Document:

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                                                                    Exhibit 10.3

                              EMPLOYMENT AGREEMENT
                                (Don E. Ackerman)

      THIS AGREEMENT is made as of July 24, 1995 by and between WCI COMMUNITIES
LIMITED PARTNERSHIP, a Delaware limited partnership ("Employer") and DON E.
ACKERMAN ("Employee").

                                    RECITALS

      Employer and its affiliated entities are in the business of acquiring,
improving, developing, leasing and selling land and operating businesses related
to or arising out of the land activities. Employer desires to employ Employee in
a senior executive capacity and Employee desires to accept such employment on
the terms and conditions provided in this Agreement.

      NOW, THEREFORE, in consideration of the agreements set forth herein, the
parties agree as follows:

1.    Definitions

      1.1   Affiliate - Each subsidiary, joint venture or other entity in which
            either Employer or the general partner of Employer now has or
            hereafter has a direct or indirect controlling equity interest.

      1.2   Base Compensation - Five Hundred Thousand Dollars ($500,000) per
            year, to be paid in equal monthly installments.

      1.3   Benefit Allowance - Twenty percent (20%) of Base Compensation, to be
            paid in equal monthly installments in lieu of employee welfare
            benefits provided by Employer for executives and employees for
            health, life and disability insurance, 401(k) savings plans and
            other similar benefit programs.

      1.4   Board - the board of directors of Investors or WCI, Inc., which is
            or shall become the general partner of Employer.

      1.5   Cause -

            (a)   gross negligence or willful or criminal misconduct in the
                  performance by Employee of his duties and responsibilities
                  hereunder, including the supervision of others; or

            (b)   negligence in the performance of his duties or supervision of
                  others; or

            (c)   conviction of Employee of the commission of any act which is a
                  felony; or
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            (d)   failure by Employee to devote the time necessary to the
                  performance of his duties hereunder, as determined by the
                  Board in its sole discretion, not to exceed 100% of business
                  time.

      1.6   Disabled - Employee shall be deemed Disabled if he is unable to
            perform his duties hereunder for a period in excess of one hundred
            eighty (180) consecutive days, and in such case the date on which he
            shall be deemed Disabled shall be the 181st day.

      1.7   Partnership Agreement - The Agreement of Limited Partnership of the
            Employer.

      1.8   Pre-Disability Period - A period beginning on the date when the
            Board determines, in good faith, that as a result of illness,
            impairment or other disability, Employee is unable to perform
            substantially all of the material duties of his employment
            hereunder, and ending on the first to occur of (a) the 181st day
            after such date of determination (b) the date Employee is Disabled
            (c) the date when a court or competent jurisdiction shall finally
            determine that Employee is able to perform all of the duties of his
            employment hereunder and (d) the date that the Board determines that
            the Pre-Disability Period has ended.

      1.9   Severance Payment - the net present value of the unpaid Base
            Compensation for the period from the date of termination under
            Section 5.1. to the tenth (10th) anniversary of the date hereof,
            determined on the date of termination at a discount rate of eight
            percent (8%) per annum.

      1.10  Term - a period of ten (10) years, beginning on the date hereof and
            ending on the tenth (10th) anniversary of the date hereof.

2.    Employment

      Subject to all of the terms and conditions herein provided, Employer
hereby employs Employee in such executive capacities, and with such appropriate
duties as the Employer may determine from time to time. Initially, Employee
shall serve as Executive Vice President of Employer if and when appointed to
that position by Employer. If elected to the position of Chairman of the Board
of the general partner of Employer, Employee shall also serve in that position

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(provided, however, that Employee's election to the position of Chairman of the
Board, and subsequent removal of the Employee from that position shall not
constitute termination of employment for purposes of this Agreement). Employee
shall be subject to the supervision, direction and control of the Board and
shall report to the Board as a whole. The Board shall not appoint any individual
to whom Employee shall report, or who shall have the right to supervise
Employee, provided, however, that this provision shall not limit the right of
the Board to designate a person or persons (who shall be a member of or members
of the Board) to coordinate the reporting relationship. Employee's duties and
authority may be expanded or curtailed in whole or in part at any time and from
time to time by the Board. Employer will provide Employee with written notice
specifying the extent to which his duties or authority is modified,
Notwithstanding the foregoing, if the Board changes Employee's working
conditions or specifies duties so that Employee's powers and duties are
materially inconsistent with a senior level executive who reports directly to
the board of directors, or if the Board changes the reporting relationship so
that Employee reports to another officer or person, other than to the Board as a
whole, then at any time thereafter at Employee's option and upon thirty (30)
days notice and provided that such changes shall not have been rescinded or
corrected to the reasonable satisfaction of Employee within such thirty (30) day
period, Employee shall have the right to terminate the employment relationship,
and in such event, the employment shall be deemed to have been terminated by
Employer under Section 5.1, without Cause; provided, however, that nothing in
this sentence shall restrict the Board from changing duties and reporting
relationships during the pendency of a Pre-Disability Period, and during such
period, Employee shall not have the right to terminate the employment
relationship under this sentence.

3.    Period of Employment

      Except as specifically otherwise provided herein, Employee's employment
shall commence as of the date hereof and shall continue throughout the Term.

