Document:

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                                                                Exhibit 10 (af)

                   AMENDED AND RESTATED EMPLOYMENT AGREEMENT

                  This AMENDED AND RESTATED EMPLOYMENT AGREEMENT ("AGREEMENT")
is made as of November 30, 2000, between Avatar Properties Inc., a Florida
corporation (the "COMPANY") and Michael Levy (the "EMPLOYEE") and amends and
restates in its entirety, the employment agreement dated December 4, 1997
between the Company and Employee (the "ORIGINAL AGREEMENT").

                              W I T N E S S E T H

                  WHEREAS, the Employee is currently employed as Chief
Operating Officer and Executive Vice President of the Company pursuant to the
Original Agreement; and

                  WHEREAS, the Company and the Employee wish to provide for
certain modifications to the Original Agreement, all upon the terms hereinafter
set forth;

                  NOW, THEREFORE, in consideration of the mutual covenants and
agreements hereinafter set forth, the parties hereto agree as follows:

                  1. EMPLOYMENT AND TERM. The Company hereby employs the
Employee, and the Employee hereby accepts employment by the Company, in the
capacity and upon the terms and conditions hereinafter set forth. The term of
employment under this Agreement shall be for the period commencing as of
December 5, 1997 (the "COMMENCEMENT DATE") and ending on December 31, 2004,
unless earlier terminated as herein provided (the "TERM OF EMPLOYMENT"). The
last day of the Employee's Term of Employment shall be referred to in this
Agreement as the "DATE OF TERMINATION."

                  2. DUTIES. During the Term of Employment, the Employee shall
serve as the Company's Chief Operating Officer and Executive Vice President,
and shall perform such duties, functions and responsibilities as are
customarily associated with and incident to the position of Chief Operating
Officer and Executive Vice President and as the Company may, from time to time,
require of him, including, but not limited to, the performance of such
functions and duties for the Company's subsidiaries and affiliates as the
Company may require, subject to the direction of the Company's Board of
Directors. The Employee shall serve the Company faithfully, conscientiously and
to the best of the Employee's ability and shall promote the interests and
reputation of the Company. Unless prevented by sickness or disability, the
Employee shall devote all of his time, attention, knowledge, energy and skills,

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during normal working hours, and at such other times as the Employee's duties
may reasonably require, to the duties of the Employee's employment; PROVIDED,
HOWEVER, that nothing contained herein shall prevent the Employee from engaging
in Permitted Activities (as defined below). The principal place of employment
of the Employee shall be the current principal executive offices of the Company
and/or such other location within 50 miles of Company's current principal place
of business as shall be necessary for the Employee to discharge his duties
hereunder and the Permitted Activities. For purposes of this Agreement,
"PERMITTED ACTIVITIES" shall mean an ownership interest in, or the provision of
services in connection with the design, development, construction, sales and
marketing, operation and management, solely to or in connection with, the
existing Brookman-Fels projects conducted by the companies set forth on
SCHEDULE I hereto, the Harbor Islands Joint Venture between Avatar Harbor
Islands, Inc. and Brookman-Fels at Harbor Islands, Inc., and the Presidential
Estate Joint Venture between Avatar at Presidential Estates, Inc. and
Brookman-Fels at Presidential Estates, Inc. The Employee acknowledges that in
the course of his employment he may be required, from time to time, to travel
on behalf of the Company; PROVIDED, HOWEVER, that the Employee shall not be
required to spend more than 25% of his business time on overnight travel.

         3. COMPENSATION AND BENEFITS. As full and complete compensation for
the Employee's execution and delivery of this Agreement and performance of any
services hereunder, the Company shall pay, grant or provide the Employee, and
the Employee agrees to accept, the following compensation and benefits:

                  (a) BASE SALARY. The Company shall pay the Employee a base
salary at an annual rate of $400,000 payable at such times and in accordance
with the standard payroll practices of Avatar Holdings Inc., a Delaware
corporation ("AVATAR"). On an annual basis or at such other times as the
Company may determine, the Employee's base salary shall be reviewed, and in the
sole discretion of the Board of Directors of the Company, the Company may
increase (but not decrease) the Employee's base salary.

                  (b) EMPLOYEE BENEFITS. The Company shall afford the Employee
the opportunity to participate during the Term of Employment in any medical,
dental, disability insurance, retirement, savings and any other employee
benefits plans or programs (including perquisites) which Avatar maintains for
its senior executives. Nothing in this Agreement shall require the Company,
Avatar or their affiliates to establish, maintain or continue any benefit
programs already in existence or hereafter adopted for senior executives of
Avatar, and nothing in the Agreement shall restrict the right of Avatar or any
of its affiliates to amend, modify or terminate any such benefit program.

                  (c) EXPENSES. The Employee shall be entitled to reimbursement
or payment of reasonable business expenses (in accordance with Avatar's
policies for its senior executives, as the same may be amended from time to
time in Avatar's sole discretion), following the Employee's submission of
appropriate receipts and/or vouchers to the Company.

                  (d) VACATIONS, HOLIDAYS OR TEMPORARY LEAVE: The Employee
shall be entitled to take four (4) weeks of vacation per year, plus any
additional time, if any, as the Board of Directors of the Company or a
committee of the Board of Directors of the Company may determine, in its sole
discretion, without loss or diminution of compensation. Such vacation shall be
taken at such time or times, and as a whole or in increments, as the Employee
shall elect, consistent with the reasonable needs of the Company's business.

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The Employee shall further be entitled to the number of paid holidays, and
leaves for illness or temporary disability in accordance with the policies of
Avatar for its senior executives (as such policies may be amended from time to
time or terminated in Avatar's sole discretion).

