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                                                                   Exhibit 10.21


                              EMPLOYMENT AGREEMENT


      This employment agreement (the "Agreement") is effective as of January 1,
2002 (the "Effective Date"), by and between AMERICAN NATIONAL FINANCIAL, INC., a
California corporation (the "Company"), and MICHAEL C. LOWTHER(the "Employee").
In consideration of the mutual covenants and agreements set forth herein, the
parties agree as follows:

      1. Employment and Duties. Subject to the terms and conditions of this
Agreement, the Company employs the Employee to serve in an executive and
managerial capacity as Chief Executive Officer and Chairman of the Board of
Directors of the Company, and the Employee accepts such employment and agrees to
perform such reasonable responsibilities and duties commensurate with the
aforesaid positions as set forth in the Articles of Incorporation and the Bylaws
of the Company. Any change in such titles or delegation of duties inconsistent
with such titles shall be deemed a Termination Without Cause under Section 7(b)
of this Agreement.

      2. Term. The term of this Agreement shall commence on the Effective Date
and shall continue for a period of four (4) years ending December 31, 2005,
subject to prior termination as set forth in Section 7, below (the "Term"). The
Term may be extended at any time upon mutual agreement of the parties.

      3. Salary. During the Term, the Company shall pay the Employee a minimum
base annual salary, before deducting all applicable withholdings, of $360,000
per year, payable at the times and in the manner dictated by the Company's
standard payroll policies. Such minimum base annual salary may be periodically
reviewed and increased (but not decreased) at the discretion of the Compensation
Committee of the Board of Directors to reflect, among other matters, cost of
living increases and performance results.

      4. Other Compensation and Fringe Benefits. In addition to any executive
bonus, pension, deferred compensation and stock option plans which the Company
may from time to time make available to the employee upon mutual agreement, the
Employee shall be entitled to the following:

      (a)   The standard Company benefits enjoyed by the Company's other top
            executives.

      (b)   Payment by the Company of the Employee's initiation and membership
            dues in all social and/or recreational clubs as deemed necessary and
            appropriate by the Employee to maintain various business
            relationships on behalf of the Company; provided, however, that the
            Company shall not be obligated to pay for any of the Employee's
            personal purchases and expenses at such club.


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      (c)   Provision by the Company during the Term and any extensions thereof
            to the Employee and his dependents of medical and other insurance
            coverage under the Company's Executive Medical Plan.

      (d)   Provision by the Company of supplemental disability insurance
            sufficient to provide two-thirds of the Employee's pre-disability
            minimum base annual salary.

      (e)   Employee shall be entitled to receive an annual incentive bonus for
            each calendar year included in this Agreement based on the Company's
            performance during the preceding year as determined by the
            Compensation Committee of the Board of Directors. The annual bonus
            shall be paid no later than March 15th of the following year and is
            fully vested at the end of each year in the event of a non-renewal
            of this Agreement by the Company. Subject to Section 7 below, the
            annual bonus shall be pro-rated for any partial employment year.

      The Company shall deduct from all compensation payable under this
Agreement to the Employee any taxes or withholdings the Company is required to
deduct pursuant to state and federal laws or by mutual agreement between the
parties

      5. Vacation. For and during each year of the Term and any extensions
thereof, the Employee shall be entitled to reasonable paid vacation periods
consistent with his positions with the Company. In addition, the Employee shall
be entitled to such holidays consistent with the Company's standard policies or
as the Company's Board of Directors may approve.

      6. Expense Reimbursement. In addition to the compensation and benefits
provided herein, the Company shall, upon receipt of appropriate documentation,
reimburse the Employee each month for his reasonable travel, lodging,
entertainment, promotion and other ordinary and necessary business expenses.

