Document:

EX-10.1

Exhibit 10.1

AVATAR HOLDINGS INC.

FORM OF DEFERRED COMPENSATION AGREEMENT

FOR NON-EMPLOYEE DIRECTOR’S FEES

This Deferred Compensation Agreement (this “Agreement”), dated as of [     ], 200[_],
is made by and between Avatar Holdings Inc., a Delaware corporation (the “Company”), and
[DIRECTOR], a non-employee director of the Company (the “Participant”), pursuant to, and
subject to the terms and conditions of, the Amended and Restated 1997 Incentive and Capital
Accumulation Plan (2005 Restatement), as the same may be amended, restated, modified or
supplemented from time to time (the “Plan”).

1. DEFINITIONS. For purposes of this Agreement, the following terms shall have the following
meanings:

(a) “Beneficiary” shall mean the beneficiary or beneficiaries designated in writing by
the Participant pursuant to Section 4 hereof to receive the Participant’s deferred compensation
benefits in the event of the Participant’s death.

(b) “Board of Directors” shall mean the board of directors of the Company.

(c) “Change in Control” shall mean the occurrence of any change in ownership of the
Company, change in effective control of the Company, or change in the ownership of a substantial
portion of the assets of the Company, as defined in Code Section 409A(a)(2)(A)(v), the regulations
thereunder, and any other published interpretive authority, as issued or amended from time to time.

(d) “Code” shall mean the U.S. Internal Revenue Code of 1986, as amended from time to
time.

(e) “Committee” shall mean the Nominating and Corporate Governance Committee of the
Board of Directors or such other committee of the Board of Directors designated by the Board of
Directors to administer the terms and conditions of this Agreement.

(f) “Common Stock” shall mean the common stock, par value $1.00 per share, of the
Company.

(g) “Deferral” shall mean a contribution of cash under this Agreement made by the
Company on behalf of the Participant to the Participant’s Deferred Compensation Account and shall
include any notional dividends credited pursuant to Section 2(b) below.

(h) “Deferral Date” shall mean the date on which the Participant would be paid in cash
a Director’s fee, committee fee, committee chairperson fee or would be credited with a notional
dividend pursuant to Section 2(b) below.

(i) “Deferred Compensation Account” shall mean the separate account established by the
Company under this Agreement for the Participant.

(j) “Director” shall mean a member of the Board of Directors who is not an employee of
the Company.

(k) “Fair Market Value” shall mean, as of any date, the value of the Common Stock
determined as follows:

(i) If the Common Stock is listed on one or more established stock exchanges or national
market systems, including without limitation The Nasdaq National Market or The Nasdaq SmallCap
Market of The Nasdaq Stock Market, the Fair Market Value of the Common Stock shall be the closing
sale price of the Common Stock on such date (or the last preceding trading date if Common Stock was
not traded on such date) as quoted on the principal exchange or quotation system on which the
Common Stock is listed (as determined by the Committee); or

(ii) In the absence of an established market for the Common Stock of the type described in
clause (i) above, the Fair Market Value thereof shall be determined by the Committee in good faith
and in accordance with Code Section 409A, the regulations thereunder, and any other published
interpretive authority, as issued or amended from time to time.

(l) “Separation from Service” shall mean the termination of the Participant’s services
as a Director for any reason.

(m) “Stock Units” shall mean notional shares of Common Stock to be used to determine
the deferred compensation benefits distributable to the Participant under this Agreement.

2. CONTRIBUTIONS AND DETERMINATION OF BENEFITS

(a) Contributions.

(i) The Participant may elect to defer up to fifty percent (50%) of the annual Director’s fee
and any committee fee or committee chairperson fee due in cash to the Participant for service as a
Director, committee member or chairperson. Elections shall be made in the form attached as
Exhibit A hereto (the “Deferral Election Form”). Elections must be made by the
Participant prior to the calendar year in which the Participant earns such compensation, except
that the Participant may make an election within thirty (30) days of the date on which the
Participant is first eligible to participate in the Plan (and then only with respect to amounts
earned after the date such election is made). All contributions made to fund benefits under this
Agreement shall be paid by the Company and no direct contributions by the Participant to the
Deferred Compensation Account are required or permitted.

