Document:

EX-10.3

 Exhibit 10.3 
 SECOND AMENDMENT TO REVOLVING CREDIT AND 
 SECURITY AGREEMENT AND WAIVER 

THIS SECOND AMENDMENT TO REVOLVING CREDIT AND SECURITY AGREEMENT AND WAIVER, dated as of May 10, 2013 (this
“Amendment”), relating to the Revolving Credit and Security Agreement referenced below, is by and among SOFTWARE BROKERS OF AMERICA, INC., a Florida corporation (the “Company”), ACCVENT LLC, a Florida limited
liability company (“Accvent”), FORZA POWER TECHNOLOGIES LLC, a Florida limited liability company (“Forza”), KLIP XTREME LLC, a Florida limited liability company (“KLIP”), NEXXT SOLUTIONS LLC, a
Florida limited liability company (“Nexxt”) and NUQLEO LLC, a Florida limited liability company (“Nuqleo” – hereinafter the Company, Accvent, Forza, KLIP, Nexxt and Nuqleo may be referred to collectively as the
“Borrowers”), the Lenders identified on the signature pages hereto, and PNC BANK, NATIONAL ASSOCIATION, a national banking association, as agent for the Lenders (in such capacity, the “Agent”). Terms used herein but
not otherwise defined herein shall have the meanings provided to such terms in the Credit Agreement (as defined below). 
 W I T
N E S S E T H 
 WHEREAS, a credit facility has been extended to the Borrowers pursuant to the terms of that certain Revolving
Credit and Security Agreement dated as of July 25, 2011 (as amended and modified from time to time, the “Credit Agreement”) among the Borrowers, the Lenders identified therein, and PNC Bank, National Association, as agent for
the Lenders; 
 WHEREAS, the Borrowers have requested certain modifications to the Credit Agreement including the request that
Nuqleo as a wholly owned subsidiary of Accvent become a co-borrower under the Credit Agreement and the Other Documents and have requested a waiver of the existing Guarantor Fixed Charge Coverage Ratio default; 

WHEREAS, the requested modification and waiver requires the approval of the Required Lenders; 

WHEREAS, the Required Lenders have agreed to the requested modification and waiver on the terms and conditions set forth herein;

 NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows: 
 1. Amendments. The Credit Agreement is amended as
set forth below: 
 (a) New definitions of “Change in Law”, “Compliance
Authority”, “Covered Entity”, “FATCA”, “Laws”, “Reportable Compliance Event”, “Sanctioned Country”, and

 
“Sanctioned Person” are added to Section 1.2 in correct alphabetical order to read as follows: 

“ “Change in Law” shall mean the occurrence, after the Closing Date, of any of the following:
(a) the adoption or taking effect of any Applicable Law; (b) any change in any Applicable Law or in the administration, implementation, interpretation or application thereof by any Governmental Body; or (c) the making or issuance of
any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Body; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act
and all requests, rules, regulations, guidelines, interpretations or directives thereunder or issued in connection therewith (whether or not having the force of Applicable Law) and (y) all requests, rules, regulations, guidelines,
interpretations or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities (whether or not having the
force of law), in each case pursuant to Basel III, shall in each case be deemed to be a Change in Law regardless of the date enacted, adopted, issued, promulgated or implemented. 

“Compliance Authority” shall mean each and all of the (a) U.S. Treasury Department/Office of Foreign
Assets Control, (b) U.S. Treasury Department/Financial Crimes Enforcement Network, (c) U.S. State Department/Directorate of Defense Trade Controls, (d) U.S. Commerce Department/Bureau of Industry and Security, (e) the U.S.
Internal Revenue Service, (f) the U.S. Justice Department, and (g) the U.S. Securities and Exchange Commission. 
 “Covered Entity” shall mean each Borrower, each Borrower’s Affiliates and Subsidiaries, all Guarantors, pledgers of Collateral, all owners of the foregoing, and all brokers or other
agents of any Borrower acting in any capacity in connection with the Obligations. 
 “FATCA”
shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with) and any current or future regulations or
official interpretations thereof. 
 “Law(s)” shall mean any law(s) (including common law),
constitution, statute, treaty, regulation, rule, ordinance, opinion, issued guidance, release, ruling, order, executive order, injunction, writ, decree, bond judgment authorization or approval, lien or award of or any settlement arrangement with any
Governmental Body, foreign or domestic. 