         4. CASH COMPENSATION CAP. Notwithstanding anything contained above or
in any other agreement between Employee and the Company or Avatar, the "cash
compensation" paid to Employee from January 1, 2001 through December 31, 2004
may not exceed seven million dollars ($7,000,000). "Cash compensation" shall
mean the cumulative sum of all cash payments made to the Employee in respect of
salary, bonus and any other incentive awards (including, but not limited to the
cash bonus award granted pursuant to the Avatar Holdings Inc. Executive
Incentive Compensation Plan (the "Executive Incentive Plan") and any other
project award granted under the Executive Incentive Plan). It is understood
that "cash compensation" shall not include any securities of Avatar granted to
Employee (e.g., stock options granted pursuant to the Avatar Holdings Inc.
Incentive and Capital Accumulation Plan) and any cash payments made to Employee
(not in his capacity as an employee of the Company) in respect of Permitted
Activities.

         5. NON-COMPETITION AND PROTECTION OF CONFIDENTIAL INFORMATION:

                  (a) RESTRICTIVE COVENANTS:

                           (i) During the Term of Employment and for one year
following the Date of Termination, the Employee shall not directly or
indirectly engage, participate, own or make any financial investments in, or
become employed by or render (whether or not for compensation) any consulting,
advisory or other services to or for the benefit of, any person, firm or
corporation, that directly or indirectly, engages primarily in, the development
of adult retirement communities and/or active adult communities; PROVIDED,
HOWEVER, that it shall not be a violation of this Agreement for the Employee
(i) to have beneficial ownership of less than 1% of the outstanding amount of
any class of securities of any enterprise (but without otherwise participating
in the activities of such enterprise) if such securities are listed on a
national securities exchange or quoted on an inter-dealer quotation system or
(ii) to have beneficial ownership of less than 20% of the outstanding amount of
any class of securities of any enterprise (but without otherwise participating
in the activities or otherwise having influence or control of such enterprise)
if such securities are not registered under Section 12 of the Securities
Exchange Act of 1934, as amended;

                           (ii) During the Term of Employment the Employee
shall not, directly or indirectly, (A) solicit, in competition with the Company
or Avatar (their subsidiaries and/or affiliates (each of the foregoing entities
being referred to herein, collectively and individually, as the "AVATAR
ENTITIES"), any person who is a customer of any business conducted by the
Avatar Entities or (B) in any manner whatsoever induce, or assist others to
induce, any supplier of the Company to terminate its association with such
entity or do anything, directly or indirectly, to interfere with the business

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relationship between the Company, Avatar and any of their respective current or
prospective suppliers.

                           (iii) During the Term of Employment the Employee
shall not, directly or indirectly, solicit or induce any employee of the Avatar
Entities to terminate his or her employment for any purpose, including without
limitation, in order to enter into employment with any entity which competes
with any business conducted by the Avatar Entities.

                           (iv) The Employee recognizes and acknowledges that
certain confidential business and technical information used by the Employee in
connection with the Permitted Activities that includes, without limitation,
certain confidential and proprietary information relating to the designing,
development, construction and marketing of real estate, is a valuable, special
and unique asset of the Company, such information, subject to Section 5(a)(vi)
below, collectively being referred to as the "CONFIDENTIAL INFORMATION." During
the Term of Employment the Employee shall not (A) use Confidential Information,
or any part thereof other than in connection with his duties hereunder or
Permitted Activities, nor (B) disclose such information to any person, firm,
corporation, association or other entity for any purpose or reason whatsoever.

                           (v) During the Term of Employment and for all time
following the Date of Termination, the Employee shall not, directly or
indirectly, furnish or make accessible to any person, firm, or corporation or
other business entity, whether or not he, she, or it competes with the business
of the Company, any trade secret or know-how acquired by the Employee during
his employment by the Company which relates to the business practices, methods,
processes or other confidential or secret aspects of the business of the Avatar
Entities without the prior written consent from the Company (such information,
subject to Section 5(a)(vi) below, being referred to as the "COMPANY
CONFIDENTIAL INFORMATION").

                           (vi) Confidential Information and Company
Confidential Information shall not include any information or documents that
(A) are or become publicly available without breach by the Employee of Sections
5(a)(iv) and (v) hereof, respectively, (B) the Employee receives from any third
party who, to the best of the Employee's knowledge upon reasonable inquiry, is
not in breach of an obligation of confidence with the Company, Avatar or their
respective affiliates, or (C) is required to be disclosed by law, statute,
governmental or judicial proceeding; PROVIDED, HOWEVER, that in the event that
the Employee is requested by any governmental or judicial authority to disclose
any Confidential Information, the Employee shall give the Company and Avatar
prompt notice of such request, such that the Company and Avatar may seek a
protective order or other appropriate relief, and in any such proceeding the
Employee shall disclose only so much of the Confidential Information as is
required to be disclosed.

                           (vii) Notwithstanding the foregoing, the Employee
acknowledges that during the Term of Employment and for all time following the
Date of Termination, the Employee shall not, and shall not cause or permit any
of its affiliates to, use the name "BROOKMAN-FELS" (or any derivative thereof)
except as expressly permitted by those certain License Agreements, each dated

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as of December 4, 1997, by and between Brookman-Fels Jeff Ian, Inc., as
licensor and the companies listed on SCHEDULE I hereto, each as a licensee, or
except as otherwise permitted in writing by Avatar.

                  (b) GEOGRAPHIC SCOPE. The provisions of this Section 5 (other
than Sections 5(a)(iii), (iv), (v), and (vi), which shall be in full force and
effect without regard to the geographic limitations set forth in this Section
5(b)) shall be in full force and effect within a 100-mile radius of a site for
which the Avatar Entities has commenced development or has a binding commitment
therefor.

