Document:

EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

This Employment Agreement, dated as of January 1, 2005 (this "Agreement"), is by
and between American Home Mortgage Holdings, a Maryland corporation having a
place of business at 538 Broadhollow Road, Melville, NY (the "Company"), and
Richard Loeffler, [ ] (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 January 1, 2005,
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 Administrative Officer of
the Company. As such, the Executive shall report to the Chief Executive Officer
of the Company (the "CEO") or such officer as is designated by the CEO, and
shall have all of the powers and duties usually incident to the office of Chief
Administrative Officer of the Company. In addition, the Executive shall serve as
the Chief Administrative 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

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located in Melville, NY, and shall not be required to be absent therefrom on
travel status or 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 $600,000.00 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 a targeted bonus of 50% of base salary,
the amount of which may be greater or lesser as determined by the CEO. The bonus
will be comprised of an objective achievement bonus, a management evaluation
bonus, and a company performance award. 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. If some, but
not all of the objectives were achieved, the CEO will award a lesser objective
achievement bonus.

      Commencing for the year beginning January 1, 2005, 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 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.

      Commencing for the year beginning January 1, 2005, 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. If some, but not
all of the objectives were achieved, the CEO will award a lesser company
performance bonus. The bonus for a given year will be paid no later than the
last day of February of the succeeding year.

      (c) 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 on the bonus payment date.

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      (d) 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.

      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. 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.

      10. Notice. 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 [ ] and, if to the Company, to
it at its principal executive offices at 538 Broadhollow Road, Melville, NY
11747, Attention: Chief Executive Officer, with a copy to 538 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

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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

                                       /s/ Richard Loeffler
                                       -----------------------------------------
                                       Richard LoefflerEXHIBIT 10.2

                    AMENDED AND RESTATED EMPLOYMENT AGREEMENT

            This Amended and Restated Employment Agreement (this "Agreement") is
made and entered into this 14th day of December, 2004, effective as of as of
July 1, 2003 (the "Effective Date"), by and between American Home Mortgage
Holdings, Inc., a Delaware corporation (the "Company"), and John A. Manglardi
(the "Executive").

            WHEREAS, reference is made to that certain Agreement and Plan of
Merger, dated as of January 17, 2000, by and among the Company, American Home
Mortgage Sub II, Inc., First Home Mortgage Corp. ("First Home") and the
stockholders of First Home listed on the signature pages thereto (as amended
from time to time, the "Merger Agreement");

            WHEREAS, in connection with the Merger Agreement, the Company and
the Executive previously entered into that certain Employment Agreement, dated
as of January 17, 2000 (the "Original Employment Agreement"), by and between the
Company and the Executive, and that certain Non-Competition Agreement, dated as
of January 17, 2000 (the "Non-Competition Agreement"), by and between the
Company and the Executive;

            WHEREAS, the Company desires to continue to assure itself of the
services of the Executive, upon the terms and conditions hereinafter set forth;

            WHEREAS,  the Executive  desires to continue to be employed by the
Company, upon the terms and conditions hereinafter set forth; and

            WHEREAS, it is the intention of the Company and the Executive that,
as of the Effective Date (as hereinafter defined), this Agreement shall
supersede and replace in full any and all other agreements between the parties
with respect to the subject matter hereof, including, but not limited to, the
Original Employment Agreement and the Non-Competition Agreement;

            NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Company and the Executive
hereby agree as follows:

            1. Definitions. Unless defined elsewhere in this Agreement,
capitalized terms contained herein shall have the meanings set forth or
incorporated by reference in Section 18 hereof.

            2. Employment. The Company agrees to employ the Executive, and the
Executive hereby accepts such employment by the Company and/or any subsidiary or
affiliate of the Company, during the term set forth in Section 3 hereof and upon
the other terms and conditions of this Agreement.

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            3. Term.

            (a) The term of this Agreement shall commence as of July 1, 2003
(the "Effective Date"), and, subject to Section 3(b) hereof, shall terminate at
the close of business on the fifth anniversary of such date (the "Fifth
Anniversary").

            (b) The term of this Agreement set forth in Section 3(a) hereof
shall be extended or further extended, as the case may be, without any action by
the Company or the Executive, on the Fifth Anniversary and on each subsequent
anniversary of the date thereof, for an additional period of one year, until
either party gives a Notice of Termination (as defined in Section 7(g) hereof)
to the other party six (6) months in advance of any such anniversary of the
Effective Date, in the manner set forth in Section 15 hereof, that the term in
effect when such notice is given is not to be extended or further extended, as
the case may be, beyond the next anniversary of the Effective Date. If the
Executive shall continue in the full-time employment of the Company after the
Fifth Anniversary, such continued employment shall be subject to the terms and
conditions of this Agreement, including, without limitation, the continuation of
the Executive's compensation hereunder, except to the extent that the parties
hereto mutually agree in writing to revise any of the terms hereof.