  
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 “Reportable Compliance Event” shall mean that any Covered
Entity becomes a Sanctioned Person, or is indicted, arraigned, investigated or custodially detained, or receives an inquiry from regulatory or law enforcement officials, in connection with any Anti-Terrorism Law or any predicate crime to any
Anti-Terrorism Law, or self-discovers facts or circumstances implicating any aspect of its operations with the actual or possible violation of any Anti-Terrorism Law. 

“Sanctioned Country” shall mean a country subject to a sanctions program maintained by any Compliance
Authority. 
 “Sanctioned Person” shall mean any individual person, group, regime, entity or
thing listed or otherwise recognized as a specially designated, prohibited, sanctioned or debarred person or entity, or subject to any limitations or prohibitions (including but not limited to the blocking of property or rejection of transactions),
under any order or directive of any Compliance Authority or otherwise subject to, or specially designated under, any sanctions program maintained by any Compliance Authority.” 

(b) The definition of “Anti-Terrorism Laws” in Section 1.2 is amended to read as follows:

 “ “Anti-Terrorism Laws” shall mean any Laws relating to terrorism, trade sanctions
programs and embargoes, import/export licensing, money laundering or bribery, all as amended, supplemented or replaced from time to time.” 
 (c) The definition of “Permitted Encumbrances” in Section 1.2 is amended by (i) deleting the word “and” in subsection (k); (ii) replacing the period in subsection
(l) with a semicolon and the word “and” and (iii) adding a new subsection (m) to read as follows: 
 “(m) Liens on all property and assets of Borrowers (including any other additional Borrowers that join in this Agreement after the Closing Date, consisting of Collateral, that secure only those
obligations arising pursuant to the Indenture and any refinancing of such Indenture (which are not otherwise covered by subsection (l) above).” 
 (d) The definitions of “Blocked Person” and “Fx Line” in Section 1.2 are deleted in their entirety. 

(e) Section 2.2(g) is amended by adding the phrase “including without limitation any Change in Law,” after
the word “thereof” and the comma in the second line of the subparagraph. 

  
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 (f) Section 3.7(a) is amended by replacing the phrase “, or any
change therein or in the interpretation or application thereof,” after the words “Applicable Law” in the first line of the subparagraph with the phrase “or any Change in Law”. 

(g) Section 3.9(a) is amended by replacing the phrase “or any change therein” in the second line of the
subparagraph with the phrase “or any Change in Law”. 
 (h) A new Section 3.11(d) is added to read
as follows: 
 “(d) If a payment made to a Lender, Issuer, Participant or Agent under any Document would be
subject to U.S. Federal withholding Tax imposed by FATCA if such Person fails to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender,
Issuer, Participant or Agent shall deliver to Agent (in the case of a Lender or Issuer) and Borrowers (A) a certification signed by the chief financial officer, principal accounting officer, treasurer or controller of such Person, and
(B) other documentation reasonably requested by Agent or Borrowers sufficient for Agent and Borrowers to comply with their obligations under FATCA and to determine that such Lender, Participant, Issuer, or Agent has complied with such
applicable reporting requirements.” 
  

