Document:

Form of Stock Appreciation Rights Agreement

 Exhibit 10.2 
 WCI COMMUNITIES, INC. 
 STOCK APPRECIATION RIGHTS AGREEMENT 
 under the 
 2004 Stock Incentive
Plan of WCI Communities, Inc. 
 This Stock Appreciation Rights Agreement (this “Agreement”) evidences the terms and conditions
of an award granted on March 2, 2007 the (“Grant Date”) by WCI Communities, Inc., a Delaware corporation (the “Company”) to «First_Name» «Last_Name» (“Participant”). 
 TERMS AND CONDITIONS OF STOCK APPRECIATION RIGHTS 
 1. Grant of Stock Appreciation Rights. On the Grant Date, the Company granted to Participant stock appreciation rights (“SARs”) with respect to «Shares» shares of the Company’s common
stock (“Shares”), pursuant to and subject to the provisions of the 2004 Stock Incentive Plan of WCI Communities, Inc. (the “Plan”) and to the terms and conditions set forth in this Agreement. Capitalized terms used herein shall
have the meaning ascribed to them in the Plan, a copy of which is available to Participant from the Company’s Human Resources Department. 
 The SARs represent the right to receive, upon exercise, a whole number of Shares having a Fair Market Value (plus cash in respect of any fractional share) equal to the excess, if any, of (a) the aggregate Fair Market Value of the
number of Shares with respect to which the SAR is being exercised, over (b) the aggregate Exercise Price (as defined in Section 2) allocable to such Shares. 
 2. Exercise Price. The per Share “Exercise Price” of the SARs shall be $20.26, which is 100% of the Fair Market Value of a Share on the Grant Date. 
 3. Vesting of SARs. The percentage of the SARs indicated below will vest (become exercisable) on the first to occur of the following dates or
events (the “Vesting Date”): 
 (a) The SARs will vest as to 50% of the Shares on each of the first and second
anniversaries of the Grant Date; provided that Participant has remained in the continuous employ of the Company or an Affiliate through such dates. 
 (b) In the event that Participant dies while employed, or Participant’s employment is terminated upon the Company’s determination that Participant is disabled under the Company’s long term disability
policy (the “Death/Disability Termination Date”), a pro rata percentage of the SARs will vest as of the Death/Disability Termination Date. If the Death/Disability Termination Date occurs during 2007, the percentage of SARs that vests will
equal (i) 50%, times (ii) the number of full months elapsed from the Grant Date to the Death/Disability Termination Date divided by 12. If the Death/Disability Termination Date occurs during 2008, the percentage of SARs that vests will
equal (i) 50%, times (ii) the number of full months elapsed from January 1, 2008 to the Death/Disability Termination Date divided by 12. Any SARs in excess of those vesting pursuant to this clause (b) will be reconveyed to the
Company without further consideration or any act or action by Participant. 
  

 Page 1 – Stock Appreciation Rights Agreement 

 (c) The SARs will vest as to 100% of the Shares in the event that a Change in Control
occurs and, during the one (1) year period commencing upon the occurrence of the Change in Control, either (i) Participant’s employment is involuntarily terminated for any reason other than death, disability or termination for
“Cause” as defined below, or (ii) Participant’s resigns for “Good Reason”, as defined in Section 9(b)(ii) of the Plan. 
  

	 	•	 	 Participant’s employment shall be deemed terminated for “Cause” if his/her employment is terminated for any of the following:

  

	 	(i)	Participant’s willful and continued failure to perform his/her duties with respect to the Company or its Affiliates that continues beyond 10 days after a written demand for
substantial performance is delivered to Participant by the Company; 

  

	 	(ii)	Misconduct by Participant involving dishonesty or breach of trust in connection with Participant’s employment; 

  

	 	(iii)	Misconduct by Participant that would be a reasonable basis for an indictment of Participant for a felony or a misdemeanor involving moral turpitude; or 

  

	 	(iv)	Misconduct by Participant that results in a demonstrable injury to the Company. 

