Document:

EXHIBIT 4.2

                         [GRAPHIC OF STOCK CERTIFICATE]

                           AMERICAN BANK NOTE COMPANY
                               711 ARMSTRONG LANE
                           COLUMBIA, TENNESSEE 38401
                                 (931) 388-3003

                 SALES:      J. NAPOLITANO     212-269-0339 x14
                 / ETHER 13 / LIVE JOBS / A / AMERICAN 14108 FC

              PRODUCTION COORDINATOR: VERONICA GLIATTI 931-490-1706
                            PROOF OF DECEMBER 8, 2003
AMERICAN HOME MORTGAGE INVESTMENT CORP. (Fmly: American Home Mortgage Holdings)
                                  TSB 14108 FC

                               Operator:       Ron
                                       Rev. 1

      PLEASE INITIAL THE APPROPRIATE SELECTION FOR THIS PROOF: ____OK AS IS
____OK WITH CHANGES ____MAKE CHANGES AND SEND ANOTHER PROOF

Colors Selected for Printing: Logo is in EPS format; SUITABLE FOR PRINTING;
Prints in PMS 302. Intaglio prints in SC-7 Dark Blue.

COLOR: This proof was printed from a digital file or artwork on a graphics
quality, color laser printer. It is a good representation of the color as it
will appear on the final product. However, it is not an exact color rendition,
and the final printed product may appear slightly different from the proof due
to the difference between the dyes and printing ink.

<PAGE>

                                IMPORTANT NOTICE

The Corporation will furnish to any stockholder, on request and without charge,
a full statement of the information required by Section 2-211(b) of the
Corporations and Associations Article of the Annotated Code of Maryland with
respect to the designations and any preferences, conversion and other rights,
voting powers, restrictions, limitations as to dividends and other
distributions, qualifications, and terms and conditions of redemption of the
stock of each class which the Corporation has authority to issue and, (i) the
differences in the relative rights and preferences between the shares of each
series to the extent set, and (ii) the authority of the Board of Directors to
set such rights and preferences of subsequent series. The foregoing summary does
not purport to be complete and is subject to and qualified in its entirety by
reference to the charter of the Corporation (the "Charter"), a copy of which
will be sent without charge to each stockholder who so requests. Such request
must be made to the Secretary of the Corporation at its principal office or to
the Transfer Agent.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO SIGNIFICANT
RESTRICTIONS ON OWNERSHIP AND TRANSFER. EXCEPT AS OTHERWISE PROVIDED PURSUANT TO
THE CHARTER OF THE CORPORATION, NO PERSON MAY BENEFICIALLY OWN (I) SHARES OF
COMMON STOCK OF THE CORPORATION IN EXCESS OF 6.5% OF THE MORE RESTRICTIVE OF THE
TOTAL NUMBER OR VALUE OF THE OUTSTANDING SHARES OF COMMON STOCK OF THE
CORPORATION, (II) SHARES OF EQUITY STOCK OF THE CORPORATION IN EXCESS OF 6.5% OF
THE MORE RESTRICTIVE OF THE TOTAL NUMBER OR VALUE OF THE OUTSTANDING SHARES OF
EQUITY STOCK OF THE CORPORATION, (III) SHARES OF THE CORPORATION'S EQUITY STOCK
IF SUCH ACQUISITION WOULD RESULT IN THE CORPORATION BEING "CLOSELY HELD" UNDER
SECTION 856(h) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"),
(IV) SHARES OF THE CORPORATION'S EQUITY STOCK IF SUCH ACQUISITION WOULD RESULT
IN THE EQUITY STOCK BEING BENEFICIALLY OWNED BY FEWER THAN 100 PERSONS
(DETERMINED WITHOUT REFERENCE TO ANY RULES OF ATTRIBUTION UNDER THE CODE), (V)
SHARES OF THE CORPORATION'S EQUITY STOCK IF SUCH ACQUISITION WOULD CAUSE THE
CORPORATION TO FAIL TO QUALIFY AS A REAL ESTATE INVESTMENT TRUST UNDER THE CODE,
OR (VI) SHARES OF THE CORPORATION'S COMMON STOCK OR EQUITY STOCK IN VIOLATION OF
ANY OF THE FURTHER RESTRICTIONS SET FORTH IN THE CORPORATION'S CHARTER. ANY
PERSON WHO ATTEMPTS OR PROPOSES TO BENEFICIALLY OWN SHARES OF THE CORPORATIONS'
COMMON STOCK OR EQUITY STOCK IN EXCESS OF THE ABOVE LIMITATIONS MUST IMMEDIATELY
NOTIFY THE CORPORATION IN WRITING. IF AN ATTEMPT IS MADE TO VIOLATE OR THERE IS
A VIOLATION OF THESE RESTRICTIONS, (A) ANY PURPORTED TRANSFER WILL BE VOID AB
INITIO AND WILL NOT BE RECOGNIZED BY THE CORPORATION AND (B) THE SHARES OF THE
CORPORATION'S COMMON STOCK OR EQUITY STOCK IN VIOLATION OF THESE RESTRICTIONS,
WHETHER AS A RESULT OF A TRANSFER OR NON-TRANSFER EVENT, WILL BE TRANSFERRED
AUTOMATICALLY AND BY OPERATION OF LAW TO A SHARE TRUST AND SHALL BE DESIGNATED
SHARES-IN-TRUST. ALL TERMS USED IN THIS LEGEND AND DEFINED IN THE CORPORATION'S
CHARTER HAVE THE MEANINGS PROVIDED IN THE CORPORATION'S CHARTER, AS THE SAME MAY
BE AMENDED FROM TIME TO TIME, A COPY OF WHICH, INCLUDING THE RESTRICTIONS ON
OWNERSHIP AND TRANSFER, WILL BE SENT WITHOUT CHARGE TO EACH STOCKHOLDER WHO SO
REQUESTS.