4.    Compensation

      4.1 During the Term, Employer shall pay to Employee Base Compensation plus
the Benefits Allowance.

      4.2 During the Term, Employer shall pay to or reimburse Employee for the
cost and expense to Employee for:

            (a)   reasonable expenses incurred in the performance of Employee's
                  duties for travel,

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                  room and board and entertainment related to the business of
                  the Employer and its Affiliates;

            (b)   $15,000 paid quarterly as an allowance for secretary, office
                  and administrative staff, which payment and amount shall be
                  subject to review and modification by the Board on an annual
                  basis; and

            (c)   the reasonable costs for relocation, moving and costs for
                  temporary housing in the Naples, Florida, area until such time
                  as Employee permanently relocates to the Naples, Florida area.

No amounts shall be paid under this Section 4.2 following termination of
employment for any reason, except to the extent incurred by Employee prior to
the date of termination.

5.    Termination of Employment

      5.1 Termination without Cause - The Board may at its election and without
Cause terminate Employee's employment, upon not less than thirty (30) days
notice to Employee. Termination shall be effective at the end of the notice
period. If Employee's employment is terminated under this Section 5.1, on the
date such termination of employment is effective, Employer shall at its option,
either pay Employee the Severance Payment, or continue to pay to Employee Base
Compensation for the balance of the Term, on a monthly basis, as though no
termination had occurred. In either case, termination shall not affect
Employer's obligations under this Agreement to pay to Employee the Benefit
Allowance for the balance of the Term based upon the Base Compensation paid to
Employee immediately prior to termination, and Employer shall pay such amounts,
on a monthly basis, as though no termination had occurred.

      5.2 Voluntary Resignation Prior to Expiration of Repurchase Option. If
Employee voluntarily resigns prior to the time that the "Repurchase Option" with
respect to the Employee as defined under Section 7.6 of the Partnership
Agreement expires without being exercised, then Employer shall have no further
obligations to Employee for payment of Base Compensation, Severance Payment or
Benefit Allowance, and all payments and obligations of Employer to Employee
under this Agreement (except those incurred or accrued prior to resignation and
for indemnification under section 10) shall cease as of the effective date of
such resignation.

      5.3 Voluntary Resignation, Disability or Death. If Employee voluntarily
resigns (except as provided in Section 5.2), becomes Disabled or dies during the
Term (any of which are referred to herein as an "Employee Terminating Event"),

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Employee shall continue to receive Base Compensation, reduced as follows:

            (a) If the Employee Terminating Event occurs prior to the third
      anniversary of the date hereof, then effective upon such Employee
      Terminating Event, each payment of Base Compensation thereafter will be
      reduced by 75%;

            (b) If the Employee Terminating Event occurs after the third
      anniversary of the date hereof but prior to the sixth anniversary of the
      date hereof, each payment of Base Compensation thereafter will be reduced
      by 50%;

            (c) If the Employee Terminating Event occurs after the sixth
      anniversary of the date hereof, each payment of Base Compensation
      thereafter will be reduced by 25%; and

in any of such cases, Employee shall also be entitled to receive, and shall
receive, Benefit Allowance based on such reduced amount. Employer shall have the
right and option to accelerate and prepay the entire amount to be paid under
Section 5.3(a), (b) or (c), as the case may be, within thirty (30) days after
the Employee Terminating Event, in which case the amount to be paid will be
discounted at the rate of eight percent (8%) per annum.

5.4   Termination for Cause.

            (a) The Board may at its election and at any time terminate
      Employee's employment for Cause under Section 1.5(a), 1.5(b) or 1.5(c),
      which termination shall be effective on notice.

            (b) If the Board determines, in good faith, that Employee is not
      devoting the time necessary to the performance of his duties hereunder, it
      may notify Employee of such determination, which notice shall state the
      percentage of business time, not in excess of 100%, which the Board shall
      require from Employee, and in such case, Employee shall have a reasonable
      period, in the determination of the Board, to satisfy such Board
      requirement. If, after the expiration of such reasonable period of time,
      the Board determines that Employee shall not have satisfied the
      requirements of the notice given under this Section 5.4(b), the Employee's
      employment shall be terminated for Cause under Section 1.5(d), effective
      upon notice to Employee of such determination,

            (c) If Employee's employment shall have been terminated under
      Section 5.4(b), Employee may within sixty (60) days of the effective date
      of any such termination, file a legal proceeding in any court of competent
      jurisdiction, to determine whether with respect to such termination for
      Cause (x) the Board's

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      determination thereof was in good faith and/or (y) the Board in its notice
      was requiring more than 100% of the Employee's business time; provided,
      however, that Employee expressly agrees and acknowledges that the
      determination of the amount of business time necessary for the performance
      of Employee's duties hereunder (but not whether the determination of such
      amount was made in good faith) will be in the sole discretion of the Board
      and will not be an element of determination in any legal proceeding.
      During the pendency of any such proceeding (including the period between
      termination and the commencement of such proceeding), the payments which
      would be due to Employee but for such termination shall be deposited by
      Employer in an interest bearing account. The interest shall be deemed
      attributable during the pendency of such proceeding to the Employer. If
      Employee is successful in such proceeding, the amount in such account
      (including the interest thereon) shall be paid to Employee at the time a
      final nonappealable judgment is issued for Employee, Employer shall be
      deemed to have terminated the employment of Employee without Cause at the
      time of the entry of such judgment, and Employer shall thereafter pay to
      Employee the Severance Payment as of the date of entry of such judgment
      and the Benefit Allowance for the balance of the Term. If Employer is
      successful in such proceeding, the amount in such account (including the
      interest thereon) shall be paid to Employer at the time a final
      nonappealable judgment is issued for Employer.