(ii) The Company shall allocate a number of Stock Units to the Deferred Compensation Account
of the Participant determined by dividing the amount of the Deferral by the Fair Market Value of
one share of Common Stock on the Deferral Date and rounding to the nearest 1/100 of a unit. For
purposes of this Section 2(a)(ii), any fractional unit greater than or equal to 0.0050 shall be
rounded up to the nearest 1/100 of a unit and any fractional unit less than 0.0050 shall be rounded
down to the nearest 1/100 of a unit.

(b) Notional Dividends. Stock Units in the Participant’s Deferred Compensation
Account shall be credited with notional dividends at the same time and in equivalent amounts as
dividends that are payable from time to time on shares of Common Stock. Any such notional
dividends shall be valued as of the date on which they are credited to the Participant’s Deferred
Compensation Account and the Company shall allocate additional Stock Units to the Deferred
Compensation Account based on such notional dividends in the manner described in Section 2(a)(ii)
above. If such notional dividends are credited in a form other than Common Stock or cash, the
Committee will determine their value in good faith.

3. VESTING AND DISTRIBUTION OF BENEFITS

(a) Vesting of Deferred Compensation Accounts. The Participant’s Deferred
Compensation Account shall be fully vested at all times.

(b) Distribution of Deferred Compensation Accounts. Subject to Sections 3(c), 3(d)
and 3(e) hereof, the Company shall distribute the Participant’s Deferred Compensation Account in
accordance with the dates and percentages designated by the Participant in the Deferral Election
Form. Distributions shall be made in shares of Common Stock determined by multiplying the
percentage of the balance of the Deferred Compensation Account to be distributed on such date (as
designated in the Deferral Election Form) by the aggregate number of Stock Units allocated to the
Deferred Compensation Account pursuant to this Agreement as of such date. For purposes of this
Section 3(b), any fractional share of Common Stock greater than or equal to 0.50 shall be rounded
up to the nearest whole share of Common Stock and any fractional share of Common Stock less than
0.50 shall be rounded down to the nearest whole share of Common Stock.

(c) Change of Distribution Schedule. The Participant may elect, at any time, to
change distribution date(s) by amending the Deferral Election Form, provided that such election
shall not take effect for one (1) year from the date of the new election and that under the amended
Deferral Election Form, each distribution installment (or lump sum) shall occur no earlier than
five (5) years after such installment (or lump sum) would have been paid under the prior
distribution schedule, and in accordance with Code Section 409A(a)(4)(C), the regulations
thereunder, and any other published interpretive authority, as issued or amended from time to time.

(d) Death Benefit. Upon the death of the Participant prior to complete distribution
to the Participant of the entire balance of Participant’s Deferred Compensation Account, the entire
remaining balance of the Deferred Compensation Account on the date of death shall be payable to the
Participant’s Beneficiary as soon as practicable following the date of Participant’s death.

(e) Pro Rata Adjustments. Notwithstanding anything to the contrary contained in this
Agreement, if Participant’s Separation from Service occurs prior to the Participant’s performance
of services as a Director for which Stock Units have been allocated to the Participant’s Deferred
Compensation Account, the Committee, in its sole discretion, may make a pro rata adjustment in the
number of shares of Common Stock distributable to the Participant upon the Participant’s Separation
from Service to account for such services not performed.

