Exhibit 10.127



March 1, 2005



Mr. Garland Koch

24 Flossmoor

Trabuco Canyon, CA 92679



| | Re: | Employment Agreement
| | --- | --------------------



Dear Mr. Koch:



This letter agreement and
attachments hereto, (collectively the Agreement) set forth the terms and conditions of your employment with United PanAm Financial Corp (Employer) and its subsidiary United Auto Credit Corporation
(UACC), both of which may be referred to interchangeably hereinafter as Employer. By signing this Agreement, you will be agreeing to these terms. It is important that you understand clearly both what your benefits are
and what is expected of you by Employer. The effective date of this Agreement (the Effective Date) shall be as of March 1, 2005 and will replace your previous agreement.



|1. | Term. This Agreement shall have a term of three (3) years, commencing as of the Effective Date (the Term). Where used herein, Term shall refer
to the entire period of your employment by Employer from and after the Effective Date, whether for the period provided above or as extended or terminated earlier as hereinafter provided.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|2. | Duties. You shall hold the office of Executive Vice President  Chief Financial Officer. You shall perform the duties customarily performed by individuals holding a
similar title with other financial institutions or as otherwise may be agreed upon by Employer and you from time to time. During the Term hereof, you shall perform the services herein contemplated faithfully, diligently and to the best of your
ability in compliance with instructions and policies of senior management, the Board of Directors and with all applicable laws and regulations.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|3. | Compensation.
|-- | -------------



| | a) | Base Salary.For your service rendered to Employer or any subsidiary corporation hereunder, during the Term hereof, Employer shall pay or cause to be paid a base salary to
you at the rate of $180,000 per annum from March 1, 2005 to February 28, 2006, $190,000 per annum from March 1, 2006 to February 28, 2007, and $200,000 per annum from March 1, 2007 to February 28, 2008, payable in conformity with normal payroll
periods and procedures.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) | Bonus. In addition to the base salary provided for under Section 3(a) above, you shall be entitled to annual bonus compensation in accordance with the incentive compensation
formula set forth in Exhibit A to this Agreement. Among other things, the incentive compensation formula establishes certain performance criteria and sales objectives by which the amount of your bonus compensation, if any, is to be determined.
| | -- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

| | c) | Automobile Allowance. You shall receive during the Term of this Agreement an automobile allowance of Five Hundred Dollars ($500) per month.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------



| | d) | Options. Options will vest according to separate option agreements.
| | -- | -------------------------------------------------------------------



|4. | Other Benefits. During the Term hereof and unless otherwise agreed to by the Employer and you:
|-- | ----------------------------------------------------------------------------------------------



| | a) | Vacation. You shall be entitled to a total of three (3)weeks paid vacation, the amount and term of which shall be determined in accordance with the policies of
Employer as in effect from time to time.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) | Group Medical, Life Insurance and Other Benefits. You will be eligible for the medical, dental, vision, life insurance and long-term disability plans that are generally
applicable to your employment classification.
| | -- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|5. | Business Expenses. You shall be entitled to reimbursement by Employer for any and all ordinary and necessary business expenses reasonably incurred by you in the performance
of your duties and in acting for Employer during the Term of this Agreement, provided that you furnish to Employer adequate records and other documentation as may be required for the substantiation of such expenditures as a business expense.
|-- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|6. | Termination.
|-- | ------------



| | a) | Termination for Cause. The Board may for cause terminate your employment at any time during the Term of this Agreement. In such event, all of your rights under this Agreement
shall terminate and you shall have no right to receive compensation, and other benefits shall cease for any period after the effective date of such termination for cause. Any bonus compensation otherwise accrued shall be forfeited. Termination for
cause shall be defined as your personal dishonesty, willful misconduct, breach of fiduciary or duty of loyalty, continuing intentional or habitual failure to perform stated duties, violation of any law (other than minor traffic
violations or similar misdemeanor offenses), rule or regulation adopted by a regulatory agency with jurisdiction over Employer, any judgment, ruling or decree by any court of competent jurisdiction or administrative body that precludes or impairs
your ability to perform the services contemplated by this Agreement or any material breach by you of any provision of this Agreement.
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | b) | Termination Without Cause. Employer may terminate your employment without cause at any time during the Term of this Agreement. In the event that Employer terminates your
employment without cause, you shall be entitled to receive as severance compensation an amount as provided in Exhibit B. The severance payment under this Section 6(b) shall be provided in a lump sum or, at your election, in equal monthly
installments for a period not to exceed six (6) months from the date of termination. This payment shall be in lieu of any and all other compensation due under the agreement unless previously vested or earned, except the amount of any bonus
compensation payable to you under Section 3(b) hereof, shall be prorated through the date of termination. You may terminate your employment without cause at any time during the term of this agreement.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | c) | Disability. In the event that you shall fail, because of illness, incapacity or injury, to render the services contemplated by this Agreement for three (3)
consecutive calendar months, or for shorter periods aggregating four (4) months in any twelve (12) month period, your employment hereunder may be terminated by written notice from
| | -- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