                  (c) REMEDIES. The Employee acknowledges that his services are
of a special, unique and extraordinary character and, his position with the
Company and Avatar places him in a substantial relationship and a position of
confidence and trust with specific prospective or existing customers, suppliers
and employees of the Company and Avatar, and that in connection with his
services to the Company, the Employee will have access to confidential business
or professional information vital to the Company's and Avatar's businesses. The
Employee further acknowledges that in view of the nature of the business in
which the Company and Avatar are engaged, the foregoing restrictive covenants
in this Section 5 hereof are reasonable and necessary in order to protect the
legitimate business interests of the Company and Avatar and that violation
thereof would result in irreparable injury to the Company and Avatar.
Accordingly, the Employee consents and agrees that if the Employee violates or
threatens to violate any of the provisions of this Section 5 hereof the Company
and Avatar would sustain irreparable harm and, therefore, the Company and
Avatar shall be entitled to obtain from any court of competent jurisdiction,
temporary, preliminary and/or permanent injunctive relief as well as damages,
attorneys fees and costs, and an equitable accounting of all earnings, profits
and other benefits arising from such violation, which rights shall be
cumulative and in addition to any other rights or remedies in law or equity to
which the Avatar Entities may be entitled.

         6. TERMINATION OF EMPLOYMENT:

                  (a) The Employee's employment with the Company shall
terminate upon the occurrence of any of the following events:

                           (i) the termination of the Employee's employment
upon and at any time following the Date of Termination and absent the parties
having entered into a written agreement for the renewal of this Agreement;

                           (ii) the death of the Employee during the Term of
Employment;

                           (iii) the Disability (as defined below) of Employee
during the Term of Employment;

                           (iv) at any time upon written notice to the Employee
from the Company of termination of his employment for Cause (as defined below);

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                           (v) at any time upon written notice to the Employee
from the Company of termination of his employment Without Cause (as defined
below);

                           (vi) the resignation by the Employee for Good Reason
(as defined below) during the Term of Employment; or

                           (vii) the resignation by the Employee Without Good
Reason (as defined below) during the Term of Employment.

                  (b) For purposes of this Agreement, the "DISABILITY" of the
Employee shall mean the Employee's inability, because of mental or physical
illness or incapacity, whether total or partial, to perform one or more
material functions of the Employee's employment under this Agreement with or
without reasonable accommodation and which entitles the Employee to receive
benefits under a disability plan or program that is provided to the Employee
pursuant to Section 3(b).

                  (c) For purposes of this Agreement, the term "CAUSE" shall
mean the Employee's (i) conviction or entry of a plea of guilty or nolo
contendere, with respect to any felony; (ii) commission of any act of willful
misconduct, gross negligence, fraud or dishonesty; or (iii) violation of any
material term of this Agreement or any material written policy of the Company,
PROVIDED that the Company first deliver written notice thereof to the Employee
and the Employee shall not have cured such violation within thirty (30) days
after receipt of such written notice.

                  (d) For purposes of this Agreement, "WITHOUT CAUSE" shall
mean any reason other than the reasons described in Sections 6(a)(i), 6(a)(ii),
6(a)(iii) and 6(a)(iv) hereof. The parties expressly agree that a termination
of employment Without Cause pursuant to Section 6(a)(v) hereof may be for any
reason whatsoever, or for no reason, in the sole discretion of the Company.

                  (e) For purposes of this Agreement, "GOOD REASON" shall mean
a willful and material breach of the provisions of this Agreement by the
Company.

                  (f) For purposes of this Agreement, "WITHOUT GOOD REASON"
shall mean any reason other than that defined in this Agreement as constituting
Good Reason.

         7. PAYMENTS UPON TERMINATION OF EMPLOYMENT:

                  (a) DEATH OR DISABILITY: If the Employee's employment
hereunder is terminated due to the Employee's death or Disability pursuant to
Sections 6(a)(ii) or (iii) hereof, the Company shall pay or provide to the
Employee, his designated beneficiary or to his estate (i) all base salary
pursuant to Section 3(a) hereof and any vacation pay pursuant to Section 3(e)
hereof, in each case which has been earned but unpaid as of the Date of
Termination; and (ii) any benefits to which the Employee may be entitled under
any employee benefits plan or program pursuant to Section 3(b) hereof in which
he is a participant in accordance with the terms of such plan or program up to

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and including the Date of Termination. Should the Company wish to purchase
insurance to cover the costs associated with the Employee's termination of
employment pursuant to Sections 6(a)(ii) or (iii), the Employee agrees to
execute any and all necessary documents necessary to effectuate said insurance.
Upon termination of the Employee's employment due to the Employee's Disability,
the Employee shall continue to have the obligations provided for in Section 4
hereof.

                  (b) TERMINATION FOR CAUSE, RESIGNATION WITHOUT GOOD REASON,
OR EXPIRATION OF TERM OF EMPLOYMENT: If the Employee's employment hereunder is
terminated due to the termination of the Employee's employment by the Company
for Cause pursuant to Section 6(a)(iv) or due to the Employee's resignation
Without Good Reason pursuant to Section 6(a)(vii), the Company shall pay or
provide to the Employee (i) all base salary pursuant to Section 3(a) hereof and
any vacation pay pursuant to Section 3(e) hereof, in each case which has been
earned but unpaid as of the Date of Termination and (ii) any benefits to which
the Employee may be entitled under any employee benefits plan or program
pursuant to Section 3(b) hereof in which he is a participant in accordance with
the terms of such plan or program up to and including the Date of Termination.