4. DESIGNATION OF BENEFICIARY. The Participant may designate a Beneficiary to receive any
amount due hereunder via written notice thereof, in the form attached as Exhibit B hereof,
to the Committee at any time prior to the Participant’s death and may revoke or change the
Beneficiary designated therein without the Beneficiary’s consent by written notice delivered to the
Committee at any time and from time to time prior to the Participant’s death. If the Participant
fails to designate a Beneficiary, or if no such designated Beneficiary shall survive the
Participant, then such amount shall be paid to the Participant’s estate.

5. EQUITABLE ADJUSTMENT. If there shall be any change in the Common Stock of the Company,
through merger, consolidation, reorganization, recapitalization, stock dividend, stock split,
reverse stock split, split up, spinoff, combination of shares, exchange of shares, dividend in kind
or other like change in capital structure or distribution (other than normal cash dividends) to
stockholders of the Company, in order to prevent dilution or enlargement of the Participant’s
rights under this Agreement and the Plan, the Committee may, in an equitable manner, adjust the
number and kind of shares that may be issued under this Agreement and make any other appropriate
adjustments in the terms of the Stock Units and this Agreement to reflect such changes or
distributions.

6. TAXES. Any distribution of Common Stock pursuant to this Agreement shall be net of any
amounts required to be withheld pursuant to applicable federal, state and local tax withholding
requirements. In connection with any such distribution, the Company may require the Participant to
remit to it an amount sufficient to satisfy such tax withholding requirements prior to the delivery
of any certificates for such Common Stock. In lieu thereof, the Company shall have the right to
withhold the amount of such taxes from any other sums due or to become due from the Company to the
Participant as the Committee shall prescribe. The Committee may, in its discretion and subject to
such rules as it may adopt (including any as may be required to satisfy applicable tax and/or
non-tax regulatory requirements), permit the Participant to pay all or a portion of the federal,
state and local withholding taxes arising in connection with any distribution of shares of Common
Stock hereunder by electing to have the Company withhold shares of Common Stock having a Fair
Market Value equal to the amount of tax to be withheld, such tax calculated at rates prescribed by
statute or regulation.

7. REGULATORY COMPLIANCE AND LISTING. The issuance or delivery of any stock certificates
representing shares of Common Stock issuable pursuant to this Agreement may be postponed by the
Committee for such period as may be required to comply with any applicable requirements under the
federal or state securities laws, any applicable listing requirements of any national securities
exchange or The Nasdaq Stock Market, Inc., and any applicable requirements under any other law,
rule or regulation applicable to the issuance or delivery of such shares, and the Company shall not
be obligated to deliver any such shares of Common Stock to the Participant if either delivery
thereof would constitute a violation of any provision of any law or of any regulation of any
governmental authority, any national securities exchange or The Nasdaq Stock Market, Inc., or the
Participant shall not yet have complied fully with the provisions of Section 6 hereof.

8. INVESTMENT REPRESENTATIONS AND RELATED MATTERS. The Participant hereby represents that the
Common Stock issuable pursuant to this Agreement is being acquired for investment purposes and not
for sale or with a view to distribution thereof. The Participant acknowledges and agrees that any
sale or distribution of shares of Common Stock issued pursuant to this Agreement may be made only
pursuant to either (a) a registration statement on an appropriate form under the Securities Act of
1933, as amended (the “Securities Act”), which registration statement has become effective
and is current with regard to the shares being sold, or (b) a specific exemption from the
registration requirements of the Securities Act that is confirmed in a favorable written opinion of
counsel, in form and substance satisfactory to counsel for the Company, prior to any such sale or
distribution. The Participant hereby consents to such action as the Committee or the Company deems
necessary or appropriate from time to time to prevent a violation of, or to perfect an exemption
from, the registration requirements of the Securities Act or to implement the provisions of this
Agreement, including but not limited to placing restrictive legends on certificates evidencing
shares of Common Stock issued pursuant to this Agreement and delivering stop transfer instructions
to the Company’s stock transfer agent.

9. CONSTRUCTION. This Agreement will be construed by and administered under the supervision
of the Committee, and all determinations of the Committee will be final and binding on the
Participant.