            4. Position, Duties and Responsibilities, Rights.

            (a) From the Effective Date until the Fifth Anniversary, the
Executive shall serve as, and be elected to and hold the office and title of,
President, Eastern Division, of the Company. As such, the Executive shall report
only to the Chief Executive Officer of the Company, and shall have all of the
powers and duties usually incident to the office of President of the Eastern
Division of the Company, and shall have powers to perform such other reasonable
additional duties as may from time to time be lawfully assigned to the Executive
by the Chief Executive Officer of the Company. Among other duties, the Executive
shall be responsible for profit and loss and sales management for the Company's
Eastern Division.

            (b) During the term of this Agreement, the Executive agrees to
devote substantially all of 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, (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 affiliates, or as an officer, trustee or director of any
charitable, educational, philanthropic, civic, social or industry organizations,
or as a speaker or arbitrator, or engage in the following business activities or
businesses: (A) serve as a member of the board of directors of a bank, provided
the bank is not significantly engaged in mortgage lending activities; (B)
insurance brokerage; (C) real estate brokerage; (D) title insurance; (E) real
estate development; (F) real estate investment; (G) credit bureau services; or
(H) making or participating in making fewer than fifty (50) high-cost
non-conforming mortgage loans per year, or, only with the express approval of
the Company, more than fifty (50) such loans per year; provided, however, that
the performance of the Executive's duties or

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responsibilities in any of such capacities does not materially interfere with
the regular performance of the Executive's duties and responsibilities
hereunder.

            5. Place of Performance. In connection with the Executive's
employment by the Company, the Executive shall be based at a location designated
by the Company in the Chicagoland area as the principal executive offices of the
Company's Eastern Division, and shall not be required to be absent therefrom on
travel status or otherwise for more than a reasonable time each year as
necessary or appropriate for the performance of the Executive's duties
hereunder.

            6. Compensation. During the term of this Agreement, the Executive
shall be compensated by the Company as follows:

            (a) Base Salary. The Company shall pay the Executive, and the
Executive agrees to accept, an annual base salary in the amount of (i) from the
Effective Date to July 1, 2004, not less than $183,500, and (ii) on or after
July 1, 2004, not less than $400,000, which annual base salary may be increased
by the Company in its sole discretion (the annual base salary as may be
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 24 equal
semi-monthly installments; provided, however, in the event that the Company
changes its normal payroll cycle, such payment installments will be adjusted
accordingly, but in no event will the Base Salary be paid less frequently than
monthly. Any and all Base Salary due the Executive as of the date of the
execution of this Agreement, but not previously paid, shall be paid to the
Executive in a lump sum no later than 10 days after the date of execution of
this Agreement.

            (b) Performance-Based Compensation.

                  (i) Volume Override Payment. For each fiscal quarter of the
            Company during the term of this Agreement, the Executive shall
            receive in cash an amount equal to one-quarter (0.25) of a basis
            point of Origination Volume of loan production of the Eastern
            Division (the "Volume Override Payment").

                  (ii) Profit Participation Payment. For each fiscal year of the
            Company during the term of this Agreement, the Executive shall
            receive three and one-quarter percent (3.25%) of the difference
            between any Profits of the Eastern Division less the amount of the
            Invested Capital Charge (the "Profit Participation Payment").

                  (iii) Payment of Volume Override Payment and Profit
            Participation Payment. The Company shall pay any Volume Override
            Payment due the Executive on a quarterly basis in a lump sum no
            later than 30 days after the end of each fiscal quarter to which the
            Volume Override Payment relates. The Company shall pay any Profit
            Participation Payment due the Executive on an annual basis in a lump
            sum no later than March 31st of the fiscal year that immediately
            follows the fiscal year to which the Profit Participation Payment
            relates.

                  (iv) Determination of Volume Override Payment and Profit
            Participation Payment. Within 10 days after the end of each fiscal
            quarter during the term of this Agreement, the Company shall
            determine the amount of any Volume

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<PAGE>

            Override Payment due to the Executive (a "Volume Override Payment
            Determination") and furnish the Volume Override Payment
            Determination to the Executive together with information reflecting
            the basis for the determination. Within 60 days after the end of
            each fiscal year during the term of this Agreement, the Company
            shall determine the amount of any Profit Participation Payment due
            to the Executive (a "Profit Participation Payment Determination")
            and furnish the Profit Participation Payment Determination to the
            Executive together with information reflecting the basis for such
            determination. After receipt of any Volume Override Payment
            Determination or Profit Participation Payment Determination, the
            Executive may request from the Company an audit of the determination
            (a "Payment Audit"), which Payment Audit shall be performed by the
            Company's independent public accountants at such time. Any request
            by the Executive for a Payment Audit must be in writing and must be
            received by the Company within 30 days of the Executive's receipt of
            the Volume Override Payment Determination or Profit Participation
            Payment Determination to which the request for a Payment Audit
            relates. The Company shall bear the cost of any Payment Audit
            requested by the Executive under this Section 6(c)(iv); provided,
            however, that if the Volume Override Payment or Profit Participation
            Payment determined by the Company's independent public accountants
            after conducting the Payment Audit is not more than one percent (1%)
            greater than amount of the Volume Override Payment or Profit
            Participation Payment in the Volume Override Payment Determination
            or Profit Participation Payment Determination, as the case may be,
            the Executive shall bear the full cost of the Payment Audit.

