EXHIBIT 10.1

March 20, 2002

Stephen P. Glennon
Wilshire Financial Services Group Inc.
1776 SW Madison Street
Portland, OR  97205

Re:     Continuation of Employment

Dear  Steve,

To
confirm our prior discussions, Wilshire Financial Services Group 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:

|Position:          | CEO - Wilshire Financial Services Group Inc.                                                                                                                                                                                          
|------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                   |                                                                                                                                                                                                                                       
|Salary:            | March 1, 2002 - February 28, 2003 - $8,333.33/month ($100,000/year)                                                                                                                                                                   
|                   | March 1, 2003 - February 29, 2004 - $25,000/month ($300,000/year)                                                                                                                                                                     
|                   |                                                                                                                                                                                                                                       
|Stock Option:      | 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.                              
|                   |                                                                                                                                                                                                                                       
|Expenses:          | The Company will provide you with a car and rent allowance with a value of up to $3,000 per month.                                                                                                                                    
|                   |                                                                                                                                                                                                                                       
|Change-in-Control: | Upon a change in control of WFSG, as described in WFSG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.

|Severance: | 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.
|---------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Insurance: | Medical  (including  prescriptions  and  wellness),  Dental and Vision  benefits in  accordance  with then existing Company policy.
|---------- | -----------------------------------------------------------------------------------------------------------------------------------

|Personal | 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.
|-------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Very truly yours,
| | -----------------

| | Larry B. Faigin                       
| | --------------------------------------
| | Chairman of the Board                 
| | Wilshire Financial Services Group Inc.

Acceptance of Offer:

--------------------------------------------------------------
Stephen P. Glennon
Date:  March 20, 2002