                  (c) TERMINATION WITHOUT CAUSE; RESIGNATION FOR GOOD REASON:
If the Employee's employment hereunder is terminated by the Company Without
Cause pursuant to Section 6(a)(v), or due to the Employee's resignation for
Good Reason pursuant to Section 6(a)(vi), the Company shall continue to pay to
the Employee, in lieu of any other payments or benefits and on the regular
payroll dates of the Company for a period of six (6) months following Date of
Termination his current base salary, at the rate provided in Section 3(a)
hereof; PROVIDED, HOWEVER, if the Employee's employment hereunder is terminated
by the Company Without Cause pursuant to Section 6(a)(v) or due to Employee's
resignation for Good Reason pursuant to Section 6(a)(vi) prior to the second
anniversary of the Commencement Date, the Company shall continue to pay to the
Employee, through the second anniversary of the Commencement Date and for a
period of six (6) months following such second anniversary, his current base
salary, at the rate provided in Section 3(a) hereof, in lieu of any other
payments or benefits, and on the regular payment dates of the Company. The
Company's obligation to make the payment pursuant to this Section 7(c) shall be
conditioned upon the Company's prior receipt of an executed general release of
claims which the Employee may have against the Company, its affiliates and
their respective shareholders, directors, officers, employees and agents, to
the maximum extent permitted by law.

                  (d) NO OTHER PAYMENTS. Except as provided in this Section 7,
the Employee shall not be entitled to receive any other payments or benefits
from the Company due to the termination of his employment, including but not
limited to, any employee benefits under any of the Company's or Avatar's
employee benefits plans or programs (other than at the Employee's expense under
the Consolidated Omnibus Budget Reconciliation Act of 1985 or pursuant to the
terms of any pension plan which the Company or Avatar may have in effect from
time to time) or any right to be paid severance pay. If the Employee is
entitled to any notice or payment in lieu of any notice of termination required

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by Federal, State or local law, including but not limited to the Worker
Adjustment and Retraining Notification Act, the Company's obligation to make
payments pursuant to Section 7(c) shall be reduced by the amount of any such
payment in lieu of notice.

         8. NO CONFLICTING AGREEMENTS; INDEMNIFICATION:

                  (a) The Employee hereby represents and warrants that he is
not a party to any agreement, or non-competition or other covenant or
restriction contained in any agreement, commitment, arrangement or
understanding (whether oral or written), which would in any way conflict with
or limit his ability to commence work on the first day of the Term of
Employment or would otherwise limit his ability to perform all responsibilities
in accordance with the terms and subject to the conditions of this Agreement.

                  (b) The Employee agrees that the compensation provided for in
Section 3 represents the sole compensation to be paid to Employee in respect of
the services performed or to be performed for the Company and/or its affiliates
by such Employee. The Employee further agrees that should there be a
determination that for federal, state, local and/or other tax purposes,
Employee's compensation for services performed for the Company and its
affiliates is greater than the amounts payable hereunder, Employee will
indemnify and hold harmless the Company and its affiliates against any and all
liabilities, losses, and expenses including, but not limited to, any additional
taxes, penalties and interest, and attorneys' and accountants' fees arising out
of, resulting from or relating to such determination.

         9. DEDUCTIONS AND WITHHOLDING. The Employee agrees that the Company
shall withhold from any and all compensation required to be paid to the
Employee pursuant to this Agreement all federal, state, local and/or other
taxes which the Company determines are required to be withheld in accordance
with applicable statutes and/or regulations from time to time in effect and all
amounts required to be deducted in respect of the Employee's coverage under
applicable employee benefit plans.

         10. ENTIRE AGREEMENT. This Agreement embodies the entire agreement of
the parties with respect to the Employee's employment and supersedes any other
prior oral or written agreements between the Employee and the Company and its
affiliates. This Agreement may not be changed or terminated orally but only by
an agreement in writing signed by the parties hereto.

         11. WAIVER. The waiver by the Company of a breach of any provision of
this Agreement by the Employee shall not operate or be construed as a waiver of
any subsequent breach by the Employee. The waiver by the Employee of a breach
of any provision of this Agreement by the Company shall not operate or be
construed as a waiver of any subsequent breach by the Company.

         12. GOVERNING LAW. This Agreement shall be subject to, and governed
by, the laws of the State of Florida applicable to contracts made and to be
performed in the State of Florida, regardless of where the Employee is in fact
required to work.

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         13. JURISDICTION. Any legal suit, action or proceeding against any
party hereto arising out of or relating to this Agreement shall be instituted
in a federal or state court in the State of Florida, and each party hereto
waives any objection which it may now or hereafter have to the laying of venue
of any such suit, action or proceeding and each party hereto irrevocably
submits to the jurisdiction of any such court in any suit, action or
proceeding.

         14. ASSIGNABILITY. The obligations of the Employee may not be
delegated and, except as expressly provided in Section 7(a) relating to the
designation of beneficiaries, the Employee may not, without the Company's
written consent thereto, assign, transfer, convey, pledge, encumber,
hypothecate or otherwise dispose of this Agreement or any interest therein. Any
such attempted delegation or disposition shall be null and void and without
effect. The Company and the Employee agree that this Agreement and all of the
Company's rights and obligations hereunder may be assigned or transferred by
the Company to and may be assumed by and become binding upon and may inure to
the benefit of any affiliate of or successor to the Company. The term
"SUCCESSOR" shall mean, with respect to the Company or any of its subsidiaries,
and any other corporation or other business entity which, by merger,
consolidation, purchase of the assets, or otherwise, acquires all or a material
part of the assets of the Company. Any assignment by the Company of its rights
and obligations hereunder to any affiliate of or successor shall not be
considered a termination of employment for purposes of this Agreement.

         15. SEVERABILITY. If any provision of this Agreement as applied to
either party or to any circumstances shall be adjudged by a court of competent
jurisdiction to be void or unenforceable, the same shall in no way affect any
other provision of this Agreement or the validity or enforceability of this
Agreement. If any court construes any of the provisions of Section 5 hereof, or
any part thereof, to be unreasonable because of the duration of such provision
or the geographic or other scope thereof, such court may reduce the duration or
restrict the geographic or other scope of such provision and enforce such
provision as so reduced or restricted.