 If Participant’s employment with the Company or its Affiliates terminates for any reason other than as described in clause (b) or (c) of this section 3, Participant shall forfeit all right, title and
interest in and to the unvested portion of the SARs as of the date of such termination and the unvested SARs will be reconveyed to the Company without further consideration or any act or action by Participant. 
 4. Term of SARs. The term of the SARs shall be for a period commencing on the Grant Date and ending on the tenth (10th) anniversary of the
Grant Date (the “Expiration Date”), subject to earlier termination as provided in Section 5. The SARs may be exercised within the foregoing limitations at any time or from time to time after the vesting dates specified in
Section 3, above, as to any or all of the Shares with respect to which vesting has occurred. 
 5. Termination of SARs. Except as
otherwise provided in this Agreement, the SARs shall terminate prior to the Expiration Date as follows: 
 (a) In the event that Participant
dies while employed, or Participant’s employment is terminated upon the Company’s determination that Participant is disabled under the Company’s long term disability policy (the “Death/Disability Termination Date”), any
unvested portion of the SARs shall expire on the Death/Disability Termination Date and all or any vested portion of the SARs not previously exercised (including the portion vested by reason of Section 3(b) above) may be exercised by Participant
or Participant’s estate or legal representative during the twelve (12) months after the Death/Disability Termination Date, but not later than the Expiration Date. Any portion of the SARs not exercised during such period shall expire at the
end of such period. 
 (b) In the event that Participant’s employment is terminated for “Cause” as defined in Section 3
above, any portion of the SARs not exercised prior to the date of such termination of employment shall terminate as of the date of such termination. 
  

 Page 2 – Stock Appreciation Rights Agreement 

 (c) In the event that Participant’s employment is terminated for any reason other than death,
disability or Cause, any unvested portion of the SARs shall expire on the date of such termination of employment and all or any vested portion of the SARs not previously exercised may be exercised by Participant during the one (1) month after
the date of Participant’s termination of employment, but not later than the Expiration Date. Any portion of the SARs not exercised during such period shall expire at the end of such period. 
 6. Method of Exercise. Participant may exercise all or any part of the vested SARs by written notice directed to the Legal Department (Attention:
General Counsel/Corporate Secretary), at the Company’s principal place of business. As soon as practicable following receipt of such written notice, the Company shall deliver certificates or evidence of electronic delivery evidencing the Shares
receivable by Participant. 
 7. Nontransferability. Except as otherwise provided by the Committee, the SARs shall be transferable
only by will or the laws of descent and distribution and shall be exercised during Participant’s life only by Participant or a legal representative appointed for or by Participant. Except as permitted by the preceding sentence, the SARs or any
rights or privileges conferred thereby shall not be transferred, assigned, pledged or hypothecated in any way, whether by operation of law or otherwise, and shall not be subject to execution, attachment or similar process. Upon any attempted
transfer, assignment, pledge, hypothecation or other disposition of the SARs, or any right or privilege conferred thereby, contrary to the provisions hereof, or upon the levy or any attachment or similar process upon the SARs, or any right or
privilege conferred thereby, such SARs and such rights and privileges, shall immediately become null and void. 
 8. Transfers and Leaves
of Absence. The transfer of Participant’s employment, without an intervening period of separation, among the Company and any Affiliate, shall not be deemed a termination of employment. Participant shall be deemed to have remained in the
employ of the Company during any leave of absence granted by the Company in writing. 
 9. Adjustments. In the event of any change in
the outstanding common stock of the Company by reason of a stock split, spin-off, stock dividend, stock combination or reclassification, reorganization, recapitalization, merger, consolidation or similar event, the Committee shall adjust
proportionally the number of Shares covered by the SARs and the Exercise Price and make such other revisions to the SARs as the Committee deems to be equitably required, including, without limitation, any such limitations as are deemed necessary to
comply with Section 409A of the Code and avoid the imposition of interest and penalty taxes thereunder. 
 10. Change in Control.
In the event of a Change in Control, the Committee may, in its absolute discretion and without liability to any person, take such actions as it deems necessary or desirable including, without limitation, (a) acceleration of the vesting of the
SARs; (b) payment of a cash amount substantially equivalent to the value of the SARs in exchange for the cancellation of the SARs; and (c) requiring the issuance of substitute benefits that will substantially preserve the value, rights and
benefits of any affected SARs; provided, however, that any SARs that remain unexercised after such Change in Control shall be exercisable only for the kind and amount of securities and other property, or the cash equivalent thereof (as determined by
the Committee in good faith) receivable as a result of such event by the holder of a Share of Company stock. All such actions shall be consistent with the requirements to avoid the imposition of interest and penalty taxes under Section 409A of
the Code. 
  