            (d) Upon termination for Cause, Employer shall have no further
      obligations to Employee for payment of Base Compensation, Severance
      Payment or Benefit Allowance, and all payments and obligations of Employer
      to Employee under this Agreement (except those incurred or accrued prior
      to termination and for indemnification under Section 10) shall cease as of
      the date of such termination.

6.    Non-Competition

      Employee agrees that during the period of his employment and for a period
of three (3) years after termination of employment, he will not be a
shareholder, partner, joint venturer or other equity owner in, or sole
proprietor of, or officer, director, employee, consultant, agent or
representative of, or otherwise engage, directly or indirectly, in any business
which is competitive with the business conducted by Employer and its Affiliates
at the date of termination of employment; provided, however, that this provision
shall not apply to (i) Employee's serving as officer and director of, owning
equity and debt interests in and investing in Florida Design Communities, Inc.
("Florida Design") and in all subsidiaries, joint ventures and other entities in
which Florida Design and its controlling

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stockholders now or hereafter has a controlling equity interest ("Florida Design
Affiliates") and (ii) the ownership of not more than five percent (5%) of any
publicly traded entity (or if such publicly traded entity is the acquiring
entity of Florida Design, such percent as Employee may have received in such
acquisition). During the term of Employee's employment hereunder, any real
estate investment which comes to the attention of Employee shall first be
offered to the Employer, and if rejected by the Board may be offered to Florida
Design or to any Florida Design Affiliate. After termination of Employee's
employment hereunder and during the three (3) year noncompete period, Employee
shall not be actively involved through Florida Design or any Florida Design
Affiliate in any new business which is in direct competition with Employer's
business on the date of termination, unless Employee shall first offer the
business opportunity to Employer and Employer shall elect to not pursue such
opportunity.

7.    Nonsolicitation

      Employee agrees that during the term of his employment, and for a period
of three (3) years after termination of employment, he shall not solicit any
employee of Employer to accept employment with Employee or with any other
person; provided, however, that this provision shall not apply to any person who
shall have been an employee of Employee or any Florida Design Affiliate prior to
the date of this Agreement and whose employment was in the nature of executive
assistant or executive secretary to Employee.

5.    Confidentiality

      Employee agrees that during the period of his employment and for the
period following termination of employment for so long as Employee is a limited
partner of Employer, he shall not use or disclose to third parties any
confidential information of Employer or any Affiliate. All files, records
documents, data and similar items relating to Employer and Affiliates, as well
as all copies thereof, whether prepared by Employee or otherwise coming into his
possession, shall remain the exclusive property of the Employer and shall
immediately be returned to Employer upon termination of Employee's employment.

9.    Remedy

      Employee acknowledges that the restrictions contained in sections 6 and 7
of this Agreement are reasonable and necessary to protect the legitimate
interests of Employer, do not cause Employee undue hardship, and that violations
of those provisions of this Agreement will result in irreparable injury to
Employer and that, therefore, Employer shall be entitled to preliminary and
permanent injunctive relief without bond in any court of competent jurisdiction
to enforce

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such provisions, which rights shall be cumulative and in addition to any other
rights or remedies to which Employer may be entitled. The prevailing party in
any litigation to enforce the terms of this Agreement shall be entitled to
recover reasonable costs and expenses, including attorneys' fees.

10.   Notices

      All notices, requests, demands and other communications required or
permitted hereunder shall be in writing and shall be delivered personally, by
courier service, or mailed by postage prepaid certified U.S. mail, return
receipt requested, to the address herein designed or such other address as may
be designated in writing by notice given in the manner provided herein, and
shall be effective if delivered or sent by courier upon personal delivery; or if
mailed, three days after the date of deposit in the U.S. mail.

11.   Indemnity

      Employer shall indemnify Employee and hold him free and harmless from and
against any and all loss, liability, cost or expense resulting to Employee, or
to which he may be or become subject, as a result of any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative or
investigative (but not including any action between Employer and Employee, other
than an action in the nature of a derivative action in the right of the
Employer) by reason of any acts, omissions, or alleged acts or omissions,
arising out of his activities as officer, employee or agent of Employer, as a
director, officer or agent of any general partner of Employer or of any
Affiliate, or otherwise arising out of his activities on behalf of Employer or
any Affiliate or in furtherance of the interests of Employer or any Affiliate,
against expenses for which he has not otherwise been reimbursed (including
attorney's fees, judgments, fines and amounts paid in settlement) actually and
reasonably incurred by him in connection with such action, suit or proceeding so
long as he did not act fraudulently, or in a manner which constituted willful
misconduct or gross negligence, or, with respect to any criminal action or
proceeding, had no reasonable cause to believe such conduct was unlawful. During
the course of any investigation, proceeding or other matter (other than an
investigation, proceeding or other matter brought by the Employer directly
against the Employee or brought by the Employee directly against the Employer),
Employer shall pay the legal fees and expenses of Employee, notwithstanding that
at the time of such payment it shall not have been finally determined whether
Employee is actually entitled to indemnification, provided Employee agrees to
reimburse Employer if it is finally determined that he was not entitled to such
indemnification.