      7.    Termination.

      (a)   For Cause. The Company may terminate this Agreement immediately for
            cause upon written notice to the Employee, in which event the
            Company shall be obligated to pay the Employee that portion of the
            minimum base annual salary due him through the date of termination.
            Cause shall be limited to (i) the persistent failure to perform
            duties consistent with a commercially reasonable standard of care;
            (ii) the willful neglect of duties; (iii) criminal or other illegal
            activities involving dishonesty; or (iv) a material breach of this
            Agreement; provided that in the event the Company shall desire to
            terminate this Agreement pursuant to subsection (iv), above, it
            shall first provide the Employee with notice of and a reasonable
            opportunity (the time for which shall not exceed 30 days), if
            possible, to cure the material breach.


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      (b)   Without Cause. Either party may terminate this Agreement immediately
            without cause by giving written notice to the other. If the Company
            terminates under this Section 7(b), then it shall pay to the
            Employee an amount equal to the product of (i) the Employee's
            minimum annual base salary in effect as of the date of termination,
            plus the greater of either (x) the total annual bonus paid, payable,
            or which would have been payable to the Employee under this
            Agreement (had it been in effect) for 2001 and payable in 2002 or
            (y) the highest bonus paid for any year during which this Agreement
            was in effect ("Base Year Bonus"), times (ii) the number of years
            (including partial years) remaining in the Term or the number 3
            (three), whichever is greater. The Company shall make such payment
            in a lump sum on or before the fifth day following the date of
            termination, or as otherwise directed by the Employee. In addition,
            all options granted to the Employee which had not vested as of the
            date of termination hereunder shall vest immediately and the Company
            shall maintain in full force and effect for the continued benefit of
            the Employee for the number of years (including partial years)
            remaining in the Term, or 3 years, whichever is greater, all
            employee benefit plans and programs in which the Employee was
            entitled to participate immediately prior to the date of
            termination, provided that the Employee's continued participation is
            possible under the general terms and provisions of such plans and
            programs. In the event that the Employee's participation in any such
            plan or program is prohibited, the Company shall, at its expense,
            arrange to provide the Employee with benefits substantially similar
            to those which the Employee would otherwise have been entitled to
            receive under such plans and programs for which discontinued
            participation is prohibited. If the Employee terminates under this
            Section 7(b), then the Company shall be obligated to pay the
            Employee the minimum annual base salary due him through the date of
            termination.

      (c)   Disability. If the Employee fails to perform his duties hereunder on
            account of illness or other incapacity for a period of nine
            consecutive months, then the Company shall have the right upon
            written notice to the Employee to terminate this Agreement without
            further obligation by paying the Employee the minimum base annual
            salary, without offset, for the remainder of the Term in a lump sum
            or as otherwise directed by the Employee.

      (d)   Death. If the Employee dies during the Term, then this Agreement
            shall terminate immediately and the Employee's legal representatives
            shall be entitled to receive the minimum annual base salary for the
            remainder of the Term in a lump sum or as otherwise directed by the
            Employee's legal representative.

      (e)   Mitigation. The Employee shall not be required to mitigate the
            amount of any payment provided for in this Section 7 by seeking
            other employment or otherwise, nor shall any compensation or other
            payments received by


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            the Employee after the date of termination reduce any payments due
            under this Section 7.

      (f)   Effect of Termination. Termination for any reason or for no reason
            shall not constitute a waiver of the Company's rights under this
            Agreement nor a release of the Employee from any obligation
            hereunder except his obligation to perform his day-to-day duties as
            an employee.