 Page 3 – Stock Appreciation Rights Agreement 

 Notwithstanding the above, the SARs shall vest upon Participant’s termination of employment within
one year after a Change in Control under the conditions specified in Section 3(c) of this Agreement. 
 11. Amendment and
Termination. This Agreement may be modified by the Company in any manner that is consistent with the Plan, provided, that no such amendment shall modify this Agreement in any manner adverse to Participant without Participant’s written
consent. 
 12. Withholding Taxes. Participant will, no later than the date as of which any amount related to the SARs first becomes
includable in Participant’s gross income for federal income tax purposes, pay to the Company, or make other arrangements satisfactory to the Company regarding payment of, any federal, state and local taxes (including Participant’s FICA
obligation) required by law to be withheld with respect to such amount. The Committee hereby approves Participant’s surrender to the Company of a number of Shares (or the withholding of Shares otherwise deliverable to Participant upon exercise
of the SARs) as necessary to pay the minimum amount (and not any greater amount) required to be withheld for tax purposes, and Participant hereby consents to such Share-withholding method of tax payment if requested by the Company. The obligations
of the Company under this Agreement will be conditional on such payment or arrangements, and the Company, and, where applicable, its Affiliates will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any
kind otherwise due to Participant. 
 13. Restrictions on Issuance of Shares. If at any time the Committee shall determine in its
discretion, that registration, listing or qualification of the Shares covered by the SARs upon any national securities exchange or under any foreign, federal, or local law or practice, or the consent or approval of any governmental regulatory body,
is necessary or desirable as a condition to the exercise of the SARs, the SARs may not be exercised in whole or in part unless and until such registration, listing, qualification, consent or approval shall have been effected or obtained free of any
conditions not acceptable to the Committee. 
 13. Additional Provisions. 
 (a) The terms contained in the Plan are incorporated into and made a part of this Agreement and this Agreement shall be governed by and
construed in accordance with the Plan. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Agreement, the provisions of the Plan shall be controlling and determinative. 
 (b) If any one or more of the provisions contained in this Agreement is invalid, illegal or unenforceable, the other provisions of this
Agreement will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included. 
 (c)
Nothing contained herein shall affect the right of the Company or any Affiliate to terminate any Participant’s employment at any time for any reason. 
 (d) Participant shall not have voting or any other rights as a stockholder of the Company with respect to the SARs. Dividends or dividend equivalents will not be paid with respect to the SARs. Upon receipt of Shares
upon exercise of the SARs, Participant will obtain full voting and other rights as a stockholder of the Company. 
  

 Page 4 – Stock Appreciation Rights Agreement 

 (e) Neither SARs nor the Shares acquired upon exercise thereof shall be deemed
compensation for purposes of computing benefits or contributions under any retirement plan of the Company or its subsidiaries and shall not affect any benefits, or contributions to benefits, under any other benefit plan of any kind now or
subsequently in effect under which the availability or amount of benefits or contributions is related to level of compensation. 
 (f) Any notice to be given under the terms of this Agreement to the Company shall be addressed to the Company in care of its General Counsel/Corporate Secretary, and any notice to be given to Participant shall be addressed to him at
Participant’s address on the books of the Company. By a notice given pursuant to this Section, either party may designate a different address for notices to be given. Any notice shall have been deemed duly given when enclosed in a properly
sealed envelope addressed as aforesaid, deposited (with postage prepaid) in a post office or branch post office regularly maintained by the United States Postal Service, or sent by overnight delivery or facsimile. 
 (g) Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

 (h) The masculine pronoun shall include the feminine and neuter, and the singular the plural, where the context so
indicates. 
 (i) The laws of the State of Florida shall govern the interpretation, validity and performance of the terms of
this Agreement. 
 IN WITNESS WHEREOF, the Company has executed this Agreement and Participant has accepted this Agreement, including all of
the terms and conditions hereof, which constitute a contract between the Company and Participant. 
  

