Document:

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                                                                   EXHIBIT 10.19

                                     FORM OF
                              SEPARATION AGREEMENT

     This Separation Agreement is made and entered into this ____ day of ______,
2000 (this "Agreement") by and between ARGOSY GAMING COMPANY, a Delaware
corporation (the "Company") and [Employee], an individual residing in the State
of [State], (the "Employee");

                                    RECITALS:

     The Compensation Committee of the Company's Board of Directors believes it
is in the best interest of the Company to enter into this Agreement with the
Employee.

     NOW THEREFORE, in consideration of the premises and of the covenants and
agreements herein contained, the parties hereto agree as follows:

     1.   EMPLOYMENT. The Company agrees that the Employee shall be employed by
the Company during the term of this Agreement initially in the capacity of [Job
Title], or in such other capacity as determined by the Company's Chief Executive
Officer or Board of Directors. The Employee shall have such duties and
responsibilities as are assigned to the Employee by the Chief Executive Officer
or Board of Directors of the Company. The Employee acknowledges and agrees that
the Employee's duties and responsibilities hereunder may include serving as an
officer of the Company's subsidiaries and affiliates without any additional
compensation therefor. The Employee hereby accepts employment from the Company
upon the terms and conditions herein set forth and agrees to devote his/her best
efforts and energies to the business of the Company.

     2.   TERM. The term of this agreement shall begin on [Date] and continue
unless terminated as hereinafter provided in Sections 5 and 6 hereof.

     3.   COMPENSATION.

          (a)  BASE SALARY. During the term of this Agreement the Company shall
pay to Employee a Base Salary equal to [Salary] per annum. The Company shall pay
the Base Salary to Employee in accordance with the usual and customary payroll
procedures of the Company. This Base Salary may be adjusted upward at any time
without altering the terms of this Agreement.

          (b)  EXECUTIVE AND MANAGEMENT OPTIONS. You shall be eligible to
participate in any and all stock option programs created by the Stock Option
Committee of the Board of Directors; provided, however, the Stock Option
Committee has sole and

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absolute discretion in granting stock options. The terms and conditions of the
stock option program and the stock option grant will be more fully set forth in
any Stock Option Agreements and stock grant certificates adopted and delivered
respectively.

          (c)  FRINGE BENEFITS. The Employee shall be entitled to participate in
all insurance and other fringe benefit programs of the Company as are accorded
other employees of the Company holding similar positions as the Employee. The
employee shall be (i) entitled to participate in the company's health plan
effective the first day of employment if a new employee, and (ii) entitled to
coverage or reimbursement for any family medical and dental costs not covered by
the Company's plans, subject to the Company's Supplemental Medical and Dental
Reimbursement Plan for Executives and regulatory guidelines.

          (d)  SPECIAL ALLOWANCES. The Company agrees to pay a special allowance
of $500 per month to reimburse the Employee for any initiation fees, monthly
dues and any assessments in social clubs, fees associated with executive
services such as financial planning, as well as to defray the costs and expenses
of his/her automobile.

          (e)  COMPLIMENTARY PRIVILEGES. The Employee shall be entitled to an
employee discount of not less than 25% at Company retail establishments. The
Employee and his/her immediate family shall be entitled to complimentary
privileges in the Company restaurants and eating establishments.

          (f)  REIMBURSEMENT OF EXPENSES. The Employee shall be reimbursed for
all items of travel and entertainment and miscellaneous expenses reasonably
incurred by him/her on behalf of the Company. Reimbursement for such expenses
will be pursuant to, and limited by, the Company's policies with respect to
reimbursing business expenses of employees of the Company holding similar
positions as the Employee and will require proper documentation.

          (g)  ENTIRE COMPENSATION. The compensation and benefits provided for
in this Agreement are in full payment of the services to be rendered by the
Employee to the Company.

     4.   CHANGE OF CONTROL. In the event that there occurs a Change of Control
(as hereinafter defined) of the Company, the Employee shall, notwithstanding any
actions taken by the Company or its successor after the Change of Control, be
entitled to an amount equivalent to three years of Base Salary.

     Such amount shall be paid only if the Employee's employment is (i)
terminated due to the Change of Control, or terminated within one (1) year after
the Change of Control, or (ii) if the Employee is offered and declines a
position with lesser responsibility, or lesser salary as a result of the Change
of Control, or is offered and

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declines a position with lesser responsibility, or lesser salary within one (1)
year after the Change of Control.

     In the event the Employee's employment is terminated after the public
announcement of a Change of Control but prior to the consummation of a Change of
Control for any reason other than those set forth in Sections 5, 6(a), (b), (d)
or (e), then the Employee shall be entitled to an amount equivalent to three
years of Base Salary.

     For purposes of this Agreement, "Change of Control" shall have the meaning
as set forth in the Company's Indenture dated July 6, 1994 with Bank One
(Springfield, Illinois) for its 12% Convertible Subordinated Notes due 2001.

     5.   DEATH OR TOTAL DISABILITY OF EMPLOYEE.

          (a)  DEATH. In the event of the death of the Employee during the term
of this Agreement, this Agreement shall terminate effective as of the date of
the Employee's death and the Company shall have no further obligations or
liability hereunder, except the Company shall pay to the Employee's estate the
portion, if any, of the (i) Employee's Base Salary for the period up to the
Employee's date of death which remains unpaid; and (ii) amounts payable pursuant
to any employee benefits plans in which the Employee was a participant prior to
his/her death.

