be distributed to the Participant in
the next Plan Year, subject to compliance with the foregoing limitations set
forth in this Section 3.6. The provisions of this Section 3.6 shall not apply if
the Compensation Committee of the Board of Directors, upon consultation with
legal counsel, determines that the restrictions of Code Section 162(m) do not
apply to the limit the deductibility of payments made under the Plan (or
otherwise by the Company) to the Participant.

                                   ARTICLE IV

                        AMENDMENT AND TERMINATION OF PLAN

     4.1 Amendment or Termination. The Company intends the Plan to remain in
existence until all Participants in the Plan have received all of their benefits
payable under the Plan. The Company, however, reserves the right to amend or
terminate the Plan when, in the sole opinion of the Company, such amendment or
termination is advisable. Any such amendment or termination shall be made
pursuant to a resolution of the Compensation Committee of the Board of Directors
of the Company. No amendment or termination of the Plan shall reduce the amount
credited to the Participant's Deferred Compensation Account below the

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balance immediately prior to the effective date of the resolution amending or
terminating the Plan or delay the distribution date for the Participant's
Deferred Compensation Account.

     4.2 Distribution on Termination. Upon termination of the Plan, the Deferred
Compensation Accounts of all Participants shall be distributed in a lump sum as
soon as practicable following the effective date of the Plan termination.

                                    ARTICLE V

                                CLAIMS PROCEDURE

     5.1 Claims Procedure. An initial claim for benefits under the Plan must be
made by the Participant or his or her Designated Beneficiary to the Claims
Reviewer which shall be the Compensation Committee of the Board of Directors of
the Company (unless another person or organizational unit is designated by the
Company as Claims Reviewer), in accordance with the terms of this Claims
Procedure. Not later than 90 days after receipt of such a claim, the Claims
Reviewer will render a written decision on the claim to the claimant, unless
special circumstances require the extension of such 90-day period. If such
extension is necessary, the Claims Reviewer shall provide the Participant or his
or her Designated Beneficiary with written notification of such extension before
the expiration of the initial 90-day period. Such notice shall specify the
reason or reasons for such extension and the date by which the final decision
can be expected. In no event shall such extension exceed a period of 90 days
from the end of the initial 90-day period. In the event the Claims Reviewer
denies the claim of a Participant or his or her Designated Beneficiary in whole
or in part, the Claims Reviewer's written notification shall specify, in a
manner calculated to be understood by the claimant, the reason for the denial; a
reference to the Plan or other document or form that is the basis for the
denial; a description of any additional material or information necessary for
the claimant to perfect the claim; an explanation as to why such information or
material is necessary; and an explanation of the applicable claims procedure.
Should the claim be denied in whole or in part and should the claimant be
dissatisfied with the Claim's Reviewer's disposition of the claimant's claim,
the claimant may have a full and fair review of the claim by the Company upon
written request therefor submitted by the claimant or the claimant's duly
authorized representative and received by the Company within 60 days after the
claimant receives written notification that the claimant's claim has been
denied. In connection with such review, the claimant or the claimant's duly
authorized representative shall be entitled to review pertinent documents and
submit the claimant's views as to the issues in writing. The Company shall act
to deny or accept the claim within 60 days after receipt of the claimant's
written request for review unless special circumstances require the extension of
such 60-day period. If such extension is necessary, the Company shall provide
the claimant with written notification of such extension before the expiration
of such initial 60-day period. In all events, the Company shall act to deny or
accept the claim within 120 days of the receipt of the claimant's written
request for review. The action of the Company shall be in the form of a written
notice to the claimant and its contents shall include all of the requirements
for action on the original claim. In no event may a claimant

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commence legal action for benefits the claimant believes are due the claimant
until the claimant has exhausted all of the remedies and procedures afforded the
claimant by this Article V.