			
	WCI COMMUNITIES, INC.
		
	 By:
	 	 

	 Title:
	 	Sr. Vice President/HR

 Accepted by Participant this 
          day of                     , 2007 
  

			
	  
	 	

 «First_Name» «Last_Name» 
  

 Page 5 – Stock Appreciation Rights AgreementForm of Performance-Conditioned Restricted Stock Unit Agreement

 Exhibit 10.3 
 WCI COMMUNITIES, INC. 
 PERFORMANCE-CONDITIONED RESTRICTED STOCK UNIT AGREEMENT

 under the 
 2004 Stock Incentive Plan of WCI Communities, Inc. 
 This Performance-Conditioned Restricted Stock Unit Agreement (this
“Agreement”) evidences the terms and conditions of an award granted on March 2, 2007 the (“Grant Date”) by WCI Communities, Inc., a Delaware corporation (the “Company”) to «First_Name»
«Last_Name» (“Participant”). 
 TERMS AND CONDITIONS OF RESTRICTED STOCK UNITS 
 1. Grant of Performance-Conditioned Restricted Stock Units. On the Grant Date, the Company granted to Participant «Shares»
performance-conditioned restricted stock units (“Units”) representing the right to earn, on a one-for-one basis, shares of the Company’s common stock (“Shares”), pursuant to and subject to the provisions of the 2004
Stock Incentive Plan of WCI Communities, Inc. (the “Plan”) and to the terms and conditions set forth in this Agreement. Capitalized terms used herein shall have the meaning ascribed to them in the Plan, a copy of which is available to
Participant from the Company’s Human Resources Department.  
 2. Units Earned Based on Performance. The Units have
been credited to a bookkeeping account on behalf of Participant. Except as provided in clauses (b) and (c) of Section 3, the number of Units earned shall vary based upon the Company’s achievement of performance goals set out on
Appendix A hereto with respect to calendar year 2007. The Committee shall determine the Company’s performance against the performance goals as soon as practicable after the end of calendar year 2007, but in no event later than March 15,
2008. The number of Units so earned based on performance are referred to herein as “Earned Units.” Except as provided in clauses (a), (b) and (c) of Section 3, Participant shall have no rights to any Units that are not
earned based on performance. 
 3. Vesting of Units. The Units will vest (become non-forfeitable) on the first to occur of the
following dates or events (as applicable, the “Vesting Date”): 
 (a) Fifty percent (50%) of the Earned Units
will vest on each of the first and second anniversaries of the Grant Date; provided that Participant has remained in the continuous employ of the Company or an Affiliate through such dates. 
 (b) In the event that Participant dies while employed, or Participant’s employment is terminated upon the Company’s
determination that Participant is disabled under the Company’s long term disability policy (the “Death/Disability Termination Date”), a pro rata percentage of the Units will vest as of the Death/Disability Termination Date. If the
Death/Disability Termination Date occurs during 2007, the percentage of Units that vests will equal (i) 50% of the maximum number of Units that could be earned, times (ii) the number of full months elapsed from the Grant Date to the
Death/Disability Termination Date divided by 12. If the Death/Disability Termination Date occurs during 2008, the percentage of Units that vests will equal (i) 50% of the Earned Units (if any), times (ii) the number of full months elapsed
from January 1, 2008 to the Death/Disability Termination Date divided by 12. Any Units in excess of those vesting pursuant to this clause (b) will be reconveyed to the Company without further consideration or any act or action by
Participant. 
  

