Document:

EX-10.2

ADDENDUM TO SECOND AMENDED AND

RESTATED ADVISORY AGREEMENT

THIS ADDENDUM, dated effective as of September 15, 2005, is to that certain Second Amended and
Restated Advisory Agreement entered into as of June 3, 2004 (the “Agreement”), by and between
AMERICA FIRST APARTMENT INVESTORS, INC., a Maryland corporation (the “Company”), and AMERICA FIRST
APARTMENT ADVISORY CORPORATION, a Maryland corporation (the “Advisor”).

RECITALS

WHEREAS, the Advisor is a wholly owned subsidiary of America First Companies, L.L.C., a
Delaware limited liability company (the “Parent”); and

WHEREAS, the Parent has an indirect equity interest in America First Communities Offutt
Developer, LLC, a Nebraska limited liability company (the “Borrower”). The Advisor and Borrower
are Affiliates (as defined in the Agreement).

WHEREAS Borrower has borrowed from the Company Seven Million Four Hundred Forty-Three Thousand
Nine Hundred Forty-Eight and no/100 Dollars ($7,443,948.00) pursuant to that certain Promissory
Note as governed by the Loan and Security Agreement executed by Borrower and the Company, dated of
even date herewith and therewith (the “Note” and “Loan Agreement” respectively).

WHEREAS as a condition precedent to the Company entering into the Loan Agreement with
Borrower, and in order to secure the Obligations as described in the Loan Agreement (including but
not limited to the Note), the Company has required that the Advisor execute and deliver this
Addendum to the Company for the benefit of the Company.

WHEREAS, the Advisor desires to pledge and assign all compensation received by it under the
Agreement and to further modify and supplement the Agreement in order provide adequate
securitization to the Company and to induce Company to enter into the Loan Agreement and the Note.

WHEREAS the Advisor enters into this Addendum in acknowledgement of the financial
accommodation extended to Borrower as described above and in consideration thereof.

NOW, THEREFORE, in consideration of the foregoing Recitals and the mutual rights and
obligations set forth below, the parties hereby agree, modify and supplement the Agreement as
follows:

	 	1.	 	Defined Terms. All defined terms used in the Agreement shall have the
same meaning herein as is ascribed to them in the Agreement.

	 	2.	 	Occurrence of an Event of Default. Advisor hereby agrees that upon the
occurrence and continuation of an Event of Default (as defined in the Loan Agreement)
or any event which, with the giving of notice, lapse of time or happening of further
condition, act or event would become an Event of Default, the Company shall have the
immediate right without notice (in addition to any other rights the Lender may have
under the Loan Agreement or otherwise) to appropriate, set off and apply to the payment
of, any or all of the Obligations (as defined below), any or all of the compensation,
fees or reimbursable expenses due to the Advisor from the Company under the Agreement
including, without limitation, those fees enumerated under that section titled in the
Agreement, “Compensation of the Advisor” (i.e., Administrative Fees, MBS Administrative
Fees, MBS Incentive Fees, and Property Acquisition Fees) and those expenses enumerated
in that section of the Agreement titled “Reimbursement of Expenses Incurred by the
Advisor” in such manner as the Company shall in its sole discretion determine. The
Advisor agrees that despite such use of the payments due to the Advisor under the
Agreement, the Advisor will professionally and competently continue to provide all of
the services described in the Agreement (the “Services”) in good faith and that there
shall be deemed no lack of consideration for Services under the Agreement due to such
use, any such application to the Obligations shall be conclusively deemed to be payment
to or at the direction of Advisor under the Agreement. The parties agree and
acknowledge that the financial accommodation extended to the Advisor’s Affiliate, the
Borrower is adequate consideration under the Agreement.

	 	3.	 	Obligations. This Addendum is intended to ensure the performance of
all obligations of the Borrower now or hereafter existing under the Note and the Loan
Agreement or any extension, renewal, substitution, amendment or replacement thereof
(all such obligations of the Borrower being the “Obligations”), and shall also
constitute a security agreement under which Advisor grants Company a security interest
in the payments due to Advisor under the Agreement.