          (b)  DISABILITY. In the event the Employee suffers a Disability (as
hereinafter defined) during the term of this Agreement, the Company shall have
the right to terminate the Employee's employment hereunder by giving the
Employee ten (10) days written notice thereof, and upon expiration of such ten
(10) day period, the Company shall not have any further obligations or liability
under this Agreement, except the Company shall pay to Employee the portion, if
any, of: (i) the Employee's Base Salary for the period to the date of
termination which remains unpaid; and (ii) any amounts payable pursuant to any
employee benefit plans in which the Employee was a participant prior to the date
of his termination.

     The term "Disability", when used herein, shall mean when the Employee
qualifies for a benefit under the Company's long term disability plan or if the
Company does not have a long term disability plan, it shall mean a mental or
physical condition which, in the reasonable opinion of the Company's designated
medical doctor, renders the Employee unable or incompetent to carry out the job
responsibilities he/she held or tasks to which he/she was assigned at the time
the disability was incurred for a period of 60 consecutive days or 60 days in
any 12 consecutive month period.

     6.   TERMINATION. Notwithstanding anything contained in this Agreement to
the contrary, the Employee's employment under this Agreement may be terminated
by the Company upon written notice to Employee for any of the following reasons:

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          (a)  If the Employee is denied a gaming license by any state gaming
board or any other gaming authority having jurisdiction over the operations of
the Company or its subsidiaries or affiliates ("Gaming Body"), or if the
Employee's license issued by any Gaming Body is suspended, revoked, sanctioned
or reprimanded for any period of time or for any conduct;

          (b)  If the Employee commits an offense involving moral turpitude
under Federal, State or local laws or ordinances or conducts himself/herself
publicly or privately in any manner which causes him/her to be held in public
ridicule or scorn, or causes public scandal or uses liquors, narcotics or drugs
to such an extent as will have visible detrimental effect on the Company;

          (c)  If the Employee fails to perform his/her job responsibilities in
a manner satisfactory to the Chief Executive Officer or the Board of Directors;

          (d)  If the Employee knowingly violates any of the internal control
procedures and/or company policies of the Company; or, knowingly violates any
statute, rule or regulation of any Gaming Body, the United States Coast Guard,
or any other governmental body having jurisdiction over the business activities
of the Company; and;

          (e)  If the Employee breaches any term or condition of this agreement.

     In the event that the Company shall terminate the Employee's employment
pursuant to this Section 6, the Company shall not have any further obligations
or liabilities under this Agreement, except the Company shall (a) pay to the
Employee his/her Base Salary up to the 30th day following the date of the
Employee's termination hereunder or if the termination is pursuant to Section
6(c) hereof or pursuant to a job elimination with results in a discontinuation
of employment with the Company, then the Company shall pay to Employee his/her
Base Salary for three (3) months following the date of the Employee's
termination; and (b) any amounts or benefits payable pursuant to any employee
benefit plan in which the Employee was a participant prior to the date of
his/her termination, subject, however, to the terms and provisions of any such
employee benefit plan.

     Without limiting the foregoing, the Employee shall surrender all vehicles,
credit cards, uniforms, cellular telephones, pagers and other Company property
to the Company prior to any payment to the Employee hereunder.

     Following any notice of termination of employment hereunder, Employee shall
fully cooperate with the Company in all matters relating to the winding up of
his/her pending work on behalf of the Company and the orderly transfer of such
work to the other professional employees of the Company. On or after the giving
of notice of termination hereunder and during any applicable notice period, the
Company shall be

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entitled to such full-time or part-time services of Employee as the Company may
reasonably require.

     7.   DISCOVERIES. The Employee will promptly disclose in writing to the
Company each improvement, discovery, idea, concept and invention relating to the
business of the Company, made or conceived by the Employee either alone or in
conjunction with others while employed by the Company hereunder or within six
(6) months after the termination of such employment. This provision shall not
apply to an invention for which no equipment, supplies, facility or trade secret
information of the Company was used and which was developed entirely on the
Employee's own time, and (a) which does not relate (i) to the business of the
Company or (ii) to the Company's actual or demonstrably anticipated research or
development, or (b) which does not result from any work performed by the
Employee for the Company. The Employee will not disclose any such improvement,
discovery, idea, concept or invention to any person except the Company. Each
such improvement, discovery, idea, concept or invention shall be the sole and
exclusive property of, and is hereby assigned to, the Company, and at the
request of the Company, the Employee will assist and cooperate with the Company
and any person or persons (at the Company's or such other person's expense) from
time to time designated by the Company to obtain for the Company the grant of
any letters patent in the United States and/or such other country or countries
as may be designated by the Company, covering any such improvement, discovery,
idea, concept or invention and will in connection therewith execute such
applications, statements, assignments or other documents, furnish such
information and data and take all such other action (including, without
limitation, the giving of testimony) as the Company may from time to time
reasonably request.

     8.   NON-DISCLOSURE AND NON-COMPETITION.

          (a)  The Employee recognizes and acknowledges that he/she will have
access to certain confidential information of the Company, including but not
limited to, trade secrets, customer lists, sales records, future casino
development plans and other proprietary commercial information, and that such
information constitutes valuable, special and unique property of the Company.
The Employee agrees that he/she will not, for any reason or purpose whatsoever,
during or after the term of his/her employment, disclose any of such
confidential information to any party without express authorization of the
Company, except as necessary in the ordinary course of performing his/her duties
hereunder.

