Document:

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                                                                   Exhibit 10.26
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                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (the "Agreement") has been executed as of
     February 4, 2000 by and between IndyMac Mortgage Holdings, Inc. and
     IndyMac, Inc. (each of which is individually and collectively referred to
     as the "Employer") and Michael W. Perry ("Officer").

                                  WITNESSETH:

WHEREAS, Employer desires to obtain the benefit of continued services of Officer
and Officer desires to continue to render services to Employer and its
affiliates.

WHEREAS, Employer and Officer desire to set forth the terms and conditions of
Officer's employment with Employer and its affiliates under this Agreement.

NOW, THEREFORE, in consideration of the mutual promises and covenants herein
contained.  The parties hereto agree as follows:

1.   Term. Employer agrees to employ Officer and Officer agrees to serve
     Employer and its affiliates, in accordance with the terms hereof, for a
     term beginning on the date first written above and ending on February 5,
     2003, unless earlier terminated in accordance with the provisions hereof.

2.   Position, Duties and Responsibilities. Employer and Officer hereby agree
     that, subject to the provisions of this Agreement, Employer will employ
     Officer and Officer will serve as Chief Executive Officer of Employer.
     Employer agrees that Officer's duties hereunder shall be the usual and
     customary duties of such offices and such further duties shall not be
     inconsistent with the provisions of applicable law. Officer shall have such
     executive power and authority as shall reasonably be required to enable him
     to discharge his duties in the offices which he may hold. All compensation
     paid to Officer by Employer or any of its affiliates shall be aggregated in
     determining whether Officer has received the benefits provided for herein,
     but without prejudice to the allocation of costs among the entities to
     which Officer renders services hereunder.

     Employer agrees that it will nominate Officer to be elected to the Board of
     Directors of Employer (subject to shareholder approval) and that, as long
     as Officer serves on the Board of Directors, he will serve as Vice Chairman
     of the Board.  In the event Officer is not elected to the Board of
     Directors, Officer can elect to treat such action as a Termination Other
     Than For Cause pursuant to Section 5(d).

     In the event of a material diminution in Officer's position, powers,
     reporting requirements, duties or responsibilities as Chief Executive
     Officer, which is not cured within thirty (30) days after receipt by
     Employer of written notice of such material diminution, Officer can elect
     to treat such action as a Termination Other Than For Cause pursuant to
     Section 5(d).

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3.   Scope of this Agreement and Outside Affiliations. During the term of this
     Agreement, Officer shall devote his full business time and energy, except
     as expressly provided below, to the business, affairs and interests of
     Employer and its affiliates, and matters related thereto, and shall use his
     best efforts and abilities to promote their respective interests. Officer
     agrees that he will diligently endeavor to promote the business, affairs
     and interests of Employer and its affiliates and perform services
     contemplated hereby, in accordance with the policies established by the
     Board, which policies shall be consistent with this Agreement. Officer
     agrees to serve without additional remuneration as an officer or director
     of one or more (direct or indirect) subsidiaries or affiliates of Employer
     as the Board may from time to time request, subject to appropriate
     authorization by the affiliate or subsidiary involved and any limitation
     under applicable law. Officer's failure to discharge an order or perform a
     function because Officer reasonably and in good faith believes such would
     violate a law or regulation or be dishonest shall not be deemed a breach by
     him of his obligations or duties pursuant to any of the provisions of this
     Agreement, including without limitation pursuant to Section 5(c) hereof.

     During the course of Officer's employment as a full-time officer hereunder,
     Officer shall not, without the consent of the Board, compete, directly or
     indirectly, with Employer in the business then conducted by Employer or any
     of its affiliates.

     Officer may make and manage personal business investments of his choice and
     serve in any capacity with any civic, educational or charitable
     organization, or any governmental entity or trade association, without
     seeking or obtaining approval by the Board, provided such activities and
     services do not materially interfere or conflict with the performance of
     his duties hereunder.

4.   Compensation and Benefits.

     a.  Base Salary. Employer shall pay to Officer a base salary in respect of
         the portion of the fiscal year of Employer (a "Fiscal Year") ending
         December 31, 2000 at the annual rate of $760,000 (the "Annual Rate"),
         beginning on the date hereof. On or after the beginning of each Fiscal
         Year commencing January 1, 2001, the Compensation Committee of the
         Board (the "Compensation Committee") may, based upon the recommendation
         of the chairman of the Compensation Committee and Board of Directors'
         approval and the performance of Officer and Employer, increase the
         Annual Rate. While any such increase shall be at the discretion of the
         Compensation Committee, it is anticipated that such increase will be at
         least an increase of 10% of the Annual Rate, but could vary from such
         percentage in the judgment of the Compensation Committee.

     b.  Incentive Compensation. Generally, Employer shall pay to Officer for
         each of the Fiscal Years ending during the term of this Agreement no
         incentive compensation award, provided, however, that the decision
         whether or not to award Officer incentive compensation (including
         without limitation additional stock incentives, compensation or
         benefits) and the amount, if any, shall be at the sole and absolute
         discretion of the Compensation Committee.

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     c.  Stock Options. Employer shall grant to Officer a stock option grant of
         1,000,000 shares of the Employer's common stock on February 4, 2000 and
         1,000,000 shares of the Employer's common stock on February 5, 2001.
         These stock option grants shall vest equally over 5 years from their
         respective date of grant.

         Officer agrees that any stock options or restricted stock granted to
         him under his prior Employment Agreements shall be subject to the
         vesting schedule provided therein and shall otherwise be subject to the
         terms of this Agreement.

         All stock options and restricted stock governed by this Section 4(c):
         (i) shall be granted pursuant to Employer's current stock option plan,
         or such other stock option plan or plans as may be or come into effect
         during the term of this Agreement, (ii) shall have a per share exercise
         price equal to the fair market value (as defined in the current stock
         option plan or such other plan or plans) of the common stock at the
         time of grant, (iii) shall become immediately and fully vested and
         granted if not yet vested or granted in the event of a Change in
         Control (as defined in Appendix A) or in the event that Officer's
         employment is terminated due to death or Disability or by Employer
         other than for Cause ("Cause" as defined in Section 5(c)) or in the
         event that this Agreement terminates according to its terms (as
         provided in Section 5(g)), and (iv) shall give Officer the right, upon
         termination of his employment hereunder, other than for Cause, to
         exercise such options for a period of twelve (12) months after such
         termination (but in no event later than their expiration date).

         All stock options and restricted stock shall be subject to such other
         reasonable and consistent terms and conditions as may be determined by
         the Compensation Committee and set forth in the memorandum evidencing
         the award.

     d.  Additional Benefits. Officer shall also be entitled to all rights and
         benefits for which he is otherwise eligible under any bonus plan, stock
         purchase plan, participation or extra compensation plan, executive
         compensation plan, pension plan, profit-sharing plan, deferred
         compensation plan, life and medical insurance policy, or other plans or
         benefits, which Employer or its subsidiaries may provide for him, or
         provided he is eligible to participate therein, for senior officers
         generally or for employees generally, during the term of this Agreement
         (collectively, "Additional Benefits"). This Agreement shall not affect
         the provision of any other compensation, retirement or other benefit
         program or plan of Employer. If Officer's employment is terminated
         hereunder, pursuant to Section 5(a), 5(b) or 5(d), Employer shall
         continue for the period specified in Section 5(a), 5(b) or 5(d) hereof,
         to provide benefits substantially equivalent to the life, disability,
         and medical insurance policies on behalf of Officer and his dependents
         and beneficiaries which were being provided to them immediately prior
         to Officer's Termination Date, but only to the extent that Officer is
         not entitled to comparable benefits from other employment.

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     e.  Certain Perquisites.

         (i)   Club Memberships. Employer shall pay standard annual and monthly
               membership fees and any business related charges for Officer's
               participation in the Young Presidents' Organization, the San
               Gabriel Country Club, the California Club, and such other
               memberships as may be approved by the Compensation Committee.

         (ii)  Car Allowance. Employer shall either provide Officer with an
               appropriate luxury automobile for Officer's exclusive use or pay
               Officer an equivalent monthly automobile allowance, such
               automobile or amount to be mutually agreed to by the Compensation
               Committee and Officer.