      8.    Severance Payment.

      (a)   The Employee may terminate his employment hereunder for "Good
            Reason," which for purposes of this Agreement shall mean a "change
            in control of the Company." A "change in control of the Company,"
            for purposes of this Agreement, shall be deemed to have occurred if
            (i) there shall be consummated (x) any consolidation or merger of
            the Company other than a consolidation or merger of the Company in
            which the holders of the Company's Common Stock immediately prior to
            the merger own more than 50% of the voting securities of the
            surviving corporation immediately after the merger, or (y) any sale,
            lease exchange or other transfer (in one transaction or a series of
            related transactions) of all, of substantially all, of the assets of
            the Company, or (ii) the stockholders of the Company approve any
            plan or proposal for the liquidation or dissolution of the Company,
            or (iii) any "person" (such as that term is used in Sections 13(d)
            and 14(d) of the Securities Exchange Act of 1934 (the "Exchange
            Act")), other than the Company or any "person" who, on the date
            hereof, is a director or officer of the Company, is or becomes the
            "beneficial owner" (as defined in Rule 13d-3 under the Exchange
            Act), of securities of the Company representing 30% or more of the
            combined voting power of the Company's then outstanding securities,
            or (iv) during any period of two (2) consecutive years during the
            Term or any extensions thereof, individuals, who, at the beginning
            of such period, constitute the Board of Directors, cease for any
            reason to constitute at least a majority thereof, unless the
            election of each director who was not a director at the beginning of
            such period has been approved in advance by directors representing
            at least two-thirds of the directors then in office who were
            directors at the beginning of the period.

      (b)   If the Employee terminates his employment for Good Reason, or, if
            after a change in control of the Company, the Company shall
            terminate the Employee's employment in breach of this Agreement or
            pursuant to Section 7(b), then:

            (i)   The Company shall pay the Employee his minimum base annual
                  salary due him through the date of termination.

            (ii)  In lieu of any further salary and bonus payments or other
                  payments due to the Employee for periods subsequent to the
                  date of


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                  termination, the Company shall pay, as severance to the
                  Employee, an amount equal to the product of (A) the Employee's
                  minimum base annual salary in effect as of the date of
                  termination plus the Base Year Bonus, multiplied by (B) the
                  number of years (including partial years) remaining in the
                  Term or the number 3 (three), whichever is greater.

            (iii) All options granted to the Employee which had not vested as
                  of the date of termination hereunder shall vest immediately;
                  and

            (iv)  The Company shall maintain in full force and effect, for the
                  continued benefit of the Employee for the number of years
                  (including partial years) remaining in the Term, all employee
                  benefit plans and programs in which the Employee was entitled
                  to participate immediately prior to the date of termination,
                  provided that the Employee's continued participation is
                  possible under the general terms and provisions of such plans
                  and programs. In the event that the Employee's participation
                  in any such plan or program is prohibited, the Company shall,
                  at its expense, arrange to provide the Employee with benefits
                  substantially similar to those which the Employee would
                  otherwise have been entitled to receive under such plans and
                  programs from which his continued participation is prohibited.

      (c)   For purposes of this Section 8 and Section 7 hereof, the Employee
            shall not be required to mitigate the amount of any payment provided
            for in Sections 7 and 8 by seeking other employment or otherwise,
            nor shall any compensation or other payments received by the
            Employee after the date of termination reduce any payments due under
            such Sections.

      9. Indemnification for Taxes. The Company shall indemnify Employee for any
and all taxes, penalties, additions to tax and interest on tax deficiencies of
any kind (collectively, "Taxes") with respect to any and all payments and
benefits provided by this Agreement or other agreements with Employee which are
subject (if at all) to the excise tax (Excess Tax") pursuant to Section 4999 of
the Internal Revenue Code of 1986, as amended. This indemnification shall extend
to any and all Taxes with respect to any and all reimbursements hereunder such
that, on a net-after-tax basis, Employee is in the same position that Employee
would have been in if no payments made by Company to Employee had been subject
to the Excise Tax (and, therefore, no indemnification payments hereunder had
been necessary).

      10. Non-Delegation of Employee's Rights. The obligations, rights and
benefits of the Employee hereunder are personal and may not be delegated,
assigned or transferred in any manner whatsoever, nor are such obligations,
rights or benefits subject to involuntary alienation, assignment or transfer.