| | Employer to you. In the event that your employment is terminated under this Section 6(g), you shall receive the difference between any disability payments
provided through insurance plans offered by Employer, if any, provided you have enrolled in such plans and paid the cost thereof, and your base salary as set forth in Section 3(a) hereof, for six months after notice from Employer, plus the amount of
any bonus compensation payable to you under Section 3(b) hereof, prorated through the date of termination. Such termination shall not affect any rights, which you may have pursuant to any insurance or other death benefit, or any stock option plans,
or options thereunder, which rights shall continue to be governed by the provisions of such plans and arrangements.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | d) | Death. If your employment is terminated by reason of your death, this Agreement shall terminate without further obligations of Employer to you (or your heirs or legal
representatives) under this Agreement, other than for payment of: (i) your base salary (as set forth in Section 3(a) hereof) through the date of termination; (ii) the amount of any bonus compensation payable to you under Section 3(b) above, prorated
through the date of termination; (iii) any compensation previously deferred by you; (iv) any accrued vacation and/or sick leave pay; and (v) any amounts due pursuant to the terms of any applicable welfare benefit plan. All of the foregoing amounts
shall be paid to your estate or beneficiary, as applicable, in a lump sum in cash within thirty (30) days after the date of termination or earlier as required by applicable law.
| | -- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|7. | Disclosure or Use of Employers Trade Secrets. During the Term hereof, you will have access to and become acquainted with what you and Employer acknowledge are trade
secrets or confidential or proprietary information of Employer (including but not limited to products, employees, practices, policies or process). You shall not use or disclose any trade secrets, confidential or proprietary information, directly or
indirectly, or cause them to be used or disclosed in any manner, except as may be required or requested by Employer, by court order or under applicable law or regulation. This paragraph shall survive the termination of this agreement.
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|8. | Return of Documents. You expressly agree that all manuals, documents, files, reports, studies or other materials used and/or developed by you for Employer during the Term of
this Agreement or prior thereto while you were employed by Employer are solely the property of Employer, and that you have no right, title or interest therein. Upon termination of this Agreement, you or your representative shall promptly deliver
possession of all such materials (including any copies thereof) to Employer.
|-- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|9. | Notices. All notices, demands or other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered in person, or sent by United
States mail, certified or registered, with return receipt requested, if to you, addressed to you at your last residence address as shown in the records of Employer, and if to Employer, addressed to the President of Employer at Employers
principal office.
|-- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|10. | Governing Law and Jurisdiction. This Agreement, the legal relations between the parties and any action instituted by any party arising under or in connection with this
Agreement, shall be governed by and interpreted in accordance with the laws of the State of California.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|11. | Arbitration. Any dispute, controversy or claim arising out of or in respect of this Agreement (or its validity, interpretation or enforcement), the
employment relationship or the subject matter hereof shall at the request of either party be submitted to and settled by arbitration conducted at a mutually convenient office of the Judicial Arbitration & Mediation Services,
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

| | Inc. (JAMS). Employer and Employee may agree on a retired judge from the JAMS panel. If we are unable to agree upon a retired judge, JAMS
will provide a list of three available judges and each party may strike one. If two of the three judges are stricken, the remaining judge will serve as arbitrator. If two arbitrators remain, the first judge listed shall serve as arbitrator. Employer
and you agree that arbitration must be initiated within two years after the claim breach occurred and that the failure to initiate arbitration within the two-year period constitutes an absolute bar to the institution of any new proceedings related
to such alleged breach. The aggrieved party can initiate arbitration by sending written notice of any intention to arbitrate by registered or certified mail to all parties and to JAMS. The notice must contain a description of the dispute, the amount
involved and the remedy sought. The prevailing party in such proceeding will be entitled to the reasonable attorneys fees and expenses of counsel and costs incurred by reason of such arbitration.
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|12. | Benefit of Agreement. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns; provided,
however, that you may not assign any interest in this Agreement without the prior written consent of Employer.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|13. | Captions. Captions and paragraph heading used in this Agreement are for convenience only and shall not be used in interpreting this Agreement.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------