         (iii) Travel. In connection with business travel. Officer shall be
               permitted to travel first class, or by chartered service where
               appropriate, and to be reimbursed by Employer for such travel
               expenses.

         (iv)  Financial Planning Services. Employer shall pay for the financial
               planning and tax services of AYCO for Officer, including a full
               tax gross-up for any imputed income to Officer resulting from
               such benefit. The annual amount that Employer shall be required
               to pay for such services shall not exceed $25,000, exclusive of
               the tax gross-up.

         (v)   Split Dollar Life Insurance. Employer shall provide a split
               dollar life insurance policy in a face amount equal to four (4)
               times Officer's Base Salary, on the life of Officer. The terms of
               such life insurance will be set forth in a separate memorandum.

     f.  Employer Liability. IndyMac Mortgage Holdings, Inc. and IndyMac, Inc.
         are fully liable for the full amount of compensation and benefits
         payable to Officer. It is anticipated that initially all compensation
         will be paid by IndyMac, Inc. and that any allocation of the costs of
         such compensation between IndyMac Mortgage Holdings, Inc. and IndyMac,
         Inc. will be set forth in a separate agreement between those two
         entities.

5.   Termination. The compensation and benefits provided for herein and the
     employment of Officer by Employer shall be terminated only as provided for
     below in this Section 5:

     a.  Disability. In the event that Officer shall fail, because of illness,
         injury or similar incapacity ("Disability"), to render for six (6)
         consecutive months or for shorter periods aggregating one hundred
         twenty (120) or more business days in any twelve (12) month period,
         services contemplated by this Agreement, Officer's full-time employment
         hereunder may be terminated, by written Notice of Termination from
         Employer to Officer; and thereafter, Employer shall continue, from the
         Termination Date until Officer's death or February 5, 2003, whichever
         first occurs (the "Disability Payment Period"), (i) to pay compensation
         to Officer,

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         in the same manner as in effect immediately prior to the Termination
         Date, in an amount equal to (1) fifty percent (50%) of the then
         existing base salary payable immediately prior to the termination,
         minus (2) the amount of any cash payments to him under the terms of
         Employer's disability insurance or other disability benefit plans or
         Employer's tax-qualified Defined Benefit Pension Plan, and any
         compensation he may receive pursuant to any other employment, and (ii)
         to provide during the Disability Payment Period the benefits specified
         in the last sentence of Section 4(d) hereof.

         The determination of Disability shall be made only after Officer has
         failed to render services for the above stated time periods and shall
         be made only after 30 days notice to Officer (which may run
         concurrently with the Notice of Termination). In order to determine
         Disability, both employer and Officer shall have the right to provide
         medical evidence to support their respective positions, with the
         ultimate decision regarding Disability to be made by a majority of
         Employer's disinterested directors.

     b.  Death. In the event that Officer shall die during the term of this
         Agreement, Employer shall pay to such person or persons as Officer
         shall have directed in writing or, in the absence of a designation, to
         his estate (the "Beneficiary") an amount equal to $5,000,000.00, which
         amount shall be in addition to any other benefits to be paid upon
         Officer's death, including any life insurance payments. Such payment
         will be made within 30 days of the death of Officer. If Officer's death
         occurs while he is receiving payments for Disability under Section 5(a)
         above, such payments shall cease and the Beneficiary shall be entitled
         to the payments and benefits under this Subsection 5(b). This Agreement
         in all other respects will terminate upon the death of Officer;
         provided, however, that (i) the termination of the Agreement shall not
         affect Officer's entitlement to all other benefits in which he has
         become vested or which are otherwise payable in respect of periods
         ending prior to its termination, and (ii) to the extent not otherwise
         vested, all outstanding stock options granted to Officer pursuant to
         Section 4(c) will vest upon his death.

     c.  Cause. Employer may terminate Officer's employment under this Agreement
         for "Cause." A termination for Cause is a termination by reason of (i)
         a material breach of this Agreement by Officer (other than as a result
         of incapacity due to physical or mental illness) which is committed in
         bad faith or without reasonable belief that such breach is in the best
         interests of Employer and which, for any breach that is remediable, is
         not remedied within a reasonable period of time after receipt of
         written notice from Employer specifying such breach, or (ii) Officer's
         conviction by a court of competent jurisdiction of a felony involving
         acts of fraud, embezzlement, dishonesty or moral turpitude, or (iii)
         entry of an order duly issued by any federal or state regulatory agency
         having jurisdiction in the matter removing Officer from office of
         Employer or its affiliates or permanently prohibiting him from
         participating in a material portion of the affairs of Employer of any
         of its affiliates, provided that the order resulted from act(s) of
         Officer which were committed in bad faith and without reasonable belief
         that such act(s) were in the best interests of Employer. If Officer
         shall be convicted of a felony or shall be removed from office and/or
         temporarily prohibited from participating in

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         the conduct of Employer's or any of its affiliates' affairs by any
         federal or state regulatory authority having jurisdiction in the
         matter, Employer's obligations under Sections 4(a), 4(b), 4(c), and
         4(f) hereof shall be automatically suspended; provided, however, that
         if the charges resulting in such removal or prohibition are finally
         dismissed or if a final judgment on the merits of such charges is
         issued in favor of Officer, or if the conviction is overturned on
         appeal, then Officer shall be reinstated in full with back pay for the
         removal period plus accrued interest at the rate then payable on
         judgments. During the period that Employer's obligations under Sections
         4(a), 4(b), 4(c), and 4(f) hereof are suspended, Officer shall continue
         to be entitled to receive Additional Benefits under Section 4(d) until
         the conviction of the felony or removal from office has become final
         and non-appealable. When the conviction of the felony or removal from
         office has become final and non-appealable, all of Employer's
         obligations hereunder shall terminate; provided, however, that the
         termination of Officer's employment pursuant to this Section 5(c) shall
         not affect Officer's entitlement to all benefits in which he has become
         vested or which are otherwise payable in respect of periods ending
         prior to his termination of employment. Upon termination for Cause,
         Officer is not entitled to any severance and no unvested stock options
         or restricted stock will vest because of the termination. Anything
         herein to the contrary notwithstanding, termination for Cause shall not
         include termination by reason of Officer's job performance or a job
         performance rating given to Officer for his job performance or the
         financial performance of Employer or any affiliated company.

     d.  Termination Other Than For Cause.

         (i)   If during the term of this Agreement, Officer's employment shall
               be terminated by Employer other than for Cause, then Employer
               shall (1) pay Officer in a single payment as soon as practicable
               after the Termination Date, but in no event later than thirty
               (30) days thereafter, an amount in cash equal to $5,000,000 and
               (2) until the earlier of (a) the date Officer obtains other
               employment which provides similar benefits or (b) the second
               anniversary of the Termination Date, provide the benefits
               specified in the last sentence of Section 4(d) hereof.

         (ii)  If within two (2) years after a "Change in Control" (as defined
               in Appendix A to this Agreement) and during the term of this
               Agreement, Officer's position, powers, reporting requirements,
               duties, or responsibilities as Chief Executive Officer or Vice
               Chairman of the Board of Directors, or such other higher position
               held by Officer are materially altered from those in effect
               immediately prior to the Change in Control, then Officer can
               terminate this Agreement upon thirty days (30) notice, and
               Employer shall (1) pay Officer in a single payment as soon as
               practicable after the Termination Date, but in no event later
               than thirty (30) days thereafter, an amount in cash equal to
               $5,000,000 and (2) until the earlier of (a) the date Officer
               obtains other employment which provides similar benefits or (b)
               the second anniversary of the Termination Date, provide the
               benefits specified in the last sentence of Section 4(d)

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               hereof.