          (b)  The Employee agrees with the Company that during the term of
his/her employment with the Company (or any affiliate or subsidiary of the
Company) and for a period of one (1) year following the termination of
his/her employment with the Company (or any affiliate or subsidiary of the
Company), he/she will not, without prior written consent of the Company,
engage directly or indirectly in any business (either financially or as a
shareholder, employee, officer, partner, independent contractor or

<PAGE>

owner, or in any other capacity calling for the rendition of personal service
or acts of management, operation or control) which owns, operates or manages
casinos, bingo parlors or other gaming facilities within the Territory (as
hereinafter defined); provided, however, that Employee may own up to three
percent (3%) of any class of securities of a corporation engaged in such a
competitive business if such securities are listed on a national securities
exchange or registered under the Securities Exchange Act of 1934.

          (c)  The Employee further agrees that for a period of ninety (90) days
following the termination of his/her employment with the Company (or any
affiliate or subsidiary of the Company), he/she will not, without prior written
consent of the Company, recruit any other Company employees away from the
Company.

          (d)  The term "Territory" as used herein shall mean a 150 mile radius
of each casino, bingo parlor or gaming facility being operated or managed by the
Company or for which the Company has either received a local community
endorsement or filed for a gaming license as of the date of termination.

          (e)  The Employee acknowledges that his/her compliance with the
agreements in paragraphs 8(a) and 8(b) hereof is necessary to protect the good
will and other proprietary interests of the Company and that he/she is one of
the principal executives of the Company and conversant with its affairs, its
trade secrets, its customers and other proprietary information. The Employee
acknowledges that a breach of his/her agreements in paragraphs 8(a) and 8(b)
hereof will result in irreparable and continuing damage to the Company and the
business of the Company, for which there will be no adequate remedy at law; and
agrees that in the event of any breach of the aforesaid agreements in paragraphs
8(a) and 8(b), the Company and its successors and assigns shall be entitled to
injunctive relief of 50% of the Employee's annual salary and to such other and
further relief as may be proper. The Employee further agrees that in the event
of any breach of the agreement in paragraph 8(c), the Company and its successors
and assigns shall be entitled to injunctive relief of 100% of the Employee's
annual salary and to such other and further relief as may be proper.

     9.   SUPERSEDES OTHER AGREEMENTS. This Agreement supersedes and is in lieu
of any and all other employee arrangements between the Employee and the Company
or any of their respective subsidiary and affiliated companies.

     10.  AMENDMENTS. Any amendment to this Agreement, including any extensions
or renewal of the term of employment of Employee, shall be made in writing and
signed by the parties hereto.

     11.  ENFORCEABILITY. If any provision of this Agreement shall be held
invalid or unenforceable, in whole or in part, then such provision shall be
deemed to be modified or restricted to the extent and in the manner necessary to
render the same valid and enforceable, or shall be deemed excised from the
Agreement as the case may require,

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and this Agreement shall be construed and enforced to the maximum extent
permitted by law, as if such provision had been originally incorporated herein
as so modified or restricted, or as if such provision had not been originally
incorporated herein, as the case may be.

     12.  GOVERNING LAW. The validity and effect of this Agreement shall be
governed exclusively by the laws of the State of Illinois, excluding the
"conflicts of laws" rules of that state.

     13.  ASSIGNMENT.

          (a)  The rights and obligations of the Company under this Agreement
shall inure to the benefit of, and shall be binding upon, the successors and
assigns of the Company, subject to the provisions set forth in Section 4 hereof.

          (b)  This Agreement and the obligations created hereunder may not be
assigned by the Employee.

     14.  ATTORNEYS' FEES. In the event any legal action to enforce the terms
and conditions of this Agreement is commenced, reasonable attorneys' fees, court
costs and all reasonable costs of litigation shall be awarded to the prevailing
party.

     15.  NOTICES. All notices required or permitted to be given hereunder shall
be in writing and shall be deemed to have been given when personally delivered
or mailed, by certified or registered mail, return receipt requested, addressed
to the intended recipient as follows:

     IF TO THE EMPLOYEE:

          [Address]

     IF TO THE COMPANY:

          Argosy Gaming Company
          219 Piasa Street
          Alton, IL  62002
          ATTN:  Legal Department

     Any party may from time to time change its address for the purposes of
notices to that party by a similar notice specifying a new address, but no such
change shall be deemed to have been given until it is actually received by the
party sought to be charged with the contents.

<PAGE>

     16.  WAIVER. No claim or right arising out of a breach or default under
this Agreement can be discharged in whole or in part by a waiver of that claim
or right unless the waiver is supported by consideration and is in writing and
executed by the aggrieved party hereto or its or his/her duly authorized agent.
A waiver by any party hereto of a breach or default by the other party hereto of
any provision of this Agreement shall not be deemed a waiver of any prior or
subsequent compliance therewith, and such provision shall remain in full force
and effect.

     IN WITNESS WHEREOF, this Agreement has been executed by the Company, by a
duly authorized officer, and by the Employee on the date first above written.

                                        ARGOSY GAMING COMPANY

                                        By:
                                           -------------------------------
                                        Title:
                                              ----------------------------

                                        EMPLOYEE

                                        ----------------------------------<PAGE>

                                  EXHIBIT 10.1

                                SERVICE AGREEMENT

                                  See attached.