         16. STOCKHOLDER APPROVAL OF INCENTIVE PLAN. Avatar hereby undertakes
to submit the Executive Incentive Plan for approval by stockholders at Avatar's
next annual meeting or at a special meeting on or before December 31, 2001. If
the stockholders fail to approve the Executive Incentive Plan at such annual
meeting or special meeting (or any adjournment thereof) on or before December
31, 2001, Employee may terminate Employee's employment hereunder by
communicating a written Notice of Termination to the Company within thirty (30)
days following such annual meeting (or any adjournment thereof) at which
stockholders failed to approve the Executive Incentive Plan. If Employee so
terminates Employee's employment, Employee will be bound by the terms of the
Original Agreement, and Employee and the Company shall be discharged and
released of and from any further obligations under this Agreement. If Employee
shall not provide a written Notice of Termination on a timely basis, then this
Agreement shall remain in full force and effect.

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         17. NOTICES. All notices to the Employee hereunder shall be in writing
and shall be delivered personally or sent by registered or certified mail,
return receipt requested, to:

                           Michael Levy
                           3800 South Ocean Drive
                           Suite G-9
                           Hollywood, Florida 33019

                           with a copy to:

                           Kluger, Peretz, Kaplan & Berlin, P.A.
                           201 South Biscayne Blvd.
                           Suite 1700
                           Miami, FL  33131
                           Attention:  Eliot Abbott, Esq.
                           Facsimile:  (305) 379-3428

All notices to the Company hereunder shall be in writing and shall be delivered
personally or sent by registered or certified mail, return receipt requested,
to:

                           Avatar Properties Inc.
                           201 Alhambra Circle
                           Coral Gables, Florida 33134
                           Attention: Chairman of the Board
                           Facsimile: (305) 441-7876

                           with a copy to:

                           Avatar Properties Inc.
                           201 Alhambra Circle
                           Coral Gables, Florida 33134
                           Attention:  General Counsel
                           Facsimile: (305) 448-9927

                           and with a copy to:

                           Weil, Gotshal & Manges LLP
                           767 Fifth Avenue
                           New York, New York  10153
                           Attention:  Simeon Gold, Esq.
                           Facsimile:  (212) 310-8007

Either party may change the address to which notices shall be sent by sending
written notice of such change of address to the other party.

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         18. SECTION HEADINGS. The section headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

         19. COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
taken together shall constitute one and the same instrument.

         20. ATTORNEYS' FEES. In the event that either party hereto commences
litigation against the other to enforce such party's rights hereunder, the
prevailing party shall be entitled to recover all costs, expenses and fees,
including reasonable attorneys' fees (including in-house counsel), paralegals'
fees, and legal assistants' fees through all appeals.

         21. NEUTRAL CONSTRUCTION. Each party to this Agreement was represented
by counsel, or had the opportunity to consult with counsel. No party may rely
on any drafts of this Agreement in any interpretation of the Agreement. Each
party to this Agreement has reviewed this Agreement and has participated in its
drafting and, accordingly, no party shall attempt to invoke the normal rule of
construction to the effect that ambiguities are to be resolved against the
drafting party in any interpretation of this Agreement.

                            (signature page follows)

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

                                            AVATAR PROPERTIES INC.

                                            By: /s/ GERALD D. KELFER
                                                -------------------------------
                                                  Name: Gerald D. Kelfer
                                                  Title: Chairman of the Board

                                              /s/ MICHAEL LEVY
                                              ---------------------------------
                                             Employee: Michael Levy

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                                   SCHEDULE I

                 EXISTING BROOKMAN-FELS PROJECTS AND LICENSEES

                  1.       Brookman-Fels at Harbor Islands, Inc.
                  2.       Brookman-Fels Organization, Inc.
                  3.       Brookman-Fels and Associates, Inc.
                  4.       Brookman-Fels at Treasure Trove, Inc.
                  5.       Brookman-Fels at Country Club Estates, Inc.
                  6.       Brookman and Fels at the Sanctuary, Inc.
                  7.       Brookman-Fels of South Florida, Inc.
                  8.       Brookman-Fels Custom Builders, Inc.
                  9.       Brookman-Fels Home and Design, Inc.
                  10.      Brookman-Fels Management Corporation
                  11.      Brookman-Fels at Presidential Estates, Inc.
                  12.      Brookman-Fels Construction Corp.
                  13.      Brookman-Fels Builders, Inc.
                  14.      Sunset Point at Silver Lakes, Ltd. (d/b/a
                             Brookman-Fels - Zuckerman Group)
                  15.      Parkland Communities, Inc. (d/b/a
                             Brookman-Fels - Zuckerman Group)

                                      13<PAGE>   1
                                                                Exhibit 10 (ag)

                           CASH BONUS AWARD AGREEMENT

         THIS CASH BONUS AWARD AGREEMENT, dated October 20, 2000 (the
"Agreement"), is made between Avatar Holdings Inc., a Delaware corporation (the
"Company") and Michael Levy (the "Participant").

1. AWARD. Pursuant to the provisions of the Avatar Holdings Inc. Executive
Incentive Compensation Plan, as the same may be amended, modified and
supplemented from time to time (the "Plan"), the Committee (as defined in the
Plan) hereby awards to the Participant, on the date hereof, subject to the
terms and conditions of the Plan and subject further to the terms and
conditions and other provisions herein set forth, an opportunity to receive the
performance based compensation described herein (the "Award") if, as of a
Performance Goal Test Date (as defined below), the Performance Goal (as defined
below) is satisfied. For all purposes of this Agreement, the "Performance Goal"
hereunder shall have been satisfied as of a Performance Goal Test Date, if and
only if Cash Flow (as defined below) on such date shall exceed the Hurdle Level
(as defined below) on such date.

2. CERTAIN DEFINITIONS.

         (a) Capitalized terms used but not defined herein shall have the
meanings assigned to them in the Plan.