                                   ARTICLE VI

                                 ADMINISTRATION

     6.1 Unsecured Claims. The right of a Participant or the Participant's
Designated Beneficiary to receive a distribution hereunder shall be an unsecured
claim against the general assets of the Company, and neither a Participant nor
his or her Designated Beneficiary shall have any rights in or against any amount
credited to any Deferred Compensation Accounts under this Plan or any other
assets of the Company. The Plan at all times shall be considered entirely
unfunded both for tax purposes and for purposes of Title I of ERISA, as amended.
Any funds invested hereunder shall continue for all purposes to be part of the
general assets of the Company and available to its general creditors in the
event of bankruptcy or insolvency. Deferred Compensation Accounts under this
Plan and any benefits which may be payable pursuant to this Plan are not subject
in any manner to anticipation, sale, alienation, transfer, assignment, pledge,
encumbrance, attachment, or garnishment by creditors of the Participant or a
Participant's Designated Beneficiary. The Plan constitutes a mere unsecured
promise by the Company to make benefit payments in the future. No interest or
right to receive a benefit may be taken, either voluntarily or involuntarily,
for the satisfaction of the debts of, or other obligations or claims against,
such person or entity, including claims for alimony, support, separate
maintenance and claims in bankruptcy proceedings.

     6.2 Plan Administration. The Plan shall be administered by the Compensation
Committee of the Board of Directors of the Company, which shall have the
authority, duty and power to interpret and construe the provisions of the Plan
as the Compensation Committee of the Board of Directors deems appropriate
including the authority to determine eligibility for benefits under the Plan.
The Compensation Committee of the Board of Directors shall have the duty and
responsibility of maintaining records, making the requisite calculations and
disbursing the payments hereunder. The interpretations, determinations,
regulations and calculations of the Compensation Committee of the Board of
Directors shall be final and binding on all persons and parties concerned. The
Compensation Committee of the Board of Directors may delegate any of its duties
of Plan Administration to such employees of the Company, the Trustee or other
third-parties as it deems appropriate.

     6.3 Expenses. Expenses of administration shall be paid by the Company. The
Compensation Committee of the Board of Directors of the Company shall be
entitled to rely on all tables, valuations, certificates, opinions, data and
reports furnished by any actuary, accountant, controller, counsel or other
person employed or retained by the Company with respect to the Plan.

     6.4 Statements. The Compensation Committee of the Board of Directors of the
Company shall furnish individual annual or more frequent statements to each
Participant, or each

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Designated Beneficiary currently receiving benefits, in such form as determined
by the Compensation Committee of the Board of Directors or as required by law.
The Board of Directors may delegate the duty to provide such statements to the
Trustee.

     6.5 No Enlargement of Rights. The sole rights of a Participant or
Designated Beneficiary under this Plan shall be to have this Plan administered
according to its provisions, to receive whatever benefits he or she may be
entitled to hereunder, and nothing in the Plan shall be interpreted as a
guaranty that any funds in any trust which may be established in connection with
the Plan or assets of the Company will be sufficient to pay any benefits
hereunder. Further, the adoption and maintenance of this Plan shall not be
construed as creating any contract of employment between the Company and any
Participant. The Plan shall not affect the right of the Company to deal with any
Participants in employment respects, including their hiring, discharge,
compensation, and conditions of employment.

     6.6 Rules and Procedures. The Company may from time to time establish rules
and procedures which it determines to be necessary for the proper administration
of the Plan and the benefits payable to an individual in the event that
individual is declared incompetent and a conservator or other person legally
charged with that individual's care is appointed. Except as otherwise provided
herein, when the Company determines that such individual is unable to manage his
or her financial affairs, the Company may pay such individual's benefits to such
conservator, person legally charged with such individual's care, or institutions
contributing toward or providing for the care and maintenance of such
individual. Any such payment shall constitute a complete discharge of any
liability of the Company and the Plan for such individual.

     6.7 Notwithstanding any provision to the contrary, in the event of a
pending Change of Control, as defined herein, Participants shall receive the
value of their Deferred Compensation Accounts in a single lump sum payment as
soon as administratively feasible following the date of the Change of Control.
The term "Change in Control" means the occurrence of any of the following events
with respect to the Company: (1) any person (as the term is used in section
13(d) and 14(d) of the Securities Exchange Act of 1934 (the "Exchange Act") is
or becomes the beneficial owner (as defined in Rule 13d-3 under the Exchange
Act), directly or indirectly of securities of the Company representing 33.33% or
more of the Company's outstanding securities; (2) individuals who are members of
the Board of Directors of the Company on the date hereof (the "Incumbent Board")
cease for any reason to constitute at least a majority thereof, provided that
any person becoming a director subsequent to the date hereof whose election was
approved by a vote of at least two thirds of the directors comprising the
Incumbent Board, or whose nomination for election by the Company's stockholders
was approved by the nominating committee serving under an Incumbent Board, shall
be considered a member of the Incumbent Board; (3) a reorganization, merger,
consolidation, sale of all or substantially all of the assets of the Company or
a similar transaction in which the Company is not the resulting entity (unless
the continuing ownership requirements clause (4) below are met with respect to
the resulting entity); or (4) a merger or consolidation of the Company with any
other corporation other than a merger or consolidation in which the voting
securities of the Company outstanding immediately prior thereto represent at
least 66.67% of the total voting power represented by the voting securities of
the Company or the surviving entity outstanding immediately after such merger or
consolidation.