      The following abbreviations, when used in the inscription on the face of
this certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>                                                 <C>
      TEN COM - as tenants in common                UNIF GIFT MIN ACT-.........................Custodian........................
      TEN ENT - as tenants by the entireties                                    (Cust)                          (Minor)
      JT TEN  - as joint tenants with right of                              under Uniform Gifts to Minors
                survivorship and not as tenants                             Act..........
                in common                                                       (State)
</TABLE>

      Additional abbreviations may also be used though not in the above list.

      For value received, _______________________________ hereby sell, assign
      and transfer unto

      PLEASE INSERT SOCIAL SECURITY OR OTHER
          IDENTIFYING NUMBER OF ASSIGNEE
      -------------------------------------

      -------------------------------------

      __________________________________________________________________________
      (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF
      ASSIGNEE)

      __________________________________________________________________________

      ____________________________________________________________________shares
      of the capital stock represented by the within Certificate, and do hereby
      irrevocably constitute and appoint

      __________________________________________________________________Attorney
      to transfer the said stock on the books of the within named Corporation
      with full power of substitution in the premises.

      Dated ___________________________

                        ________________________________________________________
                NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH
                        THE NAME AS WRITTEN UPON THE FACE OF THE CERTIFICATE IN
                        EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR
                        ANY CHANGE WHATEVER.

      Signature(s) Guaranteed:

      _________________________________________________________________________
      THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION
      (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH
      MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM),
      PURSUANT TO S.E.C. RULE 17Ad-15.

KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN, MUTILATED OR
DESTROYED, THE CORPORATION WILL REQUIRE A BOND OF INDEMNITY AS A CONDITION TO
THE ISSUANCE OF A REPLACEMENT CERTIFICATE.

                           AMERICAN BANK NOTE COMPANY
                               711 ARMSTRONG LANE
                           COLUMBIA, TENNESSEE 38401
                                 (931) 388-3003

                 SALES:      J. NAPOLITANO     212-269-0339 x14
                 / ETHER 13 / LIVE JOBS / A / AMERICAN 14108 BK

              PRODUCTION COORDINATOR: VERONICA GLIATTI 931-490-1706
                            PROOF OF DECEMBER 9, 2003
AMERICAN HOME MORTGAGE INVESTMENT CORP. (Fmly: American Home Mortgage Holdings)
                                  TSB 14108 BK

                            Operator:           Ron
                                      Rev. 2

PLEASE INITIAL THE APPROPRIATE SELECTION FOR THIS PROOF: ____OK AS IS ____OK
WITH CHANGES ______MAKE CHANGES AND SEND ANOTHER PROOFExhibit 10.7

                             EMPLOYMENT AGREEMENT

This Employment Agreement, dated as of March 1, 2003 (this "Agreement"), is by
and between American Home Mortgage Holdings, Inc., a Delaware corporation having
a place of business at 520 Broadhollow Road, Melville, NY (the "Company"), and
Stephen Hozie, [address omitted] (the "Executive").

      Whereas the Company wishes to assure itself of the services of the
Executive, and the Executive desires to be employed by the Company, upon the
terms and conditions hereinafter set forth.

      Now, Therefore, the Company and the Executive hereby agree as follows:

      1. Employment. The Company agrees to employ the Executive, and the
Executive hereby accepts such employment by the Company during the term set
forth in Section 2 and on the other terms and conditions of this Agreement.

      2. Term. The term of this Agreement shall commence as of March 1, 2003,
and shall continue until four weeks after the resignation or discharge of the
Executive.