	 	4.	 	Extension of the Agreement. Notwithstanding the termination date of
December 31, 2006, identified in the Agreement in that section title, “Term”, or the
rights to terminate the Agreement during the one-year extensions after such date also
in such section, the parties hereby agree that the Agreement, unless terminated by the
Company, shall be extended so as to remain in full force and effect until performance
in full of the Obligations. Further, notwithstanding the terms of the Agreement
granting the Advisor termination rights in that section of the Agreement titled
“Termination Without Cause” the Advisor shall have no right to terminate the Agreement
until performance in full of the Obligations. Nothing herein shall affect the
termination rights of the Company granted in the Agreement.

	 	5.	 	Assignment. Until performance in full of the Obligations the Advisor
shall not assign the Agreement and shall personally perform the Services unless agreed
to by the Company in writing.

	 	6.	 	Liquidated Damages. If an Event of Default (as defined in the Loan
Agreement) occurs and the Advisor subsequently fails to perform the Services
professionally, competently and in good faith, as required by this Addendum, then the
Company shall be entitled to liquidated damages of $1,500,000 per annum for application
toward payment of the Obligations and until the full performance of the Obligations.

	 	7.	 	Obligations Absolute. All rights of Company hereunder, and all
Obligations of the Borrower, shall be absolute and unconditional irrespective of any
defenses whatsoever available to the Advisor or Borrower, including but not limited to
the following:

(a) any lack of validity or enforceability of the Note or Loan Agreement;

(b) any change in the time, manner or place of performance of, or in any other term
of, all or any of the Obligations, or any other amendment or waiver of or any
consent to any departure from the terms of the Obligations;

(c) any exchange, release or non-perfection of any other collateral; or

(d) any law, regulation or order of any jurisdiction affecting or purporting to
affect any term of any Obligation or Borrower’s rights with respect thereto.

	 	8.	 	Expenses. The Advisor will upon demand pay to Company the amount of
any and all reasonable expenses, including the reasonable fees and expenses of its
counsel and of any experts and agents, which Company may incur in connection with (i)
the exercise or enforcement of any of the rights of Company hereunder or (ii) the
failure by the Advisor to perform or observe any of the provisions hereof.

	 	9.	 	Waiver of Fees. The Advisor hereby waives any Property Acquisition Fee
or Administrative Fee to which it may be entitled under Section 7 of the Agreement with
respect to the Note and Loan Agreement. This waiver relates only to the Note and Loan
Agreement and shall not constitute a waiver of any fee in connection with any other
transaction or investment.

	 	10.	 	Termination of Addendum. Upon and after the full performance of the
Obligations the terms and conditions of this Addendum shall be null and void and of no
further effect as between the parties.

	 	11.	 	Agreement. Except as hereinabove specifically amended, all other terms,
convenants and conditions of the Agreement shall remain in full force and effect. To
the extent of any conflict between the terms and conditions of the Agreement and the
terms and agreement of this Addendum, this Addendum shall control.

(Signature page follows)

1

SIGNATURE PAGE TO

ADDENDUM TO SECOND AMENDED AND RESTATED ADVISORY AGREEEMENT

BY AND BETWEEN

AMERICA FIRST APARTMENT ADVISORY CORPORATION

AND

AMERICA FIRST APARTMENT INVESTORS, INC.

AMERICA FIRST APARTMENT AMERICA FIRST APARTMENT ADVISORY INVESTORS, INC., CORPORATION,

	 	 	 
	By: /s/ John H. Cassidy

	 	By: /s/ Michael J. Draper
	 

	 	 
	 
	 	 
	Name: John H. Cassidy

	 	Name: Michael J. Draper
	 

	 	 
	 
	 	 
	Title: President and Chief Executive Officer

	 	Title: Chief Financial Officer
	 

	 	 
	 
	 	 

2EX-10.1

September 16, 2005

Mr. Robert Hennemuth

16 Zylpha Road

Harwich Port, MA 02646

Re: Separation

Dear Robert:

As you know, you and Jacuzzi Brands, Inc. (hereinafter also referred to as “the Company”) are
parties to an Employment Agreement dated December 27, 2004 (hereafter, the “2004 Employment
Agreement”). As a result of the Company’s decision to eliminate your position, you are entitled to
certain rights under the 2004 Employment Agreement. The purpose of this letter is to confirm the
terms of your separation from employment with the Company as set forth in the 2004 Employment
Agreement and further set forth herein.