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      11. Confidential Information. The Employee acknowledges that in his
capacity as an employee of the Company he will occupy a position of trust and
confidence and he further acknowledges that he will have access to and learn
substantial information about the Company and its operations that is
confidential or not generally known in the industry including, without
limitation, information that relates to purchasing, sales, customers, marketing,
and the Company's financial position and financing arrangements. The Employee
agrees that all such information is proprietary or confidential, or constitutes
trade secrets and is the sole property of the Company. The Employee will keep
confidential, and will not reproduce, copy or disclose to any other person or
firm, any such information or any documents or information relating to the
Company's methods, processes, customers, accounts, analyses, systems, charts,
programs, procedures, correspondence or records, or any other documents used or
owned by the Company, nor will the Employee advise, discuss with or in any way
assist any other person, firm or entity in obtaining or learning about any of
the items described in this Section 11. Accordingly, the Employee agrees that
during the Term and at all times thereafter he will not disclose, or permit or
encourage anyone else to disclose, any such information, nor will he utilize any
such information, either along or with others, outside the scope of his duties
and responsibilities with the Company.

      12. Non-Competition During Employment Term. The Employee agrees that,
during the term and any extensions thereof, he will devote substantially all his
business time and effort, and give undivided loyalty, to the Company. He will
not engage in any way whatsoever, directly or indirectly, in any business that
is competitive with the Company or its affiliates, nor solicit, or in any other
manner work for or assist any business which is competitive with the Company or
its affiliates. In addition, during the Term and any extensions thereof, the
Employee will undertake no planning for or organization of any business activity
competitive with the work he performs as an employee of the Company, and the
Employee will not combine or conspire with any other employee of the Company or
any other person for the purpose of organizing any such competitive business
activity.

      13. Non-Competition After Employment Term. The parties acknowledge that as
an executive officer of the Company the Employee will acquire substantial
knowledge and information concerning the business of the Company as a result of
his employment. The parties further acknowledge that the scope of business in
which the Company is engaged as of the Effective Date is national and very
competitive and one in which few companies can successfully compete. Competition
by an executive officer such as the Employee in that business after this
Agreement is terminated would severely injure the Company. Accordingly, for a
period of one year after this Agreement is terminated or the Employee leaves the
employment of the Company for any reason whatsoever, except as otherwise stated
herein below, the Employee agrees (i) not to become an employee, consultant,
advisor, principal, partner or substantial shareholder of any firm or business
that in any way competes with the Company in any of its presently-existing or
then-existing products and markets; and (ii) not to solicit any person or
business that was at the time of such termination and remains a customer or
prospective customer, or an employee of the Company. Notwithstanding any of the
foregoing provisions to the


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contrary, the Employee shall not be subject to the restrictions set forth in
this Section 13 under the following circumstances:

      (a)   If the Employee's employment with the Company is terminated by the
            Company without cause;

      (b)   If the Employee's employment with the Company is terminated as a
            result of the Company's unwillingness to extend the Term of this
            Agreement; or,

      (c)   If the Employee leaves the employment of the Company for Good Reason
            pursuant to Section 8, above.

      14. Return of Company Documents. Upon termination of this Agreement,
Employee shall return immediately to the Company all records and documents of or
pertaining to the Company and shall not make or retain any copy or extract of
any such record or document.


      15. Other Employment and Location. Anything to the contrary hereinabove
notwithstanding, Company acknowledges that Employee may serve as a Director
and/or Chairman of the Board of certain other companies and will direct a
reasonable portion of his time to fulfilling his duties in such capacities.
Company acknowledges that Employee serving as a Director and/or Chairman of the
Board of other companies shall not constitute a violation of this Agreement or
any provision hereof including but not limited to Sections 11, 12 and 13, so
long as Employee dedicates a reasonable amount of his time to his duties
hereunder. The Employee shall not be required to move from [Orange County],
California, to perform his duties hereunder during the Term without his written
consent.