	 	(i)	Section 5.23 is amended to read as follows: 

 “5.23 Anti-Money Laundering/International Trade Law Compliance. 
 Each Borrower represents and warrants to Agent, as of the date of this Agreement, the date of each Advance, the date of any renewal, extension or modification of this Agreement, and at all times until
this Agreement has been terminated and all Obligations have been indefeasibly paid in full, that: (a) no Covered Entity (i) is a Sanctioned Person; (ii) has any of its assets in a Sanctioned Country or in the possession, custody or
control of a Sanctioned Person; or (iii) does business in or with, or derives any of its operating income from investments in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any law, regulation, order or
directive enforced by any Compliance Authority; (b) the Advances will not be used to fund any operations in, finance any investments or activities in, or, make any payments to, a Sanctioned Country or Sanctioned Person in violation of any law,
regulation, order or directive enforced by any Compliance Authority; (c) the funds used to repay the Obligations are not derived from any unlawful activity; and (d) each Covered Entity is in compliance with, and no Covered Entity engages
in any dealings or transactions prohibited by, any laws of the United States, including but not limited to any Anti-Terrorism Laws. Borrowers covenant and agree that they shall immediately notify Agent in writing upon the occurrence of a Reportable
Compliance Event.” 

  
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 (j) Section 5.24 is deleted in its entirety. 

(k) Section 6.5(b) is amended to read as follows: 

“(b) Cause to be maintained a Guarantor Fixed Charge Coverage Ratio of not less than (i) 0.84 to 1.0 for the
four quarter period of Guarantor ending as of June 30, 2013 and (ii) 1.0 to 1.0 for the four quarter period of Guarantor ending as of September 30, 2013 and for each fiscal quarter of Guarantor thereafter.” 

(l) Section 7.3 is amended to read as follows: 

“7.3. Guarantees. 
 Become liable upon the obligations or liabilities of any Person by assumption, endorsement or Guaranty thereof or otherwise (other than to Lenders) except (a) guarantees made in the Ordinary Course
of Business up to an aggregate amount of $100,000, (b) the endorsement of checks in the Ordinary Course of Business and (c) as otherwise permitted by Section 7.8.” 

(m) Section 7.10 is amended to read as follows: 

“7.10. Transactions with Affiliates. 

Directly or indirectly, purchase, acquire or lease any property from, or sell, transfer or lease any property to, make any
payment to, or enter into any transaction or arrangement with, or otherwise deal with, any Affiliate, except (a) transactions disclosed to Agent, which are in the Ordinary Course of Business, on an arm’s-length basis on terms and
conditions no less favorable than terms and conditions which would have been obtainable from a Person other than an Affiliate and (b) transactions otherwise permitted under Section 7.5.” 

(n) Section 7.17 is amended to read as follows: 

“7.17. Prepayment of Indebtedness. 

At any time, prepay, repurchase, redeem, retire or otherwise acquire, or make any payment on account of any principal of,
interest on or premium payable in connection with the prepayment or redemption of any Indebtedness for borrowed money (other than Indebtedness owed to the Lender under this Agreement or the Other Documents), except (i) any such prepayment,
repurchase, redemption, retirement or acquisition expressly permitted in the Subordination Agreement or (ii) in connection with any refinancing of Indebtedness in compliance with Section 7.8(d) or (f).” 

  
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 (o) Section 15.17 is amended to read as follows: 

“15.17 Certifications From Banks and Participants; USA PATRIOT Act. 