         (iii) Notwithstanding anything in this Agreement to the contrary, in
               the event it shall be determined that any payment or distribution
               by Employer or any other person or entity to or for the benefit
               of Officer (within the meaning of Section 280G(b)(2) of the
               Internal Revenue Code of 1986, as amended (the "Code"), whether
               paid or payable or distributed or distributable pursuant to the
               terms of this Agreement or otherwise in connection with, or
               arising out of, his employment with Employer or a change in
               ownership or effective control of Employer or a substantial
               portion of its assets (a "Payment"), would be subject to the
               excise tax imposed by Section 4999 of the Code (the "Excise
               Tax"), the Payments shall include gross-up for any excise taxes
               due under IRC 280g or similar "golden parachute" provisions plus
               any excise, income, or payroll taxes owed on the payment on the
               excise tax amount.

     e.  Resignation. If during the term of this Agreement, Officer shall resign
         voluntarily, all of his rights to payment or benefits hereunder shall
         immediately terminate; provided, however, that the termination of
         Officer's employment pursuant to this Section 5(e) shall not affect
         Officer's entitlement to all benefits in which he has become vested or
         which are otherwise payable in respect of periods ending prior to his
         termination of employment. If Officer resigns as a result of a material
         breach by Employer, including a deemed breach pursuant to Section 8(a),
         which breach is not cured by Employer within 30 days receipt of written
         notice, then Officer's resignation will be considered as a Termination
         Other Than For Cause pursuant to Section 5(d) for all purposes under
         this Agreement.

     f.  Notice of Termination. Any purported termination by Employer or by
         Officer shall be communicated by a written Notice of Termination to the
         other party hereto which indicates the specific termination provision
         in this Agreement, if any, relied upon and which sets forth in
         reasonable detail the facts and circumstances, if any, claimed to
         provide a basis for termination of Officer's employment under the
         provision so indicated. For purposes of this Agreement, no such
         purported termination shall be effective without such Notice of
         Termination. The "Termination Date" shall mean the date specified in
         the Notice of Termination, which shall be no less than 30 or more than
         60 days from the date of the Notice of Termination. Notwithstanding any
         other provision of this Agreement, in the event of any termination of
         Officer's employment hereunder for any reason, Employer shall pay
         Officer his full base salary through the Termination Date, plus any
         Additional Benefits which have been earned or become payable, but which
         have not yet been paid as of such Termination Date.

     g.  Non-Renewal of Agreement. In the event that this Agreement terminates
         according to its terms on February 5, 2003, and is not renewed on terms
         mutually acceptable to Employer and Officer, such termination of
         Officer's employment pursuant to this Section 5(g) shall not affect
         Officer's entitlement to all benefits in which he has become vested or
         which are otherwise payable with respect to

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         periods ending on or prior to his termination of employment, provided
         that, to the extent not otherwise vested, all outstanding stock options
         and restricted stock granted to Officer pursuant to Section 4(c) or
         prior to this Agreement shall thereupon vest. Employer shall also (1)
         pay Officer in a single payment as soon as practicable after the
         termination, but in no event later than thirty (30) days thereafter, an
         amount in cash equal to $5,000,000.00, and (2) until the earlier of (a)
         the date Officer obtains other employment or (b) the second anniversary
         of the termination of employment, provide the benefits specified in the
         last sentence of Section 4(e) hereof.

6.   Reimbursement of Business Expenses. During the term of this Agreement,
     Employer shall reimburse Officer promptly for all reasonable and
     appropriate business expenditures to the extent that such expenditures are
     substantiated by Officer as required by the Internal Revenue Service and
     rules and policies of Employer.

7.   Indemnity. To the extent permitted by applicable law, the Certificate of
     Incorporation and the By-Laws of Employer (as from time to time in effect)
     and any indemnity agreements entered into from time to time between
     Employer and Officer, Employer shall indemnify Officer and hold him
     harmless for any acts or decisions made by him in good faith while
     performing services for Employer, and shall maintain coverage for him under
     liability insurance policies of a minimum amount of fifty million dollars
     covering officers or directors of Employer.

8.   Miscellaneous.

     a.  Successorship. This Agreement shall inure to the benefit of and shall
         be binding upon Employer, its successors and assigns, but without the
         prior written consent of Officer, this Agreement may not be assigned
         other than in connection with a merger or sale of substantially all the
         assets of Employer or similar transaction to or with a company with a
         larger net worth, higher credit rating and greater profit than
         Employer. The failure of any successor to or assignee of the Employer's
         business and/or assets in such transaction to expressly assume all
         obligations of Employer hereunder shall be deemed a material breach of
         this Agreement by Employer.

     b.  Notices. Any notices provided for in this Agreement shall be sent to
         Employer at its corporate headquarters, Attention: Corporate
         Counsel/Secretary, with a copy to the Chairman of the Compensation
         Committee at the same address, or to such other address as Employer may
         from time to time in writing designate, and to Officer at such address
         as he may from time to time in writing designate (or his business
         address of record in the absence of such designation). All notices
         shall be deemed to have been given two (2) business days after they
         have been deposited as certified mail, return receipt requested,
         postage paid and properly addressed to the designated address of the
         party to receive the notices.

     c.  Entire Agreement. This instrument contains the entire agreement of the
         parties relating to the subject matter hereof, and it replaces and
         supersedes any prior

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         agreements between the parties relating to said subject matter;
         provided, however, that Officer hereby expressly acknowledges that
         Officer has executed Employer's standard Arbitration Agreement to the
         extent not replaced or superseded by this Agreement. No modifications
         or amendments of this Agreement shall be valid unless made in writing
         and signed by the parties hereto.

     d.  Waiver. The waiver of the breach of any term or of any condition of
         this Agreement shall not be deemed to constitute the waiver of any
         other breach of the same or any other term or condition.

     e.  California Law.  This Agreement shall be construed and interpreted in
         accordance with the laws of California.

     f.  Attorneys' Fees in Action on Contract. If any arbitration or litigation
         shall occur between the Officer and Employer, which arbitration or
         litigation arises out of or as a result of this Agreement or the acts
         of the parties hereto pursuant to this Agreement, or which seeks an
         interpretation of this Agreement, the prevailing party in such
         arbitration or litigation, in addition to any other judgment or award,
         shall be entitled to receive such sums as the court hearing the matter
         shall find to be reasonable as and for the attorney's fees of the
         prevailing party.

     g.  Confidentiality. Officer agrees that he will not divulge or otherwise
         disclose, directly or indirectly, any trade secret or other
         confidential information concerning the business or policies of
         Employer or any of its subsidiaries which he may have learned as a
         result of his employment during the term of this Agreement or prior
         thereto as an employee, officer or director of or consultant to
         Employer or any of its subsidiaries, except to the extent such use or
         disclosure is (i) necessary or appropriate to the performance of this
         Agreement and in furtherance of Employer's best interests as determined
         in Officer's business judgment, (ii) required by applicable law or in
         response to a lawful inquiry from a governmental or regulatory
         authority, (iii) lawfully obtainable from other sources, or (iv)
         authorized by Employer. The provisions of this subsection shall survive
         the expiration, suspension or termination, for any reason, of this
         Agreement.

     h.  Remedies of Employer. Officer acknowledges that the services he is
         obligated to render under the provisions of this Agreement are of a
         special, unique, unusual, extraordinary and intellectual character,
         which gives this Agreement peculiar value to Employer. The loss of
         these services cannot be reasonably or adequately compensated in
         damages in an action at law and it would be difficult (if not
         impossible) to replace these services. By reason thereof, Officer
         agrees and consents that if he violates any of the material provisions
         of this Agreement, Employer, in addition to any other rights and
         remedies available under this Agreement or under applicable law, shall
         be entitled during the remainder of the term to seek injunctive relief,
         without posting any bond, from a tribunal of competent jurisdiction,
         restraining Officer from committing or continuing any violation of this
         Agreement.

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     i.  Severability. If any provision of this Agreement is held invalid or
         unenforceable, the remainder of this Agreement shall nevertheless
         remain in full force and effect, and if any provision is held invalid
         or unenforceable with respect to particular circumstances, it shall
         nevertheless remain in full force and effect in all other
         circumstances.

     j.  No Obligation to Mitigate. Officer shall not be required to mitigate
         the amount of any payment provided for in this Agreement by seeking
         other employment or otherwise and, except as provided in Section
         5(a)(i)(2) hereof, no payment hereunder shall be offset or reduced by
         the amount of any compensation or benefits provided to Officer in any
         subsequent employment.

     k.  Covenant Not to Compete.