<PAGE>

                      ATLANTIC GULF COMMUNITIES CORPORATION
                       4800 N. FEDERAL HIGHWAY, SUITE 105E
                            BOCA RATON, FLORIDA 33431
                                 (561) 620-0029

                                  March 1, 2000

Broad River LLC
334 Palm Trail
Delray Beach, FL 33434
Attention: Mr. Richard Ackerman, Manager

      Re:   SERVICE AGREEMENT (THIS "AGREEMENT")

Dear Richard:

     This Agreement, effective as of December 1, 1999 (the "EFFECTIVE DATE"),
sets forth the terms and conditions under which Atlantic Gulf Communities
Corporation, a Delaware corporation ("AGCC"), and certain of its subsidiaries
(the "SUBSIDIARIES"), as designated from time to time by the Board of Directors
of AGCC (the "BOARD"), agree to hire Broad River LLC ("BROAD RIVER") to provide
the services specified hereunder. AGCC and the Subsidiaries are sometimes
collectively referred to herein as the "COMPANY."

     Each of Broad River and the Company is sometimes referred to herein as a
"PARTY," and Broad River and the Company are sometimes collectively referred to
herein as the "PARTIES."

     1. BROAD RIVER. You have advised us that Broad River is a Florida limited
liability company and that Richard Ackerman ("RA") is the sole member, and sole
manager, of Broad River.

     2. SERVICE PERIOD. Broad River agrees to provide the services of RA to
perform the duties of the Company's President and Chief Executive Officer
("CEO"), and Broad River agrees to cause RA to individually assume such titles,
for the period beginning on the Effective Date and ending on November 30, 2001,
or earlier termination pursuant to Section 8. below (the "INITIAL SERVICE
PERIOD"); provided, however, that, in the absence of termination, the Service
Period shall be extended for successive 12-month terms (subject to earlier
termination pursuant to Section 8. below) so long as neither Broad River nor
AGCC gives written notice of non-renewal to the other Party not less than 90
days prior to the then-current scheduled expiration date of the Service Period
(each an "EXTENSION PERIOD," and together with any and all other Extension
Periods, the "EXTENDED SERVICE PERIOD"). The Initial Service Period and the
Extended Service Period, if any, are collectively referred to herein as the
"SERVICE PERIOD." If such notice of non-renewal is given, this Agreement shall
expire at the end of the Initial Service Period or then-current Extension
Period, as the case may be. The last day of the Service Period is referred to as
the "TERMINATION DATE."

<PAGE>

     3. SERVICES.

        a. DURING THE INITIAL SERVICE PERIOD. During the Initial Service
Period, Broad River (utilizing RA) shall render services to the Company
consistent with the positions of President and CEO of the Company and/or as the
Board shall designate from time to time, and Broad River shall cause RA to
devote substantially his full business time and attention to performing Broad
River's obligations hereunder with regard to the business of the Company during
the Service Period.

        b. DURING THE EXTENDED SERVICE PERIOD. During the Extended Service
Period, Broad River (utilizing RA) shall render services to the Company
consistent with the positions of President and CEO and/or as the Board shall
designate from time to time, and Broad River shall cause RA to devote such
business time as is necessary in performing Broad River's obligations hereunder
with regard to the business of the Company through the Extended Service Period,
with due recognition that RA will be performing other services during the
Extended Service Period unrelated to the Company and its business and that it is
contemplated that the time devoted to the business of the Company will be, on
average, two (2) full working days per week.

        c. OTHER INVESTMENT ACTIVITIES. Notwithstanding Sections 3.a. and 3.b.
above, the Company hereby acknowledges and agrees that RA will be permitted to
manage his investments, both active and inactive (including real estate
transactions), during the Service Period to the extent that they do not
materially interfere with RA rendering services to the Company as described
hereunder.

     4. BASIC SERVICE FEES. During the Service Period, the Company shall, in
consideration for Broad River's services hereunder, pay Broad River an annual
rate equal to (x) plus (y), where (x) equals $207,625 ($511,975 during the first
twelve (12) months of the Initial Service Period (the "FIRST 12-MONTH PERIOD"))
and where (y) equals Broad River's annual cost of providing RA with benefits
under the Benefit Plans (as defined below) pursuant to Section 7. hereof. The
amounts payable to Broad River pursuant to this Section 4. shall be paid monthly
in advance. The intent of this Section 4. is to place the Company in the same
net economic position it would have been in if RA were an employee of the
Company.

     5. CASH BONUS. Subject to Section 8. below, provided that Broad River has
rendered services to the Company through the Initial Service Period under this
Agreement, Broad River shall be entitled to receive a one-time cash bonus (the
"CASH BONUS") in an amount equal to 25% of the Cumulative Overhead Savings (as
defined below) realized by the Company during the First 12- Month Period.
"CUMULATIVE OVERHEAD SAVINGS" shall be equal to Projected Overhead (as defined
below) less Actual Overhead (as defined below). "PROJECTED OVERHEAD" shall be
equal to $3.4 million. "ACTUAL OVERHEAD" shall be equal to the Company's actual
overhead during the First 12-Month Period, calculated on the accrual basis in
accordance with generally accepted accounting principles, consistently applied
and maintained throughout the First 12-Month Period. Projected Overhead has been
calculated, and Actual Overhead shall be calculated, by excluding (a) the amount
payable to Broad River under Section 4. hereof during the First 12-Month Period
and (b) all of the

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Company's pension and pension-related costs incurred during such First 12-Month
Period. The Company's independent auditors (the "AUDITORS") shall calculate the
amount of the Cash Bonus, if any, within 25 days after the end of such First
Twelve Month Period, and distribute written copies of the calculation (the
"AUDITORS' CALCULATION") to Broad River and AGCC within 30 days after the end of
such First 12-Month Period. The amount of the Cash Bonus, as set forth in the
Auditors' Calculation, shall be final, binding and non-appealable. The Company
shall pay the Cash Bonus (in the amount set forth in the Auditors' Calculation)
to Broad River within 10 business days after the date on which it receives the
Auditors' Calculation.