(a) Each Lender or assignee or participant of a Lender that is not incorporated under the Laws of the United States of
America or a state thereof (and is not excepted from the certification requirement contained in Section 313 of the USA PATRIOT Act and the applicable regulations because it is both (i) an affiliate of a depository institution or
foreign bank that maintains a physical presence in the United States or foreign country, and (ii) subject to supervision by a banking authority regulating such affiliated depository institution or foreign bank) shall deliver to Agent the
certification, or, if applicable, recertification, certifying that such Lender is not a “shell” and certifying to other matters as required by Section 313 of the USA PATRIOT Act and the applicable regulations: (1) within ten
(10) days after the Closing Date, and (2) as such other times as are required under the USA PATRIOT Act. 
 (b) The USA PATRIOT Act requires all financial institutions to obtain, verify and record certain information that identifies individuals or business entities which open an “account” with such
financial institution. Consequently, Lender may from time to time request, and each Borrower shall provide to Lender, such Borrower’s name, address, tax identification number and/or such other identifying information as shall be necessary for
Lender to comply with the USA PATRIOT Act and any other Anti-Terrorism Law.” 
 2. Waiver. The Agent and the
Required Lenders hereby waive the violation of Section 6.5(b) (Guarantor Fixed Charge Coverage Ratio) for the four quarter period ending as of March 31, 2013 and the violation of Section 5 of the Guaranty of Intcomex and Intcomex
Holdings. 
 3. Confirmation of Borrowers. Nuqleo hereby acknowledges, agrees and confirms that, by its execution of this
Amendment, it will be deemed to be a party to the Credit Agreement and a “Borrower” for all purposes of the Credit Agreement and the Other Documents, and shall have all of the rights and obligations of a Borrower thereunder as if it had
originally executed the Credit Agreement and the Other Documents. The Borrowers hereby ratify, as of the date hereof, and agree to be bound by, all of the terms, provisions and conditions contained in the Credit Agreement and the Other Documents,
including without limitation (i) all of the representations and warranties set forth in Article V of the Credit Agreement and (ii) all of the affirmative and negative covenants set forth in Articles VI and VII of the Credit Agreement.

  
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 4. Additional Confirmation. The existing Borrowers confirm that all of their
obligations under the Credit Agreement are, and upon Nuqleo becoming a Borrower, shall continue to be, in full force and effect. The parties hereto confirm and agree that immediately upon Nuqleo becoming a Borrower, the term “Obligations,”
as used in the Credit Agreement and the Other Documents, shall include all obligations of Nuqleo under the Credit Agreement and under each Other Document. 
 5. Assumption of Obligations. Nuqleo hereby agrees that upon becoming a Borrower it will assume all Obligations of a Borrower as set forth in the Credit Agreement. 

6. Granting of Liens. To secure the prompt payment and performance to Agent and each Lender of the Obligations, Nuqleo hereby
collaterally assigns, pledges and grants to Agent for its benefit and for the ratable benefit of each Lender a continuing security interest in and to and Lien on all of its Collateral, whether now owned or existing or hereafter acquired or arising
and wheresoever located. 
 7. Conditions Precedent. This Amendment shall be effective as of the date hereof upon
satisfaction of each of the following conditions precedent: 
 (a) the execution of this Amendment by the
Borrowers, the Required Lenders and the Agent; 
 (b) the execution of an Affirmation of Guaranty by Intcomex and
Intcomex Holdings; 
 (c) the execution by Accvent LLC of documentation required by the Agent to perfect its lien
on additional intellectual property of Accvent LLC; 
 (d) filing of such UCC financing statements as are
necessary or appropriate, in Agent’s discretion, to perfect the security interests in the collateral of Nuqleo; provided Agent’s failure to file such financing statements shall not invalidate this Amendment; and 

(e) receipt by the Agent of a $15,000 amendment fee. 

8. Conditions Subsequent. On or before June 10, 2013 the following conditions subsequent shall be satisfied: 

(a) delivery to the Agent of a copy of the Operating Agreement of Nuqleo; 

(b) delivery to the Agent of a copy of the certified Certificate of Organization of Nuqleo, and all amendments thereto,
certified by the Secretary of State or other appropriate official of its jurisdiction of organization; 
 (c)
delivery to the Agent of a copy of the resolutions of Nuqleo approving this Amendment, the transactions contemplated herein and authorizing the execution and delivery of this Amendment; 

  
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 (d) delivery to the Agent of an incumbency certificate of the Secretary or
Assistant Secretary of Nuqleo as to the incumbency and signature of the officers of Nuqleo executing this Agreement or any certificate or other documents to be delivered by it pursuant to the terms of this Amendment, together with evidence of the
incumbency of such Secretary or Assistant Secretary; 
 (e) delivery to the Agent of a good standing certificate
of Nuqleo dated not more than thirty days prior to the date of this Amendment, issued by the Secretary of State or other appropriate official of Nuqleo’s jurisdiction of organization; 