      3. Position, Duties and Responsibilities, Rights

      (a) During the term of this Agreement, the Executive shall serve as, and
be elected to and hold the office and title of Chief Financial Officer of the
Company. As such, the Executive shall report only to the Chief Executive Officer
of the Company (the "CEO"), and shall have all of the powers and duties usually
incident to the office of Chief Financial Officer of the Company. In addition,
the Executive shall serve as the Chief Financial Officer of subsidiaries of the
Company if and when requested to do so by the CEO.

      (b) During the term of this Agreement, the Executive agrees to devote
substantially all the Executive's time, efforts and skills to the affairs of the
Company during the Company's normal business hours, except for vacations,
illness and incapacity, but nothing in this Agreement shall preclude the
Executive from devoting reasonable periods to (i) manage the Executive's
personal investments, (ii) participate in professional, educational, public
interest, charitable, civic or community activities, including activities
sponsored by trade organizations, and (iii) serve as a director or member of an
advisory committee of any corporation not in competition with the Company or any
of its subsidiaries, or as an officer, trustee or director of any charitable,
educational, philanthropic, civic, social or industry organizations, or as a
speaker or arbitrator; provided, however, that the performance of the
Executive's duties or responsibilities in any of such capacities does not
materially interfere with the regular performance of the Executive's duties and
responsibilities hereunder.

      4. Place of Performance. In connection with the Executive's employment by
the Company, the Executive shall be based at its principal executive offices
which are currently located in Melville, NY, and shall not be required to be
absent therefrom on travel status or

<PAGE>

otherwise for more than a reasonable time each year as necessary or appropriate
for the performance of the Executive's duties hereunder.

      5. Compensation.

      (a) During the term of this Agreement, the Company shall pay the
Executive, and the Executive agrees to accept a base salary at the rate of not
less than $325,000.00 per year (the annual base salary as increased from time to
time during the term of this Agreement being hereinafter referred to as the
"Base Salary"). The Base Salary shall be paid in installments no less frequently
than monthly. Any increase in Base Salary or other compensation shall not limit
or reduce any other obligation of the Company hereunder, and once established at
an increased specified rate, the Executive's Base Salary hereunder shall not
thereafter be reduced.

      (b) During the term of this Agreement, the Company shall, after the close
of each calendar year, pay the Executive an objective achievement bonus, the
amount of which will be determined by the CEO. To determine the amount of the
objective achievement bonus for a given year, the CEO will consider whether the
Executive achieved the objectives set forth in the Executive's business plan for
that calendar year. If the CEO determines that all of the objectives were
achieved, the CEO will award the Executive an objective achievement bonus of not
less than $175,000.00. If some, but not all of the objectives were achieved, the
CEO will award a lesser objective achievement bonus. Objective achievement
bonuses for a given year will be paid no later than the last day of February of
the succeeding year.

      (c) Commencing for the year beginning January 1, 2003, and for each
subsequent year during the term of this agreement, the Company shall pay the
Executive, a management evaluation bonus the amount of which will be determined
by the CEO. The amount of the management evaluation bonus will be targeted at
$75,000.00, but may be a greater or lesser amount. The CEO will determine the
actual amount of the management evaluation bonus for a given year based on the
CEO's evaluation of the Executive's overall performance during the year.
Management evaluation bonuses for a given year will be paid no later than the
last day of February of the succeeding year.

      (d) Commencing for the year beginning January 1, 2003, and for each
subsequent year during the term of this agreement, the Company shall, after the
close of each calendar year, pay the Executive a company performance award the
amount of which will be determined by the CEO. To determine the amount of the
company performance award for a given year, the CEO will consider whether the
company achieved the objectives set forth in the Company's business plan for
that calendar year. If the CEO determines that all of the objectives were
achieved, the CEO will award the Executive a company performance bonus of not
less than $75,000.00. If some, but not all of the objectives were achieved, the
CEO will award a lesser company performance bonus. Company performance bonuses
for a given year will be paid no later than the last day of February of the
succeeding year.

      (e) Notwithstanding the amounts, determinants and meanings set forth in
sections 5(b), 5(c), and 5(d), the minimum bonus paid to the Executive for the
combination of 5(b), 5(c) and 5(d) shall be $162,500 and the maximum cumulative
bonus due as a result of sections 5(b), 5(c) and 5(d) shall be $487,500 (i.e.,
the sum of the payments pursuant to 5(b), 5(c) and 5(d) will range from $162,500
to $487,500 per year).

<PAGE>

      (f) The Executive will not be entitled to any unpaid bonuses if this
Agreement is terminated as described in Section 6. Notwithstanding anything to
the contrary, the Executive will not be entitled to any unpaid bonuses if he is
no longer an employee of the Company.