      16. Improvements and Inventions. Any and all improvements or inventions,
which the Employee may make or participate in during the period of his
employment, shall be the sole and exclusive property of the Company. The
Employee will, whenever requested by the Company, execute and deliver any and
all documents which the Company shall deem appropriate in order to apply for and
obtain patents for improvements or inventions or in order to assign and convey
to the Company the sole and exclusive right, title and interest in and to such
improvements, inventions, patents or applications.

      17. Actions. The parties agree and acknowledge that the rights conveyed by
this Agreement are of a unique and special nature and that the Company will not
have an adequate remedy at law in the event of a failure by the Employee to
abide by its terms and conditions nor will money damages adequately compensate
for such injury. It is, therefore, agreed between the parties that, in the event
of a breach by the Employee of any of his obligations contained in this
Agreement, the Company shall have the right, among other rights, to damages
sustained thereby and to obtain an injunction or decree of specific performance
from any court of competent jurisdiction to restrain or compel the Employee to
perform as agreed herein. The Employee agrees that this Section 17 shall


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survive the termination of his employment and he shall be bound by its terms at
all times subsequent to the termination of his employment for so long a period
as Company continues to conduct the same business or businesses as conducted
during the Term or any extensions thereof. Nothing herein contained shall in any
way limit or exclude any other right granted by law or equity to the Company.

      18. Amendment. This Agreement contains, and its terms constitute, the
entire agreement of the parties, and it may be amended only by a written
document signed by both parties to this Agreement.

      19. Governing Law. California law shall govern the construction and
enforcement of this Agreement and the parties agree that any litigation
pertaining to this Agreement shall be adjudicated in courts located in
California. This Agreement supercedes and replaces any prior agreements or
understandings between the parties with respect to the subject matter hereof.

      20. Attorneys' Fees. If any party finds it necessary to employ legal
counsel or to bring an action at law or other proceedings against the other
party to enforce any of the terms hereof, the party prevailing in any such
action or other proceeding shall be paid by the other party its reasonable
attorneys' fees as well as court costs, all as determined by the court and not a
jury.

      21. Severability. If any section, subsection or provision hereof is found
for any reason whatsoever, to be invalid or inoperative, that section,
subsection or provision shall be deemed severable and shall not affect the force
and validity of any other provision of this Agreement. If any covenant herein is
determined by a court to be overly broad thereby making the covenant
unenforceable, the parties agree and it is their desire that such court shall
substitute a reasonable judicially enforceable limitation in place of the
offensive part of the covenant and that as so modified the covenant shall be as
fully enforceable as if set forth herein by the parties themselves in the
modified form. The covenants of the Employee in this Agreement shall each be
construed as an agreement independent of any other provision in this Agreement,
and the existence of any claim or cause of action of the Employee against the
Company, whether predicated on this Agreement or otherwise, shall not constitute
a defense to the enforcement by the Company of the covenants in this Agreement.

      22. Notices. Any notice, request, or instruction to be given hereunder
shall be in writing and shall be deemed given when personally delivered or three
(3) days after being sent by United States Certified Mail, postage prepaid, with
Return Receipt Requested, to the parties at their respective addresses set forth
below:

            To the Company:   American National Financial, Inc.
                              1111 East Katella Avenue, Suite 220
                              Orange, California  92867
                              Attention:   Wayne Diaz, President


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            To the Employee:  Michael C. Lowther
                              4 Carmel Woods
                              Laguna Niguel, California  92677


      23. Waiver of Breach. The Waiver by any party of any provisions of this
Agreement shall not operate or be construed as a waiver of any prior or
subsequent breach by the other party.


      IN WITNESS WHEREOF the parties have executed this Agreement to be
effective as of the date first set forth above.


                              AMERICAN NATIONAL FINANCIAL, INC.


                              By:   ________________________________
                                    Wayne Diaz
                              Its:  President



                              MICHAEL C. LOWTHER


                              ______________________________________


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