         (i)   In General. Officer agrees that while he is employed by Employer
               during the term of this Agreement and for a period of one year
               after the termination of such employment if he voluntarily
               resigns or if he is terminated for Cause or Other Than For Cause
               (the "Non-Compete Period"), he shall not, within North America:

               (A)  engage in any business, whether as an employee, consultant,
                    partner, principal, agent, representative or stockholder
                    (other than as a stockholder of less than a one percent (1%)
                    equity interest) or in any other corporate or representative
                    capacity with any other business whether in corporate,
                    proprietorship, or partnership form or otherwise, where such
                    business is engaged in any activity which competes with the
                    material business of Employer (or its subsidiaries or
                    affiliates) as conducted on the date Officer's employment
                    terminated;

               (B)  solicit business from, or perform services for, any company
                    or other business entity which at any time during the two-
                    year period immediately preceding Officer's termination of
                    employment with Employer was a material client of Employer
                    (or its subsidiaries or affiliates) (including without
                    limitation any lessee, vendor or supplier); or

               (C)  solicit for employment, offer, or cause to be offered,
                    employment, either on a full-time, part-time or consulting
                    basis, to any person who was employed by Employer (or its
                    subsidiaries or affiliates) on the date Officer's employment
                    terminated, unless Officer shall have received the prior
                    written consent of Employer.

         (ii)  Consideration. The consideration for the foregoing covenant not
               to compete, the sufficiency of which is hereby acknowledged, is
               Employer's agreement to continue to employ Officer and provide
               compensation and benefits pursuant to this Agreement, including
               but not limited to Section

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               5(d).

         (iii) Relief and Other Remedies. Officer acknowledges and agrees that
               Employer's remedies at law for a breach or threatened breach of
               any of the provisions of this Section would be inadequate and, in
               recognition of this fact, Officer agrees that, in the event of
               such a breach or threatened breach, in addition to any remedies
               at law, Employer, without posting any bond, shall be entitled to
               seek equitable relief in the form of specific performance, a
               temporary restraining order, a temporary or permanent injunction
               or any other equitable remedy which may then be available.

         (iv)  Reformation. If the foregoing covenant not to compete would
               otherwise be determined invalid or unenforceable by a court of
               competent jurisdiction, such court shall exercise its discretion
               in reforming the provisions of this Section to the end that
               Officer be subject to a covenant not to compete, reasonable under
               the circumstances, enforceable by Employer.

     l.  Location of Services. Officer is required to perform his services under
         this Agreement at such present or future business location of Company
         as may be designated by the Chairman of the Board of Directors in the
         Counties of Los Angeles, Orange or Ventura, California or wherever the
         Corporate Headquarters of the Employer may be located. If Employer
         requests Officer to relocate outside of the locations referenced above,
         Officer shall have the option of agreeing to such relocation and the
         terms of this Agreement shall continue in full force and effect. If
         Officer declines to relocate, either the Officer or Employer shall
         provide the other party with a Notice of Termination in accordance with
         Section 5(f) and the Officer will be deemed to have been terminated
         pursuant to Section 5(d).

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first a written.

                                  EMPLOYER

                                  By: ____________________________
                                  Name:___________________________
                                  Title:__________________________
                                  OFFICER:

                                  --------------------------------
                                  in his individual capacity

                                      -11-
<PAGE>

                                  APPENDIX A

A "Change in Control" shall mean the occurrence during the term of the
Agreement, of any one of the following events:

A.   An acquisition (other than directly from Employer) of any common stock or
     other "Voting Securities" (as hereinafter defined) of Employer by any
     "Person" (as the term person is used for purposes of Section 13(d) or 14(d)
     of the Securities Exchange Act of 1934, as amended (the "Exchange Act")),
     immediately after which such Person has "Beneficial Ownership" (within the
     meaning of Rule 13d-3 promulgated under the Exchange Act) of twenty five
     percent (25%) or more of the then outstanding shares of Employer's common
     stock or the combined voting power of Employer's then outstanding Voting
     Securities; provided, however, in determining whether a Change in Control
     has occurred, Voting Securities which are acquired in a "Non-Control
     Acquisition" (as hereinafter defined) shall not constitute an acquisition
     which would cause a Change in Control. For purposes of this Agreement, (1)
     "Voting Securities" shall mean Employer's outstanding voting securities
     entitled to vote generally in the election of directors and (2) a "Non-
     Control Acquisition" shall mean an acquisition by (i) an employee benefit
     plan (or a trust forming a part thereof) maintained by (A) Employer or (B)
     any corporation or other Person of which a majority of its voting power or
     its voting equity securities or equity interest is owned, directly or
     indirectly, by Employer (for purposes of this definition, a "Subsidiary"),
     (ii) Employer or any of its Subsidiaries, or (iii) any Person in connection
     with a "Non-Control Transaction" (as hereinafter defined).

B.   The individuals who, as of the date of the Agreement are members of the
     Board (the "Incumbent Board"), cease for any reason to constitute at least
     two-thirds of the members of the Board; provided, however, that if the
     election, or nomination for election by Employer's common stockholders, of
     any new director was approved by a vote of at least two-thirds of the
     Incumbent Board, such new director shall, for purposes of this Agreement,
     be considered as a member of the Incumbent Board; provided further,
     however, that no individual shall be considered a member of the Incumbent
     Board if such individual initially assumed office as a result of either an
     actual or threatened "Election Contest" (as described in Rule 14a-11
     promulgated under the Exchange Act) or other actual or threatened
     solicitation of proxies or consents by or on behalf of a Person other than
     the Board (a "Proxy Contest") including by reason of any agreement intended
     to avoid or settle any Election Contest or Proxy Contest; or

C.   The consummation of:

     (i)   A merger, consolidation or reorganization involving Employer, unless
           such merger, consolidation or reorganization is a "Non-Control
           Transaction." A "Non-Control Transaction" shall mean a merger,
           consolidation or reorganization of Employer where:

           a.  the stockholders of Employer, immediately before such merger,
               consolidation or reorganization, own directly or indirectly
               immediately following such merger, consolidation or
               reorganization at least seventy

                                      -12-
<PAGE>

               percent (70%) of the combined voting power of the outstanding
               Voting Securities of the corporation resulting from such merger,
               consolidation or reorganization (the "Surviving Corporation") in
               substantially the same proportion as their ownership of the
               Voting Securities immediately before such merger, consolidation
               or reorganization;

           b.  the individuals who were members of  the Incumbent Board
               immediately prior to the execution of the agreement providing for
               such merger, consolidation or reorganization constitute at least
               two-thirds of the members of the board of directors of the
               Surviving Corporation, or in the event that, immediately
               following the consummation of such transaction, a corporation
               beneficially owns, directly or indirectly, a majority of the
               Voting Securities of the Surviving Corporation, the board of
               directors of such corporation; and

           c.  no Person other than (i) Employer, (ii) any Subsidiary, (iii) any
               employee benefit plan (or any trust forming a part thereat)
               maintained by Employer, the Surviving Corporation or any
               Subsidiary, or (iv) any Person who, immediately prior to such
               merger, consolidation or reorganization had Beneficial Ownership
               of twenty-five percent (25%) or more of the then outstanding
               Voting Securities or common stock of Employer, has Beneficial
               Ownership of twenty-five percent (25%) or more of the combined
               voting power of the Surviving Corporation's then outstanding
               Voting Securities or its common stock;

     (ii)  A complete liquidation or dissolution of Employer; or

     (iii) The sale or other disposition of all or substantially all of the
           assets of Employer to any Person (other than a transfer to a
           Subsidiary).

Notwithstanding the foregoing, a Change in Control shall not be deemed to occur
solely because any Person (the "Subject Person") acquired Beneficial Ownership
of more than the permitted amount of the then outstanding common stock or Voting
Securities as a result of the acquisition of common stock or Voting Securities
by Employer which, by reducing the number of shares of common stock or Voting
Securities then outstanding, increases the proportional number of shares
Beneficially Owned by the Subject Person; provided, however, that if a Change of
Control would occur (but for the operation of this sentence) as a result of the
acquisition of common stock or Voting Securities by Employer, and after such
share acquisition by Employer, the Subject Person becomes the Beneficial Owner
of any additional common stock or Voting Securities which increases the
percentage of the then outstanding common stock or Voting Securities
Beneficially Owned by the Subject Person, then a Change in Control shall occur.