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The term "Change in Control" shall not include: (1) an acquisition of securities
by an employee benefit plan of the Company; or (2) any of the above mentioned
events or occurrences which require but do not receive the requisite government
or regulatory approval to bring the event or occurrence to fruition.

     6.8 Information. Each Participant shall keep the Company informed of his or
her current address and the current address of his or her Designated
Beneficiary. The Company shall not be obligated to search for any person. If
such person is not located within three (3) years after the date on which
payment of the Participant's benefits payable under this Plan may first be made,
payment may be made as though the Participant or his or her Designated
Beneficiary had died at the end of such three-year period.

     6.9 Loss. Notwithstanding any provision herein to the contrary, neither the
Company nor any individual acting as an employee or agent of the Company shall
be liable to any Participant, any Participant's Designated Beneficiary, or any
other person for any claim, loss, liability or expense incurred in connection
with the Plan, unless attributable to fraud or willful misconduct on the part of
the Company or any such employee or agent of the Company.

     6.10 Indemnification. The Company shall indemnify and hold harmless the
members of the Board of Directors and any other employees to whom any
responsibility with respect to the Plan is allocated or delegated, from and
against any and all liabilities, costs and expenses, including attorneys' fees,
incurred by such persons as a result of any act, or omission to act, in
connection with the performance of their duties, responsibilities and
obligations under the Plan and under ERISA, other than such liabilities, costs
and expenses as may result from the bad faith, willful misconduct or criminal
acts of such persons or to the extent such indemnification is specifically
prohibited by ERISA. The Company shall have the obligation to conduct the
defense of such persons in any proceeding to which this applies. If any Board
member or any employee covered by this indemnification clause determines that
the defense provided by the Company is inadequate, that member or employee shall
be entitled to retain separate legal counsel for his or her defense and the
Company shall be obligated to pay for all reasonable legal fees and other court
costs incurred in the course of such defense unless a court of competent
jurisdiction finds such person has acted in bad faith or engaged in willful
misconduct or criminal acts.

     6.11 Applicable Law. All questions pertaining to the construction, validity
and effect of the Plan shall be determined in accordance with the laws of the
United States and to the extent not preempted by such laws, by the state of
California.

     IN WITNESS WHEREOF, ITLA Capital Corporation has caused this Plan to be
executed on this 1st day of January, 1998.

By  /s/ GEORGE W. HALIGOWSKI
   ----------------------------------

On behalf of ITLA Capital Corporation

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                                                                    EXHIBIT 10.8

Attached hereto is the form of the change of control agreement provided to the
following executive officers: Norval L. Bruce, Michael A. Sicuro, Steven C.
Romelt and Timothy M. Doyle.

                      CHANGE IN CONTROL SEVERANCE AGREEMENT

THIS CHANGE IN CONTROL SEVERANCE AGREEMENT (the "Agreement") is made and entered
into as of this _______ day of ________, 19____ , by and between ________ (the
"Company"), and _________ (the "Employee").

     WHEREAS, the Employee is currently serving as ___________________________
of the Company; and

     WHEREAS, the Board of Directors of the Company (the "Board of Directors")
recognizes that, as is the case with publicly held corporations generally, the
possibility of a change in control of the Company may exist and that such
possibility, and the uncertainty and questions which it may raise among
management, may result in the departure or distraction of key management
personnel to the detriment of the Company and its stockholders;

     WHEREAS, the Employee is a party to that certain letter agreement with
Imperial Thrift and Loan Association under which the Employee is entitled to
certain severance benefits under certain conditions (the "Prior Severance
Agreement"), which he or she is willing to terminate in consideration of this
Agreement's becoming effective;

     WHEREAS, the Board of Directors believes it is in the best interests of the
Company to enter into this Agreement with the Employee in order to assure
continuity of management of the Company and to reinforce and encourage the
continued attention and dedication of the Employee to the Employee's assigned
duties without distraction in the face of potentially disruptive circumstances
arising from the possibility of a change in control of the Company, although no
such change is now contemplated; and

