EXHIBIT 10.3
EMPLOYMENT AGREEMENT
Made on the 14th day of April, 1999 by and between American Home Mortgage
Corp., 00 X. 00xx Xxxxxx, Xxx Xxxx, XX, 00000 (the "Employer") and Xxxxxxxx X.
Xxxxxxxx, 0 Xxxxxxx Xxxxx, Xxxxxxxxx, XX 00000 (the "Employee").
WHEREAS, the Employer is engaged in business as a mortgage banker; and
WHEREAS, the Employee seeks employment with the Employer as a Chief
Financial Officer, Treasury;
Now, therefore, in consideration of the mutual promises set forth herein,
IT IS AGREED, by and between the Employer and the Employee as follows:
1. Employment. The Employer hereby employs the Employee, and the Employee
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hereby accepts employment upon the terms and conditions of this Agreement.
2. Duties. The Employee shall perform services for the Employer as a
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Chief Financial Officer, Treasury, and shall have such duties as are customary
for a Chief Financial Officer, Treasury in the mortgage banking business,
through the precise manner in which those duties are to be performed and their
extent and the precise title of the Employee will rest within the sole
discretion of the Employer. The Employee shall devote his entire time, attention
and energy in furtherance of the business of the Employer, and shall not engage
in any other business activity during the term of this Agreement.
3. Term. The term of this Agreement shall commence on May 1, 1999 and
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shall continue until terminated by either party upon three weeks written notice
to the other party. Notwithstanding the above, this Agreement shall terminate
immediately if the Employee commits an illegal or unethical act.
4. Compensation
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A. Annual Salary
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The Employer shall pay the Employee for all services rendered a salary of
$140,000 per year. The Employer will provide the Employee medical benefits.
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The medical benefits will be the Employer's standard company benefits as may be
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amended from time to time.
[EMPLOYER INITIALS APPEAR HERE] [EMPLOYEE INITIALS APPEAR HERE]
B. Discretionary Bonus
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The Employer will pay the Employee an annual Discretionary Bonus of up to
$30,000. The actual amount of this bonus will be at the discreation of the
President of American Home Mortgage. For the calendar year 1999, the amount of
this bonus will be 75% of what it otherwise would have been to account for the
fact that the Employee will only work approximately 1/4 of a year at the
Employer.
C. Financial Performance Bonus
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The Employer will pay the Employee a bonus based upon the financial performance
of American Home Mortgage. The Performance Bonus for the year 1999 will be based
upon the financial performance in the 2nd, 3rd, and 4th quarter of 1999. The
Performance Bonus for the in all future years will be based upon the financial
performance in the 1st, 2nd, 3rd, and 4th quarter of that year. The level of
financial performance and corresponding bonus are as follows:
If American Home Mortgage
Annual pretax income is Then the bonus paid to
at least: the Employee will be:
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90% of Plan $7,500
100% of Plan $15,000
110% of Plan $22,500
120% of Plan $30,000
5. Expenses The employer will pay the reasonable expenses of the
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Employee in accordance with its policy for acceptable expenses which may be
amended from time to time. The Employee will submit a report of expenses
incurred on a monthly basis. The Employer will pay the Employee a monthly car
allowance of $450.00.
6. Waiver No waiver by the Employer of a breach of any provision of this
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Agreement by the Employee shall operate or be construed as a waiver of any
subsequent breach by the Employee. No waiver shall be valid unless it is in
writing signed by the Employer.
7. Assignment The Employee acknowledges that his services are unique and
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personal, and that he may not assign his rights or delegate his duties
hereunder. This Agreement shall inure to the benefit of any successor or assign
of the Employer.
8. Applicable Law. This Agreement shall be construed in accordance with
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the laws of the State of New York for agreements entered into and to be wholly
preformed therein.
Employer Initials [INITIALS APPEAR HERE]
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Employee Initials [INITIALS APPEAR HERE] Page 3 of 3
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9. Entire Agreement. This Agreement supercedes all prior agreements,
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and contains the entire understanding of the parties hereto. It may only be
modified in writing signed by the Employer.
American Home Mortgage Corp.
dba American Brokers Conduit
By: /s/ Xxxxxxx Xxxxxxx
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Xxxxxxx Xxxxxxx, President
/s/ Xxxxxxxx X. Xxxxxxxx 4/14/99
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Xxxxxxxx X. Xxxxxxxx
Page 4 of 4
LETTER AGREEMENT
AMENDING EMPLOYMENT AGREEMENT
August 26, 1999
Dear Xx. Xxxxxxxx:
Reference is hereby made to your employment agreement, dated April 14, 1999 (the
"Employment Agreement"), with American Home Mortgage Corp. (the "Company"). This
letter agreement amends certain provisions of your Employment Agreement as
follows:
Your title shall be Chief Financial Officer
Your 1999 base salary shall be $140,000
Your bonus for 1999 shall be $150,000
In addition, upon completion of the initial public offering of American Home
Mortgage Holdings, Inc. ("AHM"), you shall receive options to purchase such
number of shares of AHM Common Stock as is determined by dividing $150,000.00 by
the initial public offering price per share of AHM Common Stock. Your options
will be subject to the terms and conditions of the 1999 Omnibus Stock Incentive
Plan of AHM and will vest on the closing of the second anniversary of AHM's
initial public offering.
Other than the amendments expressly set forth herein, the terms of your
Employment Agreement shall remain in full force and effect.
Kindly acknowledge your acceptance of the terms of this letter agreement by
signing below and returning the signed original to the Company. Please keep a
copy of this letter agreement for your files.
Sincerely yours,
/s/ Xxxxxxx Xxxxxxx
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Xxxxxxx Xxxxxxx
President and CEO
Acknowledged and Accepted:
/s/ Xxxxxxxx X. Xxxxxxxx
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Xxxxxxxx X. Xxxxxxxx