                  (v) Stock Option Award. For 2004, the Executive shall be
            awarded a grant ------------------- of 37,500 stock options as of
            the date of the execution of this Agreement, in accordance with the
            American Home Mortgage Investment Corp. 1999 Omnibus Stock Incentive
            Plan (the "Plan"), subject to the execution by the Executive and the
            Company of a Non-Qualified Stock Option Grant Agreement pursuant to
            the Plan (the "Option Agreement"). Said stock options shall vest
            fifty percent (50%) two (2) years from the grant date, and fifty
            percent (50%) three (3) years from the grant date, in accordance
            with and subject to the terms and conditions of the Plan and Option
            Agreement. -----------------------

            (c) Payments under the Merger Agreement. The Company shall continue
to pay the Executive all amounts, if any, due to the Executive under Sections
2.4(c) and 2.4(e) of the Merger Agreement, upon the terms and conditions set
forth in the Merger Agreement, and until such provisions have terminated in
accordance with the terms of the Merger Agreement. Except as set forth in the
preceding sentence, as of the Effective Date of this Agreement, the Company
shall not be obligated to make any other payments, or fulfill any other
obligations, to the Executive under the Merger Agreement.

            (d) Perquisites and Reimbursement of Expenses. During the term of
this Agreement, the Executive shall be entitled to (i) perquisites, including,
without limitation, an office and secretarial and clerical staff, and (ii)
fringe benefits, including, without limitation, health insurance, 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.

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<PAGE>

            (e) Dependents and Beneficiaries. The Executive and the Executive's
dependents and beneficiaries shall be entitled to all benefits and service
credit for benefits during the term of this Agreement to which senior officers
of the Company and their dependents and beneficiaries are entitled as the result
of the employment of such officers during the term of this Agreement under the
terms of employee plans and practices of the Company and its subsidiaries and
affiliates, including, without limitation, any pension plans, profit sharing
plans, any non-qualified deferred compensation plans and related "rabbi" trusts,
the Company's life insurance plans, its disability benefit plans, its vacation
and holiday pay plans, its medical, dental and welfare plans, and other present
or successor plans and practices of the Company and its subsidiaries and
affiliates for which senior officers, their dependents and beneficiaries are
eligible, and to all payments and other benefits under any such plan or practice
subsequent to the term of this Agreement as a result of participation in such
plan or practice during the term of this Agreement.

            7. Termination of Employment.

            (a) The term of this Agreement shall terminate upon the death of the
Executive.

            (b) The Company may terminate the Executive's employment during the
term of this Agreement for Cause as provided in Section 7(b)(i) hereof or in the
event of Disability as provided in Section 7(b)(ii) hereof.

                  (i) This Agreement shall be considered terminated for "Cause"
            only:

                        (A) if the Executive willfully fails to substantially
                  perform the duties reasonably assigned to him by the Chief
                  Executive Officer, other than by reason of a Disability;

                        (B) if the Executive is grossly negligent or engages in
                  gross misconduct in the performance of the Executive's duties
                  hereunder;

                        (C) if the Executive knowingly engages in an act of
                  dishonesty, an act of fraud or embezzlement, or any conduct
                  resulting in a felony conviction; or

                        (D) if the Executive violates the provisions of Section
                  9 hereof,

      and, in the case of each of clauses (A), (B) (C) and (D) above, the
      applicable conditions set forth in Section 7(f) hereof are satisfied.

            Anything in this Section 7(b) to the contrary notwithstanding, the
      Executive's employment shall in no event be considered terminated by the
      Company for Cause if termination takes place as the result of bad judgment
      or negligence on the part of the Executive other than gross negligence or
      willful or reckless misconduct.

                  (ii) The term "Disability" as used in this Agreement means an
            accident or physical or mental illness which prevents the Executive
            from substantially performing

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<PAGE>

            the Executive's duties hereunder for six consecutive months. The
            term of this Agreement shall end as of the close of business on the
            last day of such six-month period but without prejudice to any
            payments due to the Executive in respect of disability under this
            Agreement or any plan or practice of the Company.

            (c) The Executive may terminate the Executive's employment during
the term of this Agreement for Good Reason. For purposes of this Agreement,
"Good Reason" shall mean (i) a reduction of the Executive's rate of compensation
or any other failure by the Company to comply with Section 6 hereof; (ii)
failure by the Company to comply with Section 5 hereof; (iii) failure by the
Company to obtain the assumption of, and the agreement to perform, this
Agreement by any successor as contemplated in Section 11(a) hereof; or (iv) in
the event of a Change in Control; except that, the Executive may not terminate
his employment hereunder for Good Reason unless the Company fails to cure such
Good Reason within thirty (30) days of receipt of written notice from the
Executive pursuant to Section 7(d). For purposes of this section, a Change in
Control shall occur if, within ten (10) years of the date of this Agreement, any
person or entity other than, individually or collectively, the Board of
Directors of American Home Mortgage Investment Corp. ("AHMIC") as constituted as
of the date of this Agreement, obtains control of more than fifty percent (50%)
of the voting securities of AHMIC or of the Company (except, in the case of the
Company, as the result of an internal reorganization of AHMIC), and, as a result
thereof, the Executive is discharged, or there is a diminution or other adverse
change in the Executive's job description, responsibilities, working conditions
or authority and the Executive consequently resigns.