1. Notice of Termination

You are hereby notified that your employment will be terminated within sixty days from the
date of this letter. As more fully explained in Section 12 of this letter, you will have at least
21 days to consider signing the General Release that is a precondition to you receiving any of the
benefits outlined in this Agreement and 7 days after signing the General Release to revoke it. We
have agreed that the effective date of your separation from the Company’s employment will be
October 21, 2005 (the “Termination Date”). You should not sign the General Release until your
Termination Date.

2. Consideration

In accordance with the provisions of the Employment Agreement between you and Jacuzzi Brands,
Inc., made on December 27, 2004 (hereafter, the “2004 Employment Agreement”), and in consideration
for your signing a General Release, and in consideration of your compliance with the additional
promises made herein, the Company agrees as follows:

(a) Severance Pay

The Company will provide you with the following:

(i) A lump sum payment of $ 275,600.00, minus applicable taxes (including taxes on the shares
of restricted stock which will vest in accordance with (ii) below);

(ii) 5,200 shares of the 15,600 share of restricted stock in the Company which was granted to
you in December 2004 shall vest and be delivered to you on the Termination Date and the remaining
10,400 shares of restricted stock will be forfeited on the Termination Date;

(iii) Pay for unreimbursed travel, entertainment and other business expenses incurred in the
performance of your duties and any other Accrued Amounts (as defined in the 2004 Employment
Agreement.

(b) Health and Welfare Benefits

Your participation under any of the Company’s benefit programs such as health, dental, life
and LTD, will cease at the end of your employment. You may elect to convert certain coverages at
your own cost; conversion privileges will be explained to you in a separate mailing. In addition,
the Company will pay your continued coverage premium under COBRA for 12 months from the Termination
Date. It is agreed and understood that the Company’s obligation to pay your premium will
immediately end at the time you obtain full-time employment with any employer. In that event, you
are responsible for notifying (in writing and within seven days of beginning employment) the
Company that you have commenced full-time employment. Thereafter, you shall be entitled to
continue medical benefits to the extent required under the terms of COBRA (with you paying the
applicable premium), for the remaining period of time continued coverage is required pursuant to
COBRA.

(c) Other Benefit Plans

Your entitlement to benefits or payments under any of the Company’s benefit plans will
continue to be governed by the terms of those plans and as required by law. The Company will
advise you of any additional amounts in which you become entitled to pursuant to the Company’s
qualified plans. Your employment will not be treated as terminated until the Termination Date and
your stock options and restricted stock in the Company shall continue to vest until such date, in
accordance with the terms of such awards.

3. No Severance Benefits Absent Execution of General Release

You understand and agree that under the terms of the 2004 Employment Agreement, which governs
the amount of severance due you under the current circumstances, you are not entitled to receive
the monies and/or benefits specified in Section 2 above, except for your execution of a General
Release in a form acceptable to the Company and the fulfillment of the promises contained herein
and in Section 10 of your 2004 Employment Agreement. In addition, you acknowledge that the
payments and benefits set forth in this Agreement are all that you are entitled to receive from the
Company.