     WHEREAS, the Board of Directors has approved and authorized the execution
of this Agreement with the Employee;

     NOW, THEREFORE, in consideration of the foregoing and of the respective
covenants and agreements of the parties herein, it is AGREED as follows:

     1. Definitions.

     (a) The term "Change in Control" means the occurrence of any of the
following events with respect to the Company: (1) any person (as the term is
used in section 13(d) and 14(d) of the Securities Exchange Act of 1934 (the
"Exchange Act") is or becomes the beneficial owner (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly of securities of the Company
representing 33.33% or more of the Company's outstanding securities; (2)
individuals who are members of the Board of Directors of the Company on the date
hereof (the "Incumbent Board") cease for any reason to constitute at least a
majority thereof, provided that any person becoming a director subsequent to the
date hereof whose election was approved by a vote of at least two thirds of the
directors comprising the

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Incumbent Board, or whose nomination for election by the Company's stockholders
was approved by the nominating committee serving under an Incumbent Board, shall
be considered a member of the Incumbent Board; (3) a reorganization, merger,
consolidation, sale of all or substantially all of the assets of the Company or
a similar transaction in which the Company is not the resulting entity (unless
the continuing ownership requirements clause (4) below are met with respect to
the resulting entity); or (4) a merger or consolidation of the Company with any
other corporation other than a merger or consolidation in which the voting
securities of the Company outstanding immediately prior thereto represent at
least 66.67% of the total voting power represented by the voting securities of
the Company or the surviving entity outstanding immediately after such merger or
consolidation. The term "Change in Control" shall not include: (1) an
acquisition of securities by an employee benefit plan of the Company; or (2) any
of the above mentioned events or occurrences which require but do not receive
the requisite government or regulatory approval to bring the event or occurrence
to fruition.

     (b) The term "Commencement Date" means ____________, 19____ .

     (c) The term "Disability" means the Employee's absence from his or her
duties with the Company on a full time basis for six consecutive months as a
result of his or her incapacity due to mental or physical illness, unless within
30 days after the Company gives the Employee written notice of termination of
employment for such reason the Employee shall have returned to full time
performance of his or her duties.

     (d) The term "Date of Termination" means the date specified in the Notice
of Termination, given pursuant to Section 4 of this Agreement, provided that if
within 15 days after any Notice of Termination is given or, if later, prior to
the Date of Termination specified in such Notice, the party receiving such
Notice of Termination notifies the other party that a dispute exists concerning
the Notice of Termination, then the Date of Termination shall be the date on
which the dispute is finally determined, whether by mutual written agreement of
the parties, by a binding arbitration award, or by a final judgment, order or
decree of a court of competent jurisdiction (which is not appealable or with
respect to which the time for appeal therefrom has expired and no appeal has
been perfected); and provided further that the Date of Termination shall be
extended by a notice of dispute only if such notice is given in good faith and
sets forth in reasonable detail the facts and circumstances that are the basis
for the dispute, and the party giving such notice pursues the resolution of such
dispute with reasonable diligence. For purposes of this Section 1(d), a
"dispute" extending the Date of Termination shall be limited to a dispute as to
whether the termination was a "Termination for Cause" if the Notice of
Termination given by the Company states that the termination was a Termination
for Cause or whether the termination was an Involuntary Termination if the
Notice of Termination is given by the Employee. Notwithstanding the pendency of
any such dispute, the Company shall continue to pay the Employee the Employee's
full base salary at the rate in effect when the Notice of Termination was given
and continue the Employee as a participant in all benefit plans in which the
Employee was participating when the Notice of Termination was given (unless
continued employment is a requirement for participation in any such benefit
plan), until the dispute is finally resolved in accordance with this Section
1(d).