10. GENERAL AND MISCELLANEOUS

(a) Rights Against Company. Nothing in this Agreement shall be construed as creating
a trust or fiduciary relationship of any kind between the Company and the Participant. Except as
expressly provided by this Agreement, the establishment of this Agreement shall not be construed as
giving to the Participant, any employee or any person any legal, equitable or other rights against
the Company, or against its officers, directors, agents or members, or as giving to the Participant
or any Beneficiary any equity or other interest in the assets or business of the Company or giving
the Participant the right to be retained in the employ of the Company. In no event shall the terms
of service of the Participant, expressed or implied, be modified or in any way affected by the
execution of this Agreement or by any election under this Agreement made by the Participant. The
rights of the Participant or any Beneficiary hereunder shall be solely those of an unsecured
general creditor of the Company and neither the Participant nor any Beneficiary shall have any
rights as a stockholder, and shall not be entitled to vote, with respect to the Stock Units
credited to the Deferred Compensation Account.

(b) Assignment or Transfer. No right, title or interest of any kind in this Agreement
shall be transferable or assignable by the Participant or any Beneficiary or be subject to
alienation, anticipation, encumbrance, garnishment, attachment, execution or levy of any kind,
whether voluntary or involuntary, nor subject to the debts, contracts, liabilities, engagements, or
torts of the Participant or any Beneficiary. Any attempt to alienate, encumber, hypothecate, sell,
transfer, assign, pledge, garnish, attach or otherwise subject to legal or equitable process or to
dispose of any interest in this Agreement shall be void ab initio.

(c) Severability. If any provision of this Agreement shall be declared illegal or
invalid for any reason, said illegal or invalid provision shall not affect the remaining provisions
of this Agreement but shall be fully severable, and this Agreement shall be construed and enforced
as if said illegal or invalid provision was not part of this Agreement.

(d) Governing Law. This Agreement shall be governed by and construed according to the
laws of the State of Delaware, without regard to the conflicts of laws provisions thereof.

(e) Failure To Enforce Not A Waiver. The failure of either party hereto to enforce at
any time any provision of this Agreement shall in no way be construed to be a waiver of such
provision or of any other provision hereof.

(f) Incorporation of Plan. The Plan is hereby incorporated by reference and made a
part of this Agreement, and this Agreement shall be subject to the terms of the Plan.

IN WITNESS WHEREOF, the Company and the Participant have executed this Agreement as of the
date first set forth above.

AVATAR HOLDINGS INC.

     

By:

Title:

     

[DIRECTOR]

1

EXHIBIT A

AVATAR HOLDINGS INC.

DEFERRED COMPENSATION AGREEMENT

FOR DIRECTOR’S FEES

DEFERRAL ELECTION FORM

Name:      

I,      , hereby elect to defer the following amounts in accordance with the terms
of the Deferred Compensation Agreement (the “Agreement”), dated as of [DATE], by and
between me and Avatar Holdings Inc., a Delaware corporation (the “Company”). Capitalized
terms used but not otherwise defined herein shall have the same meanings as set forth in the
Agreement.

This election shall remain in effect indefinitely for all years of service until terminated or
modified by a subsequent deferral election form which shall generally be effective for amounts
earned in the year following the year such subsequent deferral election form is filed with the
Company:

[ ]      % of my Director’s annual retainer fees relating to my service as a Director of Avatar
Holdings Inc.

[ ]      % of my committee fees relating to my service as a Director of Avatar Holdings Inc.

[ ]      % of my chairperson fees relating to my service as a Director of Avatar Holdings Inc.

My Deferred Compensation Account shall be distributed to me upon the earlier of (i) the following
date(s) and in the following increment(s) and (ii) the date of my Separation from Service.

