Chief Compliance Officer and Corporate Auditor Employment Agreement - Wade Hotsenpiller

EMPLOYMENT AGREEMENT


This Employment Agreement, dated as March 22, 2002 (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 Wade Hotsenpiller, 509 Warren Avenue, Front Royal, Virginia 22630 (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 on April 8, 2002, 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 Compliance Officer and Corporate Auditor of the Company. As such, the Executive shall report only to the Chief Executive Officer of the Company (the "CEO") and the Board of Directors of the Company, and shall have all of the powers and duties usually incident to the office of Chief Compliance Officer and Corporate Auditor of the Company.


(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 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 $ 150,000,00 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 to a maximum of 10% of base salary. 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) 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 10% of base salary, 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 ...