(f) delivery to the Agent of insurance certificates for Nuqleo or evidence that Nuqleo has been added to the insurance
certificates of the Company; 
 (g) delivery to the Agent of a legal opinion from counsel to Nuqleo, including,
without limitation, opinions with respect to the due authorization, execution and delivery and enforceability of this Amendment; and 
 (h) new updated schedules to the Credit Agreement. 
 9. Representations and
Warranties. Each Borrower hereby represents and warrants in connection herewith that as of the date hereof (after giving effect hereto) (i) the representations and warranties set forth in Article V of the Credit Agreement are true and
correct in all material respects (except those which expressly relate to an earlier date), and (ii) no Default or Event of Default has occurred and is continuing under the Credit Agreement. 

10. Acknowledgments, Affirmations and Agreements. Each Borrower (i) acknowledges and consents to all of the terms and
conditions of this Amendment and (ii) affirms all of its obligations under the Credit Agreement and the Other Documents. 

11. Loan Agreement. Except as expressly modified hereby, all of the terms and provisions of the Credit Agreement remain in full
force and effect. 
 12. Expenses. The Borrowers agree to pay all reasonable costs and expenses in connection with the
preparation, execution and delivery of this Amendment, including the reasonable fees and expenses of the Agent’s legal counsel. 
 13. Counterparts. This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original. It shall not be necessary in making proof
of this Amendment to produce or account for more than one such counterpart. 
 14. Governing Law. This Amendment shall be
deemed to be a contract under, and shall for all purposes be construed in accordance with, the laws of the State of Florida. 

  
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 IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to
be duly executed and delivered as of the date first above written. 
  

							
	BORROWERS:	 		 	 SOFTWARE BROKERS OF AMERICA, INC.,
 a Florida corporation

				
		 		 	By:	 	/s/ Michael F. Shalom
		 		 	Name:	 	Michael F. Shalom
		 		 	Title:	 	Vice President

  

							
		 		 	 ACCVENT LLC,
 a
Florida limited liability company

				
		 		 	By:	 	/s/ Naftali Mizrachi
		 		 	Name:	 	Naftali Mizrachi
		 		 	Title:	 	Manager

  

							
		 		 	 FORZA POWER TECHNOLOGIES LLC,
 a Florida limited liability company

				
		 		 	By:	 	/s/ Naftali Mizrachi
		 		 	Name:	 	Naftali Mizrachi
		 		 	Title:	 	Manager

  

							
		 		 	 KLIP XTREME LLC,
 a
Florida limited liability company

				
		 		 	By:	 	/s/ Naftali Mizrachi
		 		 	Name:	 	Naftali Mizrachi
		 		 	Title:	 	Manager

  

							
		 		 	 NEXXT SOLUTIONS LLC,

a Florida limited liability company

				
		 		 	By:	 	/s/ Naftali Mizrachi
		 		 	Name:	 	Naftali Mizrachi
		 		 	Title:	 	Manager

  

							
		 		 	 NUQLEO LLC,
 a
Florida limited liability company

				
		 		 	By:	 	/s/ Naftali Mizrachi
		 		 	Name:	 	Naftali Mizrachi
		 		 	Title:	 	Manager

							
	AGENT:	 		 	 PNC BANK, NATIONAL ASSOCIATION,
 in its capacity as Agent

				
		 		 	By:	 	/s/ John Stanescki
		 		 	Name:	 	John Stanescki
		 		 	Title:	 	Senior Vice President

  

							
	LENDERS:	 		 	 PNC BANK, NATIONAL ASSOCIATION,
 as a Lender

				
		 		 	By:	 	/s/ John Stanescki
		 		 	Name:	 	John Stanescki
		 		 	Title:	 	Senior Vice President

  
 2EX-10.1

 Exhibit 10.1 
 STOCK AWARD AGREEMENT 
 This STOCK AWARD AGREEMENT
(“Agreement”), dated                     (the “Effective Date”), by and between AV Homes, Inc., a Delaware
corporation (the “Company”), and                     (the “Participant”). 

