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                                                                    EXHIBIT 10.1



                              RETENTION AGREEMENT



This Retention Agreement (this "Agreement"), dated and effective as of the 1st
day of December, 1997 is by and between Siena Holdings, Inc., a Delaware
corporation ("Company"), and John P. Kneafsey, an individual residing in
Phoenix, Maryland, ("Officer").


In consideration of the mutual covenants set forth herein, Company and Officer,
intending to be legally bound, hereby agree as follows:


1.       Relationship. Company hereby retains Officer, and Officer hereby
         accepts such retention, upon the terms and conditions set forth in
         this Agreement. Such retention relationship shall continue for the
         stated term of this Agreement, as described in Section 7 hereof, or
         until the earlier termination of such relationship and this Agreement
         pursuant to Section 5 hereof.

2.       Position and Responsibilities of Officer. Officer shall be retained as
         the Chief Executive Officer of Company and shall be stationed in
         Maryland or such other locations which during the term of this
         Agreement, may be designated by Company and approved by Officer.
         Officer shall devote approximately one-half of his business time and
         attention to the business of Company. Officer shall make himself
         available in person to render services on a regular basis equivalent
         to four days a week, allowing for reasonable and customary vacations
         and taking into account the nature of the services required; and
         provided that Officer shall be required to render no less than 20
         hours per week on average. Officer, shall, subject to the supervision,
         direction and control of the Board of Directors of Company (the
         "Board") and the provisions of the Certificate of Incorporation, as
         amended from time to time in accordance with the provisions thereof,
         and Bylaws, as amended from time to time in accordance with the
         provisions thereof, of Company, manage, supervise and control such
         business, and shall devote his best efforts to the faithful
         performance of his duties on behalf of Company; provided, however,
         that it is the understanding of parties that Officer shall be entitled
         to engage in other business, professional and fiduciary obligations,
         including but not limited to those currently being pursued by Officer
         to the extent that such interests and obligations do no materially
         interfere with Officer's performance of his duties for Company.
         Officer's duties shall generally be those assigned to and customarily
         performed by the Chief Executive Officer of a company and shall
         include, specifically without limitation, management of Siena Housing
         Management operations, LLG Lands real estate, provision of information
         to trustee of the certain litigation trust("Litigation
         Trustee")created pursuant to the Second Amended Joint Chapter 11 Plan
         of Lomas Financial Corporation, Lomas Information Systems, Inc. and
         Lomas Administrative Services, Inc.("Plan") and post-confirmation
         creditor's committee as authorized in the confirmation order to the
         Plan to

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         execute the terms of the Plan, maintenance of existing records, and
         general supervision of the corporate and legal affairs of the Company
         and the LFC Creditors Trust while the Company is Trustee.

3.       Compensation. As approved by the Board of Directors in its meeting of
         November 24, 1997; for all services rendered by Officer pursuant to
         this Agreement, Company shall pay to Officer, and Officer shall accept
         as full compensation hereunder, the following:

                  (A) Retainer. Officer shall receive a monthly retainer of not
         less than $10,666.67, with such adjustments thereto as may be
         determined by the Board in its sole discretion. If Officer's base
         annual retainer is increased at any time, it shall not thereafter be
         decreased during the term of this Agreement, unless such decrease is
         the result of a general reduction affecting the base salaries of all
         other executive officers of the Company.

                  (B) Bonus. Such bonuses to be paid as part of the deal-maker
         portion of the incentive plan which will pay a percentage of the deal
         value established by the Board of Directors or the appreciated value
         above the fair market value of the asset; which, as a result of the
         fresh start adjustments is the same as book value on June 30, 1997.
         Officer shall be paid 6% of the gross appreciation value above book
         value or 6% of the deal value, upon the close of such transaction.
         Such bonus provision shall apply to the Company and its subsidiaries
         and shall be applied to the Company's results as Trustee of the LFC
         Creditors Trust.

                  (C) Stock Options. Officer shall receive 271,750
         non-qualified stock options which will vest at a rate of 20% per 12
         months of service. Upon the event of any change-in-control of the
         Company the stock options shall be 100% vested. The Board of Directors
         may from time to time grant additional stock options or other forms of
         long-term incentive compensation arrangements to the Officer. The
         privilege to participate in these grants is at the discretion of the
         Board of Directors and the stipulations regarding the granting of
         these awards and their exercise by the Officer will be defined in
         separate agreements or in other plans or actions of the Board of
         Directors.

                  (D) Insurance. Company will provide Officer with coverage
         under a customary insurance policy with respect to certain errors,
         omission and acts of directors and officers as supplied to the Board
         of Directors. Failure to provide such a policy shall constitute
         constructive termination of Officer by Company and shall entitle
         Officer to a termination payment in accordance with paragraph 6.