                                      -13-<PAGE>

                                                                   EXHIBIT 10.27
                                                                   -------------

                             EMPLOYMENT AGREEMENT
                             --------------------

THIS EMPLOYMENT AGREEMENT (the "Agreement") has been executed as of February 4,
2000 by and between IndyMac Mortgage Holdings, Inc. and IndyMac, Inc. (each of
which is individually and collectively referred to as the "Employer") and
Richard H. Wohl ("Officer").

                                  WITNESSETH:
                                  -----------

WHEREAS, Employer desires to obtain the benefit of continued services of Officer
and Officer desires to continue to render services to Employer and its
affiliates.

WHEREAS, Employer and Officer desire to set forth the terms and conditions of
Officer's employment with Employer and its affiliates under this Agreement.

NOW, THEREFORE, in consideration of the mutual promises and covenants herein
contained.  The parties hereto agree as follows:

 1.  Term.  Employer agrees to employ Officer and Officer agrees to serve
     Employer and its affiliates, in accordance with the terms hereof, for a
     term beginning on the date first written above and ending on February 5,
     2003, unless earlier terminated in accordance with the provisions hereof.

 2.  Position, Duties and Responsibilities.  Employer and Officer hereby agree
     that, subject to the provisions of this Agreement, Employer will employ
     Officer and Officer will serve as Senior Executive Vice President (or such
     other comparable or higher office rank as the Chief Executive Officer may
     designate) of Employer or its affiliated companies, as determined by
     Employer. Affiliated companies shall include, without limitation, any
     direct or indirect subsidiary of Employer in which Employer holds less than
     100% but at least a majority of the beneficial interest and voting control
     (a "New Public Company"). Employer agrees that Officer's duties hereunder
     shall be the usual and customary duties of such office and such further
     duties shall not be inconsistent with the provisions of applicable law.
     Officer shall have such executive power and authority as shall reasonably
     be required to enable him to discharge his duties in the offices which he
     may hold. All compensation paid to Officer by Employer or any of its
     affiliates shall be aggregated in determining whether Officer has received
     the benefits provided for herein, but without prejudice to the allocation
     of costs among the entities to which Officer renders services hereunder.
     Officer agrees that Employer shall make a determination as to the portion
     of the total

                                      -1-
<PAGE>

     compensation payable to Officer hereunder which shall be allocated to and
     deemed paid by Employer for purposes of section 162(m) and related
     provisions of the Internal Revenue Code.

 3.  Scope of this Agreement and Outside Affiliations.  During the term of this
     Agreement, Officer shall devote his full business time and energy, except
     as expressly provided below, to the business, affairs and interests of
     Employer and its affiliates, and matters related thereto, and shall use his
     best efforts and abilities to promote their respective interests. Officer
     agrees that he will diligently endeavor to promote the business, affairs
     and interests of Employer and its affiliates and perform services
     contemplated hereby, in accordance with the policies established by the
     Board, which policies shall be consistent with this Agreement. Officer
     agrees to serve without additional remuneration as an officer or director
     of one or more (direct or indirect) subsidiaries or affiliates of Employer
     as the Board may from time to time request, subject to appropriate
     authorization by the affiliate or subsidiary involved and any limitation
     under applicable law. Officer's failure to discharge an order or perform a
     function because Officer reasonably and in good faith believes such would
     violate a law or regulation or be dishonest shall not be deemed a breach by
     him of his obligations or duties pursuant to any of the provisions of this
     Agreement, including without limitation pursuant to Section 5(c) hereof.

During the course of Officer's employment as a full-time officer hereunder,
Officer shall not, without the consent of the Board, compete, directly or
indirectly, with Employer in the business then conducted by Employer or any of
its affiliates.

Officer may make and manage personal business investments of his choice and
serve in any capacity with any civic, educational or charitable organization, or
any governmental entity or trade association, without seeking or obtaining
approval by the Board, provided such activities and services do not materially
interfere or conflict with the performance of his duties hereunder.

 4.   Compensation and Benefits.

      a.  Base Salary. Employer shall pay to Officer a base salary in respect of
          the portion of the fiscal year of Employer (a "Fiscal Year") ending
          December 31, 2000 at the annual rate of $450,000 (the "Annual Rate").
          In respect of the Fiscal Years ending in 2001 and 2002, the
          Compensation Committee of the Board (the "Compensation Committee")
          may, based upon the recommendation of the chairman of the Compensation
          Committee and Board approval and the performance of Officer and
          Employer, increase the Annual Rate. While any such increase shall be
          at the discretion of the Compensation Committee, it is anticipated
          that such increase will be at least an increase of 10% of the

                                      -2-
<PAGE>

             Annual Rate, but could vary from such percentage in the judgment of
             the Compensation Committee.

         b.  Incentive Compensation.  The Employer shall pay to Officer for
             each of the Fiscal Years ending during the term of this Agreement
             an incentive compensation award in an amount determined pursuant to
             the Annual Incentive Plan attached hereto as Appendix A. The terms
             of the Annual Incentive Plan shall be determined in the first
             quarter of each Fiscal Year during the term of this Agreement, as
             mutually agreed upon by Employer and Officer. For the first year of
             this Agreement, the maximum incentive compensation award is
             $200,000.00. If a new annual incentive plan is not executed by
             Employer and Officer for any reason by the end of the first quarter
             of the Fiscal Year (or within 90 days of the date of this Agreement
             for the year 2000), then the maximum incentive compensation award
             for the new Fiscal Year shall be the difference between the Base
             Salary and the Guaranteed Minimum Annual Compensation. In order to
             be eligible for the incentive compensation award, Officer must
             still be employed as of March 31st of the Fiscal Year following the
             relevant Fiscal Year. The incentive compensation award shall be
             paid no later than thirty (30) days after completion and
             publication of the applicable audited financial statements for such
             Fiscal Year.

         c.  Guaranteed Minimum Annual Compensation. For each of the Fiscal
             Years ending during the term of this Agreement, Officer shall
             receive a guaranteed minimum annual cash compensation of $500,000,
             the components of which shall include his base salary for such
             Fiscal Year and any incentive compensation award applicable to such
             Fiscal Year, provided Officer is still employed by Employer as of
             December 31 of such Fiscal Year.

         d.  Stock Options.  Employer shall grant to Officer a stock option
             grant of 500,000 shares of the Employer's common stock on February
             4, 2000 and 500,000 shares of the Employer's common stock on
             February 5, 2001. These stock option grants shall vest equally over
             5 years from their respective date of grant.

             Officer agrees that any stock options or restricted stock granted
             to him under his prior Employment Agreements, or granted separate
             from such Employment Agreement(s), shall be subject to the terms of
             the 2000 Stock Option Plan except as may be expressly provided
             otherwise in this Agreement.

                                      -3-
<PAGE>

             All stock options and restricted stock granted in accordance with
             this Section 4(d): (i) shall be granted pursuant to Employer's
             current stock option plan, or such other stock option plan or plans
             as may be or come into effect during the term of this Agreement,
             (ii) shall have a per share exercise price equal to the fair market
             value (as defined in the current Plan or such other plan or plans)
             of the common stock at the time of grant, (iii) shall become
             exercisable in five equal installments on each of the first five
             anniversaries of the date of grant, (iv) shall become immediately
             and fully vested in the event of a change in control (as declared
             by the Board) or in the event that Officer's employment is
             terminated due to death or Disability; (v) in the event that
             Officer's employment is terminated through resignation or by
             Employer for Cause ("Cause") (as defined in Section 5(c)), shall,
             if not then vested, immediately terminate; and (vi) in the event of
             a termination by Employer other than for Cause (as defined in
             Section 5(c)), or in the event that this Agreement terminates
             according to its terms (as provided in Section 5(g)), shall become
             immediately and fully vested to the extent that such stock options
             or restricted stock would, under the terms of the stock option or
             restricted stock award, vest within 12 months of such termination,
             and shall give officer the right to exercise such options for a
             period of twelve (12) months after such termination (but in no
             event later than their expiration date).

             Provided however, with respect to unvested stock options and
             restricted stock previously issued to Officer prior to the date of
             this Employment Agreement, fifty percent (50%) of such stock
             options and restricted stock shall immediately vest at the
             Termination Date in the event of a termination other than for Cause
             (Section 5(c)) or a termination according to its terms (Section
             5(g)).