4. General Release of Claims

Upon your Termination Date, a final draft of the General Release of Claims will be provided to
you. The form of the General Release of Claims is as follows:

In consideration of the payments to be made to you by the Company as set forth in the
Separation Agreement and the promises contained in the Separation Agreement, you knowingly
and voluntarily and of your own free will agree to release and forever discharge the
Company, its affiliates, subsidiaries, divisions, successors and assigns and the current
and former employees, officers, directors and agents thereof (collectively referred to
throughout the remainder of this Agreement as “Company”), of and from any and all claims,
known and unknown, that you have or may have against the Company as of the date of
execution of this General Release, including, but not limited to, any alleged violation of:

	 	•	 	Title VII of the Civil Rights Act of 1964, as amended;

	 	•	 	The Civil Rights Act of 1991;

	 	•	 	Sections 1981 through 1988 of Title 42 of the United States Code, as
amended;

	 	•	 	The Employee Retirement Income Security Act of 1974, as amended
(“ERISA”),

	 	•	 	The Immigration Reform and Control Act, as amended;

	 	•	 	The Americans with Disabilities Act of 1990, as amended;

	 	•	 	The Age Discrimination in Employment Act of 1967, as amended;

	 	•	 	The Workers Adjustment and Retraining Notification Act, as amended;

	 	•	 	The Occupational Safety and Health Act, as amended;

	 	•	 	The Sarbanes-Oxley Act of 2002;

	 	•	 	The Florida Civil Rights Act, as amended;

	 	•	 	The Florida Whistle Blower statute;

	 	•	 	Florida Statutory Provision Regarding Retaliation/Discrimination for
Filing a Workers Compensation Claim;

	 	•	 	Florida Wage Discrimination Law;

	 	•	 	Florida OSHA;

	 	•	 	Florida Wage Payment Laws;

	 	•	 	Equal Pay Law for Florida, as amended; Florida AIDS Act;

	 	•	 	Florida Discrimination on the Basis of Sickle Cell Trait Law;

	 	•	 	Any other federal, state or local civil or human rights law or any
other local, state or federal law, regulation or ordinance;

	 	•	 	Any public policy, contract, tort, or common law;

	 	•	 	Any alleged oral or written contract including the 2004 Employment
Agreement and the Change in Control Agreement between you and the Company
made as of December 27, 2004, (except as to the portions of the 2004
Employment Agreement which are specifically referred to herein as being
intended to survive the termination of your employment or which are
exempted from this General Release as described below).

	 	•	 	Any claim for costs, fees, or other expenses including attorneys’ fees,
except any fees and costs incurred in any action regarding the validity of
this waiver and release under the Older Worker’s Benefit Protection Act.

You further affirm that you have been paid and/or have received all leave (paid or
unpaid), compensation, wages, bonuses, commissions, and/or benefits to which you may be
entitled and that no other leave (paid or unpaid), compensation, wages, bonuses,
commissions and/or benefits are due to you, except as provided in this letter. You
furthermore affirm that you have no known workplace injuries or occupational diseases and
have been provided and/or have not been denied any leave requested under the Family and
Medical Leave Act.

Exemptions from Release

(a) The General Release of Claims set forth above is not intended to and shall not
relieve the Company of any obligations it may have under Section 11 (Indemnification) of
the 2004 Employment Agreement nor is this General Release of Claims intended to impair
your right to indemnification, if any, under the Company’s bylaws.

(b) The General Release of Claims set forth above is not intended to release claims
arising out of the enforcement of this Agreement, claims regarding the validity of the
release under the Older Worker’s Benefit Protection Act, or claims arising after the
effective date of the General Release.

(c) The General Release of Claims set forth above is not intended as a waiver of the
benefits or payments to which you may be entitled under the Company’s benefit or equity
plans.

(d) Except as otherwise specifically set forth above, the General Release of Claims is
intended to bar any and all claims that you now have or may have against the Company.

5. Cooperation 

(a) Investigations, Administrative Proceedings Or Litigation

You agree that following your Termination Date you will reasonably cooperate with the Company
and its affiliates, and its respective staff and counsel, in connection with any investigation,
administrative proceeding or litigation relating to any matter occurring during your employment in
which you were involved or of which you have knowledge.