<PAGE>   3

     (e) The term "Involuntary Termination" means the termination of the
employment of the Employee without the Employee's express written consent or a
material diminution of or interference with the Employee's duties,
responsibilities and benefits as these same duties, responsibilities and
benefits exist the day prior to the Change the Change of Control, including
(without limitation) any of the following actions unless consented to in writing
by the Employee: (1) a requirement that the Employee be based at a place other
than the Employee's work location immediately prior to the Change of Control or
within 35 miles thereof, except for reasonable travel on Company business; (2) a
material demotion of the Employee; (3) a material reduction in the number or
seniority of other Company personnel reporting to the Employee or a material
reduction in the frequency with which, or in the nature of the matters with
respect to which, such personnel are to report to the Employee, other than as
part of a Company-wide reduction in staff; (4) a material adverse change in the
Employee's salary, other than as part of an overall program applied uniformly
and with equitable effect to all members of the senior management of the
Company; (5) a material permanent increase in the required hours of work or the
workload of the Employee; (6) a material change in the reporting relationship to
which the Employee reports prior to the Change of Control; or (7) a material
increase or decrease in business responsibilities and duties, such that the
Employee's qualifications as utilized prior to the Change of Control are no
longer consistent with the qualifications needed for the revised position. The
term "Involuntary Termination" does not include Termination for Cause,
termination of employment due to retirement on or after the Employee attains age
65, death, or termination of employment by the Company due to Disability.

     (f) The term "Notice of Termination" means a notice of termination of the
Employee's employment pursuant to Section 4 of this Agreement.

     (g) The terms "Termination for Cause" and "Terminated for Cause" mean
termination by the Company of the employment of the Employee because of (i)
willful and continued failure by the Employee substantially to perform his or
her duties (other than a failure resulting from physical or mental illness)
after a demand for substantial performance is delivered to the Employee by the
Chairman of the Board of Directors or the Chief Executive Officer of the Company
which specifically identifies the manner in which the Employee has not
substantially performed his or her duties, (ii) the Employee's willful
dishonesty, incompetence, willful misconduct, breach of fiduciary duty involving
personal profit, intentional failure to perform stated duties, willful violation
of any law, rule, regulation, or final cease-and-desist order, relating to the
Employee's employment with the Company or otherwise interfering with the
Employee's ability to carry out the duties of the employment, or material breach
of any provision of this Agreement or any employment agreement between the
Company and the Employee; provided that no act or failure to act shall be
considered "willful" unless done or omitted to be done by the Employee in bad
faith and without reasonable belief that the act or omission was in or not
opposed to the best interests of the Company. Any act or failure to act based
upon authority pursuant to a resolution duly adopted by the Board of Directors
or upon the advice of counsel for the Company shall be conclusively presumed to
be done or omitted to be done in good faith and in the best interests of the
Company. The Employee's attention to matters not directly

<PAGE>   4

related to the business of the Company shall not provide a basis for Termination
for Cause if the Board of Directors or the Chief Executive Officer of the
Company has approved the Employee's engaging in such activities. The Employee
shall not be deemed to have been Terminated for Cause unless and until the
Company has delivered to the Employee a notice containing a resolution adopted
by not less than three-quarters of the entire membership of the Board of
Directors at a meeting called and held for the purpose, after reasonable notice
to the Employee and opportunity for him to appear with counsel before the Board
of Directors, finding that in the good faith opinion of the Board of Directors
the Employee has engaged in conduct described in this Section 1(g) and
specifying the particulars in detail.

     2. Term. The term of this Agreement shall be one year from the date first
written above, provided that on each anniversary of such date, the term shall be
extended for an additional year unless at least 90 days prior such anniversary,
either the Company or the Employee gives notice to the other that the term of
this Agreement shall not be extended further, and provided further that
notwithstanding the delivery of any such notice, the term of this Agreement
shall be extended until the expiration of 24 months following the date upon
which a Change in Control shall have occurred during the term of the Agreement
including extensions of the term pursuant to the first proviso of this sentence.

     3. Severance Benefits.

     (a) In the event of Involuntary Termination in connection with or within 24
months after a Change in Control which occurs during the term of this Agreement,
the Company shall, (1) pay to the Employee in a lump sum in cash within 25
business days after the Date of Termination an amount equal to the sum of (i)
the Employee's base salary for a period months at the rate of base salary in
effect on the date of the Change of Control or the Date of Termination,
whichever is greater, and (ii) the amount of the Employee's prior year's annual
bonus multiplied by a fraction with a numerator of the number of days which have
elapsed through the Date of Termination in the fiscal year in which the Date of
Termination occurs and a denominator of 365; (2) provide to the Employee for
months following the Date of Termination, such health, dental and life insurance
benefits as the Company maintained for the Employee at the Date of Termination
on terms as favorable to the Employee as applied at the Date of Termination, or
at the election of the Employee (or, notwithstanding the election of the
Employee at the election of the company if coverage under the Company's group
plan is not available to the Employee) cash in an amount equal to the premium
cost being paid by the company with respect to the Employee for such benefits
immediately prior to the Date of Termination); (3) transfer to Employee title to
the Company owned vehicle currently used by the Employee, if any, with the
Company paying all costs, licensing fees and taxes (excluding income taxes)
associated with the transfer of title, or in the event the Employee receives a
monthly cash car allowance in lieu of use of a Company vehicle, the Company
shall pay to the Employee pursuant to this paragraph an additional sum equal to
times the greater of the monthly car allowance in effect on the date of the
Change of Control of the Date of Termination; (4) and vesting of all of
Employee's outstanding stock options and/or restricted stock awards with the
Company or its affiliates. The provision of any medical benefits under this
Section 3(a) shall not extend to the period for the continuation of group health
benefits under the COBRA