            (d) Any termination by the Company pursuant to Section 7(b) hereof,
by the Executive pursuant to Section 7(c) hereof, or by the Company or the
Executive pursuant to Section 3(b) hereof, shall be communicated by a Notice of
Termination to the other party hereto. For purposes of this Agreement, "Notice
of Termination" shall mean (i) with respect to termination pursuant to Sections
7(b) or 7(c) hereof, a written notice which indicates the specific termination
provision(s) in this Agreement relied upon and sets forth in reasonable detail
the facts and circumstances claimed to provide a basis for termination of the
Executive's employment under the provision(s) so indicated.

            (e) Notwithstanding anything to the contrary set forth herein, the
Company shall have the right to terminate the Executive's employment for any
reason other than Cause at any time, subject to the consequences of such
termination as set forth in Section 8 hereof.

            (f) In no event shall the Company be entitled to terminate the
Executive's employment during the term of this Agreement for Cause pursuant to
Section 7(b) hereof, unless and until all of the following take place, provided
that Sections 7(f)(i) through (iii) shall not apply to any termination for Cause
pursuant to Section 7(b)(i)(C):

                  (i) the Secretary of the Company gives written notice to the
            Executive (the "Warning Notice") setting forth (A) the specific
            provision(s) of this Agreement that the Executive is alleged to have
            failed to satisfy, (B) the acts or omissions alleged to constitute
            such failure, (C) the date on which the Executive shall be given a
            reasonable opportunity to appear before and be heard by the Board of
            Directors of the Company concerning the allegations, which date
            shall be not less than 30, nor more than 90, days

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<PAGE>

            after the Executive's receipt of the Warning Notice, and (D) the
            loss of rights under this Agreement that shall occur unless the
            Executive diligently and in good faith takes reasonable steps to
            remedy such failure within 30 days after the Executive's receipt of
            the Warning Notice;

                  (ii) the Executive does not diligently and in good faith take
            all reasonable steps to remedy such failure within 30 days after the
            Executive's receipt of the Warning Notice; and

                  (iii) the Executive is given a reasonable opportunity to
            appear before and be heard by the Board of Directors of the Company
            concerning the allegations, in accordance with the Warning Notice.

            (g) "Date of Termination" shall mean (i) if the Executive's
employment is terminated by the Executive's death, the date of the Executive's
death, (ii) if the Executive's employment is terminated pursuant to Section
7(b)(ii) hereof, 30 days after Notice of Termination is given (provided that the
Executive shall not have returned to the performance of the Executive's duties
on a full-time basis during such 30-day period), and (iii) if the Executive's
employment is terminated for any other reason, the date on which Notice of
Termination is given.

            8. Compensation on Termination. The parties recognize and agree
that, if the Company terminates the Executive's employment during the term of
this Agreement other than pursuant to Section 7(b) hereof, or if the Executive
terminates the Executive's employment during the term of this Agreement for Good
Reason pursuant to Section 7(c) hereof, the actual damages to the Executive
would be difficult if not impossible to ascertain and agree that the Executive's
sole remedy shall be a right to receive amounts determined and paid in
accordance with the provisions of this Section 8. The Executive shall not be
required to mitigate the amount of any payment provided for in this Section 8 by
seeking other employment or otherwise, nor shall any compensation earned by the
Executive in other employment or otherwise reduce the amount of any payment
provided for in this Section 8.

            (a) If the Company shall terminate the Executive's employment during
the term of this Agreement other than pursuant to Section 7(b) hereof, or if the
Executive shall terminate the Executive's employment during the term of this
Agreement for Good Reason pursuant to Section 7(c) hereof, or if the Executive's
employment shall terminate by reason of the Company electing not to extend or
further extend the term of this Agreement pursuant to Section 3(b) hereof, then,
as severance pay or liquidated damages or both:

                  (i) the Company shall pay to the Executive the Executive's
            Base Salary at the rate in effect at the time Notice of Termination
            is given for a period of three (3) years from the Date of
            Termination, together with any other amounts payable to the
            Executive under Section 6 hereof for periods prior to the Date of
            Termination (the Base Salary payable to the Executive after
            termination of employment under this Section 8(a)(i) shall be paid
            in 24 equal semi-monthly installments per year, in accordance with
            the Company's normal payroll cycle; provided, however, in the event
            that the Company changes its normal payroll cycle, such payment
            installments will be adjusted accordingly, but in no event will the
            Base Salary be paid less frequently than monthly);

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<PAGE>

                  (ii) the Company shall make any payments if and when due to
            the Executive under Section 6(c) hereof; and

                  (iii) for a period of three (3) years from the Date of
            Termination, the Executive and his dependents and beneficiaries
            shall be entitled to receive health insurance from the Company on
            substantially the same terms and conditions as the Executive's
            health insurance in effect at the time Notice of Termination is
            given.