         (b) Each reference contained in this Agreement to:

                  "10% Return Measurement Amount" shall mean, as at the end of
         any month, the excess, if any of (A) the sum of (x) the Property
         Amount and (y) the sum of the Monthly 10% Returns Included In Hurdle
         Level for all months during the period from and including the First
         Day of the Performance Period and through and including the end of
         such month over (B) Adjusted Cash Flow at the end of such month.

                  "Adjusted Cash Flow" shall mean, as at any date of
         determination, Cash Flow at such date, but without giving any effect
         to either of the provisos contained in the definition of "Cash Flow"
         herein.

                  "Bonus Measurement Amount" shall mean, as at any date of
         determination, the excess, if any, of Cash Flow at such date over the
         Property Amount.

                  "Bonus Percentage" shall mean six (6) percent.

                  "Cash Flow" shall mean, as at any date of determination, an
         amount equal to (i) total cumulative cash receipts less total
         cumulative cash disbursements, in each case, by or on behalf of the
         Company or any of its subsidiaries, with respect to the Project,
         during the period from and including the First Day of the Performance

<PAGE>   2

         Period through and including such date of determination (it being
         understood that: such cash receipts shall include funds received from
         a sale of the Project or any part thereof; such cash receipts shall
         not include any interest received on any funds attributable to the
         Project (other than on a purchaser's promissory note received as sale
         proceeds); such cash disbursements for any month shall include the
         Inflation Adjustment in respect of such month; such cash disbursements
         shall not include the Property Amount; and such cash disbursements
         shall not include amounts paid in respect of deficit funding of the
         home owners' association at the Project), MINUS (ii) reserves with
         respect to the Project as the Committee deems appropriate, including,
         without limitation, reserves for costs, expenses, and contingencies,
         MINUS (iii) the product of (A) the amount of monies funded by the
         Company or any of its subsidiaries (in lieu of from third-party
         lenders) with respect to the Project and (B) the greater of (x) 10%
         per annum compounded monthly and (y) the Company's "cost of capital"
         for funds at the relevant times; PROVIDED, HOWEVER, that "cash
         receipts" and "cash disbursements" shall not include any principal
         amounts borrowed from, or repaid to, third party lenders, or advanced
         from, or repaid to, the Company or any of its subsidiaries; PROVIDED
         FURTHER, HOWEVER, that cash disbursements shall not include In-Process
         Hard Construction Costs (until such time as the sale of the unit to
         which any such cost relates has closed).

                  "First Day of the Performance Period" shall mean November 1,
         2000.

                  "In-Process Hard Construction Costs" shall mean the materials
         costs, labor costs, architectural costs and other similar direct costs
         related to units in the Project the sales of which have not closed (it
         being understood that In-Process Hard Construction Costs shall not
         include indirect costs (e.g., general and administrative costs, sales
         and marketing costs and other overhead costs)).

                  "Inflation Measurement Amount" shall mean, as at any date of
         determination, an amount equal to (i) if Cash Flow is a negative value
         (or zero) at the beginning of the month in which there is a date of
         determination, the Property Amount plus the absolute value of such
         Cash Flow amount; (ii) if Cash Flow is a positive value (but does not
         exceed the Property Amount) at the beginning of the month in which
         there is a date of determination, the Property Amount minus such Cash
         Flow amount; or (iii) if Cash Flow exceeds the Property Amount at the
         beginning of the month in which there is a date of determination,
         zero.

                  "Inflation Adjustment" in respect of any month shall mean an
         amount equal to the product of (x) the Inflation Measurement Amount at
         the beginning of such month and (y) the percentage rate change in the
         consumer price index for all urban consumers (CPI-U) during such
         month, without seasonal adjustment, as reported by the Bureau of Labor
         Statistics of the U.S. Department of Labor (using all items and the
         reference date of 1982-84 for the index); PROVIDED, HOWEVER, the
         Inflation Adjustment for such month shall not be a negative value
         (i.e., "deflation") except to the extent cumulative Inflation
         Adjustments as of the end of the prior month is a positive value.

                  "Monthly 10% Return Included in Hurdle Level" in respect of
         any month shall mean the product of (A) 0.833333% (i.e., 10% per

                                       2
<PAGE>   3

         annum) and (B) the 10% Return Measurement Amount as at the end of the
         prior month (it being understood that for purposes of determining the
         10% Return Included in Hurdle Level as at the end of the first month
         following the First Day of the Performance Period, the 10% Return
         Measurement Amount as at the end of the prior month shall be deemed
         equal to the Property Amount).

                  "Performance Goal Test Date" shall mean (i) the last day of
         each calendar quarter following the First Day of the Performance
         Period and prior to the Last Day of the Performance Period (as defined
         below) and (ii) the Last Day of the Performance Period.

                  "Project" shall mean the development and sale of the
         Company's property in Hollywood, Florida, generally known by the
         Company as parcels 1, 8 and 9 at "Harbor Islands".

                  "Property Amount" shall mean $17 million or, in the
         discretion of the Committee, the current value of the land on which
         the Project is located, as determined (prior to December 31, 2000) by
         the Committee, if higher.

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

         (a) The payment of performance based compensation described herein is
contingent upon the achievement of the Performance Goal during the period (the
"Performance Period") beginning on the First Day of the Performance Period and
ending on the earlier of (i) the last day of the month in which the Project has
been substantially completed, as determined by the Committee and (ii) October
31, 2008 (such earlier date being the "Last Day of the Performance Period").

         (b) The Award is subject to, and no amount shall be payable pursuant
to the Award unless and until, the following conditions have been satisfied:
(i) the Plan shall have been approved by the Company's stockholders at any
annual or special meeting held prior to or on December 31, 2001; and (ii) the
Participant shall have entered into a new employment agreement with the Company
or a subsidiary of the Company (or an amendment to the Participant's existing
employment agreement) not later than December 15, 2000, providing for a term of
employment ending not earlier than December 31, 2004, and on other terms
satisfactory to the Company and the Participant.