             In the event that a New Public Company is formed and Officer is
             assigned by the Chief Executive Officer to be employed by that New
             Public Company, if such New Public Company is traded on the New
             York Stock Exchange or the NASDAQ, then in the discretion of the
             Chief Executive Officer, up to 50% of the not-yet-vested stock
             options and restricted stock of Officer (whether previously granted
             hereunder or otherwise) may be terminated and replaced with such
             alternate incentive compensation (which may include stock options
             and/or restricted stock of the New Public Company) as the Chief
             Executive Officer may determine in his sole and absolute
             discretion, provided such replacement compensation is equivalent to
             the value of the replaced stock options and restricted stock. Such
             alternate incentive compensation may be granted on such terms and
             conditions as determined by the Chief Executive

                                      -4-
<PAGE>

             Officer, which terms and conditions may differ from those in this
             Agreement for comparable compensation, provided such terms and
             conditions provide an equivalent value to the replaced
             compensation. The Company shall select and retain a nationally
             recognized firm to determine the value of the stock options and
             restricted stock to be replaced and the value of the replacement
             compensation, and such firm's final valuation shall be accepted by
             both parties.

         e.  Additional Benefits.  Officer shall also be entitled to all rights
             and benefits for which he is otherwise eligible under any bonus
             plan, stock purchase plan, participation or extra compensation
             plan, executive compensation plan, pension plan, profit-sharing
             plan, deferred compensation plan, life and medical insurance
             policy, or other plans or benefits, which Employer or its
             subsidiaries may provide for him, or provided he is eligible to
             participate therein, for senior officers generally or for employees
             generally, during the term of this Agreement (collectively,
             "Additional Benefits"). This Agreement shall not affect the
             provision of any other compensation, retirement or other benefit
             program or plan of Employer. If Officer's employment is terminated
             hereunder, pursuant to Section 5(a), 5(b) or 5(d), Employer shall
             continue for the period specified in Section 5(a), 5(b) or 5(d)
             hereof, to provide benefits substantially equivalent to the life,
             disability, and medical insurance policies on behalf of Officer and
             his dependents and beneficiaries which were being provided to them
             immediately prior to Officer's Termination Date, but only to the
             extent that Officer is not entitled to comparable benefits from
             other employment.

         f.  Deferral of Amounts Payable Hereunder.  In the event Officer should
             desire to defer receipt of any cash payments to which he would
             otherwise be entitled hereunder, he may present such a written
             request to the Compensation Committee which, in its sole
             discretion, may enter into a separate deferred compensation
             agreement with Officer.

         g.  Club Memberships.  Employer shall pay standard annual and monthly
             membership fees and any business related charges for Officer's
             participation in the La Canada Flintridge Country Club and such
             other memberships as may be approved by the Chief Executive
             Officer.

         h.  Financial Planning Services.  Employer shall pay for the financial
             planning service of AYCO for Officer, including a full tax gross-up
             for any implied income to Officer resulting from such benefit. The
             annual amount that Employer shall be required to pay for such
             services shall not

                                      -5-
<PAGE>

             exceed $16,500 for the first year of services, or $10,000 for any
             subsequent year of services, exclusive of the tax gross-up.

         i.  Car Allowance. Employer shall provide Officer with an appropriate
             luxury automobile (either a Mercedes E320 or BMW 5 Series of a
             comparable cost) for Officer's exclusive use; provided Officer
             agrees to maintain such automobile and pay for appropriate
             insurance.

 5.      Termination.  The compensation and benefits provided for herein and the
         employment of Officer by Employer shall be terminated only as provided
         for below in this Section 5:

         a.  Disability. In the event that Officer shall fail, because of
             illness, injury or similar incapacity ("Disability"), to render for
             four (4) consecutive months or for shorter periods aggregating
             eighty (80) or more business days in any twelve (12) month period,
             services contemplated by this Agreement, Officer's full-time
             employment hereunder may be terminated, by written Notice of
             Termination from Employer to Officer; and thereafter, Employer
             shall continue, from the Termination Date until Officer's death or
             February 5, 2003, whichever first occurs (the "Disability Payment
             Period"), (i) to pay compensation to Officer, in the same manner as
             in effect immediately prior to the Termination Date, in an amount
             equal to (1) fifty percent (50%) of the then existing base salary
             payable immediately prior to the termination, minus (2) the amount
             of any cash payments to him under the terms of Employer's
             disability insurance or other disability benefit plans or
             Employer's tax-qualified Defined Benefit Pension Plan, and any
             compensation he may receive pursuant to any other employment, and
             (ii) to provide during the Disability Period the benefits specified
             in the last sentence of Section 4(e) hereof.

             The determination of Disability shall be made only after 30 days
             notice to Officer (which may run concurrently with the Notice of
             Termination). In order to determine Disability, both employer and
             Officer shall have the right to provide medical evidence to support
             their respective positions, with the ultimate decision regarding
             Disability to be made by a majority of Employer's disinterested
             directors.

         b.  Death.  In the event that Officer shall die during the term of this
             Agreement, Employer shall pay to such person or persons as Officer
             shall have directed in writing or, in the absence of a designation,
             to his estate (the "Beneficiary") an amount equal to three times
             the guaranteed annual compensation as defined in Section 4(c). Such
             payment will be made within 30 days of the death of Officer. If
             Officer's death occurs while he is receiving payments for
             Disability under Section 5(a) above, such payments shall cease and
             the Beneficiary shall be entitled to the

                                      -6-
<PAGE>

             payments and benefits under this Subsection 5(b). This Agreement in
             all other respects will terminate upon the death of Officer;
             provided, however, that (i) the termination of the Agreement shall
             not affect Officer's entitlement to all other benefits in which he
             has become vested or which are otherwise payable in respect of
             periods ending prior to its termination, and (ii) to the extent not
             otherwise vested, all outstanding stock options granted to Officer
             pursuant to Section 4(c) will vest upon his death.

         c.  Cause.  Employer may terminate Officer's employment under this
             Agreement for "Cause." A termination for Cause is a termination by
             reason of (i) a material breach of this Agreement by Officer (other
             than as a result of incapacity due to physical or mental illness)
             which is committed in bad faith or without reasonable belief that
             such breach is in the best interests of Employer, or (ii) Officer's
             conviction by a court of competent jurisdiction of a felony, or
             (iii) entry of an order duly issued by any federal or state
             regulatory agency having jurisdiction in the matter removing
             Officer from office of Employer or its affiliates or permanently
             prohibiting him from participation in the conduct of the affairs of
             Employer of any of its affiliates. If Officer shall be convicted of
             a felony or shall be removed from office and/or temporarily
             prohibited from participating in the conduct of Employer's or any
             of its affiliates' affairs by any federal or state regulatory
             authority having jurisdiction in the matter, Employer's obligations
             under Sections 4(a), 4(b), 4(c), 4(d) and 4(f) hereof shall be
             automatically suspended; provided, however, that if the charges
             resulting in such removal or prohibition are finally dismissed or
             if a final judgment on the merits of such charges is issued in
             favor of Officer, or if the conviction is overturned on appeal,
             then Officer shall be reinstated in full with back pay for the
             removal period plus accrued interest at the rate then payable on
             judgments. During the period that Employer's obligations under
             Sections 4(a), 4(b), 4(c), 4(d) and 4(f) hereof are suspended,
             Officer shall continue to be entitled to receive Additional
             Benefits under Section 4(e) until the conviction of the felony or
             removal from office has become final and non-appealable. When the
             conviction of the felony or removal from office has become final
             and non-appealable, all of Employer's obligations hereunder shall
             terminate; provided, however, that the termination of Officer's
             employment pursuant to this Section 5(c) shall not affect Officer's
             entitlement to all benefits in which he has become vested or which
             are otherwise payable in respect of periods ending prior to his
             termination of employment. Following a termination for Cause,
             Officer shall be entitled to payment of his base salary through his
             last day of

                                      -7-
<PAGE>

             employment, and any accrued vacation pay, but no other
             payments or benefits hereunder or otherwise whatsoever.

         d.  Termination Other Than For Cause.

             (i)  Except as provided in Section 5(d)(ii) below, if during the
                  term of this Agreement, Officer's employment shall be
                  terminated by Employer other than for Cause, then Officer
                  shall be entitled to:

                  (1) payment of his base salary through his last day of
                      employment, but no payment on account of any further
                      incentive compensation hereunder; and

                  (2) within 30 days after such last day, a single payment in an
                      amount in cash equal to three times the guaranteed minimum
                      annual compensation as defined in Section 4(c), and

                  (3) for a period of one year following such last day, the
                      benefits specified in the last sentence of Section 4(e)
                      hereof.