            (b) If the Executive's employment terminates under any circumstance
that does not entitle the Executive to payments under Section 8(a) hereof
(including a termination by reason of the death or Disability of the Executive,
or by reason of the Executive electing not to extend or further extend the term
of this Agreement pursuant to Sections 3(b) and 7(d) hereof), the Executive (i)
shall not be entitled to receive any compensation under Section 6 accruing after
the date of such termination (other than any payments due under Section 6(c)
hereof), and (ii) shall be (x) subject to the Non-Competition Restrictions (as
defined in Section 9 hereof) for a period of three (3) years from the Date of
Termination and (y) subject to the Non-Solicitation Restrictions (as defined in
Section 9 hereof) for a period of eight (8) years from the Date of Termination.

            9. Non-Competition; Non-Solicitation.

            (a) The Executive agrees that for the period ending on the Fifth
Anniversary or for such longer period of time if the Executive is employed by
the Company in accordance with Section 3(b) hereof or as may be extended under
this Section 9, or as otherwise set forth in this Agreement (the
"Non-Competition Period"), the Executive shall not, directly or indirectly
(whether as a sole proprietor, partner or venturer, stockholder, director,
officer, employee, consultant or in any other capacity as principal or agent or
through any Person, subsidiary, affiliate or employee acting as nominee or
agent):

                  (i) conduct or engage in or be interested in or associated
            with any Person which conducts or engages in the AHM Business (as
            hereinafter defined) within the United States;

                  (ii) take any action, directly or indirectly, to finance,
            guarantee or provide any other material assistance to any Person
            engaged in the AHM Business;

                  (iii) solicit, contact or accept business of any client or
            counterparty whom the Company served or conducted business with or
            whose name became known to the Executive as a potential client or
            counterparty while in the employ of the Company or during the
            Non-Competition Period; or

                  (iv) influence or attempt to influence any Person that is a
            contracting party with the Company at any time during the
            Non-Competition Period to terminate any written or oral agreement
            with the Company.

            The restrictions set forth in paragraphs (i) through (iv) of this
Section 9(a) shall be collectively referred to herein as the "Non-Competition
Restrictions." For purposes of this Agreement, the term "AHM Business" shall
mean the residential mortgage lending or residential

                                      -8-
<PAGE>

mortgage brokerage business as conducted by the Company and any business
involving the supply of services substantially similar to services provided by
the Company at the time of the termination of the Executive's employment.

            (b) The Executive agrees that for the period ending on the Fifth
Anniversary or for such longer period of time if the Executive is employed by
the Company in accordance with Section 3(b) hereof or as may be extended under
this Section 9, or as otherwise set forth in this Agreement (the
"Non-Solicitation Period"), the Executive shall not, whether for the Executive's
own account or in conjunction with or on behalf of any other Person, solicit or
entice away from the Company any officer, employee or customer of the Company or
any subsidiary or affiliate of the Company during the Non-Solicitation Period
nor engage, hire, employ, or induce the employment of any such Person whether or
not such officer, employee or customer would commit a breach of contract by
reason of leaving service or transferring business; except, the Executive may
hire up to two (2) employees of the Company who reported directly to the
Executive at the Company, who, at no time while employed by the Company,
individually earned in excess of $100,000.00 in any calendar year, and so long
as such employees, prior to terminating their employment with the Company,
execute non-solicitation and non-hire agreements with the Company in a form
deemed acceptable by the Company. The restrictions set forth in this Section
9(b) shall be collectively referred to herein as the "Non-Solicitation
Restrictions."

            (c) Notwithstanding anything herein to the contrary, the restrictive
provisions hereof shall not prohibit the Executive from (i) engaging in any of
the business activities or businesses described in Section 4(b) hereof during
the term of this Agreement and/or during the Non-Competition Period, (ii) having
an equity interest in the securities of any entity engaged in the AHM Business
or any business with respect to which the Executive obtained confidential or
proprietary data or information, which entity's securities are listed on the New
York Stock Exchange, the American Stock Exchange or the Nasdaq National Market,
to the extent that such interest does not exceed one percent (1%) of the
outstanding equity interests of such entity or (iii) with the prior written
consent of the Company, serving as a director or other advisor to any other
Person.

            (d) The Executive agrees that the covenants and restrictions
contained in this Section 9 are reasonable covenants and restrictions under the
circumstances, and further agrees that if in the opinion of a court of competent
jurisdiction, such restraint is not reasonable in any respect, such court shall
have the right, power and authority to excise or modify such provision or
provisions of these covenants which as to such court shall appear not
reasonable, including, but not limited to, the right, power and authority to
reduce the periods during which the Executive is subject to the restrictions set
forth in this Section 9, and to enforce the remainder thereof as so amended.