[ ]      

Percentage            Month            Day            Year

[ ]      

Percentage            Month            Day            Year

[ ]      

Percentage            Month            Day            Year

[ ]      

Percentage            Month            Day            Year

NOTE: You can file a new election form at any time for new deferrals, which will take effect upon
the following calendar year.

	 	 	 	 	 
	Submitted by:

	 	 	 	Accepted by:
	 
	 	 	 	 
	PARTICIPANT

	 	 	 	AVATAR HOLDINGS INC.
	 
	 	 	 	 
	_________________________________
	 	By: ____________________________
	 
	 	 	 	 
	Date:

	 	[Name]
	 	Name:      

Title:     

Date:
	 
	 	 	 	 

2

EXHIBIT B

AVATAR HOLDINGS INC.

BENEFICIARY DESIGNATION PURSUANT TO

DEFERRED COMPENSATION AGREEMENT

In the event that I,      , should die prior to the receipt of all amounts credited to
my Deferred Compensation Account under the Deferred Compensation Agreement (the
“Agreement”), dated as of [DATE], by and between me and Avatar Holdings Inc., a Delaware
corporation, and in lieu of disposing of my interest in my Deferred Compensation Account by my will
or the laws of intestate succession, I hereby designate the following person(s) as primary
Beneficiary(ies) and contingent Beneficiary(ies) of my interest in my Deferred Compensation Account
(please attach additional sheets if necessary):

PRIMARY BENEFICIARY(IES) (Select only one of the three alternatives)

	 	 	 	 	 	 	 	 	 
	[ ] (a) INDIVIDUALS AND/OR CHARITIES

	 	% SHARE
	Name____________________________________________
	 	 	_____	 
	Address
	 	 	—	 	 	 	 	 
	Name____________________________________________
	 	 	_____	 
	Address
	 	 	—	 	 	 	 	 
	Name____________________________________________
	 	 	_____	 
	Address
	 	 	—	 	 	 	 	 

[ ] (b) RESIDUARY TESTAMENTARY TRUST

In trust, to the trustee of the trust named as the beneficiary of the residue of my probate estate.

[ ] (c) LIVING TRUST

	 	 	 
	The___________________________________ Trust, dated _______________________

	 
	 	 
	(print name of trust)

	 	(fill in date trust was established)

CONTINGENT BENEFICIARY(IES) (Select only one of the three alternatives)

	 	 	 	 	 	 	 	 	 
	[ ] (a) INDIVIDUALS AND/OR CHARITIES
	 	 	 	 	 	%  SHARE
	Name
	 	 	—	 	 	 	—	 
	Address ____________________________________________
	 	 	 	 
	Name
	 	 	—	 	 	 	—	 
	Address ____________________________________________
	 	 	 	 
	Name
	 	 	—	 	 	 	—	 

Address      

3

[ ] (b) RESIDUARY TESTAMENTARY TRUST

In trust, to the trustee of the trust named as the beneficiary of the residue of my probate estate.

[ ] (c) LIVING TRUST

	 	 	 
	The___________________________________ Trust, dated _______________________

	 
	 	 
	(print name of trust)

	 	(fill in date trust was established)

Capitalized terms used but not otherwise defined herein shall have the same meanings as set forth
in the Agreement. Any distribution to a primary or contingent Beneficiary(ies) of amounts in
Participant’s Deferred Compensation Account shall be subject to, and in accordance with, the terms
and conditions of the Agreement. Should all the individual primary Beneficiary(ies) fail to
survive me or if the trust named as the primary Beneficiary does not exist at my death (or no will
of mine containing a residuary trust is admitted to probate within six months of my death), the
contingent Beneficiary(ies) shall be entitled to my interest in the Deferred Compensation Account
in the shares indicated above. Should any individual beneficiary fail to survive me or a charity
named as a beneficiary no longer exists at my death, such beneficiary’s share shall be divided
among the remaining named primary or contingent Beneficiaries, as appropriate, in proportion to the
percentage shares I have allocated to them. In the event that no individual primary
Beneficiary(ies) or contingent Beneficiary(ies) survives me, no trust (excluding a residuary
testamentary trust) or charity named as a primary Beneficiary or contingent Beneficiary exists at
my death, and no will of mine containing a residuary trust is admitted to probate within six (6)
months of my death, then my interest in the Deferred Compensation Account shall be disposed of by
my will or the laws of intestate succession, as applicable.