1. AWARD. Pursuant to the provisions of the Avatar Holdings Inc. Amended and Restated 1997 Incentive and Capital Accumulation Plan (2011
Restatement), as the same may be further amended, restated, modified or supplemented (the “Plan”), the Committee (as defined in the Plan, the “Committee”) hereby awards to the Participant, on the Effective
Date,                     (            ) shares of Common Stock (collectively, the
“Shares”) subject to the terms and conditions of the Plan and the terms and conditions set forth herein, including forfeiture provisions and provisions restricting transfer. While the Shares are unvested, the Shares shall be
referred to herein as “Restricted Stock.” Capitalized terms used but not defined herein shall have the meanings assigned to them in the Plan. The Shares (as defined below) are intended to constitute a Performance-Based Award within
the meaning of the Plan, to the extent consistent with the Performance Goals pursuant to which the Restricted Stock vests. 
 2.
TERMS AND CONDITIONS. The award evidenced by this Agreement is subject to the following terms and conditions: 
 (a)
Recording of Ownership. Participant’s ownership of the Restricted Stock shall be recorded through book entry, bearing the legend pursuant to the provisions of this Agreement, and shall remain so recorded until the restrictions thereon
shall have lapsed, at which time the legend shall be removed. 
 (b) Stock Dividends and Stock Splits. In the event the
Participant receives a stock dividend on the Restricted Stock or the Restricted Stock is split or the Participant receives any other shares, securities, moneys or property representing a dividend on the Restricted Stock (other than regular cash
dividends on and after the date of this Agreement) or representing a distribution or return of capital upon or in respect of the Restricted Stock or any part thereof, or resulting from a split-up, reclassification or other like changes of the
Restricted Stock, or otherwise received in exchange therefore, and any warrants, rights or options issued to the Participant in respect of the Restricted Stock (collectively “RS Property”), the Participant will also immediately
deposit with and deliver to the Company any of such RS Property, including any certificates representing shares duly endorsed in blank or accompanied by stock powers duly executed in blank, and such RS Property shall be subject to the same
restrictions, including those of this Section 2, as the shares of Restricted Stock with regard to which they are issued and shall herein be encompassed within the term “Restricted Stock” and the term “Shares.” 

(c) Rights with Respect to Restricted Stock. Upon issuance in the Participant’s name pursuant to Section 2(a) above, the
Restricted Stock will constitute issued and outstanding shares of Common Stock for all corporate purposes. From and after the date of issuance, the Participant will have the right to vote the Restricted Stock, to receive and retain all regular cash
dividends payable to holders of Common Stock of record on and after the issuance of the Restricted Stock (although such dividends shall be treated, to the extent required by law, 

 
as additional compensation for tax purposes if paid on Restricted Stock) and to exercise all other rights, powers and privileges of a holder of Common Stock with respect to the Restricted Stock,
with the exceptions that (i) the Participant will not be entitled to delivery of the stock certificate or certificates representing the Restricted Stock until all the vesting requirements with respect thereto shall have been fulfilled and all the
restrictions including those on transfer have lapsed, (ii) the Company (or its designated agent) will retain custody of the stock certificate or certificates, if any, representing the Restricted Stock and the other RS Property until all the vesting
requirements with respect thereto shall have been fulfilled and all the restrictions including those on transfer have lapsed, (iii) no RS Property shall bear interest or be segregated in separate accounts during the applicable restriction period,
(iv) except as set forth in the Plan or this Agreement, the Participant may not sell, assign, transfer, pledge, exchange, encumber or otherwise dispose of the Restricted Stock (other than by will or the laws of descent and distribution) until all
the vesting requirements with respect thereto shall have been fulfilled, [and (v) the Participant may not sell or otherwise dispose of any shares of Common Stock subject to this Agreement to the extent such sale or disposition does not comply with
Minimum Shareholding Requirement (as defined in the Employment Agreement) and any such sale or other disposition of her shares of Common Stock shall be null and void]. 
 (d) Each reference contained in this Agreement to: 
 “Change in
Control” shall mean any of the following events: 
 (A) A person or entity or group of persons or
entities, acting in concert, shall become the direct or indirect beneficial owner (within the meaning of Rule 13d-3 of the Exchange Act) of securities of the Company representing fifty-one percent (51%) or more of the combined voting power of
the issued and outstanding common stock of the Company (a “Significant Owner”), unless such shares are originally issued to such Significant Owner by the Company; or 