         (c) No amount shall be payable pursuant to the Award on any Payment
Date (as defined below) unless and until Cash Flow on the Performance Goal Test
Date immediately preceding such Payment Date exceeds an amount (the "Hurdle
Level") equal to the sum of (i) the Property Amount and (ii) the sum of the
Monthly 10% Returns Included in Hurdle Level for all months during the period
from and including the First Day of the Performance Period and through and
including such Performance Goal Test Date.

         (d) Subject to Sections 3(c), 4 and 5 hereof, if Cash Flow exceeds the
Hurdle Level as of a Performance Goal Test Date, then the Participant shall be
entitled to receive a bonus payment on the related Payment Date, in an amount
equal to the excess of (i) the Bonus Percentage multiplied by the Bonus

                                       3
<PAGE>   4

Measurement Amount as of such Performance Goal Test Date over (ii) the
aggregate amount of bonus payments paid to the Participant pursuant to this
Agreement prior to such Performance Goal Test Date; PROVIDED, HOWEVER, that
notwithstanding the foregoing, the sum of all bonus payments for all awards
under the Plan granted with respect to the Project in respect of any
Performance Goal Test Date (such sum being referred to as the "Formula Payment
Amount") shall not exceed the excess, if any, of (A) Cash Flow as of such
Performance Goal Test Date over (B) the sum of (x) the Hurdle Level as of such
date and (y) the aggregate amount of bonus payments previously paid pursuant to
all awards under the Plan granted with respect to the Project (such excess
being referred to as the "Bonus Pool Amount"). If as of a Performance Goal Test
Date the Formula Payment Amount exceeds the Bonus Pool Amount, then subject to
Sections 3(c), 4 and 5 hereof, the Participant shall be entitled to receive a
bonus payment on the related Payment Date, in an amount equal to the product of
(A) a fraction, the numerator of which is the amount that the Participant would
have received if the Formula Payment Amount did not exceed the Bonus Pool
Amount on such date and the denominator of which is the Formula Payment Amount
on such date and (B) the Bonus Pool Amount.

         (e) The Committee shall determine whether the Performance Goal has
been met as of the applicable Performance Goal Test Date and, if it has, shall
so certify in writing and ascertain the amount of the bonus, if any, payable to
the Participant. The amount of the bonus shall be paid to the Participant in
cash within 75 days after the Committee makes its determination (each such date
being a "Payment Date"); PROVIDED, HOWEVER, if a material change occurs in the
business plan of the Project (as determined by the Committee in its sole
discretion), the Committee may defer the payment of such bonus amount to such
date and to such extent as the Committee determines in its sole discretion.

4. CAP ON COMPENSATION. Notwithstanding anything to the contrary herein, the
maximum bonus amounts payable to the Participant shall be subject to the
limitations in the Plan and the Participant's employment agreement with the
Company or a subsidiary thereof, as the case may be, as amended from time to
time.

5. CLAWBACK; NO OFFSET BY PARTICIPANT.

         (a) The Participant shall pay to the Company upon demand by the
Company following the Last Day of the Performance Period an amount equal to the
sum of (i) the excess of (A) the Excess Bonus Payments (as defined below) over
(B) the hypothetical income tax liability attributable to such Excess Bonus
Payments (as determined by the Committee by applying the highest marginal
United States federal, state and local individual income tax rates applicable
to an individual resident of Florida for the relevant taxable period, taking
into account the deductibility of state and local income taxes for federal
income tax purposes), (ii) interest on such excess (at a rate of 10% per annum
compounded monthly from the date of receipt of the relevant Excess Bonus
Payments until the date of refund), and (iii) as determined by the Committee,
the present value of any tax benefits accruing to the Participant as a result
of making any payments pursuant to this Section 5(a) to the Company. For
purposes of the preceding sentence, "Excess Bonus Payments" shall mean the
greater of (AA) the amount equal to the excess, if any, of (i) the aggregate
amount of all bonus payments paid to the Participant pursuant to this Agreement
(including any such bonus payments paid or to be paid with respect to the
Performance Goal Test Date relating to such Last Day of the Performance Period)
over (ii) the product of the Bonus Percentage multiplied by the Bonus
Measurement Amount as of the close of business on the Last Day of the

                                       4
<PAGE>   5

Performance Period and (BB) the amount equal to the product of (x) a fraction,
the numerator of which is the aggregate amount of all bonus payments paid to
the Participant pursuant to this Agreement (including any such bonus payments
paid or to be paid with respect to the Performance Goal Test Date relating to
such Last Day of the Performance Period) and the denominator of which is the
aggregate amount of all bonus payments paid pursuant to all awards under the
Plan granted with respect to the Project (including any such bonus payments
paid or to be paid with respect to the Performance Goal Test Date relating to
such Last Day of the Performance Period) and (y) the excess, if any, of (i) the
aggregate amount of all bonus payments paid pursuant to all awards under the
Plan granted with respect to the Project (including any such bonus payments
paid or to be paid with respect to the Performance Goal Test Date relating to
such Last Day of the Performance Period)over (ii) the amount equal to the
excess, if any, of (1) Cash Flow as of the close of business on the Last Day of
the Performance Period over (2) the Hurdle Level as of the close of business on
the Last Day of the Performance Period.

         (b) The Participant shall be obligated to pay to the Company any
amount due pursuant to this Section 5 regardless of whether the Participant has
or claims to have any claim against the Company or any of its subsidiaries, and
the Participant shall have no right to offset any amount due or claimed to be
due from the Company or any of its subsidiaries.