This Beneficiary Designation is effective until I file another such Beneficiary Designation with
the Company. Any previous Beneficiary Designations are hereby revoked.

	 	 	 
	Submitted by:

	 	Accepted by:
	 
	 	 
	
 
	 	AVATAR HOLDINGS INC.
	 
	 	 
	     

	 	By:      
	 
	 	 
	Name:      

	 	Title:      
	 
	 	 
	Date:      

	 	Date:      
	 
	 	 

4EX-10.2

Exhibit 10.2

FORM OF NON-EMPLOYEE DIRECTOR

RESTRICTED STOCK UNIT AGREEMENT

This RESTRICTED STOCK UNIT AGREEMENT (“Agreement”), dated as of [     ], 200[_],
by and between Avatar Holdings Inc., a Delaware corporation (the “Company”) and
[     ] (the “Participant”).

1. AWARD. Pursuant to the provisions of the Amended and Restated 1997 Incentive and Capital
Accumulation Plan (2005 Restatement), as the same may be amended, restated, modified or
supplemented from time to time (the “Plan”), the Nominating and Corporate Governance
Committee (the “Committee”) of the Board of Directors of the Company (the “Board”)
hereby awards to the Participant, on the date hereof (the “Award Date”), subject to the
terms and conditions of the Plan and subject further to the terms and conditions set forth herein,
[     (     )] Restricted Stock Units (the “Units”). Capitalized terms used but not
defined herein shall have the meanings assigned to them in the Plan.

2. TERMS AND CONDITIONS. The award evidenced by this Agreement is subject to the following
terms and conditions:

(a) For purposes of this Agreement, the “Vesting Date” shall mean the date on which
the Units vest pursuant to Sections 3 and 4 hereof.

(b) (i) Subject to Section 2(b)(ii), the Participant shall not possess any incidents of
ownership (including, without limitation, voting rights) in shares of Common Stock in respect of
the Units until such Units have vested and been distributed to the Participant in the form of
shares of Common Stock in accordance with Sections 3 and 4 hereof.

(ii) Notwithstanding Section 2(b)(i), from and after the Award Date and until the Vesting
Date, the Units shall accrue an amount equal to the aggregate amount of cash dividends that would
have been paid on the number of Units awarded to Participant pursuant to Section 1 hereof as if
such Units were deemed to be outstanding shares of Common Stock (“Dividend Equivalents”).
On the Vesting Date, accrued Dividend Equivalents, if any, shall be converted to additional Units
and shall vest and be distributable to Participant in accordance with Sections 3 and 4 hereof.
Such conversion of Dividend Equivalents into Units shall be made on the basis of the Fair Market
Value of the Common Stock on the date any such dividend is declared.

(c) Except as provided in this Section 2(c), the Units and any interest of the Participant
therein may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of.
Any attempt to transfer Units in contravention of this Section 2(c) is void ab initio. The
Units shall not be subject to execution, attachment or other process. Notwithstanding the
foregoing, with the written consent of the Committee, the Participant shall be permitted to
transfer all or any portion of the Units to members of his immediate family (i.e.,
children, grandchildren or spouse), trusts for the benefit of such family members, and partnerships
whose only partners are such family members; provided, however, that no
consideration can be paid for the transfer of the Units and the transferee of the Units shall be
subject to all conditions applicable to the Units (including all of the terms and conditions of
this Agreement) prior to such transfer.