(B) The majority of the Board is no longer comprised of the incumbent directors who constitute the Board on the Effective
Date (as defined in Section 22(a) of the Plan) and any other individual(s) who becomes a director subsequent to the Effective Date of the Plan whose initial election or nomination for election as a director, as the case may be, was approved by at
least a majority of the directors who comprised the incumbent directors as of the date of such election or nomination; or 
 (C) A sale of all or substantially all of the assets of the Company; or 
 (D) The Board shall approve any merger, consolidation, or like business combination or reorganization of the Company, the consummation of which would result in the occurrence of any event described in
clause (C) above, and such transaction shall have been consummated. 
 “Common Stock” shall mean common
stock, par value $1.00 per share, of the Company. 

 [“Employment Agreement” shall mean the Participant’s employment
agreement with the Company, dated                         , as amended or restated from time to time.] 

3. VESTING. 

(a) General. Subject to Section 4 hereof, shares of Restricted Stock shall vest and cease to be Restricted Stock upon the
satisfaction of the performance based vesting requirements of Section 3(b). 
 (b) Performance Based
Vesting. Shares of Restricted Stock shall vest as set forth in this Section 3(b), following the achievement of the Performance Goals described below, provided that the Participant remains continuously employed by the Company through
December 31 of the year in which the Performance Goals in question are met (except as otherwise provided in Section 4(c) below): 
  

			
	 Performance Period
	  	Shares of Restricted Stock that May Vest
	January 1, 2013 – December 31, 2013	  	
	January 1, 2014 – December 31, 2014	  	
	January 1, 2015 – December 31, 2015	  	
	January 1, 2016 – December 31, 2016	  	

 Following completion of each Performance Period, the Committee shall determine the extent to which the
Participant achieved his or her objectives under his or her annual performance-based cash award (the “Performance Goals”) granted under the Avatar Holdings Inc. Amended and Restated 2005 Executive Incentive Compensation Plan (the
“Incentive Plan”). The percentage level of achievement of such objectives, up to 100%, shall be applied to the number of shares of Restricted Stock that may vest for the corresponding Performance Period to the determine the number of
shares of Restricted Stock vesting under this Agreement for such Performance Period. For example, if the Participant receives a payout equal to 50% of his her target award under the Incentive Plan for fiscal 2013, the Participant will be entitled to
receive 50% of the shares of Restricted Stock that may vest for the corresponding Performance Period as set forth above. The Committee will determine the performance objectives and corresponding payout levels for the awards under the Incentive Plan
within the first 90 days of each Performance Period and will certify the achievement of the Performance Goals within two and a half (2-1/2) months after completion of each Performance Period. 

4. TERMINATION OF EMPLOYMENT; CHANGE IN CONTROL. 
 (a) For purposes of this Section 4, the terms Release, Term and Cause shall have the meanings ascribed to such terms in the Employment Agreement; provided, however, if the
Participant is no longer employed pursuant to such Employment Agreement, each such term shall have the meaning ascribed to it in the Employment Agreement last in effect which contains such defined term. 

(b) Except as otherwise provided in this Section 4, upon termination of employment with the Company, the Participant shall forfeit
to the Company, without compensation, all the shares of Restricted Stock which have not vested on the date of such termination of employment. 

 (c) In the event the Participant’s employment is terminated, by the Company for
any reason other than for Cause or by the Participant for any reason, provided that the Participant executes and delivers (and does not revoke) the Release as provided for in the Employment Agreement, then the shares of Restricted Stock with respect
to which the Performance Goals referred to in Section 3(b) for a completed Performance Period and any Performance Period that includes the date of such termination have been met as of the time of termination of employment, as certified by the
Committee, shall vest on such date of termination of employment. 
 (d) In the event Change in Control occurs during the
“Term” (as defined in the Employment Agreement), the Restricted Stock outstanding (and which has not been previously forfeited) at such time shall fully vest at the time of the Change in Control. 