(b) Subpoenas

You agree that, if at any time following your Termination Date you are subpoenaed by any
person or entity (including, but not limited to, any government agency) to give testimony (in a
deposition, court proceeding or otherwise) which in any way relates to your employment with the
Company, you will give prompt notice of such request to the General Counsel of Jacuzzi Brands, Inc.
and will make no disclosure, unless legally required to do so, until the company has had a
reasonable opportunity to contest the right of the requesting person or entity to such disclosure.

The Company will reimburse you for reasonable out of pocket expenses incurred by you under
this section.

(c) Non-disparagement

Effective immediately, you agree not to defame, disparage or demean the Company, its
executives, businesses and/or brands in any manner whatsoever.

(d) Cooperation Up to Period of Termination

You agree that up to your Termination Date, you will assist the Company to transition your
duties upon your termination. You may accept other employment during this period, provided that
you are reasonably available to fulfill your duties under the preceding sentence.

6. Confidential Information, Non solicitation and Non-Competition 

You acknowledge that you have been bound by the restrictive covenants contained in Section 10
of the 2004 Employment Agreement. More specifically, those covenants restrict you from (among
other things) divulging certain confidential Company information, soliciting certain Company
employees and competing against the Company. You further acknowledge that Section 10 of the 2004
Employment Agreement is intended to survive the termination of your employment. You also
acknowledge that part of the severance paid to you under Section 2 of this Agreement is in
consideration for your agreement to abide by the restrictions set forth in Section 10 of the 2004
Employment Agreement. Notwithstanding the foregoing, the Company has determined that provided you
sign the General Release upon your Termination Date, and further provided that you not revoke that
General Release, it will in turn release you from the prohibition regarding “Competition” against
the Company as that term is defined in Section 10(d) of the 2004 Employment Agreement.
Accordingly, in further consideration of the promises you have made in this Agreement, together
with the General Release, the Company will waive the portion (and only that portion) of Section 10
that prohibits you from “Competition” for a period of two years following the termination of your
employment. This limited waiver will not be effective until you sign the General Release and said
release has become effective. You acknowledge that the Company continues to have an interest in
protecting itself and its confidential information from the activities that are restricted by
Section 10. Finally, you acknowledge that the restrictions contained in Section 10 of the 2004
Employment Agreement continue to be reasonable both in geographic and temporal scope and remain in
effect in accordance with the terms of the 2004 Employment Agreement, except as provided above with
respect to “Competition”.

7. Resignation from All Offices

Effective immediately and in accordance with the terms of your 2004 Employment Agreement, you
will be deemed to have resigned as an officer of the Company, any subsidiary and any affiliate and
as a fiduciary of any benefit plan of any of the foregoing. You agree to execute any further
documentation requested by the Company to achieve this purpose prior to your receipt of the moneys
payable to you under Section 2 of this Agreement.

8. Governing Law and Interpretation

This Agreement and the accompanying General Release shall be governed and conformed in
accordance with the laws of the state of Florida without regard to its conflict of laws provision.
In the event that you breach any provision of this Agreement and/or of the General Release, you and
the Company affirm that either may institute an action to specifically enforce any term or terms of
this Agreement and/or the General Release. Should any provision of this Agreement be declared
illegal or unenforceable by any court of competent jurisdiction and cannot be modified to be
enforceable, excluding the General Release language, such provision shall immediately become null
and void, leaving the remainder of this Agreement and the General Release in full force and effect.
Provided that, the Company’s obligation to make the payments in Section 2 of this Agreement is
conditioned upon your complying with the provisions of Section 10 of your 2004 Employment Agreement
as written, except where they have been modified by Section 6 of this Separation Agreement. If you
violate or challenge the enforceability of the provisions of Section 10 of your 2004 Employment
Agreement, as written, or if they are found to be unenforceable, you will not be entitled to
continue to receive further payments, if any, set forth in Section 2 of this Agreement.

9. Return of Company Data and Property

You acknowledge that on or before the Termination Date you will return, and acknowledge your
return of, all Company property in your possession, including all documents relating to the Company
or it affiliates or any of their business or property, except for documents received by you in your
capacity as a benefit plan participant and except for copies of any agreements between you and the
Company.