            (e) Notwithstanding anything in this Agreement to the contrary, if
either the Executive or the Company shall terminate the Executive's employment
during the term of this Agreement for any reason, including, but not limited to,
the election by the Company or the Executive not to extend or further extend the
term of this Agreement pursuant to Sections 3(b) and 7(d) hereof, the Executive
shall be subject to the Non-Competition Restrictions set forth in this Section 9
for a period of three (3) years from the Date of Termination

                                      -9-
<PAGE>

            (f) Notwithstanding anything in this Agreement to the contrary, if
either the Executive or the Company shall terminate the Executive's employment
during the term of this Agreement for any reason, including, but not limited to,
the election by the Company or the Executive not to extend or further extend the
term of this Agreement pursuant to Sections 3(b) and 7(d) hereof, the Executive
shall be subject to the Non-Solicitation Restrictions set forth in this Section
9 for a period of eight (8) years from the Date of Termination.

            (g) The Non-Competition Agreement shall be terminated as of the
Effective Date of this Agreement.

            10. Indemnification. The Company shall indemnify the Executive to
the fullest extent permitted by the General Corporation Law of the State of
Delaware, as amended from time to time.

            11. Successors; Binding Agreement.

            (a) The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the extent
that the Company would be required to perform it if no such succession had taken
place; provided, however, that no such agreement with a successor shall release
the Company without the Executive's express written consent. Failure of the
Company to obtain such agreement prior to the effectiveness of any such
succession shall be a breach of this Agreement and shall entitle the Executive
to compensation from the Company in the same amount and on the same terms as the
Executive would be entitled to hereunder if the Executive's employment were
terminated by the Company other than pursuant to Section 7(b) hereof, except
that the Non-Competition Restrictions and the Non-Solicitation Restrictions set
forth in section 9 of this Agreement shall remain in full force and effect for a
period of three (3) years from the Date of Termination, and that, for purposes
of implementing the foregoing, the date on which any such succession becomes
effective shall be deemed the Date of Termination.

            (b) If the Executive should die while any amounts are due and
payable to the Executive hereunder, all such amounts, unless otherwise provided
herein, shall be paid in accordance with the terms of the Agreement to the
Executive's devisees, legatee or other designee or, if there be no such
designee, to the Executive's estate.

            (c) Except as to withholding of any tax under the laws of the United
States or any state or locality, neither this Agreement nor any right or
interest hereunder nor any amount payable at any time hereunder shall be subject
in any manner to alienation, sale, transfer, assignment, pledge, attachment or
other legal process, or encumbrance of any kind by the Executive or the
beneficiaries of the Executive or by legal representatives without the Company's
prior written consent, nor shall there be any right of set-off or counterclaim
in respect of any debts or liabilities of the Executive, the Executive's
beneficiaries or legal representatives against any right or interest hereunder
or any amount payable at any time hereunder to the Executive, the Executive's
beneficiaries or legal representatives; provided, however, that nothing in this
Section 11 shall preclude the Executive from designating a beneficiary to
receive any benefit payable on the Executive's death, or the legal
representatives

                                      -10-
<PAGE>

of the Executive from assigning any rights hereunder to the Person or Persons
entitled thereto under the Executive's will or, in case of intestacy, to the
Person or Persons entitled thereto under the laws of intestacy applicable to the
Executive's estate.

            12. Parties. This Agreement shall be binding upon and shall inure to
the benefit of the Company and the Executive, the Executive's heirs,
beneficiaries and legal representatives.

            13. 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 with respect to the subject matter hereof,
including, but not limited to, the Original Employment Agreement and the
Non-Competition Agreement.

            (b) Any amendment of this Agreement shall not be binding unless in
writing and signed by both (i) an officer or director of the Company duly
authorized to do so and (ii) the Executive.

            14. 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.

            15. 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, overnight courier or facsimile, if to the Executive, to him at [ ],
and, if to the Company, to it at its principal executive offices at 538
Broadhollow Road, Melville, New York 11747, Attention: General Counsel,
Facsimile: (800) 209-7276, with a copy to the Company, to it at its principal
executive offices at 538 Broadhollow Road, Melville, New York, 11747, Attention:
Director of Human Resources,, and shall be deemed given when sent, provided that
any Notice of Termination or other notice given pursuant to Section 7 shall be
deemed given only when received. Either party may by like notice to the other
party change the address at which the Executive or it is to receive notices
hereunder.

            16. Governing Law. THIS AGREEMENT IS EXECUTED IN THE STATE OF NEW
YORK AND 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.

            17. Effective Date. This Agreement shall become effective as of July
1, 2003.

            18. Definitions. The following terms, when capitalized in this
Agreement, shall have the meanings set forth or incorporated by reference in
this Section 18.

            (a) "Alt-A Loans" shall mean alternate "A" mortgage loans.