      (g) During the term of this Agreement, the Executive shall be entitled to
fringe benefits, in each case at least equal to and on the same terms and
conditions as those attached to the Executive's office on the date hereof, as
the same may be improved from time to time during the term of this Agreement, as
well as to reimbursement, upon proper accounting, of all reasonable expenses and
disbursements incurred by the Executive in the course of the Executive's duties.
The Executive will be provided the specific benefits and relocation plan set
forth on the addendums attached hereto. The Executive agrees to reimburse the
Company for amounts it paid to relocate the Executive if the Executive resigns
or is terminated for gross misconduct within one year of the Executive
commencing employment hereunder.

      (h) In addition to previously granted stock options, the Executive will be
given an Option Grant of 20,000 shares of existing class of the common stock of
the Company, effective upon execution of this Agreement. Further, a target
Option Grant of 32,500 shares of existing class of the common stock of the
Company will be issued in March, 2004. The complete terms of the Option Grant
will be governed by the Company's 1999 Omnibus Stock Option Plan.

      6. Termination of Employment. The employment created hereby is at will.
The Company may terminate this Agreement by discharging the Executive. The
Executive may terminate this Agreement by resigning. Discharge or resignation
may be for any reason or for no reason. If the company chooses to discharge the
Executive, it will deliver a letter of discharge pursuant to the notice
provisions of section 10. If the Executive chooses to resign, the Executive will
deliver a letter of resignation pursuant to the notice provisions of section 10.

      7. Change of Control. Not withstanding anything to the contrary herein, if
any person or entity acquires more than 50% of the voting stock of the Company
during the one year period from March 1, 2003 through March 1, 2004, the Company
will notify the Executive pursuant to the provision of Section 10 hereof that a
new majority owner exists. In such case, the Executive will have sixty days to
elect to terminate this Agreement due to the change of control by resigning
pursuant to Section 6 hereof. If the Executive so elects, within the prescribed
timeframe, the Company will pay the Executive severance of $650,000. This
section 7 shall survive the termination of this Agreement.

      8. Entire Agreement; Amendment.

      (a) This Agreement contains the entire understanding of the parties with
respect to the subject matter hereof and supersedes any and all other agreements
between the parties, their predecessors and affiliates, except as specified in
section 5(h), above.

      (b) Any amendment of this Agreement shall not be binding unless in writing
and signed by both (i) the CEO and (ii) the Executive.

      9. Enforceability. In the event that any provision of this Agreement is
determined to be invalid or unenforceable, the remaining terms and conditions of
this Agreement shall be unaffected and shall remain in full force and effect,
and any such determination of invalidity or enforceability shall not affect the
validity or enforceability of any other provision of this Agreement.

<PAGE>

      10. Notices. All notices which may be necessary or proper for either the
Company or the Executive to give to the other shall be in writing and shall be
sent by hand delivery, registered or certified mail, return receipt requested or
overnight courier, if to the Executive, to him at [address omitted] and, if to
the Company, to it at its principal executive offices at 520 Broadhollow Road,
Melville, NY 11747, Attention: Chief Executive Officer, with a copy to 520
Broadhollow Road, Melville, NY 11747, Attention: General Counsel, and shall be
deemed given when sent. Either party may by like notice to the other party
change the address at which it is to receive notices hereunder.

      11. Non-Disparagement, Non-Solicitation, Confidential Information. The
Company and the Executive agree that neither will disparage the other and that
their representatives will not disparage either party hereto. The Executive
agrees that for a period of six months following the termination of this
Agreement, the Executive will not solicit any employee of the Company to leave
the Company or hire any employee of the Company. The Company and the Executive
agree to keep the terms of this Agreement confidential except that the Executive
may divulge the terms of this Agreement to the Executive's spouse, attorney,
financial advisor and accountant provided they agree to keep the terms of this
Agreement confidential. The Executive agrees to protect, not disclose, and not
use for the Executive's benefit any confidential information or trade secrets
belonging to the Company, including information regarding proprietary procedures
and techniques, accounts, or personnel (excepting information that was already
disclosed by the Company or otherwise was made public other than by breach of
this Agreement by the Executive). The preceding two sentences shall not apply to
disclosures required due to the laws or regulations of governments, or the
orders of courts having jurisdiction over the Company and the Executive. This
section 11 shall survive the termination of this Agreement.

      12. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND BE ENFORCEABLE
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO
THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF.

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

                                        American Home Mortgage Holdings, Inc.

                                        By: /s/ Michael Strauss
                                            ---------------------------------
                                            Name: Michael Strauss
                                            Title: President and CEO

                                       /s/ Stephen Hozie
                                        -------------------------------------
                                        Stephen Hozie

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