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12.   Miscellaneous Provision

      12.1 Binding Effect and Assignability. This Agreement shall be binding
upon and inure to the benefit of the parties hereto and their respective heirs,
administrators, executors, legal representatives, successors, assigns, and
transferees. Employee shall have the right to pledge any and all of his rights
under this Agreement.

      12.2 Insurance. In the event the Employer procures a term life insurance
policy for the benefit of Employer in the amount of five million dollars
($5,000,000) on the life of Employee, Employee agrees to pay (by a reduction of
the Benefit Allowance) one-half of each annual premium on such policy at all
times when Employee is an employee of Employer. If for any reason any such
policy is cancelled and there is a premium refund with respect to any premium
paid by Employee, Employee shall be entitled to his prorata share of such
refund. The agreements in this Section 11.2 are based upon the assumption that
the Employer will be able to obtain a life insurance policy with a premium of
approximately $60,000 per year, fixed for five years. If the Employer is unable
to obtain such insurance for such premium, then the parties will use
commercially reasonable best efforts, to make other mutually acceptable and
equitable arrangements, which may include a change in the terms of the
"Repurchase Option" as defined under the partnership Agreement.

      12.3 Entire Agreement. This Agreement constitutes the entire agreement
between the parties with respect to the subject matter hereof. This Agreement
supersedes any and all prior or contemporaneous agreements, either oral or in
writing, with respect to the subject matter hereof; provided, however, that this
Agreement does not supersede any written agreement between the Employer and
Employee relating to Employee's ownership interests and Employer's repurchase
rights with respect to equity interests in Employer. No modification, amendment
or waiver of any provision of this Agreement shall be binding upon any party
unless it is in writing and executed by both parties or, in the case of a
waiver, by the party waiving compliance.

      12.4 Severability. Whenever possible, each provision of this Agreement
shall be construed and interpreted in such a manner as to be effective and
valid. If any court determines that any provision is prohibited by or invalid
under applicable law, such provision shall automatically be reformed to such
time, territory and/or other limitation as such court shall deem reasonable. The
reformation or invalidation of any provision shall not invalidate this Agreement
or any other provision.

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

                                   WCI COMMUNITIES LIMITED
                                   PARTNERSHIP

/s/ Don E. Ackerman                By: A & D COMMUNITIES, INC.
-----------------------------      The General Partner
Don E. Ackerman
                                   By: /s/ Alfred Hoffman, Jr.
Address:                              -------------------------------

c/o Chandelle Ventures
39 Locust Avenue , Ste 204         Address:
New Canaan, CT 06840
                                   801 Laurel Oak Drive
                                   Suite 500
                                   Naples, FL 33963

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                                                                    Exhibit 10.4

                              AMENDED AND RESTATED
                              EMPLOYMENT STATEMENT
                             (Alfred Hoffman, Jr.)

     THIS AGREEMENT is made as of January 1, 1999, by and between WATERMARK
COMMUNITIES INC., a Delaware Corporation ("Employer") and ALFRED HOFFMAN, JR.
("Employee").

                                R E C I T A L S

     Employer and its affiliated entities are in the business of acquiring,
improving, developing, leasing and selling land and operating businesses
related to or arising out of the land activities. Employer desires to employ
Employee as its Chief Executive Officer and Employee desires to accept such
employment on the terms and conditions provided in this Agreement.

     Employee entered into an Employment Agreement as of July 24, 1995 with WCI
Communities Limited Partnership ("WCI Limited Partnership"). On November 30,
1998, WCI Limited Partnership assigned the Employment Agreement to Employer.
Employer and Employee now wish to amend and restate the Employment Agreement.

     NOW, THEREFORE, in consideration of the agreements set forth herein, the
parties agree as follows:

1.   Definitions

     1.1  34 ACT - The Securities Exchange Act of 1934, as amended from time to
          time.

     1.2  ADVANCES - Amounts to be loaned to Employee on a regular basis as
          advances against future Bonus, to cover the difference between Base
          Compensation and $1,235,000, as provided in Section 4.4.

     1.3  AFFILIATE - Each subsidiary, joint venture or other entity in which
          Employer now has or hereafter has a direct or indirect controlling
          equity interest.

     1.4  BASE COMPENSATION - Seven Hundred Thousand Dollars ($700,000) per
          year, to be paid in equal monthly installments, as adjusted by the
          Board pursuant to Section 4.1 from time to time.

     1.5  BOARD - The board of directors of Employer.

     1.6  BONUS - Annual performance-based compensation payment, based upon
          satisfaction of Bonus Criteria.

     1.7  BONUS CRITERIA - Objective performance criteria established by the
          Board for each year, to apply on an annual basis, to determine whether
          Employee entitled to a Bonus for such year. Bonus Criteria for the
          1999 fiscal year shall be the same

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         for all executive employees. After fiscal 1999, the Board may determine
         Bonus Criteria for Employee which is different from that which is used
         for other executive employees.

1.8   CAUSE-

      (a)   gross negligence or willful criminal misconduct in the performance
            by Employee of his duties and responsibilities hereunder; including
            the supervision of others; or

      (b)   negligence in the performance of his duties or supervision of
            others; or

      (c)   conviction of Employee of the commission of any act which is a
            felony; or

      (d)   failure by Employee to devote substantially all of his business time
            to the performance of his duties hereunder.