<PAGE>   5

health care continuation provisions of Section 601 of the Employee Retirement
Income Security Act of 1974 ("ERISA") or other applicable state laws.

     (b) In the event that any payments of benefits provided or to be provided
to the Employee pursuant to this Agreement in combination with payments or
benefits, if any, from other plans or arrangements maintained by the Company or
any of its affiliates, constitute "excess parachute payments" under Section 280G
of the Internal Revenue Code of 1986, as amended (the "Code") that are subject
to excise tax under Section 4999 of the Code, the Company shall pay to the
Employee in cash an additional amount equal to the amount of the Gross Up
Payment (as hereinafter defined). The "Gross Up Payment" shall be the amount
needed to ensure that the amount of such payments and the value of such benefits
received by the Employee (net of such excise tax and any federal, state and
local tax on the Company's payment to the Employee attributable to such excise
tax) equals the amount of such payments and value of such benefits as the
Employee would receive in the absence of such excise tax and any federal, state
and local tax on the Company's payment to the Employee attributable to such
excise tax. The Company shall pay the Gross Up Payment within 60 business days
after the Date of Termination. For purposes of determining the amount of the
Gross Up Payment, the value of any non-cash benefits and deferred payments or
benefits shall be determined by the Company's independent auditors in accordance
with the principles of Section 280G of the Code. In the event that, after the
Gross Up Payment is made, the amount of the excise tax is determined to be less
than the amount calculated in the determination of the actual Gross Up Payment
made by the Company, the Employee shall repay to the Company, at the time that
such reduction in the amount of excise tax is finally determined, the portion of
the Gross Up Payment attributable to such reduction, plus interest on the amount
of such repayment at the applicable federal rate under Section 1274 of the Code
from the date of the Gross Up Payment to the date of the repayment. The amount
of the reduction of the Gross Up Payment shall reflect any subsequent reduction
in excise taxes resulting from such repayment. In the event that, after the
Gross Up Payment is made, the amount of the excise tax is determined to exceed
the amount anticipated at the time the Gross Up Payment was made, the Company
shall pay to the Employee, in immediately available funds, at the time that such
additional amount of excise tax is finally determined, an additional payment
("Additional Gross Up Payment") equal to such additional amount of excise tax
and any federal, state and local taxes thereon, plus all interest and penalties,
if any, owed by the Employee with respect to such additional amount of excise
and other tax. The Employee shall have the right to challenge any excise tax
assessment against him or her as to which the Employee is entitled to (or would
be entitled if such assessment is finally determined to be proper) a Gross Up
Payment or Additional Gross Up Payment, provided that all costs and expenses
incurred in such a challenge shall be borne by the Company and the Company shall
indemnify the Employee and hold the Employee harmless, on an after-tax-basis,
from any excise or other tax (including interest and penalties with respect
thereto) imposed as a result of such payment of costs and expenses by the
Company.

     (c) Any payments made to the Employee pursuant to this Agreement are
subject to and conditioned upon their compliance with 12 U.S.C.ss.1828(k) and
any regulations promulgated thereunder.

<PAGE>   6

     4. Notice of Termination. In the event that the Company desires to
terminate the employment of the Employee without his consent during the term of
this Agreement in connection with or after a Change in Control has occurred, the
Company shall deliver to the Employee a written notice of termination, stating
(i) whether such termination constitutes Termination for Cause, and, if so,
setting forth in reasonable detail the facts and circumstances that are the
basis for the Termination for Cause, and (ii) specifying the Date of
Termination. In the event that the Employee determines in good faith that he or
she has suffered Involuntary Termination of his employment, the Employee shall
send a written notice to the Company stating the circumstances that constitute
Involuntary Termination and the Date of Termination. No provision of this
Agreement shall be construed as providing to the Employee any right to be
retained as an employee of the Company.