                                      -11-
<PAGE>

            (b) "Applicable Reference Price" shall mean (i) with respect to
loans (other than HELOC Loans) that will be sold to a third party and not held,
in securitized or whole-loan form, by AHMIC or any affiliate or subsidiary
thereof, the highest price quoted by any one of the Reference Banks (expressed
as a percentage of par) for best efforts delivery and a delivery window not less
than, but closest to, the lock-in period granted by the secondary marketing desk
of AHMIC (or its affiliate or subsidiary, as the case may be) at the time the
loan is locked; (ii) with respect to loans that will be held by AHMIC or any
affiliate or subsidiary thereof (other than loans designated by the Company as
Alt-A Loans and subprime loans), including loans held in securitized or
whole-loan form, the price posted by AHMIC (or its affiliate or subsidiary, as
the case may be) with respect to each such loan; (iii) with respect to loans
that have been designated by the Company as Alt-A Loans or subprime loans and
will be held by AHMIC or any affiliate or subsidiary thereof, in securitized or
whole-loan form, the price posted by AHMIC (or its affiliate or subsidiary, as
the case may be) with respect to each such loan, plus 0.375% of the principal
amount of such loan; and (iv) with respect to all HELOC Loans, whether or not
such loans are sold to a third party or held, in securitized or whole-loan form,
by AHMIC or any affiliate or subsidiary thereof, 100.625% of the original funded
balance at the time of the closing of such loan.

            (c) "AHMIC" means American Home Mortgage Investment Corp., a
Maryland corporation and the parent company of the Company.

            (d) "Base Salary" shall have the meaning set forth in Section 6(a)
hereof.

            (e) "Borrower Price" with respect to a loan shall mean (i) with
respect to all loans other than HELOC Loans, 100% of the principal amount of
such loan, minus any points, whether denominated as origination fees or
discounts, paid by the borrower in connection with such loan, and (ii) with
respect to HELOC Loans, 100% of the original funded balance at the time of the
closing of such loan, minus any points, whether denominated as origination fees
or discounts, paid by the borrower in connection with such loan.

            (f) "Cause" shall have the meaning set forth in Section 7(b)(i)
hereof.

            (g) "Company" means American Home Mortgage Holdings, Inc., a
Delaware corporation, and any successors to its business and/or assets, which
executes and delivers an agreement provided for in Section 11(a) or which
otherwise becomes bound by all the terms and conditions of this Agreement by
operation of law.

            (h) "Credit Loss" shall mean the Company's good faith estimate of
the loss it incurs if the Company is forced to repurchase a loan or the Company
is forced to indemnify a loan. The sum of the losses for such repurchased and
indemnified loans at the end of the applicable time period will be equal to the
credit losses for such period.

            (i) "Date of Termination" shall have the meaning set forth in
Section 7(h) hereof.

            (j) "Disability" shall have the meaning set forth in Section
7(b)(ii) hereof.

                                      -12-
<PAGE>

            (k) "Eastern Division" shall include all of the Company's retail
channel branches and retail channel sales personnel designated by the Chief
Executive Officer as part of the Eastern Division of the Company; provided,
however, that the Eastern Division shall not include MortgageSelect, American
Brokers Conduit or any other unit or division of the Company that reports to the
Company's Alternative Division; and provided, further, that the Eastern Division
may from time to time be expanded or reduced (by state or otherwise) by the
Chief Executive Officer to reflect the operational needs of the Company; and
provided, further, that for purposes of determining any compensation due the
Executive under Section 6 hereof, the term "Eastern Division" shall not include
the retail channel branches and retail channel sales personnel acquired in
connection with any Excluded Acquisition.

            (l) "Eastern Division Acquisition" means any acquisition, except for
an Excluded Acquisition, by the Company of any company, business, mortgage
origination pipeline, group of employees or other assets, whether by merger,
acquisition, asset purchase or any other transaction, that is designated by the
Chief Executive Officer as an Eastern Division Acquisition.

            (m) "Excluded Acquisition" shall mean any Eastern Division
Acquisition proposed by the Company which the Executive believes is not in his
best interests, and with respect to which the Executive, as soon as practicable
prior to the Company's completion of such acquisition, notifies the Company in
writing that such acquisition should not be treated as an Eastern Division
Acquisition for purposes of this Agreement. With respect to an Excluded
Acquisition, (i) the Invested Capital Charge shall not be increased to take into
account any capital outlays incurred by the Company in connection with such
Excluded Acquisition, and (ii) the retail sales channel branches and retail
channel sales personnel acquired in connection with such Excluded Acquisition
shall not be included in the term "Eastern Division" for purposes of determining
any compensation due the Executive under Section 6 hereof.

            (n) "Expenses" shall include all direct and allocated costs charged
to the Eastern Division, including, but not limited to, (i) employment costs,
such as wages, salaries, commissions, overrides, profit participation and
profit-sharing type costs (including, but not limited to, the Profit
Participation Payment payable to the Executive hereunder), payroll taxes,
employee benefits and all other employment expenses; (ii) Credit Losses; (iii)
costs to determine a borrower's eligibility for a loan, including appraisals,
credit reports, automated underwriting fees, social security checks and other
investigation fees; (iv) costs of marketing, including advertising, promotion
and public relations; (v) other costs for loan origination and processing,
including copying, messenger and overnight delivery and office consumables; (vi)
costs of running branches and offices, including rent, insurance, utilities,
office maintenance and upkeep and depreciation; (vii) allocated costs for
corporate overhead not to exceed $585 per loan, provided, however, that if a
loan is a second lien that is closed concurrently with a first lien, such
corporate overhead costs shall not exceed $195 per loan; and (viii) Invested
Capital Charges; and all of such Expenses shall be calculated according to the
Company's standard practices as may be amended from time to time.