4.       Reimbursement of Expense. Officer shall be entitled to reimbursement
         for reasonable expenses incurred by Officer in the course of rendering
         services to Company under this agreement.

5.       Termination. The Retention relationship between Officer and Company
         created hereunder shall terminate before the expiration of the stated
         term of this Agreement upon the occurrence of any of the following
         events:

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         (a)      Termination for Cause. The following events, which for
                  purposes of this Agreement shall constitute "cause" for
                  termination:

                  (i) the willful breach by Officer of any provision of
         Sections 1 or 2 (including but not limited to a refusal to follow
         lawful directives of the Board);

                  (ii) any act of fraud or dishonesty by Officer with respect
         to any aspect of Company's business;

                  (iii) the illegal use of drugs by Officer during the term of
         this Agreement that, in the determination of the Board, substantially
         interferes with Company's business;

                  (iv) substantial failure of performance by Officer, which is
         repeated or continued after written notice to Officer of such failure,
         and which is reasonably determined by the Board to be materially
         injurious to the business or interests of Company;

                  (v) conviction of Officer by a court of competent
         jurisdiction of a felony or of a crime involving moral turpitude; or

                  (vi) death of Officer or disability because of injury,
         illness, or other incapacity (physical or mental) which for more than
         90 days renders Officer incapable of performing the essential
         functions of the position contemplated by the Agreement herein.

Any notice of discharge shall describe with reasonable specificity the cause of
causes for the termination of Officer's retention, as well as the effective
date of the termination (which effective date may be the date of such notice).
If Company terminates Officer's retention for any of the reasons set forth
above in this Section 5(a), Company shall have no further obligations hereunder
from and after the effective date of termination (other than as set forth
below) and shall have all other rights and remedies available under this or any
other agreement and at law or in equity.

                  (b) Voluntary Termination. Officer provides 60 days written
         notice to Company of his intent to terminate the retention
         relationship with Company. Company retains the right after proper
         notice of Officer's voluntary termination to require Officer to cease
         retention immediately; however, in such event, Company shall remain
         obligated to pay Officer his retention payment during the 60-day
         notice period.

6.       Compensation Upon Termination.

                  (a) General. Upon the termination of Officer's retention
         under this Agreement before the expiration of the stated term hereof
         for any reason, Officer shall be entitled to the compensation earned
         by him before the effective date of termination, as provided in
         Section 

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         3 hereof, prorated on the basis of the number of full days of service
         rendered by Officer during the month to the effective date of
         termination. Upon the event of any termination pursuant to this
         section the Company the stock options identified above shall be 100%
         vested.

                  (b) Termination Payment. If such termination is the result of
         the discharge of Officer by Company for any reason other than cause
         (as defined in Section 5(a) hereof), then Officer shall be entitled to
         receive on the effective date of termination as a termination payment
         an amount equal to the retention payment (excluding bonuses) that
         Officer would have received for the next 12 months following
         termination adjusted up to take into consideration taxes that would
         have to paid on the Termination Payment. For the purpose of
         determining the amount of such termination payment, "retention
         payment" shall be deemed to be the average level of Officer's
         retention payment that is established in accordance with Section 3(a)
         hereof for the 90 day period ending on the effective date of
         termination. On the last day of service, the termination contemplated
         herein shall be paid in cash on the date of expiration or the
         termination. If Officer's retention hereunder terminates because of
         the death of the Officer, all amounts that are due to him under the
         terms of this Agreement shall be paid to his administrators, personal
         representatives, heirs and legatees, as may be appropriate.

                  (c) Termination For Cause or Voluntary Termination. If the
         retention relationship hereunder is terminated by Company for cause or
         voluntarily by Officer, Officer shall not be entitled to any
         termination payment, other than pursuant to the terms of paragraph 3.

                  (d) Survival. The provisions of Section 6 hereof shall
         survive the termination of the retention relationship hereunder and
         this Agreement to the extent necessary or reasonably appropriate to
         effect the intent of the parties hereto as expressed in such
         provisions.

7.       Term. The stated term of this Agreement and the retention relationship
         created hereunder shall be and remain in effect for a period of five
         years from the date hereof. The Board, upon notice to Officer not less
         that 60 days prior to the expiration of the term of this Agreement
         shall have the option to extend this Agreement for successive 6 month
         periods under terms and retention payment to be mutually agreed to by
         Company and Officer unless this Agreement is sooner terminated in
         accordance with Section 5 hereof.

8.       Relocation Expense. In the event that the corporate office of the
         Company is moved at the direction of the Board to a location which is
         more that 100 miles away from Maryland, and as a result and in order
         to be able to effectively perform his services hereunder, Officer
         relocates to the vicinity of such relocation, Company shall reimburse
         Officer for all of his reasonable and documented relocation expenses.