     6. PROFIT PARTICIPATION.

        a. AMOUNT. Subject to Sections 6.b., 6.c. and 8. below, Broad River
shall be entitled to receive a 5% profit participation (a "PROFIT
PARTICIPATION") in all Net Cash Available for Distribution to Stockholders (as
defined below). "NET CASH AVAILABLE FOR DISTRIBUTION TO STOCKHOLDERS" means all
dollars available for distribution to the stockholders of the Company (as
determined by the Board, acting reasonably and in good faith), AFTER REPAYMENT
of (a) all Institutional Indebtedness of the Company (as defined below) and (b)
all Project Indebtedness of the Company (as defined below).

     "INSTITUTIONAL INDEBTEDNESS" of the Company means all present and future
indebtedness of the Company to institutional lenders, other than Project
Indebtedness, including any and all refinancings of, modifications of,
amendments to and/or substitutions for such indebtedness incurred by the Company
at any time and from time to time and, as of the Execution Date, shall
specifically include the indebtedness evidenced by (i) that certain Third
Amended and Restated Revolving Loan Agreement, dated as of December 31, 1998, by
and among AGCC, the Financial Institutions Listed on the Signature Pages Thereof
and MH Davidson & Co., LLC, as Agent and Collateral Agent, as amended (in the
principal amount of $19.0 million as of December 1, 1999), (ii) that certain
Term Loan Agreement, dated as of December 31, 1998, by and among AGCC, the
Financial Institutions Listed on the Signature Pages Thereof, Anglo-American
Financial, as Agent, and MH Davidson & Co., LLC, as Collateral Agent, as amended
(in the principal amount of $26.5 million as of December 1, 1999), and (iii)
that certain Future Advance Note in the principal amount of $850,000, dated as
of December 31, 1998, payable to AP-AGC, LLC, as amended, and that certain
Future Advance Note in the principal amount of $1,000,000, dated as of December
31, 1998, payable to AP-AGC, LLC, as amended.

     "PROJECT INDEBTEDNESS" means all present and future indebtedness of the
Company specifically related to, and secured by, any and all of its real estate
projects now owned or hereafter acquired, including any and all refinancings of,
modifications of, amendments to and/or substitutions for such indebtedness
incurred by the Company at any time and from time to time. Project Indebtedness
specifically excludes Institutional Indebtedness.

        b. TWO-YEAR VESTING. Subject to Section 8. hereof, Broad River's Profit
Participation shall vest in full on the close of business on November 30, 2001,
provided, that the

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<PAGE>

Service Period shall not have been terminated as of that date (the "VESTING
DATE"). Subject to Section 8. below, from and after the Vesting Date, Broad
River shall be fully vested in its Profit Participation.

        c. DOLLAR CAP. Notwithstanding anything herein to the contrary except
Section 8.d. hereof, the dollar amount of Broad River's Profit Participation
shall not exceed $2.5 million, such cap to be increased by $1.0 million for each
additional full twelve-month period following November 30, 2001, that Broad
River continues to render services to the Company under this Agreement (the
"DOLLAR CAP").

        For example, if Broad River renders services to the Company through
July 31, 2005, the Dollar Cap will be $5.5 million (i.e., $2.5 million, plus
$3.0 million for the three additional full twelve month periods following
November 30, 2001). If, instead, Broad River renders services to the Company
through the close of business on November 30, 2005, the Dollar Cap will be $6.5
million (i.e., $2.5 million plus $4.0 million for the four additional full
twelve month periods following November 30, 2001).

        d. PAYMENT. Broad River's Profit Participation will be paid in cash to
Broad River pari passu with the distribution of Net Cash Available for
Distribution to Stockholders. Broad River's Profit Participation will be an
unsecured claim against the general assets of the Company. Broad River
acknowledges and agrees that the Company shall have no obligation to segregate
or otherwise set aside funds from its general assets to secure the payment of
Broad River's Profit Participation.

     7. BENEFITS.

        a. INSURANCE AND OTHER BENEFIT PLANS. Subject to applicable law, during
the term of this Agreement, the Company shall permit Broad River to become a
participating employer in Broad River's employee medical, dental,
hospitalization, accidental death and dismemberment, disability, travel and life
insurance plans, savings, pension, profit sharing and deferred compensation
plans and any and all other employee welfare or benefit plans as are presently
and hereinafter offered by the Company to its executives during the Service
Period (the "BENEFIT PLANS"). The Company shall amend the Benefit Plans to
permit Broad River's participation therein, subject to applicable law.

        b. VACATION. During the Service Period, Broad River shall be relieved
from its obligation to make RA available to perform the duties described
hereunder for up to eight days (four weeks during the First 12-Month Period) per
calendar year (prorated for any periods consisting of less than 52 full weeks)
to permit RA to take vacation. Any unused days for any period shall expire at
the close of business on the November 30 of the immediately following calendar
year if not used before then. If Broad River ceases to provide services to the
Company under this Agreement for any reason, other than a termination of Broad
River's services by the Company for Cause (as defined below) or by Broad River
without Good Reason (as defined below), Broad River will be entitled to

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<PAGE>

receive payment for such accrued but unused days (which have not previously
expired) through the date of termination based upon the fee structure described
in Section 4. hereof.

        c. REIMBURSEMENT OF EXPENSES. The Company will reimburse Broad River for
RA's reasonable out-of-pocket expenses incurred on behalf of Broad River in
connection with the performance of services hereunder by Broad River, in each
case subject to and consistent with Company policy.