            (o) "Good Reason" shall have the meaning set forth in Section 7(c)
hereof.

            (p) "HELOC Loan" shall mean a home equity line of credit.

                                      -13-
<PAGE>

            (q) "Invested Capital Charge" initially shall equal the amount of
$6,000,000, but shall be adjusted in the event that the Company engages in one
or more Eastern Division Acquisitions during a given fiscal year, such that the
Invested Capital Charge shall be increased to take into account any capital
outlays incurred by the Company in connection with such Eastern Division
Acquisition(s), with any such increase in the Invested Capital Charge to be
determined in good faith by the Chief Executive Officer prior to the
consummation of such Eastern Division Acquisition(s); provided, however, that
the Invested Capital Charge shall not include any capital outlays incurred by
the Company in connection with an Excluded Acquisition.

            (r) "Merger Agreement" shall have the meaning set forth in the
recitals.

            (s) "Net Interest Income" shall mean (i) for the eighteen months
ending December 31, 2004, 16 basis points per loan, and (ii) for all subsequent
fiscal years, an amount determined in good faith by the Chief Executive Officer.

            (t) "Non-Competition Agreement" shall have the meaning set forth in
the recitals.

            (u) "Non-Competition Period" shall have the meaning set forth in
Section 9(a) hereof.

            (v) "Non-Competition Restrictions" shall have the meaning set forth
in Section 9(a) hereof.

            (w) "Non-Solicitation Period" shall have the meaning set forth in
Section 9(b) hereof.

            (x) "Non-Solicitation Restrictions" shall have the meaning set forth
in Section 9(b) hereof.

            (y) "Notice of Termination" shall have the meaning set forth in
Section 7(g) hereof.

            (z) "Original Employment Agreement" shall have the meaning set forth
in the recitals.

            (aa) "Origination Volume" shall mean the dollar volume of Eastern
Division loan originations.

            (bb) "Payment Audit" shall have the meaning set forth in Section
6(b)(iv) hereof.

            (cc) "Payment Determination" shall have the meaning set forth in
Section 6(b)(iv) hereof.

            (dd) "Per Loan Revenue" for each loan shall be the sum of (i) the
product of the difference between the Applicable Reference Price for the loan
(expressed as a percentage of

                                      -14-
<PAGE>

par) less the Borrower Price for such loan (expressed as a percentage of par)
and (x) with respect to all loans other than HELOC Loans, the loan's principal
amount, and (y) with respect to HELOC Loans, the original funded balance at the
time of the closing of such loan, all at the time such loan is last locked; (ii)
all fees (excluding points included in the price paid by the borrower that are
included in (i) above) charged the borrower by the Company in connection with
the borrower's loan application and loan closing (but excluding fees associated
with the Company's ongoing ownership of the borrower's loan after the closing of
the loan) including, but not limited to, servicing of the borrower's loan, or
delivery of any services or financing or products for the borrower; (iii) fees
earned from brokering loan applications to outside companies; (iv) the Secondary
Allocation; and (v) Net Interest Income on loans held for sale.

            (ee) "Person" means any individual, corporation, partnership,
limited liability company, limited duration company, trust or other entity of
any nature whatsoever.

            (ff) "Profit Participation Payment" shall have the meaning set forth
in Section 6(b)(ii) hereof.

            (gg) "Profits" means, with respect to the Eastern Division, for any
measurement period, the sum of the Per Loan Revenue for all loans that were
funded by the Company during the measurement period, or were brokered by the
Company and closed by another lender during the measurement period, and in all
cases, were originated by the Eastern Division, minus Expenses.

            (hh) "Reference Banks" shall mean Chase Manhattan Mortgage, Citicorp
Mortgage, Countrywide Credit Corp., Washington Mutual and Wells Fargo Mortgage.

            (ii) "Reference Price Verification" shall have the meaning set forth
in Section 19 hereof.

            (jj) "Secondary Allocation" shall mean (i) for the eighteen months
ending December 31, 2004, 20 basis points per loan, and (ii) for all subsequent
fiscal years, an amount determined in good faith by the Chief Executive Officer.

            (kk) "Volume Override Payment" shall have the meaning set forth in
Section 6(b)(i) hereof.

            19. Reference Price Verification. Not more than twelve times in any
year during the term of this Agreement, the Executive shall be entitled to
request information from the Company in order to verify the Applicable Reference
Price with respect to a given loan (a "Reference Price Verification"). The
Executive shall send any request for a Reference Price Verification to the
Company in writing. Upon receipt of such request, the Company's capital markets
group shall furnish information to the Executive in order to verify that the
Applicable Reference Price with respect to such loan was established in
accordance with the terms of this Agreement.

                          [Signature Page to Follow]

                                      -15-
<PAGE>

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

                                       AMERICAN HOME MORTGAGE HOLDINGS, INC.

                                       By: /s/ Michael Strauss
                                          --------------------------------------
                                          Name: Michael Strauss
                                          Title: Chief Executive Officer and
                                                 President

                                       EXECUTIVE

                                         /s/ John A. Manglardi
                                       ---------------------------------------
                                       John A. Manglardi

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