1.9   CHANGE OF CONTROL - A Change in Control shall be deemed to have occurred
      if:

      (a)   at any time prior to the time that the Employer has a class of
            voting equity securities (or securities convertible into voting
            equity securities) registered under the 34 Act:

             (i)  the persons and entities who have the right to vote more than
                  50% of the outstanding voting equity securities of the
                  Employer on the date of this Agreement no longer have the
                  right to vote more than 50% of such voting equity securities,
                  or

             (ii) any persons and entities who, on the date of this Agreement,
                  did not have the right to vote at least 25% of the outstanding
                  voting equity securities of the Employer on the date of this
                  Agreement obtain the right to vote more than 50% of such
                  voting equity securities; or

      (b)   at any time when the Employer has any class of voting equity
            securities (or securities convertible into voting equity securities)
            registered under the 34 Act:

             (i)  any person, or group of persons acting in consent, who prior
                  to such acquisition were the "beneficial owners" (as such term
                  is defined in Securities and Exchange Commission Rule 13d-3)
                  of less than 25% of the outstanding voting securities of the
                  Employer become the beneficial owners of, or obtain the right
                  to acquire in the future the beneficial ownership of, a
                  sufficient number of such voting securities that it is or they
                  are or have or will have the right to become the beneficial
                  owners of 25% or more of such voting securities of the
                  Employee; or

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          (ii)  any person, or any group of persons acting in consent, who were
                the beneficial owners of 25% or more but less than 50% of the
                outstanding voting securities of the Employer become the
                beneficial owners of or obtain the right to acquire in the
                future the beneficial ownership of an additional 10% or such
                outstanding voting securities of the employer; or

          (iii) any person, or any group of persons acting in consent who were
                the beneficial owners of less than 50% of the outstanding voting
                securities of the Employer become the beneficial owners of (or
                obtain the right to acquire in the future the beneficial
                ownership of) 50% or more of the outstanding voting securities
                of the Employer;

     provided, however, that a Change in Control shall not be deemed to have
     occurred under this Section: (i) as a result of customary agreements
     between the Employer and underwriters, and among underwriters and selling
     group members, in connection with a bona fide public offering, or (ii) in
     connection with the giving of a revocable proxy in a solicitation subject
     to the 34 Act and not reportable under Section 13D of the 34 Act.

1.10 CONSULTATION PERIOD -- The period beginning on the date that Employee
     becomes a consultant under Section 5.6 and ending on the earlier of:

     (a)  the date which is five years after the date Employee becomes a
          consultant under Section 5.6, and

     (b)  June 30, 2005.

1.11 DISABLED -- Employee shall be deemed Disabled if he is unable to perform
     his duties hereunder for a period in excess of one hundred eighty (180)
     consecutive days, and in such case the date on which he shall be deemed
     Disabled shall be the 181st day.

1.12 EMPLOYMENT TERM -- The period during which Employee is an employee of the
     Employer under this Agreement, which shall include the Initial Term and
     each Renewal Term.

1.13 INITIAL TERM -- A period of four (4) years, beginning as of the date hereof
     and ending on the close of business, December 31, 2002.

1.14 INVOLUNTARY TERMINATION -- As defined in Section 2.

1.15 IPO DATE -- The date of the closing of an initial firm commitment public
     offering by Employer or by any Affiliate for equity securities of Employer
     or such Affiliate.

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     1.16  NONRENEWAL DATE - Any date by which either Employer or Employee may
           notify the other that the Employee's employment shall not be
           automatically renewed for the next Renewal Term, which, if given
           during the Initial Term, must be given no later than 180 days prior
           to the end of the Initial Term, and if given during any Renewal Term,
           must be given no later than 90 days prior to the end of such Renewal
           Term.

     1.17  PRE-DISABILITY PERIOD - A period beginning on the date when the Board
           determines, in good faith, that as a result of illness, impairment or
           other disability, Employee is unable to perform substantially all of
           the material duties of his employment hereunder, and ending on the
           first to occur of (a) the 181st day after such date of determination
           (b) the 181st day after such date of determination (b) the date
           Employee is Disabled (c) the date when a court of competent
           jurisdiction shall finally determine that Employee is able to perform
           all of the duties of his employment hereunder and (d) the date that
           the Board determines that the Pre-Disability Period has ended.

     1.18  RENEWAL TERM - Each one (1) year period following the Initial Term
           that Employee's employment is renewed under Section 3.

2. EMPLOYMENT

   Subject to all of the terms and conditions herein provided, Employer hereby
employs Employee as Chief Executive Officer of Employer, with the powers and
duties normally incident to such position in an entity of the size and type,
and operating in the same business as the Employer and its Affiliates.
Employee's duties shall include, but shall not be limited to, overall executive
supervision and management of the business of Employer, strategic planning,
executing strategic plans, approval of material documents and execution or
delegation of execution of material documents. Employee shall devote
substantially all of his business time to the business of the Employer. All
executive employees of the Employer and of its Affiliates (other than Don E.
Ackerman) shall report to Employee or shall report to persons who report to
Employee. Employee shall perform such other duties, consistent with the
position of Chief Executive Officer, as shall be determined by the Board from
time to time. Employee accepts such employment and agrees that he shall devote
the time, attention, and skills necessary to perform the duties of Chief
Executive Officer of Employer. Employee shall be subject to the supervision,
direction and control of the Board and shall report to the Board as a
whole. The Board shall not appoint any individual to whom Employee shall report,
or who shall have the right to supervise Employee, provided, however, that this
provision shall not limit the right of the Board to designate a person or
persons (who shall be a member of or members of the Board) to coordinate the
reporting relationship. Employee's duties and authority may be expanded or
curtailed in whole or in part at any time and from time to time by the Board.
Employer will provide Employee with written notice specifying the extent to
which his duties or authority is modified. Notwithstanding the foregoing, if
the Board changes Employee's title, working conditions or specifies duties so
that Employee's powers and duties are diminished or reduced in any material
respect, or include powers, duties or working conditions which are materially
inconsistent with the title of "Chief Executive Officer," or if the Board
changes the reporting

