Exhibit 10(y)

                        AMENDMENT TO EMPLOYMENT AGREEMENT

         Amendment dated as of October 1, 2004 ("Effective Date") to the
Employment Agreement made as of the 1st day of April, 2002 by and between
Warrantech Corporation, a Delaware corporation, having its principal place of
business located at 2200 Highway 121, Bedford, Texas 76021 ("Employer") and
Jeanine Folz, an individual residing at 84 Hunting Ridge Road, Stamford,
Connecticut 06903 ("Executive").

                              W I T N E S S E T H:

         WHEREAS, the parties entered into an employment agreement on April 1,
2002, (the "Agreement"); and

         WHEREAS, the parties desire to amend the Agreement; and

         WHEREAS, Executive is willing to continue employment upon the amended
terms and conditions hereinafter set forth;

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1.       Section II of the Agreement is hereby amended and replaced as
                  follows: "The term of Executive's employment under this
                  Agreement, which is due to expire on March 31, 2005, shall be
                  extended for an additional period commencing on the Effective
                  Date and ending March 31, 2008."

         2.       Paragraph 3.1 of the Agreement is hereby amended and replaced
                  as follows: "Employer shall pay Executive a base salary at the
                  rate of One Hundred Sixty Thousand Dollars ($160,000.00) for
                  each twelve-month period during the term of this Agreement.
                  Such base compensation shall be payable in accordance with
                  Employer's payroll practices as in effect from time to time."

         3.       Paragraph 3.2 of the Agreement is hereby amended and replaced
                  as follows: "Executive shall receive an annual incentive bonus
                  equal to one per cent (1%) of net brokerage fees received by
                  Warrantech during such annual period from insurers who insure
                  the programs Warrantech brings to market. All bonuses
                  described in this section are payable annually and shall be
                  paid, if due, within fifteen (15) days after the filing of the
                  Employer's Annual Report on Form 10-K with the Securities and
                  Exchange Commission. Executive acknowledges that if
                  Executive's employment is terminated by the Employer for cause
                  prior to the payment of any bonus, Executive shall forfeit any
                  interest she has in such bonus and shall not be entitled to
                  any portion thereof."

         4.       The Agreement, as modified herein, is hereby ratified and
                  confirmed and remains in full force and effect and supercedes
                  any other employment agreements in effect between Employer and
                  Executive.
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first above written.


                                       EMPLOYEE:

                                       WARRANTECH CORPORATION

                                       By: /s/ JEANINE FOLZ
                                           -------------------------------------

                                       Name: Jeanine Folz
                                             -----------------------------------

                                       Title:  Senior Vice President
                                             -----------------------------------

WITNESS:                               EMPLOYER:

/s/ AMY KOPIZ                          EXECUTIVE:
-------------------------------
Amy Kopiz                              /s/ JOEL SANANTONIO CEO
                                       -----------------------------------------
                                       Joel SanAntonio
WITNESS:

_______________________________