3. VESTING AND CONVERSION OF UNITS. On the earlier of (i) the first anniversary of the Award
Date and (ii) the first day immediately preceding the next annual meeting of the Company’s
stockholders following the Award Date, the Units shall vest and such vested Units shall be
converted into an equivalent number of shares of Common Stock that will be immediately distributed
to the Participant; provided, however, that subject to the provisions of Section 4
hereof, no Units shall vest or be converted and distributed to the Participant unless the
Participant is a member of the Board on the Vesting Date. Upon vesting and distribution of the
shares of Common Stock in respect of the Units, the Company shall maintain in book entry form on
account of the Participant such shares of Common Stock; provided, that, at the Company’s
discretion or upon request of the Participant, the Company shall issue to the Participant or the
Participant’s personal representative a stock certificate representing such shares of Common Stock,
free of any restrictions, subject to Section 7 hereof.

4. TERMINATION OF SERVICE; CHANGE OF CONTROL.

(a) Notwithstanding any other provision contained herein:

(i) except as otherwise set forth in this Section 4, if the Participant’s service as a member
of the Board is terminated by the Company for any reason prior to the Vesting Date, the Participant
shall forfeit all Units granted to the Participant pursuant to Section 1 hereof (and any Dividend
Equivalents), as of the date of such termination.

(ii) if the Participant dies or in the event the Participant’s service as a member of the
Board is terminated due to the Participant’s inability, because of mental or physical illness or
incapacity, whether total or partial, to perform one or more material functions required as a
member of the Board, all Units awarded pursuant to Section 1 hereof shall immediately vest, be
converted into shares of Common Stock and be distributed to the Participant (or the executor or
administrator of the deceased Participant’s estate or the person or persons to whom the deceased
Participant’s rights shall pass by will or the laws of descent or distribution, as applicable)
within ten (10) calendar days of such death or termination.

(b) In the event of a Change in Control (as defined below), all Units granted to the
Participant pursuant to Section 1 hereof shall vest, be converted into shares of Common Stock and
be immediately distributed to the Participant. For purposes of this Section 4(b), the term
“Change in Control” shall mean any of the following events:

	 	(i)	 	a person or entity or group of persons or entities, acting in
concert, become the direct or indirect beneficial owner (within the meaning of
Rule 13d-3 of the Securities Exchange Act of 1934, as amended) of securities
of the Company representing ninety percent (90%) or more of the combined
voting power of the issued and outstanding Common Stock; or

	 	(ii)	 	the Board approves any merger, consolidation or like business
combination or reorganization of Avatar, the consummation of which would
result in the occurrence of the event described in clause (i) above, and such
transaction shall have been consummated.

5. EQUITABLE ADJUSTMENT. If there shall be any change in the Common Stock of the Company,
through merger, consolidation, reorganization, recapitalization, stock dividend, stock split,
reverse stock split, split up, spinoff, combination of shares, exchange of shares, dividend in kind
or other like change in capital structure or distribution (other than normal cash dividends) to
stockholders of the Company, in order to prevent dilution or enlargement of the Participant’s
rights under this Agreement and the Plan, the Committee may, in an equitable manner, adjust the
number and kind of shares that may be issued under this Agreement and make any other appropriate
adjustments in the terms of the Units and this Agreement to reflect such changes or distributions.

6. TAXES. Any distribution of Common Stock pursuant to this Agreement shall be net of any
amounts required to be withheld pursuant to applicable federal, state and local tax withholding
requirements. In connection with any such distribution, the Company may require the Participant to
remit to it an amount sufficient to satisfy such tax withholding requirements prior to the delivery
of any certificates for such Common Stock. In lieu thereof, the Company shall have the right to
withhold the amount of such taxes from any other sums due or to become due from the Company to the
Participant as the Committee shall prescribe. The Committee may, in its discretion and subject to
such rules as it may adopt (including any as may be required to satisfy applicable tax and/or
non-tax regulatory requirements), permit the Participant to pay all or a portion of the federal,
state and local withholding taxes arising in connection with the Units granted hereunder and any
distribution of shares of Common Stock in respect thereof by electing to have the Company withhold
shares of Common Stock having a Fair Market Value equal to the amount of tax to be withheld, such
tax calculated at rates prescribed by statute or regulation.