             (ii) Except as otherwise provided for below, in the event it shall
                  be determined that any payment or distribution by Employer or
                  any other person or entity to or for the benefit of Officer
                  (within the meaning of Section 280G(b)(2) of the Internal
                  Revenue Code of 1986, as amended (the "Code"), whether paid or
                  payable or distributed or distributable pursuant to the terms
                  of this Agreement or otherwise in connection with, or arising
                  out of, his employment with Employer or a change in ownership
                  or effective control of Employer or a substantial portion of
                  its assets (a "Payment"), would be subject to the excise tax
                  imposed by Section 4999 of the Code (the "Excise Tax"), then,
                  for the calendar year for which the Officer will be subject to
                  the Excise Tax, the Employer will pay the Officer an
                  additional amount of compensation equal to the Excise Tax
                  (calculated without taking into consideration this additional
                  compensation). Notwithstanding the foregoing, the Employer and
                  Officer may agree to reduce, to the extent necessary, the
                  Payment amount so that no Excise Tax would be imposed. Unless
                  the Employer and Officer agree otherwise, such reduction shall
                  be implemented, first, by reducing any non-cash benefits
                  (other than stock options) to the extent necessary, second, by
                  reducing any cash benefits to the extent necessary and, third,
                  by reducing any stock options to

                                      -8-
<PAGE>

                  the extent necessary. In each case, the reductions shall be
                  made starting with the payment or benefit to be made on the
                  latest date following the Termination Date and reducing
                  payments or benefits in reverse chronological order therefrom.
                  All determinations concerning the application of this
                  paragraph shall be made by a nationally recognized firm of
                  independent accountants, selected by Employer, whose
                  determination shall be conclusive and binding on all parties.
                  The fees and expenses of such accountants shall be borne by
                  Employer.

         e.  Resignation. If during the term of this Agreement, Officer shall
             resign voluntarily, Officer shall be entitled to payment of his
             base salary through his last day of employment, but all other
             rights to payment or benefits hereunder shall immediately
             terminate; provided, however, that the termination of Officer's
             employment pursuant to this Section 5(e) shall not affect Officer's
             entitlement to all benefits in which he has become vested or which
             are otherwise payable in respect of periods ending prior to his
             termination of employment and all obligations of Officer under
             Sections 10(f) and 10(j) shall expressly survive such termination.
             If Officer resigns as a result of a material breach by Employer,
             which breach is not cured by Employer within 30 days receipt of
             written notice, then Officer's resignation will be considered as a
             Termination Other Than For Cause pursuant to Section 5(d) for all
             purposes under this Agreement.

         f.  Notice of Termination. Any purported termination by Employer or by
             Officer shall be communicated by a written Notice of Termination to
             the other party hereto which indicates the specific termination
             provision in this Agreement, if any, relied upon and which sets
             forth in reasonable detail the facts and circumstances, if any,
             claimed to provide a basis for termination of Officer's employment
             under the provision so indicated. For purposes of this Agreement,
             no such purported termination shall be effective without such
             Notice of Termination. The "Termination Date" shall mean the date
             specified in the Notice of Termination, which shall be no less than
             30 or more than 60 days from the date of the Notice of Termination.
             Notwithstanding any other provision of this Agreement, in the event
             of any termination of Officer's employment hereunder for any
             reason, Employer shall pay Officer his full base salary through the
             Termination Date, plus any Additional Benefits which have been
             earned or become payable, but which have not yet been paid as of
             such Termination Date.

                                      -9-
<PAGE>

         g.  Non-Renewal of Agreement. In the event that this Agreement
             terminates according to its terms on February 5, 2003, or February
             5, 2005, if the terms of this Agreement are renewed pursuant to
             Section 6, and Officer's employment is terminated, such termination
             of Officer's employment pursuant to this Section 5(g) shall not
             affect Officer's entitlement to all benefits in which he has become
             vested or which are otherwise payable with respect to periods
             ending on or prior to his termination of employment. Employer shall
             also (1) pay Officer in a single payment as soon as practicable
             after the termination, but in no event later than thirty (30) days
             thereafter, an amount in cash equal to three times the guaranteed
             minimum annual compensation as provided in Section 4(c), and (2)
             until the first anniversary of the Termination Date, provide the
             benefits specified in the last sentence of Section 4(e) hereof.
             Upon such termination of Officer's employment, any stock options or
             restricted stock granted under this Agreement that were scheduled
             to vest within the 12 months following the termination of
             employment will immediately vest. Finally, fifty percent (50%) of
             any unvested stock options and restricted stock previously issued
             to Officer prior to the date of this Employment Agreement will
             immediately vest at the termination of employment.

 6.  Renewal of Agreement.  Employer, at its option, may extend the term of this
     Agreement for two additional years. Upon such extension, the guaranteed
     minimum annual compensation as defined in Section 4(c) would be increased
     to $750,000.00. No additional stock options would be granted for such
     extension. All other terms of this Agreement would continue.

 7.  Location of Services. Officer is required to perform his services under
     this Agreement at such present or future business location of Company as
     may be designated by the Chief Executive Officer in the Counties of Los
     Angeles, Orange or Ventura, California or wherever the Corporate
     Headquarters of the Employer or the Mortgage Banking Division of
     Employer may be located. If Employer requests Officer to relocate outside
     of the locations referenced above, Officer shall have the option of
     agreeing to such relocation and the terms of this Agreement shall continue
     in full force and effect. If Officer declines to relocate, either the
     Officer or Employer shall provide the other party with a Notice of
     Termination in accordance with Section 5(f) and the Officer will be deemed
     to have been terminated pursuant to Section 5(d).

 8.  Reimbursement of Business Expenses. During the term of this Agreement,
     Employer shall reimburse Officer promptly for all business expenditures to
     the extent that such expenditures meet the requirements of the Code for
     deductibility by Employer for federal income tax purposes or are otherwise
     in

                                     -10-
<PAGE>

     compliance with the rules and policies of Employer and are substantiated
     by Officer as required by the Internal Revenue Service and rules and
     policies of Employer.

 9.  Indemnity.  To the extent permitted by applicable law, the Certificate of
     Incorporation and the By-Laws of Employer (as from time to time in effect)
     and any indemnity agreements entered into from time to time between
     Employer and Officer, Employer shall indemnify Officer and hold him
     harmless for any acts or decisions made by him in good faith while
     performing services for Employer, and shall use reasonable efforts to
     obtain coverage for him under liability insurance policies now in force or
     hereafter obtained during the term of this Agreement covering the other
     officers or directors of Employer.

10.  Miscellaneous.

     a.  Successorship. This Agreement shall inure to the benefit of and shall
         be binding upon Employer, its successors and assigns, but without the
         prior written consent of Officer, this Agreement may not be assigned
         other than in connection with a merger or sale of substantially all the
         assets of Employer or similar transaction. The failure of any successor
         to or assignee of the Employer's business and/or assets in such
         transaction to expressly assume all obligations of Employer hereunder
         shall be deemed a material breach of this Agreement by Employer.

     b.  Notices. Any notices provided for in this Agreement shall be sent to
         Employer at its corporate headquarters, Attention: General Counsel,
         with a copy to the Director of Human Resources at the same address, or
         to such other address as Employer may from time to time in writing
         designate, and to Officer at such address as he may from time to time
         in writing designate (or his business address of record in the absence
         of such designation). All notices shall be deemed to have been given
         two (2) business days after they have been deposited as certified mail,
         return receipt requested, postage paid and properly addressed to the
         designated address of the party to receive the notices.

     c.  Entire Agreement. This instrument contains the entire agreement of the
         parties relating to the subject matter hereof, and it replaces and
         supersedes any prior agreements between the parties relating to said
         subject matter, provided, however, that all provisions of Employer's
         Employee Handbook shall be incorporated herein by this reference and
         Officer hereby expressly acknowledges that all provisions of the
         Employee Handbook are applicable to his employment relationship with
         Employer, except to the extent that any such provisions directly
         conflict with any term contained in this Agreement; provided, further,
         that

