Downey Financial 8-K Departure of Directors or Principal Officers

EXHIBIT 10.1

Base Salary and Target Bonus Levels

for Named Executive Officers (and President)

under Annual Incentive Plan for 2008

	2008 Base Salary		2008 Target Bonus As a Percentag of Base Salary
Daniel D. Rosenthal President and Chief Executive Officer	$	650,000	120	%
Frederic R. McGill President	$	590,000	100	%
Brian E. Côté Executive Vice President and Chief Financial Officer	$	310,000	50	%
Thomas E. Prince Chief Operating Officer	$	520,000	100	%
Cliff J. Piscitelli Executive Vice President and Director of Asset Management	$	413,000	100	%
Jon A. MacDonald Executive Vice President and General Counsel	$	330,000	75	%