WILSHIRE FINANCIAL SERVICES GROUP INC
STEVE GLENNON EMPLOYMENT CONTRACT
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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT 10.1</font></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>March 20, 2002</font></P>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Stephen P. Glennon
Wilshire Financial Services Group Inc.<br>
1776 SW Madison Street<br>
Portland, OR  97205</font></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Continuation of Employment</font></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear  Steve,</font></P>

<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
confirm our prior discussions, Wilshire Financial Services Group&#160;Inc.
wishes to continue your employment from March 1, 2002 by Wilshire Management
Leasing Corporation, as Chief Executive Officer of Wilshire Financial Services
Group Inc. pursuant to the following terms: </FONT></P>

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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Position:</font></td>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CEO - Wilshire Financial Services Group Inc.</font></td></tr>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></td>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></td></tr>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Salary:</font></td>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>March 1, 2002 - February 28, 2003 - $8,333.33/month ($100,000/year)</font></td></tr>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></td>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>March 1, 2003 - February 29, 2004 - $25,000/month ($300,000/year)</font></td></tr>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></td>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></td></tr>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Stock Option:</font></td>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>300,000  options  with a strike  price of $2.34 per share.  The options  will vest on the last day of each
                             month of your employment at the rate of 12,500 shares per month.</font></td></tr>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></td>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></td></tr>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Expenses:</font></td>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company will provide you with a car and rent allowance with a value of up to $3,000 per month.</font></td></tr>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></td>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></td></tr>

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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Change-in-Control:</FONT></TD>
<TD WIDTH=85%><FONT SIZE=2>
Upon a change in control of WFSG, as described in WFSG&#146;s Amended and
Restated 1999 Equity Participation Plan, all of your options will vest and the
Company will pay you $500,000 in consideration of a general release of all
claims.</FONT></TD></TR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Severance:</FONT></TD>
<TD WIDTH=85%><FONT SIZE=2>
Your employment will be at the will of the Board of Directors of WFSG. However,
in the event the Company terminates your employment without cause, all of your
stock options will vest and the Company will pay you $150,000 in exchange for a
general release of all claims. In the event that you should elect to voluntarily
terminate your employment, you shall receive only those shares vested through
the date of your resignation and no further salary from that date forward.</FONT></TD>
</TR>
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<BR>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Insurance:</font></td>
<TD WIDTH=95%><FONT SIZE=2>Medical  (including  prescriptions  and  wellness),  Dental and Vision  benefits in  accordance  with then existing Company policy.</font></td></tr>
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<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Personal</FONT></TD>
<TD WIDTH=85%><FONT SIZE=2>
Time: Personal time, used for sick and vacation time, is earned based on hours
worked to a maximum of 13.33 hours per month. Thus, a total of up to 160 hours
or 4 weeks of personal time may be earned during a full year.</FONT></TD>
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<BR>

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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></td>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Very truly yours,</font></td></tr>
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<br><br>

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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></td>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Larry B. Faigin</font></td></tr>
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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></td>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Chairman of the Board</font></td></tr>
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<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</font></td>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Wilshire Financial Services Group Inc.</font></td></tr>
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LBF:lb
<br><br>


<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Acceptance of Offer:<br>
<br>

--------------------------------------------------------------<br>
Stephen P. Glennon<br>
Date:  March 20, 2002</font></P>

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