     8. TERMINATION.

        a. TERMINATION IN GENERAL. The Service Period shall terminate on the
first to occur of (i) the scheduled expiration date of the then-current Service
Period, assuming notice of non-renewal by one of the Parties was provided in
accordance with Section 2. above, (ii) RA's death or Disability (as defined
below), (iii) termination of the Service Period by Broad River with or without
Good Reason (as defined below) or (iv) termination of the Service Period by the
Board with or without Cause (as defined below). Notwithstanding anything herein
to the contrary, in the event the Service Period terminates in accordance with
clause (i) of the immediately preceding sentence (regardless of which Party
delivers the notice of non-renewal), Broad River will be entitled to receive the
Accrued Obligations (as defined below) and to retain 100% of the vested Profit
Participation (in which case the Dollar Cap shall be determined pursuant to
Section 6.c. above).

        b. TERMINATION BY THE COMPANY FOR CAUSE. If the Company terminates the
Service Period for Cause, Broad River will be entitled (i) to receive (A) all of
the accrued but unpaid amounts specified in Section 4. hereof, (B) the cash
value of all of the accrued but unused vacation specified in Section 7.b.
hereof, (C) all of RA's and Broad River's unreimbursed expenses and (D) all of
the accrued but unpaid Cash Bonus (but only to the extent earned as of November
30, 2000, and not yet paid as of the date of termination) (the amounts specified
in clause (A) through (D) are collectively referred to herein as the "ACCRUED
OBLIGATIONS") and (ii) to retain 25% of the vested Profit Participation (in
which case the Dollar Cap shall be determined pursuant to Section 6.c. above).

        c. TERMINATION BY BROAD RIVER WITHOUT GOOD REASON. If Broad River
terminates the Service Period for reasons other than Good Reason, Broad River
will be entitled (i) to receive the Accrued Obligations and (ii) to retain 100%
of the vested Profit Participation (in which case the Dollar Cap shall be
determined pursuant to Section 6.c. above).

        d. TERMINATION BY THE COMPANY FOR REASONS OTHER THAN CAUSE; TERMINATION
BY BROAD RIVER FOR GOOD REASON; DISABILITY; DEATH. If the Service Period is
terminated by the Company for reasons other than for Cause, by Broad River for
Good Reason or as a consequence of RA's death or Disability (as defined below),
Broad River will be entitled to (i) to receive the Accrued Obligations (ii) to
retain 100% of the Profit Participation, whether or not vested as of date of
termination, and the Dollar Cap shall be determined as if RA had ben terminated
immediately following the close of business on the next succeeding November 30th
(provided that

                                       5
<PAGE>

the Dollar Cap shall never be less than $2.5 million) and (iii) a lump sum
payment equal to the sum of the payments that would have been made to Broad
River under Section 4. hereof had RA continued rendering services to the Company
through the end of the then current Service Period.

        e. DEFINITIONS. For purposes of this Agreement:

           (i)   "CAUSE" shall mean:

                 (A) Broad River's or RA's willful and repeated failure to
comply with the lawful written directives of the Board;

                 (B) any knowing, willful or intentional act of disloyalty or
misconduct by Broad River or RA that is materially injurious to the property,
operations, business or reputation of the Company; or

                 (C) Broad River's or RA's material breach of this Agreement
(which shall include any breach of Section 9. or 10. hereof), provided that the
Company has provided Broad River with written notice of such material breach and
Broad River shall have failed to cure, or cause RA to cure, such material
breach, to the reasonable satisfaction of the Company, within 15 business days
after receipt by Broad River of such written notice.

     A determination that "Cause" exists shall be made by the Board, acting
reasonably and in good faith; provided, however, that Broad River has not waived
its right to contest any such determination by the Company in accordance with
the provisions of Section 18. below. Notwithstanding anything herein to
contrary, the Company shall be required to notify Broad River in writing of the
occurrence of an event constituting "Cause" within 90 days of the occurrence
thereof, or, failing timely delivery of such written notice, the Company shall
be deemed to have irrevocably waived its right to terminate this Agreement for
such "Cause" event.

           (ii)  "GOOD REASON" shall mean:

                 (A) any reduction in (without Broad River's prior written
consent), or failure by the Company to timely pay the amounts specified in
Sections 4., 5. or 6. hereof (to the extent earned and fully vested);

                 (B) any material change in RA's position and/or title (without
Broad River's prior written consent) or material diminution in RA's duties,
responsibilities and/or authority (without Broad River's prior written consent);

                 (C) the occurrence of any of the following: (i) a merger or
consolidation of AGCC into or with any other entity, but only if AGCC or an
entity, 50% or more of the total voting power of which is owned by AGCC or its
affiliates, is not the surviving entity in such merger or consolidation, (ii) a
transfer to a third party which vests in such third party 50% or more of the
total voting power of all classes of stock of AGCC, (iii) any third party (other
than AP-