7. REGULATORY COMPLIANCE AND LISTING. The issuance or delivery of any stock certificates
representing shares of Common Stock issuable pursuant to this Agreement may be postponed by the
Committee for such period as may be required to comply with any applicable requirements under the
federal or state securities laws, any applicable listing requirements of any national securities
exchange or The Nasdaq Stock Market, Inc., and any applicable requirements under any other law,
rule or regulation applicable to the issuance or delivery of such shares, and the Company shall not
be obligated to deliver any such shares of Common Stock to the Participant if either delivery
thereof would constitute a violation of any provision of any law or of any regulation of any
governmental authority, any national securities exchange or The Nasdaq Stock Market, Inc., or the
Participant shall not yet have complied fully with the provisions of Section 6 hereof.

8. INVESTMENT REPRESENTATIONS AND RELATED MATTERS. The Participant hereby represents that the
Common Stock issuable pursuant to this Agreement is being acquired for investment purposes and not
for sale or with a view to distribution thereof. The Participant acknowledges and agrees that any
sale or distribution of shares of Common Stock issued pursuant to this Agreement may be made only
pursuant to either (a) a registration statement on an appropriate form under the Securities Act of
1933, as amended (the “Securities Act”), which registration statement has become effective
and is current with regard to the shares being sold, or (b) a specific exemption from the
registration requirements of the Securities Act that is confirmed in a favorable written opinion of
counsel, in form and substance satisfactory to counsel for the Company, prior to any such sale or
distribution. The Participant hereby consents to such action as the Committee or the Company deems
necessary or appropriate from time to time to prevent a violation of, or to perfect an exemption
from, the registration requirements of the Securities Act or to implement the provisions of this
Agreement, including but not limited to placing restrictive legends on certificates evidencing
shares of Common Stock issued pursuant to this Agreement and delivering stop transfer instructions
to the Company’s stock transfer agent.

9. CONSTRUCTION. The Plan and this Agreement will be construed by and administered under the
supervision of the Committee, and all determinations of the Committee will be final and binding on
the Participant.

10. NOTICES. Any notice required or permitted under this Agreement shall be deemed given when
delivered personally, or when deposited with a Post Office, postage prepaid, addressed, as
appropriate, (i) to the Participant at the last address specified in the records of the Board, or
such other address as the Participant may designate in writing to the Company, or (ii) to the
Company, Avatar Holdings Inc., 201 Alhambra Circle, 12th Floor, Coral Gables, Florida 33134
Attention: Corporate Secretary, or such other address as the Company may designate in writing to
the Participant.

11. FAILURE TO ENFORCE NOT A WAIVER. The failure of either party hereto to enforce at any
time any provision of this Agreement shall in no way be construed to be a waiver of such provision
or of any other provision hereof.

12. GOVERNING LAW. This Agreement shall be governed by and construed according to the laws of
the State of Delaware, without regard to the conflicts of laws provisions thereof.

13. INCORPORATION OF PLAN. The Plan is hereby incorporated by reference and made a part of
this Agreement, and this Agreement shall be subject to the terms of the Plan.

14. COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which
shall be an original but all of which together shall represent one and the same agreement.

15. MISCELLANEOUS. This Agreement cannot be changed or terminated orally. This Agreement and
the Plan contain the entire agreement between the parties relating to the subject matter hereof.
The section headings herein are intended for reference only and shall not affect the interpretation
hereof.

[Remainder of Page Intentionally Left Blank]

1

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written
above.

AVATAR HOLDINGS INC.

By:

Name:

Title:

[Name of Director]

2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]