6. TERMINATION OF EMPLOYMENT.

         (a) Subject to Sections 3 and 5 hereof:

                  (i) if the Participant's employment with the Company is
terminated by the Company for "cause" (as defined below) or by the Participant,
prior to December 31, 2004, for other than "good reason" (as defined below), in
addition to any other consequences of such termination provided for by this
Agreement or any other agreement, notwithstanding Section 3 hereof, Participant
shall forfeit any right to future bonus payments pursuant to this Agreement
from and after the date of such termination;

                  (ii) if the Participant's employment with the Company is
terminated by the Company other than for "cause" or by the Participant for
"good reason," the Participant shall be entitled to continue to receive such
bonus payments as would otherwise be payable pursuant to this Agreement as
though the Participant's employment had not been terminated; and

                  (iii) if the Participant dies while employed by the Company
or in the event the Participant's employment with the Company is terminated by
the Company by reason of the Participant's "permanent disability" (as defined
below), notwithstanding Section 3 hereof:

                           (A) the Participant shall be entitled to receive
only that portion of the bonus payments otherwise payable pursuant to Section
3(d) hereof following such termination, equal to the product of (x) a fraction
(which in no event shall exceed one (1)) the numerator of which is the number
of completed whole months elapsed after the First Day of the Performance Period
to the date of death or permanent disability, as the case may be, and the

                                       5
<PAGE>   6

denominator of which is the number of whole months from the First Day of the
Performance Period until December 31, 2004 and (y) the amount of bonus payments
that would have been payable pursuant to Section 3(d) hereof if the Participant
remained an employee of the Company through and including the Last Day of the
Performance Period; and

                           (B) the Participant will have no right to any other
payments hereunder.

                  Any payments shall be made 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) on the Payment Date.

         (b) For purposes of Section 6(a) hereof, the terms "cause", "good
reason" and "permanent disability", shall have the meanings ascribed to such
terms in the Participant's employment agreement with the Company or a
subsidiary thereof, as the case may be, as amended from time to time; PROVIDED,
HOWEVER, if the Participant is no longer employed pursuant to an employment
agreement but is continuing in employ, such terms shall have the meanings
ascribed to such terms in the employment agreement last in effect.

7. FORFEITURE UPON BREACH OF RESTRICTIVE COVENANTS. Notwithstanding anything to
the contrary set forth in this Agreement, if the Participant breaches any
provision relating to the Participant's covenant to keep information
confidential, not to compete, not to solicit or similar restrictive covenant
contained in the Participant's employment or other agreement with the Company
or any of its subsidiaries (after the expiration of any notice and cure
period), then in addition to any other rights or remedies arising from or
relating to such breach the Participant shall forfeit any right to future bonus
payments pursuant to this Agreement from and after the date of such breach.

8. TAXES. Any bonus payment pursuant to the Award shall be net of any amounts
required to be withheld pursuant to applicable federal, state, local and
foreign tax withholding requirements. 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.

9. NO RIGHT TO CONTINUED EMPLOYMENT. This Agreement does not confer upon the
Participant any right to continued employment by the Company or any of its
subsidiaries or affiliated companies, nor shall it interfere in any way with
the right of the Participant's employer to terminate the Participant's
employment at any time for any reason or no reason.

10. NO OBLIGATION TO PURSUE PROJECT. This Agreement shall in no way obligate
the Company to pursue the Project, and the Company may limit, abandon or change
the Project at any time in its sole discretion and the Company shall have no
obligation to take any action or provide any financing with respect to the
Project.

11. UNSECURED CREDITOR STATUS; NO PARTNERSHIP. The Participant shall rely
solely upon the unsecured promise of the Company, as set forth herein, for
payment hereunder, and nothing herein contained shall be construed to give to
or vest in the Participant or any other person now or at any time in the
future, any right, title, interest, or claim in or to any specific asset, fund,

                                       6
<PAGE>   7

reserve, account, insurance or annuity policy or contract, or other property of
any kind whatsoever owned by the Company, or in which the Company may have any
right, title, or interest, nor at any time in the future. This Agreement is an
agreement to pay compensation for services provided by the Participant and is
not a partnership or joint venture and is not intended to create a partnership
or joint venture between the Company and the Participant or any other person.
The Participant shall take no position inconsistent with this characterization.

12. ASSIGNMENT; SUCCESSORS.

         (a) The Award and any interest of the Participant therein may not be
sold, assigned, transferred, pledged, hypothecated or otherwise disposed of.
Any attempt to transfer the Award in contravention of this Section 12(a) is
void AB INITIO. The Award shall not be subject to execution, attachment or
other process.

         (b) The Company's rights and obligations hereunder may be assigned or
transferred by the Company to and may be assumed by and become binding upon and
may inure to the benefit of any affiliate of or successor to the Company. The
term "successor" shall mean, with respect to the Company or any of its
subsidiaries, any other corporation or other business entity which, by merger,
consolidation, purchase of assets, or otherwise, acquires all or a material
part of the assets of the Company.

         (c) In the event of the Participant's death, the Participant's rights
and obligations hereunder shall be binding upon and inure to the benefit of the
Participant's heirs and legal representatives.

13. CONSTRUCTION. The Plan and this Agreement will be construed by and
administered under the supervision of the Committee in its sole and absolute
discretion, and all determinations of the Committee will be final and binding
on the Participant.

14. NOTICES. Any notice required or permitted under this Agreement shall be
deemed given when delivered personally, or when deposited in a United States
Post Office, postage prepaid, addressed, as appropriate, (i) to the Participant
at the last address specified in the Participant's employment records, 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, Coral Gables,
Florida 33134 Attention: Chairman of the Board, with a copy to the Company's
Corporate Secretary, or such other address as the Company may designate in
writing to the Participant.

15. 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.

16. 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.

17. 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, as the Plan may be amended from time to time.

                                       7
<PAGE>   8

18. 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.

19. 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.

                                       8
<PAGE>   9

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

                                          AVATAR HOLDINGS INC.

                                          By:   /s/ GERALD D. KELFER
                                             ----------------------------------
                                               Name: Gerald D. Kelfer
                                               Title: President

                                                 /s/ MICHAEL LEVY
                                               --------------------------------
                                                   Michael Levy

                                       9

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