10. Assignability

The Company may assign its rights and delegate its obligations under this Agreement to any
affiliate, successor, assign or Buyer. The rights and obligations of the Company shall inure to the
benefit of and be enforceable by its affiliates, successors, assigns or Buyer. You may not assign
any of your rights and obligations under this Agreement.

11. Enforceability

If any provision of this Agreement is held to be unenforceable for any reason, it shall be
adjusted rather than voided, if possible, to achieve the intent of the parties to the extent
possible. In any event, all other provisions of this Agreement shall be deemed valid and
enforceable to the extent possible.

12. Time to Consider Agreement, Consult with Advisors and Revocation Period

(a) You agree that you had sufficient opportunity to thoroughly discuss the implications of
this Agreement with independent advisors of your choice prior to signing this Agreement.

(b) You are advised that you should consult with an attorney regarding the General Release
contained in this Agreement.

(c) You acknowledge that you have been advised that you will be provided at least twenty-one
(21) days from the receipt of this Agreement within which to consider signing the General Release
in a form such as recited above and return it to the Company. You also acknowledge that any
changes to this Agreement, or to the General Release, made after it is initially presented, whether
material or non-material, will not restart the twenty-one (21) day period.

(d) In addition, you have a period of seven (7) days following the execution of the General
Release in which you may revoke it.

(e) Any sums called for in this Agreement will not be paid to you until the expiration of the
revocation period or ten business days after the Termination Date, whichever is later.

(f) In signing this Separation Agreement or the General Release, you agree that you have not
been induced to execute this Separation Agreement or the General Release herein by any
representatives or agreements other than what is expressly set forth in this letter or in the
General Release.

13. Amendment

This Agreement and the General Release may not be modified, altered or changed except upon
express written consent of both parties wherein specific reference is made to this Agreement and
General Release.

14. Entire Agreement 

Upon the effective date of the General Release (once it has been signed by you and the
revocation period has passed without you revoking it), this Agreement and the General Release will
be deemed to set forth the entire agreement between the parties hereto, and fully supersede any
prior agreements or understandings between the parties, except for the provisions of the 2004
Employment Agreement which, as set forth in Section 6 above, are intended to survive the
termination of your employment, and except for those provisions of the 2004 Employment Agreement
which are specifically exempted from the General Release as set forth in Section 4 of this
Agreement. You acknowledge that you have not relied on any representations, promises, or
agreements of any kind made to you in connection with your decision to accept this Agreement and
General Release, except for those set forth in this Agreement and General Release. Until the
effective date of the General Release, the terms of the 2004 Employment Agreement remain in full
force and effect, including the provision that allows the Company to terminate your employment for
cause. You will continue as an employee of the Company until your Termination Date in accordance
with the terms of the 2004 Employment Agreement, except that you and the Company have agreed to the
provisions of Section 7 above regardless of any terms of the Employment Agreement to the contrary.

15. Effective Date of Agreement

Except for those Sections of this Agreement which specifically state that they are effective
at some other time, this Agreement as well as the General Release will become effective on the
eighth day after the General Release is executed by you, provided you have not revoked the General
Release within the revocation period.

We would like to extend our sincere hope for success in your future endeavors.

Very truly yours,

     

Steven C. Barre

Senior Vice President, General Counsel

and Secretary

HAVING HAD A REASONABLE PERIOD OF TIME TO CONSIDER THIS AGREEMENT, HAVING ELECTED TO EXECUTE
THIS AGREEMENT, TO FULFILL THE PROMISES AND TO RECEIVE THE SUMS AND BENEFITS OF SECTION 2 ABOVE,
YOU FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTER INTO THIS AGREEMENT.

IN WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed this Separation
Agreement as of the date set forth below:

	 	 	 
	FOR: The Company:

	 	

	Steven C. Barre Date

Senior Vice President,

	 	

AGREED:
	General Counsel and Secretary

	 	Robert Hennemuth Date

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