5. TAXES. 
 (a)
Generally. The Participant agrees that, subject to Section 5(b) below, (i) no later than the date on which any Restricted Stock shall have become taxable to the Participant as compensation, the Participant will pay to the Company, or make
arrangements satisfactory to the Company regarding payment of, any federal, state or local, domestic or foreign taxes of any kind required by law to be withheld with respect to any Restricted Stock which shall have become so taxable, and (ii) the
Company shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the Participant any federal, state or local taxes of any kind required by law to be withheld with respect to any Restricted Stock
which shall have become so taxable. 
 (b) Section 83(b) Election. If the Participant properly elects within thirty (30)
days after the award of the Restricted Stock in accordance with Code Section 83(b) to include in gross income for federal income tax purposes in the year of issuance the fair market value of such Restricted Stock, the Participant shall pay to the
Company or make arrangements satisfactory to the Company to pay to the Company upon such election, any federal, state or local taxes required to be withheld with respect to such Restricted Stock. If the Participant shall fail to make such payment,
the Company shall, to the extent permitted by law, have the right to deduct from any payment of any kind otherwise due to the Participant any federal, state or local taxes of any kind required by law to be withheld with respect to such Restricted
Stock. The Participant acknowledges that it is the Participant’s sole responsibility, and not the Company’s, to file timely and properly the election under Section 83(b) of the Code and any corresponding provisions of state tax laws if the
Participant elects to utilize such election. 
 6. LEGENDS. All certificates representing the Shares shall have endorsed thereon
any legend required to be placed thereon by applicable laws as well as the following legend: 
 “The shares of common stock
represented hereby are subject to terms and conditions (including forfeiture and restrictions on transfer) set forth in the employment agreement, as the same may be amended, restated modified or

 
supplemented, between AV Homes, Inc. and the registered owner of the shares represented hereby (or such owner’s predecessor in interest) which agreement is binding upon any and all owners of
any interests in such shares. The shares of common stock represented hereby may be transferred only upon specific instructions from AV Homes, Inc.” 
 7. POWER OF ATTORNEY. The Company, its successors and assigns, is hereby appointed the attorney-in-fact, with full power of substitution, of the Participant for the purpose of carrying out the provisions
of this Agreement and taking any action and executing any instruments which such attorney-in-fact may deem necessary or advisable to accomplish the purposes hereof. The Company’s appointment as attorney-in-fact is irrevocable and coupled with
an interest. The Company, as attorney-in-fact for the Participant, may in the name and stead of the Participant, make and execute all conveyances, assignments and transfers of the Restricted Stock and other RS Property, and the Participant hereby
ratifies and confirms all that the Company, as said attorney-in-fact, shall do by virtue hereof. Nevertheless, the Participant shall, if so requested by the Company, execute and deliver to the Company all such instruments as may, in the judgment of
the Company, be advisable for this purpose. 
 8. 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 securities association, 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 delivery thereof would constitute a violation of any provision of any law or of any regulation of any governmental authority or any national securities exchange or
securities association. 
 9. INVESTMENT REPRESENTATIONS AND RELATED MATTERS. The Participant hereby represents that the Common
Stock issuable pursuant to this Agreement is being acquired for investment 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. 
 10. 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. 

 11. 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. 
 12.
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 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, 12th Floor, Coral Gables, Florida 33134,
Attention: Corporate Secretary, or such other address as the Company may designate in writing to the Participant. 
 13. 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. 

14. 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. 
 15. 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. 
 16. 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. 

17. MISCELLANEOUS. This Agreement cannot be modified or terminated orally. This Agreement, the Employment 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. 

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

 

			
	AV HOMES, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
		 	  

[Participant]

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