                                       6
<PAGE>

AGC, LLC, Elliott Associates, L.P., Westgate International, L.P., Morgan Stanley
Dean Witter & Co., and/or any of their affiliates) acquires more than 50% of the
total number of shares of Series A Preferred Stock of the Company that are
issued and outstanding on the Effective Date, (iv) sale, transfer or other
disposition of all or substantially all of the assets of AGCC (each a
"RESTRUCTURING EVENT"), unless the entity which survives the Restructuring Event
shall assume and agree to perform the obligations of AGCC hereunder pursuant to
a written instrument reasonably acceptable to Broad River or (v) during any
period of 12 consecutive months, individuals who at the beginning of such period
constituted the Board, together with any new directors whose election by the
Board or whose nomination for election by the shareholders of the Company was
approved by a majority vote of the directors then still in office who were
either directors at the beginning of such period or whose election or nomination
for election was previously so approved (collectively, the "DIRECTORS"), cease
for any reason to constitute a majority of the Board then in office; provided,
however, that (i), (ii), (iii) (iv) and (v) above shall not include a
restructuring or recapitalization of the Company's preferred and common stock;
and provided further that, for purposes of (v) above, the term "Directors" shall
include any person appointed by the holders of the Company's Series A Preferred
Stock and/or the Company's Series B Preferred Stock to fill a vacancy on the
Board of Directors at any time and from time to time;

                 (4) any material breach by the Company of this Agreement,
provided that Broad River has provided the Company with written notice of such
material breach and the Company has failed to cure such material breach, to
Broad River's reasonable satisfaction, within 15 business days after receipt by
the Company of such written notice; or

                 (5) any requirement by the Board that RA relocate his principal
residence (without Broad River's prior written consent) or if the Company
relocates its headquarters more than 50 miles from its location on the date
hereof.

           (iii) "DISABILITY" shall mean RA's mental or physical disability for
such period of time and under such circumstances as entitle RA to receive
disability benefits under the terms of the Company's long-term disability
insurance policy then maintained by the Company.

      Notwithstanding anything herein to contrary, Broad River shall be required
to notify the Company in writing of the occurrence of a "Good Reason" event
within 90 days of the first occurrence thereof, or, failing timely delivery of
such written notice, Broad River shall be deemed to have irrevocably waived its
right to terminate this Agreement for such "Good Reason" event.

     9. CONFIDENTIAL INFORMATION. Broad River acknowledges that information
obtained by Broad River and RA during the Service Period (or the period of RA's
employment with the Company under the Employment Agreement between RA and the
Company, dated August 17, 1999) concerning the business or affairs of the
Company ("CONFIDENTIAL INFORMATION") is the property of the Company. Broad River
shall be prohibited, and Broad River shall prohibit RA, at any time during or
after the Service Period, without the prior written consent of the Board, from
disclosing to any unauthorized person or use for Broad River or RA's own account
or for the account of any

                                       7
<PAGE>

person other than the Company any Confidential Information, except (a) to the
extent necessary to comply with applicable laws, (b) to the extent necessary for
Broad River and/or RA to render services hereunder or (c) to the extent that
such information becomes generally known to and available for use by the public
other than as a result of your acts or failure to act. Upon termination of the
Service Period or at the request of the Board at any time, Broad River agrees,
and agrees to cause RA, to deliver to the Company all documents containing
Confidential Information or relating to the business or affairs of the Company
that RA or Broad River may then possess or have under its/his control.

     10. NON-COMPETITION; NON-SOLICITATION.

         a. NON-COMPETITION. Broad River acknowledges that RA and Broad River
are and will be in possession of Confidential Information and that Broad River's
services are of unique and great value to the Company. Accordingly, during the
Service Period and for an additional period of twelve months thereafter (the
"NON-COMPETE PERIOD"), Broad River shall be prohibited, and shall prohibit RA,
from directly or indirectly owning, managing, controlling, participating in,
consulting with, rendering services to, or in any manner engaging in, any
enterprise competing directly with any of the Projects (as defined below),
within (i) a 25 mile radius of the Company's West Bay Club Project, located in
Naples, Florida, (ii) a 50 mile radius of the Company's Chenoa Project, located
in Glenwood Springs, Colorado, or (iii) a 25 mile radius of any other real
estate project now owned or hereafter acquire by the Company (the "PROJECTS").
Nothing herein shall prohibit RA or Broad River from being a passive owner of
not more than 5% of any publicly-traded class of capital stock of any entity
engaged in such competitive activities.

        b. NON-SOLICITATION. During the Non-Compete Period, Broad River shall be
prohibited, and shall prohibit RA, from, directly or indirectly, for themselves
or any other person or entity employing or attempting to employ, or solicit the
employment of, or entering into any contractual arrangement with, any employee
or former employee of the Company, unless such employee or former employee has
not been employed by the Company for a period in excess of six months.

        c. SCOPE OF RESTRICTION. If, at the time of enforcement of this
Section 10. or Section 9. above, a court shall hold that the duration, scope or
area restrictions stated herein or therein are unreasonable under circumstances
then existing, the Parties agree that the maximum duration, scope or area
reasonable under such circumstances shall be substituted for the stated
duration, scope or area.

        d. INJUNCTIVE RELIEF. Broad River acknowledges that the Company would be
irreparably harmed by Broad River's breach of the provisions of this Section 10.
or of Section 9. above, and hereby consent to the Company's request for
injunctive relief in connection with any such breach or threatened breach.

                                       8
<PAGE>

     11. D&O INSURANCE. The Company will maintain at all times during the
Service Period officer and director liability insurance coverage for RA, in the
same aggregate amount and under the same terms as are maintained for the
Company's senior officers and directors, and will otherwise indemnify Broad
River and RA and hold both of them harmless (except for Broad River's and/or
RA's gross negligence and/or willful misconduct) to the fullest extent permitted
by Delaware law for all losses and expenses incurred by them as a result of any
suits or proceedings relating to RA's rendering services to the Company
hereunder.