|14. | Entire Agreement. This Agreement contains the entire agreement of the parties with respect to your employment by Employer, and it expressly supersedes any and all other
agreements, either oral or written, relating thereto.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|15. | Severability. Should any provision of this Agreement for any reason be declared invalid, void or unenforceable by a court of competent jurisdiction, the validity and binding
effect of any remaining portions of this Agreement shall remain in full force and effect as if this Agreement had been executed with such invalid, void or unenforceable provisions eliminated; provided, however, that the remaining provisions still
reflect the intent of the parties to this Agreement.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|16. | Amendments. This Agreement may not be amended or modified except by a written agreement signed by you and the President of United PanAm Financial Corp. This Agreement and any
amendment thereof may be executed in counterparts.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|17. | Non-Solicitation. You agree that for a period of one year after the termination of employment you will not, except in the case of termination pursuant to Section 6(b) hereof,
on behalf of the Employee or on behalf of any other individual, association or entity, call on any of the customers of Employer for the purpose of soliciting or inducing any of such customers to acquire (or providing to any of such customers) any
product or service provided by Employer, nor will Employee in any way, directly or indirectly, as agent or otherwise, in any other manner solicit, influence or encourage such customers to take away or to divert or direct their business to Employee
or any other person or entity by or with which Employee is employed, associated, affiliated or otherwise related.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|18. | Employees. Employee agrees that for a period of two years after the termination of Employees employment, except in the case of termination pursuant to Section 6(b)
hereof, Employee will not, directly or indirectly, disrupt, damage, impair, or interfere with Employers business by soliciting, influencing, encouraging or recruiting any employee of Employer to work for Employee or any Employee Related
Entity.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



---

We look forward to your continued successful association with United PanAm Financial Corp. In order to confirm your
agreement with and acceptance of the terms and conditions set forth above, please sign and date one copy of this Agreement where indicated below and return it to the Human Resources Department. The other copy is for your records.



|                 
|-----------------
|Very truly yours,
|                 
|/s/ Ray Thousand 
|Ray Thousand     
|President and CEO



---

I agree to the terms of employment set forth in this Agreement subject to approval of the Board of Directors of United
PanAm Financial Corp.



|                 |  |  |  |        |  | 
|---------------- |  |  |  | ------ |  | 
|/s/ Garland Koch |  |  |  | 3-1-05 |  | 
|Employee         |  |  |  | Date   |  | 



---

EXHIBIT B

Severance Compensation

Upon Termination Without Cause

Pursuant to 6(b)



If termination occurs during the first two years of the Term, the payment shall be equal to twelve (12) months salary at the then current base salary, plus prorated bonus
through the date of termination.



If termination occurs in the third year, the
amount paid shall be the actual amount of base salary remaining to be paid to the end of the Term, plus prorated bonus through the date of termination.



---

EXHIBIT A

Bonus Calculations



GOALS for
2005



|                       |  |                                                            |  |                                                          |  |           |    
|---------------------- |  | ---------------------------------------------------------- |  | -------------------------------------------------------- |  | --------- | ---
|                       |  | Bonus Level                                                |  |                                                          |  | % of Plan |    
|UPFC Pretax Net Income |  | 50% of base salary 37.5% of base salary 25% of base salary |  | $42.1 MM Pretax NI $40.5 MM Pretax NI $39.0 MM Pretax NI |  | 1009081   | %%%
|                       |  |                                                            | 
|UACC Pretax Net Income |  | 50% of base salary 37.5% of base salary 25% of base salary |  | $42.6 MM Pretax NI $41.0 MM Pretax NI $39.5 MM Pretax NI |  | 10095.585 | %%%
|                       |  |                                                           
|UACC Volume            |  | Minimum $45MM Avg/mo for one (1) quarter                   |  |                                                          | 
|                       |  |                                                           
|UACC Delinquency       |  | Max 2% Average 30+ (incl. Repos)                           |  |                                                          | 
|                       |  |                                                           
|UACC Charge offs       |  | Max 6.75% Average charge off                               |  |                                                          | 



The bonus calculation, including the
amounts to be used for the goals as set forth above, shall be mutually agreed upon in years 2 and 3 based on the approved budget.



Pre-tax profit for UACC shall be based upon the amount reflected in the internal financial statements for UACC without any allocation for Corporate overhead



Attainment of goals/bonus assumes that there are no material changes in policy
that might materially affect or limit the Auto Finance Division Business Plan. If any material changes in policy are made, and not concurred in by you, then goals and bonus calculation will be adjusted accordingly upon mutual agreement of the
parties.



Employee must be on the payroll at the end of the calendar year to be
eligible for payment of a bonus regardless of length of service or reason for termination or resignation unless provided for specifically in the Employment Agreement. If Employee is discharged by the Company for Willful Misconduct or any
other reason set forth in Paragraph 6(a) of the Employment Agreement, any right of the Employee to a bonus shall be forfeited even if you are on the payroll at the end of the calendar year.



Bonus payments will be made within 60 days after the end of the calendar year allowing for
the review of the results of operations.