 Page 1 – Performance-Conditioned Restricted Stock Unit Agreement 

 (c) In the event that a Change in Control occurs and, during the one (1) year period
commencing upon the occurrence of the Change in Control, either (i) Participant’s employment is involuntarily terminated for any reason other than death, disability or termination for “Cause” as defined below, or
(ii) Participant’s resigns for “Good Reason”, as defined in Section 9(b)(ii) of the Plan (in either case, a “Double Trigger Event”), then a percentage of the Units shall vest. If the Double Trigger Event occurs
during 2007, 100% of the maximum number of Units that could be earned will vest as of the date of the Double Trigger Event. If the Double Trigger Event occurs during 2008, 100% of the Earned Units will vest as of the date of the Double Trigger
Event. 
  

	 	•	 	 Participant’s employment shall be deemed terminated for “Cause” if his/her employment is terminated for any of the following:

  

	 	(i)	Participant’s willful and continued failure to perform his/her duties with respect to the Company or its Affiliates that continues beyond 10 days after a written demand for
substantial performance is delivered to Participant by the Company; 

  

	 	(ii)	Misconduct by Participant involving dishonesty or breach of trust in connection with Participant’s employment; 

  

	 	(iii)	Misconduct by Participant that would be a reasonable basis for an indictment of Participant for a felony or a misdemeanor involving moral turpitude; or 

  

	 	(iv)	Misconduct by Participant that results in a demonstrable injury to the Company. 

 If Participant’s employment with the Company or its Affiliates terminates prior to the Vesting Date for any reason other than as described in clause (b) or (c) of this Section 3, Participant shall
forfeit all right, title and interest in and to the Units as of the date of such termination and the unvested Units will be reconveyed to the Company without further consideration or any act or action by Participant. 
 3. Conversion to Shares. Any Units vested as provided in Section 3 above will be converted to Shares on the Vesting Date. Such Shares will be
registered on the books of the Company in Participant’s name as of the Vesting Date and delivered to Participant (or Participant’s estate or legal representative, as the case may be) as soon as practical thereafter, but no later than
March 15 of the year following the year in which the Vesting Date occurs. Such delivery shall be in certificated or uncertificated form, as Participant (or Participant’s estate or legal representative, as the case may be) shall direct.

 4. Nontransferability. The Units or any rights or privileges conferred thereby shall not be transferred, assigned, pledged or
hypothecated in any way, whether by operation of law or otherwise, and shall not be subject to execution, attachment or similar process. Upon any attempted transfer, assignment, pledge, hypothecation or other disposition of the Units, or any right
or privilege conferred hereby, contrary to the provisions hereof, or upon the levy of any attachment or similar process upon the Units, or any right or privilege conferred hereby, the Units and such rights or privileges, shall immediately become
null and void. 
 5. Transfers and Leaves of Absence. The transfer of Participant’s employment, without an intervening period of
separation, among the Company and any Affiliate, shall not be deemed a termination of employment. Participant shall be deemed to have remained in the employ of the Company during any leave of absence granted by the Company in writing. 
  