                                     -11-
<PAGE>

         Officer hereby expressly acknowledges that Officer has executed
         Employer's standard Arbitration Agreement. No modifications or
         amendments of this Agreement shall be valid unless made in writing and
         signed by the parties hereto.

     d.  Waiver. The waiver of the breach of any term or of any condition of
         this Agreement shall not be deemed to constitute the waiver of any
         other breach of the same or any other term or condition.

     e.  California Law.  This Agreement shall be construed and interpreted in
         accordance with the laws of California.

     f.  Confidentiality. Officer agrees that he will not divulge or otherwise
         disclose, directly or indirectly, any trade secret or other
         confidential information concerning the business or policies of
         Employer or any of its subsidiaries which he may have learned as a
         result of his employment during the term of this Agreement or prior
         thereto as an employee, officer or director of or consultant to
         Employer or any of its subsidiaries, except to the extent such use or
         disclosure is (i) necessary or appropriate to the performance of this
         Agreement and in furtherance of Employer's best interests, (ii)
         required by applicable law or in response to a lawful inquiry from a
         governmental or regulatory authority, (iii) lawfully obtainable from
         other sources, or (iv) authorized by Employer. The provisions of this
         subsection shall survive the expiration, suspension or termination, for
         any reason, of this Agreement.

     g.  Remedies of Employer. Officer acknowledges that the services he is
         obligated to render under the provisions of this Agreement are of a
         special, unique, unusual, extraordinary and intellectual character,
         which gives this Agreement peculiar value to Employer. The loss of
         these services cannot be reasonably or adequately compensated in
         damages in an action at law and it would be difficult (if not
         impossible) to replace these services. By reason thereof, Officer
         agrees and consents that if he violates any of the material provisions
         of this Agreement, Employer, in addition to any other rights and
         remedies available under this Agreement or under applicable law, shall
         be entitled during the remainder of the term to seek injunctive relief,
         from a tribunal of competent jurisdiction, restraining Officer from
         committing or continuing any violation of this Agreement.

     h.  Severability.  If any provision of this Agreement is held invalid or
         unenforceable, the remainder of this Agreement shall nevertheless
         remain in full force and effect, and if any provision is held invalid
         or

                                       -12-
<PAGE>

         unenforceable with respect to particular circumstances, it shall
         nevertheless remain in full force and effect in all other
         circumstances.

     i.  No Obligation to Mitigate. Officer shall not be required to mitigate
         the amount of any payment provided for in this Agreement by seeking
         other employment or otherwise and, except as provided in Section
         5(a)(i)(2) hereof, no payment hereunder shall be offset or reduced by
         the amount of any compensation or benefits provided to Officer in any
         subsequent employment.

     j.  Covenant Not to Compete

         (i)  In General. Officer agrees that while he is employed by Employer
              during the term of this Agreement and for a period of one year
              after the termination of such employment if he voluntarily resigns
              or if he is terminated for Cause or Other Than For Cause (the
              "Non-Compete Period"), he shall not, within North America:

              (1)  engage in any business, whether as an employee, consultant,
                   partner, principal, agent, representative or stockholder
                   (other than as a stockholder of less than a one percent (1%)
                   equity interest) or in any other corporate or representative
                   capacity with any other business whether in corporate,
                   proprietorship, or partnership form or otherwise, where such
                   business is engaged in any activity which competes with the
                   business of Employer (or its subsidiaries or affiliates) as
                   conducted on the date Officer's employment terminated or
                   which will compete with any proposed business activity of
                   Employer (or its subsidiaries or affiliates) in the planning
                   stage on such date;

              (2)  solicit business from, or perform services for, any company
                   or other business entity which at any time during the two-
                   year period immediately preceding Officer's termination of
                   employment with Employer was a client of Employer (or its
                   subsidiaries or affiliates) (including without limitation any
                   lessee, vendor or supplier); or

              (3)  solicit for employment, offer, or cause to be offered,
                   employment, either on a full-time, part-time or consulting
                   basis, to any person who was employed by Employer (or its
                   subsidiaries or affiliates) on the date Officer's

                                     -13-
<PAGE>

                   employment terminated, unless Officer shall have received the
                   prior written consent of Employer.

         (ii)  Consideration. The consideration for the foregoing covenant not
               to compete, the sufficiency of which is hereby acknowledged, is
               Employer's agreement to continue to employ Officer and provide
               compensation and benefits pursuant to this Agreement, including
               but not limited to Section 5(d).

        (iii)  Equitable Relief and Other Remedies. Officer acknowledges and
               agrees that Employer's remedies at law for a breach or threatened
               breach of any of the provisions of this Section would be
               inadequate and, in recognition of this fact, Officer agrees that,
               in the event of such a breach or threatened breach, in addition
               to any remedies at law, Employer, without posting any bond, shall
               be entitled to obtain equitable relief in the form of specific
               performance, a temporary restraining order, a temporary or
               permanent injunction or any other equitable remedy which may then
               be available.

         (iv)  Reformation. If the foregoing covenant not to compete would
               otherwise be determined invalid or unenforceable by a court of
               competent jurisdiction, such court shall exercise its discretion
               in reforming the provisions of this Section to the end that
               Officer be subject to a covenant not to compete, reasonable under
               the circumstances, enforceable by Employer.

     k.  Regulatory Intervention. Notwithstanding anything in this Agreement to
         the contrary, this Agreement is subject to the following terms and
         conditions:

         (i)   If Officer is suspended and/or temporarily prohibited from
               participating in the conduct of Employer's affairs by a notice
               served under Section 8(e)(3) or (g)(1) of the Federal Deposit
               Insurance Act (12 U.S.C. 1818 (e)(3) and (g)(1)), Employer's
               obligations hereunder shall be suspended as of the date of
               service unless stayed by appropriate proceedings. If the charges
               in the notice are dismissed, Employer shall (x) pay Officer all
               or part of the compensation withheld while Employer's contract
               obligations were suspended, and (y) reinstate any of Employer's
               obligations which were suspended.

         (ii)  If Officer is removed and/or permanently prohibited from
               participating in the conduct of Employer's affairs by an order

                                     -14-
<PAGE>

               issued under Section 8(e)(4) or (g)(1) of the Federal Deposit
               Insurance Act (12 U.S.C. 1818 (e)(4) and (g)(1)), all obligations
               of Employer under this Agreement shall terminate as of the
               effective date of the order, but vested rights of the parties
               shall not be affected.

        (iii)  If Employer is in default (as defined in Section 3(x)(1) of the
               Federal Deposit Insurance Act (12 U.S.C. 1813 (x)(1)), all
               obligations under this Agreement shall terminate as of the date
               of default, but any vested rights of Officer shall not be
               affected.

         (iv)  All obligations under this Agreement shall be terminated, except
               to the extent determined that continuation of the contract is
               necessary for the continued operation of Employer, (x) by the
               Office of Thrift Supervision ("OTS") at the time the Federal
               Deposit Insurance Corporation ("FDIC") enters into an agreement
               to provide assistance to or on behalf of Employer under the
               authority contained in Section 13(c) of the Federal Deposit
               Insurance Act (12 U.S.C. 1823 (c)); or (y) by the OTS at the time
               the OTS approves a supervisory merger to resolve problems related
               to operation of Employer or when Employer is determined by the
               OTS to be in an unsafe or unsound condition. Any rights of
               Officer that shall have vested under this Agreement shall not be
               affected by such action.

          (v)  With regard to the provisions of this Section 10(i) through (iv):

               (1)  Employer agrees to use its best efforts to oppose any such
                    notice of charges as to which there are reasonable defenses;

               (2)  In the event the notice of charges is dismissed or otherwise
                    resolved in a manner that will permit Employer to resume its
                    obligations to pay compensation hereunder, Employer will
                    promptly make such payment hereunder; and

               (3)  During the period of suspension, the vested rights of the
                    contracting parties shall not be affected except to the
                    extent precluded by such notice.

                                     -15-
<PAGE>

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
first a written.

                              EMPLOYER

                              By:
                                 ----------------------------
                              Name: Michael W. Perry

                              Title:  Chief Executive Officer

                              OFFICER:

                              -------------------------------
                              in his individual capacity

                                     -16-

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