9.       Remedies. Each of the parties to this Agreement will be entitled to
         enforce its rights under this Agreement specifically, to recover
         damages by reason of any breach of the provisions of this Agreement
         and to exercise all other rights existing in its favor. The parties
         hereto 

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         agree and acknowledge that money damages may not be an adequate remedy
         for any breach of the provisions of this Agreement and that any party
         may in its sole discretion apply to any court of law or equity of
         competent jurisdiction for specific performance and/or injunctive
         relief in order to enforce or prevent any violations of the provisions
         of this Agreement.

10.      Attorney's Fees. If any action at law or equity, including any action
         for declaratory or injunctive relief, is brought to enforce or
         interpret the provisions of this Agreement, the prevailing party shall
         be entitled to recover reasonable attorneys' fees from the
         non-prevailing party, which fees may be set by the court in the trial
         of such action, or may be enforced in a separate action brought for
         that purpose, and which fees shall be in addition to any other relief
         which may be awarded.

11.      Assignment. This Agreement is personal to Officer and may not be
         assigned in any way by Officer without the prior written consent of
         Company. This Agreement shall not be assignable or delegated by
         Company. Nothwithstanding the preceding sentence, this Agreement may
         be assigned or delegated by Company to any subsidiary of Company. The
         rights and obligations under this Agreement shall inure to the benefit
         of and shall be binding upon the heirs, legatees, administrators and
         personal representatives of Officer and upon the successors,
         representatives and assigns of Company.

12.      Severability and Reformation. The parties hereto intend all provisions
         of this Agreement to be enforced to the fullest extent permitted by
         law. If, however, any provision of this Agreement is held to be
         illegal, invalid, or unenforceable under present or future law, such
         provision shall be fully severable, and this Agreement shall be
         construed and enforced as if such illegal, invalid, or unenforceable
         provision were never a part hereof, and the remaining provisions shall
         remain in full force and effect and shall not be affected by the
         illegal, invalid, or unenforceable provision or by its termination.

13.      Notices. All notices and other communications required or permitted to
         be given hereunder shall be in writing and shall be deemed to have
         been duly given if delivered personally, mailed by certified mail
         (return receipt requested) or sent by overnight delivery service,
         cable, telegram, facsimile transmission or telex to the parties at the
         following addresses or at such other address as shall be specified by
         the parties by like notice:

                  If to Company:       Siena Holdings, Inc.
                                       717 N. Harwood Street, Suite 1110
                                       Dallas, Texas 75201

                  If to Officer:       John P. Kneafsey
                                       12 Lochwynd Court
                                       Phoenix, Maryland 21131-1210

Notice so given shall, in the case of notice so given by mail, be deemed to be
given and received on 

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the fourth calendar day after posting, in the case of notice so given by
overnight delivery service, on the date of actual delivery and, in the case of
notice so given by cable, telegram, facsimile transmission, telex or personal
delivery, on the date of actual transmission or, as the case may be, personal
delivery.

14.      Further Actions. Whether or not specifically required under the terms
         of this Agreement, each party hereto shall execute and deliver such
         documents and take such further actions as shall be necessary in order
         for such party to perform all of his or its obligations specified
         herein or reasonably implied from the terms hereof.

15.      GOVERNING LAW AND VENUE. THIS AGREEMENT IS MADE IN THE STATE OF TEXAS,
         AND SHALL FOR ALL PURPOSES BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
         WITH THE INTERNAL LAW, AND NOT THE LAW OF CONFLICTS, OF SAID STATE.

16.      Arbitration. Except for matters involving suits requesting injunctive
         relief, any controversy or claim arising out of or relating to this
         Agreement, or any breach hereof, shall be settled by arbitration. The
         parties hereto agree that any such controversy shall be submitted to
         three arbitrators in accordance with the Rules of Commercial
         Arbitration of the American Arbitration Association. The arbitrators
         shall be governed by and shall apply the substantive law of the State
         of Texas in making their determination, and their ruling shall be
         binding and conclusive upon the parties hereto. All arbitrations
         (should any be required) shall occur in Texas.

17.      Entire Agreement and Amendment. This Agreement contains the entire
         understanding and agreement between the parties, and supersedes any
         other agreement between Officer and Company, whether oral or in
         writing, with respect to the subject matter hereof. This Agreement may
         not be altered, amended, or rescinded, nor may any of its provisions
         be waived, except by an instrument in writing signed by both parties
         hereto or, in the case of an asserted waiver, by the party against
         whom the waiver is sought to be enforced.


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18.      Counterparts. This Agreement may be executed in counterparts, with the
         same effect as if both parties had signed the same document. All such
         counterparts shall be deemed an original, shall be construed together
         and shall constitute one and the same instrument.

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


Company:
Siena Holdings, Inc.


By:
   ---------------------------------
   Name: W. Joseph Dryer
   Title:    President


Officer:


------------------------------------
John P. Kneafsey


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