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<PAGE>   5
relationship so that Employee reports to another officer or person, other than
to the Board as a whole, or any employee of Employer or any Affiliate (other
than Don E. Ackerman) reports to any person other than through the reporting
relationship which terminates exclusively with Employee, then at any time
thereafter at Employee's option and upon thirty (30) days notice and provided
that such changes shall not have been rescinded or corrected to the reasonable
satisfaction of Employee within such thirty (30) day period, Employee shall
have the right to terminate the employment relationship (an "INVOLUNTARY
TERMINATION"); provided, however, that nothing in this sentence shall restrict
the Board from changing duties and reporting relationships during the pendency
of a Pre-Disability Period, and during such period, Employee shall not have the
right to terminate the employment relationship under this sentence.

3.   PERIOD OF EMPLOYMENT

     Except as specifically otherwise provided herein, Employee's employment
shall commence as of the date hereof and shall continue through the Initial
Term. Thereafter, provided Employee is an employee of Employer, Employee's
employment shall be automatically extended for successive Renewal Terms, unless
either Employee notifies Employer, or Employer notifies Employee, that such
employment shall not be automatically renewed on or prior to the applicable
Nonrenewal Date.

4.   COMPENSATION

     4.1  COMPENSATION PAYMENTS. During the Term, Employer shall pay to Employee
          Base Compensation and Bonus. Base Compensation shall be reviewed from
          time to time, and may be increased, but not decreased, during the
          Employment Term.

     4.2  EXPENSE REIMBURSEMENTS. During the Term, Employer shall pay to or
          reimburse Employee for the cost and expense to Employee for
          reasonable expenses incurred in the performance of Employee's duties
          for travel, room and board and entertainment related to the business
          of the Employer and its Affiliates. No amounts shall be paid under
          this Section 4.2 following termination of employment for any reason,
          except to the extent incurred by Employee prior to the date of
          termination.

     4.3  BONUS. During the Term, Employer shall pay to Employee each year a
          Bonus determined as follows:

          (a)  If Employer and its Affiliates meet 100% or more, but less than
               120%, of the objectives of the Bonus Criteria, Employer shall pay
               to Employee a Bonus in the amount of 120% of Base Compensation.

          (b)  If Employer and its Affiliates achieve 120% or more of the
               objectives of the Bonus Criteria, Employer shall pay to Employee
               a Bonus in the amount of 170% of Base Compensation.

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<PAGE>   6
          (c)  If Employer and its Affiliates do not achieve 100% of the
               objectives of the Bonus Criteria, the Board shall determine the
               amount of Bonus of Employee in its sole discretion.

      4.4  ADVANCES. For a period beginning on the date of this Agreement and
           ending on the IPO Date, Employer shall make Advances to Employee at
           the same time as it makes payments of Base Compensation in equal
           amounts which, together with the payments of Base Compensation will
           result in combined payments of Base Compensation and Advances at the
           annual rate of $1,235,000. On each date when Employee's Bonus has
           been determined, such Bonus shall be applied first to the repayment
           of Advances, and the balance shall be paid to Employee. In the event
           that the amount of Employee's Bonus for any year is not sufficient to
           repay all unpaid Advances, such Advances shall be carried forward,
           and shall be repaid by Employee to Employer at the later of (a) the
           IPO Date or (b) the date on which the Bonus for 1999 shall have been
           determined and is payable. In the event of: (a) a Change of Control;
           (b) termination of employment for any reason other than termination
           for Cause; (c) resignation as a result of an Involuntary Termination;
           or (d) completion of the Initial Term prior to the IPO Date. Employee
           shall be released from any obligation to repay Advances made under
           this Section.

5. TERMINATION OF EMPLOYMENT

      5.1  TERMINATION WITHOUT CAUSE. The Board may at its election and without
           Cause terminate Employee's employment, upon not less than thirty (30)
           days notice to Employee. Termination shall be effective at the end of
           the notice period. If Employee's employment is terminated under this
           Section 5.1, on the date such termination of employment is effective,
           Employer shall continue to pay to Employee at an annual rate equal to
           his then annual rate of Base Compensation plus Advances for a period
           equal to (a) the balance of the then current Employment Term, plus
           (b) the next Renewal Term, but only if notice of termination is given
           after a Nonrenewal Date and neither Employee nor Employer had given
           notice of nonrenewal by the date of such notice of termination.

      5.2  INVOLUNTARY TERMINATION. In the event of an Involuntary Termination,
           Employer shall continue to pay to Employee his then Base Compensation
           plus Advances for a period equal to the greater of (a) (i) the
           balance of the then current Employment Term, plus (ii) the next
           Renewal Term, but only if such Involuntary Termination occurred after
           a Nonrenewal Date and neither Employee nor Employer had given notice
           of nonrenewal prior to such Involuntary Termination or (b) thirty
           (30) months.