     12. PRIOR AGREEMENTS. This Agreement embodies the complete agreement and
understanding between the Parties and supersedes any and all prior agreements,
arrangements or understandings, written or oral, between the Parties. This
Agreement may be amended or modified, and the terms hereof may be waived, only
in a writing duly executed and delivered by Broad River and AGCC.

     13. SURVIVAL. The provisions of Sections 6., 8., 9., 10. and 11. above and
Sections 18. and 19. below will survive any termination of this Agreement.

     14. GOVERNING LAW. All questions concerning the construction, validity and
interpretation of this Agreement shall be governed by the internal law, and not
the law of conflicts, of the State of Florida.

     15. NOTICES. Any notices, consents or other communications required
hereunder shall be in writing and shall be sufficiently given only if sent by
overnight courier (such as Federal Express) or by registered or certified mail
(return receipt requested), postage prepaid, addressed as follows (or to such
other address or addresses as may hereafter be furnished in writing by notices
similarly given by one Party to the other):

                  To BROAD RIVER:

                  Broad River LLC
                  334 Palm Trail
                  Delray Beach, FL 33434
                  Attention: Mr. Richard Ackerman, Manager
                  Fax No.: (561) 394-7712

                  with a copy to:

                  Michael Sirkin, Esq.
                  Proskauer Rose LLP
                  1585 Broadway
                  New York, New York 10036-8299
                  Fax No.:  (212) 969-2900

                  To AGCC and/or the COMPANY:

                                       9
<PAGE>

                  Atlantic Gulf Communities Corporation
                  Board of Directors
                  4800 N. Federal Highway, Suite 105E
                  Boca Raton, Florida 33431
                  Attention: The Board of Directors of Atlantic Gulf
                             Communities Corporation
                  Fax No.: (561) 620-1062

                  with a copy to:

                  John L. Ruppert, Esq.
                  Brownstein Hyatt & Farber, P.C.
                  410 17th Street, Suite 2200
                  Denver, Colorado 80202
                  Fax No.:   (303) 623-1956

     16. COUNTERPARTS. This Agreement may be executed in two or more original
counterparts, each of which shall constitute an original and both or all of
which together shall constitute one and the same instrument. Only one such
counterpart signed by the Party against whom enforceability is sought needs to
be produced to evidence the existence of this Agreement. Signatures may be
exchanged by telecopy, with original signatures to follow. Each Party to this
Agreement agrees to be bound by its/his own telecopied signature and to accept
the telecopied signature of the other Party to this Agreement.

     17. SEVERABILITY. The various provision of this Agreement are severable
from each other and from the rest of this Agreement, and, in the event any part
of this Agreement is held to be invalid or unenforceable by a court or
otherwise, the remainder of this Agreement shall be fully effective, operative
and enforceable.

     18. DISPUTES; ATTORNEYS' FEES. Except as otherwise provided in the last
sentence hereof, the Parties agree that any claim, controversy or dispute
arising out of, in connection with, related to or regarding the subject matter
hereof ("DISPUTE(S)") shall be resolved by arbitration ("ARBITRATION") conducted
by a single arbitrator engaged in the practice of law (the "ARBITRATOR") under
the Commercial Arbitration Rules (the "CRA") of the American Arbitration
Association ("AAA"). The Federal Arbitration Act, 9. U.S.C., Sections 1-16, not
state law, shall govern all Arbitration proceedings instituted hereunder. All
Disputes shall be submitted to the Arbitrator for resolution under Expedited
Procedures, regardless of the amount in controversy, as provided under Rule 9 of
the CRA or any successor thereto. The Arbitrator's award or ruling with respect
to any Dispute shall be final, binding and nonappealable and may be entered in
any court having jurisdiction thereof. Each Party shall bear its own costs and
attorneys' fees of the Arbitration proceeding; provided, however, that, in
addition to any damages awarded by the Arbitrator, the substantially prevailing
Party in the Dispute (as determined by the Arbitrator) shall be entitled to
receive from the other Party its/his reasonable attorneys' fees and
out-of-pocket costs. The laws of the State of Florida shall govern the
construction and interpretation of this Agreement, and any

                                       10
<PAGE>

Arbitration hereunder shall be conducted in Boca Raton, Florida. It is expressly
agreed that a Party may seek injunctive relief in the case of any Dispute in an
Arbitration or in an appropriate court of law or equity, at the sole discretion
of such Party.

     19. REIMBURSEMENT OF LEGAL FEES. The Company will pay all of RA's and Broad
River's reasonable legal fees (at their attorney's standard rates) and
out-of-pocket costs incurred in connection with the negotiation, execution and
delivery of this Agreement, as soon as practicable following presentation to the
Company of reasonable documentation therefor.

             [THE REMAINDER OF THIS PAGE LEFT BLANK INTENTIONALLY.]

                                       11
<PAGE>

     Please execute the additional copy of this Agreement in the space below and
return it to the undersigned at the address set forth above to confirm your
understanding and acceptance of the agreements contained herein.

                                    Very truly yours,

                                    ATLANTIC GULF COMMUNITIES
                                          CORPORATION

                                    By:
                                       -------------------------------------
                                    Name (Print):
                                                 ---------------------------
                                    Title: Director

ACCEPTED AND AGREED TO:

BROAD RIVER LLC

By:
   ------------------------------
Name (Print): Richard Ackerman
Title: Manager

cc:   Michael Sirkin, Proskauer Rose LLP
      John L. Ruppert, Brownstein Hyatt & Farber, P.C.

                                       12

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