     5. No Mitigation. The Employee shall not be required to mitigate the amount
of any salary or other payment or benefit provided for in this Agreement by
seeking other employment or otherwise, nor shall the amount of any payment or
benefit provided for in this Agreement be reduced by any compensation earned by
the Employee as the result of employment by another employer, by retirement
benefits after the date of termination or otherwise, except as expressly set
forth herein.

     6. Attorneys and/or Fees. If the Employee is purportedly Terminated for
Cause or Involuntarily Terminated and the Company denies payments and/or
benefits under Section 3 of this Agreement on the basis that the Employee
experienced Termination for Cause rather than Involuntary Termination, but it is
determined by a court of competent jurisdiction or by an arbitrator pursuant to
Section 14 that cause as contemplated by Section 1(g) of this Agreement did not
exist for termination of the Employee's employment, or if in any event it is
determined by any such court or arbitrator that the Company has failed to make
timely payment of any amounts or provision of any benefits owed to the Employee
under this Agreement, the Employee shall be entitled to reimbursement for all
reasonable costs, including attorneys' fees, incurred in challenging such
termination of employment or collecting such amounts or benefits. Such
reimbursement shall be in addition to all rights which the Employee is otherwise
entitled under this Agreement.

     7. No Assignments.

     (a) This Agreement is personal to each of the parties hereto, and neither
party may assign or delegate any of its rights or obligations hereunder without
first obtaining the written consent of the other party; provided, however, that
the Company shall require any successor or assign (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company, by an assumption agreement in form
and substance satisfactory to the Employee, to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession or assignment had
taken place. Failure of the Company to obtain such an assumption agreement prior
to the effectiveness of any such succession or assignment shall be a breach of
this Agreement and shall entitle the Employee to compensation from the Company
in the same amount and on the same terms as the compensation pursuant to Section
3 hereof. For purposes of

<PAGE>   7

implementing the provisions of this Section 7, the date on which any such
succession becomes effective shall be deemed the Date of Termination.

     (b) This Agreement and all rights of the Employee hereunder shall inure to
the benefit of and be enforceable by the Employee's personal and legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees. If the Employee should die while any amounts would still
be payable to the Employee hereunder if the Employee had continued to live, all
such amounts, unless otherwise provided herein, shall be paid in accordance with
the terms of this Agreement to the Employee's devisee, legatee or other designee
or if there is no such designee, to the Employee's estate.

     8. Termination of Prior Severance Agreement. Upon execution of this
agreement by the Employee, the Prior Severance Agreement shall terminate and
have no further force and effect. Regardless of whether any benefits are paid to
the Employee under this Agreement, no benefits shall be paid to the Employee
under the Prior Severance Agreement.

     9. Notice. For the purposes of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when personally delivered or sent by certified
mail, return receipt requested, postage prepaid, to the Company at its home
office, to the attention of the Board of Directors with a copy to the Secretary
of the Company, or, it to the Employee, to such home or other address as the
Employee has most recently provided in writing to the Company.

     10. Amendments. No amendments or additions to this Agreement hall be
binding unless in writing and signed by both parties, except as herein otherwise
provided.

     11. Headings. The headings used in this Agreement are included solely for
convenience and shall not affect, or be used in connection with, the
interpretation of this Agreement.

     12. Severablility. The provisions of this Agreement shall be deemed
severable and the invalidity or unenforceability of any provision shall not
affect the validity or enforceablity of the other provisions hereof.

     13. Governing Law. This Agreement shall be governed by the laws of the
United States to the extent applicable and otherwise by the laws of the State of
California.

     14. Arbitration. Any dispute or controversy arising under or in connection
with this Agreement shall be settled exclusively by non-binding arbitration in
accordance with the rules of the American Arbitration Association then in
effect. Judgment may be entered on the arbitrator's award in any court having
jurisdiction, and shall include an award of attorneys fees and costs to the
prevailing party.

<PAGE>   8

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

     THIS AGREEMENT CONTAINS A NON-BINDING ARBITRATION PROVISION WHICH MAY BE
ENFORCED BY THE PARTIES.

                                     COMPANY

                                     By:
                                        --------------------------------------
                                     Its:

                                    EMPLOYEE

                                    ------------------------------------------

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