      5.3  DISABILITY OR DEATH. If Employee becomes Disabled or dies during the
           Employment Term, Employee (or his estate, as the case may be) shall
           continue to receive payments at an annual rate equal to his then
           annual rate of Base Compensation plus Advances, for the period equal
           to (a) the balance of the then current Employment Term, plus (b) the
           next Renewal Term, but only if death or

                                       6
<PAGE>   7
          account (including the interest thereon) shall be paid to Employer at
          the time a final nonappealable judgment is issued for Employer.

     (d)  Upon termination for Cause, Employer shall have no further obligations
          to Employee for payment of Base Compensation or Bonus, and all
          payments and obligations of Employer to Employee under this Agreement
          (except those incurred or accrued prior to termination and for
          indemnification under Section 11) shall cease as of the date of such
          termination.

5.5  RESIGNATION -- Employee may resign his employment hereunder at any time,
     upon not less than one hundred eighty (180) days notice to Employer, if
     such resignation is to be effective at any time during the Initial Term,
     and upon not less than ninety (90) days notice if such resignation is to be
     effective at any time during any Renewal Term. Except in the case of an
     Involuntary Resignation, or as provided in Section 5.6(b), upon the
     effective date of such resignation, Employee's right to receive Base
     Compensation and Bonus shall cease, except to the extent accrued but unpaid
     to the date of termination, and Employee shall repay all unpaid Advances
     made under Section 4.4.

5.6  CONSULTING

     (a)  If Employee shall desire to change his relationship from an Employee
          to a consultant for Employer, he shall give notice to the Board at
          least one hundred eighty (180) days in advance of the date on which he
          intends to make such change effective if such notice is given during
          the Initial Term, and at least ninety (90) days in advance of such
          date if such notice is given during any Renewal Term. The services to
          be rendered by Employee in such consulting relationship shall be to be
          reasonably available in person and by telephone, to confer with senior
          management and the Board on mergers, acquisitions, capital
          transactions, strategic plan development, policy and planning matters,
          and such other matters as may be agreed to between the parties.

     (b)  Provided that at the time of Employee's notice to Employer under
          Section 5.6(a), neither (i) a Change of Control shall have occurred,
          nor (ii) shall the Initial Term have been completed as of any date on
          or prior to the date selected by Employee as the date on which such
          change is to be effective, the Board shall have the right to approve
          or disapprove of the Employee's acting as a consultant, which it shall
          do and shall notify Employee of its decision within sixty (60) days of
          Employee's notice; provided however, (A) the Board shall not
          unreasonably withhold its approval of Employee's consultant status and
          (B) if the Board shall withhold its approval of Employee's consultant
          status, Employee shall have the right to revoke his election to become
          a consultant and shall continue as an employee, in which case the
          Employment Term shall continue hereunder as though Employee has not
          made such election to become a consultant. If the

                                       8

<PAGE>   8

               Board approves of the consulting arrangement pursuant to this
               Section 5.6(b), then Employee shall resign as an employee of the
               Employer on the date set forth in the notice to the Board.

          (c)  Employer shall pay to Employee consulting compensation at an
               annual rate equal to fifty percent (50%) of the Employee's then
               annual rate of combined Base Compensation and Advances. In the
               event that Employee shall die or become disabled during the
               Consultation Period, no consulting compensation shall become due
               or payable thereafter, except with respect to that which accrued,
               but had not been paid, as of the date that Employee died or
               became disabled.

          (d)  Effective as of the beginning of the Consultation Period, the
               Employer shall obtain and pay for one or more insurance policies
               which provide for payments to Employee or his personal
               representative in the event of Employee's death (and Disability,
               to the extent obtainable at a reasonable price) during the
               Consultation Period equal to the balance of the consulting
               compensation which would have been paid by Employer had such
               death (or to the extent to obtainable, Disability) not occurred.

6.   Non-Competition

     Employee agrees that during the Employment Term and for a period (the
"Noncompete Period") ending on the later of (a) three (3) years after the
Employment Term or (b) completion of the Consultation Period, he will not be a
shareholder, partner, joint venturer or other equity owner in, or sole
proprietor of, or officer, director, employee, consultant, agent or
representative of, or otherwise engage, directly or indirectly, in any business
which is competitive with the business conducted by Employer and its Affiliates
at the date of termination of employment; provided, however, that this provision
shall not apply to the ownership of not more than five percent (5%) of any
publicly traded entity, provided Employee is not actively involved in the
activities of any such entity, and holds such interest solely for investment.
After termination of Employee's employment hereunder and during the Noncompete
Period, Employee shall not be actively involved in any new business which is in
direct competition with Employer's business on the date of termination, unless
Employee shall first offer the business opportunity to Employer and Employer
shall elect to not pursue such opportunity. Nothing in this Section 6 shall
prohibit or restrict Employee from ownership or involvement in Aston Care
Systems, Inc., and its related companies and interests, so long as the business
of Aston Care Systems, Inc. is the development, construction, operation,
management, leasing and sale of retirement and assisted living communities and
facilities.

7.   Nonsolicitation and Non-Hire

     Employee agrees that during the Noncompete Period, he shall not solicit any
employee of Employer to accept employment with Employee or with any other
person, nor except with the prior consent to Employer, shall he hire, or cause
or permit any entity controlled directly or indirectly by him, to hire any
person as an employee or consultant who was, at any time within

                                       9

<PAGE>   9
one year of the end of the Employment Term, an Employee of Employer; provided,
however, that this provision shall not apply to any person and whose employment
was in the nature of executive assistant or executive secretary to Employee.

8.   CONFIDENTIALITY

     Employee agrees that he shall not use or disclose to third parties any
confidential information of Employer or any Affiliate. All files, records,
documents, data and similar items, relating to Employer and Affiliates, as well
as all copies thereof, whether prepared by Employee or otherwise coming into
his possession, shall remain the exclusive property of the Employer and shall
immediately be returned to Employer upon termination of Employee's employment.
Employee's obligations in this Section 8 shall continue during the Employment
Term, during any Consultation Period and upon termination of the employment and
consulting, so long as Employer or any Affiliate derives value from such
confidential information remaining confidential.

9.   REMEDIES

     Employee acknowledges that the restrictions contained in Sections 6, 7 and
8 of this Agreement are reasonable and necessary to protect the legitimate
interests of Employer, do not cause Employee undue hardship, and that violations
of those provisions of this Agreement will result in irreparable injury to
Employer and that, therefore, Employer shall be entitled to preliminary and
permanent injunctive relief without bond in any court of competent jurisdiction
to enforce such provisions, which rights shall be cumulative and in addition to
any other rights or remedies to which Employer may be entitled. The prevailing
party in any litigation to enforce the terms of this Agreement shall be
entitled to recover reasonable costs and expenses, including attorneys' fees.

10.  NOTICES

     All notices, requests, demands and other communications required or
permitted hereunder shall be in writing and shall be delivered personally, by
courier service, or mailed by postage prepaid certified U.S. mail, return
receipt requested, to the address herein designed or such other address as may
be designated in writing by notice given in the manner provided herein, and
shall be effective if delivered or sent by courier upon personal delivery; or if
mailed, three days after the date of deposit in the U.S. mail.

11.  INDEMNITY

     Employer shall indemnify Employee and hold him free and harmless from and
against any and all loss, liability, cost or expense resulting to Employee, or
to which he may be or become subject, as a result of any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative
or investigative (but not including any action between Employer and Employee,
other than an action in the nature of a derivative action in the right of the
Employer) by reason of any acts, omissions, or alleged acts or omissions,
arising out of his activities as Chief Executive Officer, officer, employee or
agent of Employer, as a director,

                                       10
<PAGE>   10
officer, manager, partner or agent of Employer or of any Affiliate, or otherwise
arising out of his activities on behalf of Employer or any Affiliate or in
furtherance of the interests of Employer or any Affiliate, against expenses for
which he has not otherwise been reimbursed (including attorney's fees,
judgments, fines and amounts paid in settlement) actually and reasonably
incurred by him in connection with such action, suit or proceeding so long as he
did not act fraudulently, or in a manner which constituted willful misconduct or
gross negligence, or, with respect to any criminal action or proceeding, had no
reasonable cause to believe such conduct was unlawful. During the course of any
investigation, proceeding or other matter (other than an investigation,
proceeding or other matter brought by the Employer directly against the Employee
or brought by the Employee directly against the Employer), Employer shall pay
the legal fees and expenses of Employee, notwithstanding that at the time of
such payment it shall  not have been finally determined whether Employee is
actually entitled to indemnification, provided Employee agrees to reimburse
Employer if it is finally determined that he was not entitled to such
indemnification.

12.   MISCELLANEOUS PROVISIONS

      12.1  BINDING EFFECT AND ASSIGNABILITY. This Agreement shall be binding
            upon and inure to the benefit of the parties hereto and their
            respective heirs, administrators, executors, legal representatives,
            successors, assigns, and transferees. Employee shall have the right
            to pledge any and all of his rights to receive payments under this
            Agreement.

      12.2  ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
            between the parties with respect to the subject matter hereof. This
            Agreement supersedes any and all prior or contemporaneous
            agreements, either oral or in writing, with respect to the subject
            matter hereof, provided, however, that this Agreement does not
            supersede any written agreement between the Employer and Employee
            relating to Employee's ownership interests in Employer. No
            modification, amendment or waiver of any provision of this Agreement
            shall be binding upon any party unless it is in writing and executed
            by both parties or, in the case of a waiver, by the party waiving
            compliance.

      12.3  SEVERABILITY.  Whenever possible, each provision of this Agreement
            shall be construed and interpreted in such a manner as to be
            effective and valid. If any court determines that any provision is
            prohibited by or invalid under applicable law, such provision shall
            automatically be reformed to such time, territory and/or other
            limitation as such court shall deem reasonable. The reformation or
            invalidation of any provision shall not invalidate this Agreement
            or any other provision.

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<PAGE>   11
     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
first above written.

                                             WATERMARK COMMUNITIES, INC.

/s/ Alfred Hoffman, Jr.                      By: /s/ A. Charles Mattoff
-----------------------------------             --------------------------------
Alfred Hoffman, Jr.

Address:                                     Address:

Watermark Communities, Inc.                  24301 Walden Center Drive
24301 Walden Center Drive                          Suite 300
Suite 300                                          Bonita Springs, FL 34134
Bonita Springs, FL 34134

                                       12

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