 Page 2 – Performance-Conditioned Restricted Stock Unit Agreement 

 6. Adjustments. In the event of any change in the outstanding common stock of the Company by
reason of a stock split, spin-off, stock dividend, stock combination or reclassification, reorganization, recapitalization, merger, consolidation or similar event, the Committee shall adjust proportionately the number of Units and make such other
revisions to the Units as the Committee deems to be equitably required, including, without limitation, any such limitations as are deemed necessary to comply with Section 409A of the Code and avoid the imposition of interest and penalty taxes
thereunder. 
 7. Change in Control. In the event of a Change in Control, the Committee may, in its absolute discretion and without
liability to any person, take such actions as it deems necessary or desirable including, without limitation, (a) acceleration of the vesting of the Units; (b) payment of a cash amount substantially equivalent to the value of the Units in
exchange for the cancellation of the Units; and (c) requiring the issuance of substitute benefits that will substantially preserve the value, rights and benefits of any affected Units; provided, however, that any Units that remain unvested and
undelivered after such Change in Control shall be exchangeable only for the kind and amount of securities and other property, or the cash equivalent thereof (as determined by the Company in good faith) receivable as a result of such event by the
holder of a Share of Company stock. All such actions shall be consistent with the requirements to avoid the imposition of interest and penalty taxes under Section 409A of the Code. 
 Notwithstanding the above, the Units shall vest upon Participant’s termination of employment within one year after a Change in Control under the
conditions specified in Section 3(c) of this Agreement. 
 8. Amendment and Termination. This Agreement may be modified by the
Company in any manner that is consistent with the Plan, provided that no such amendment shall modify this Agreement in any manner adverse to Participant without Participant’s written consent. 
 9. Withholding Taxes. Participant will, no later than the date as of which any amount related to the Units first becomes includable in
Participant’s gross income for federal income tax purposes, pay to the Company, or make other arrangements satisfactory to the Company regarding payment of, any federal, state and local taxes (including Participant’s FICA obligation)
required by law to be withheld with respect to such amount. The Committee hereby approves Participant’s surrender to the Company of a number of Shares (or the withholding of Shares otherwise deliverable to Participant under this Award) as
necessary to pay the minimum amount (and not any greater amount) required to be withheld for tax purposes, and Participant hereby consents to such Share-withholding method of tax payment if requested by the Company. The obligations of the Company
under this Agreement will be conditional on such payment or arrangements, and the Company, and, where applicable, its Affiliates will, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due
to Participant. 
 10. Restrictions on Issuance of Shares. If at any time the Committee shall determine in its discretion, that
registration, listing or qualification of the Shares covered by the Units upon any national securities exchange or under any foreign, federal, or local law or practice, or the consent or approval of any governmental regulatory body, is necessary or
desirable as a condition to the settlement of the Units in Shares, no Shares shall be delivered unless and until such registration, listing, qualification, consent or approval shall have been effected or obtained free of any conditions not
acceptable to the Committee. 
 11. Additional Provisions. 
 (a) The terms contained in the Plan are incorporated into and made a part of this Agreement and this Agreement shall be governed by and
construed in accordance with the Plan. In the event of any actual or alleged conflict between the provisions of the Plan and the provisions of this Agreement, the provisions of the Plan shall be controlling and determinative. 
  

 Page 3 – Performance-Conditioned Restricted Stock Unit Agreement 

 (b) If any one or more of the provisions contained in this Agreement is invalid, illegal
or unenforceable, the other provisions of this Agreement will be construed and enforced as if the invalid, illegal or unenforceable provision had never been included. 
 (c) Nothing contained herein shall affect the right of the Company or any Affiliate to terminate any Participant’s employment at any
time for any reason. 
 (d) Participant shall not have voting or any other rights as a stockholder of the Company with respect
to the Units. Dividends or dividend equivalents will not be paid with respect to the Units. Upon conversion of the Units into Shares, Participant will obtain full voting and other rights as a stockholder of the Company. 
 (e) Neither Units nor the Shares into which they are converted shall be deemed compensation for purposes of computing benefits or
contributions under any retirement plan of the Company or its subsidiaries and shall not affect any benefits, or contributions to benefits, under any other benefit plan of any kind now or subsequently in effect under which the availability or amount
of benefits or contributions is related to level of compensation. 
 (f) Any notice to be given under the terms of this
Agreement to the Company shall be addressed to the Company in care of its General Counsel/Corporate Secretary, and any notice to be given to Participant shall be addressed to him at Participant’s address on the books of the Company. By a notice
given pursuant to this Section, either party may designate a different address for notices to be given. Any notice shall have been deemed duly given when enclosed in a properly sealed envelope addressed as aforesaid, deposited (with postage prepaid)
in a post office or branch post office regularly maintained by the United States Postal Service, or sent by overnight delivery or facsimile. 
 (g) Titles are provided herein for convenience only and are not to serve as a basis for interpretation or construction of this Agreement. 
 (h) The masculine pronoun shall include the feminine and neuter, and the singular the plural, where the context so indicates. 

(i) The laws of the State of Florida shall govern the interpretation, validity and performance of the terms of this Agreement.

 IN WITNESS WHEREOF, the Company has executed this Agreement and Participant has accepted this Agreement, including all of the terms
and conditions hereof, which constitute a contract between the Company and Participant. 
  

			
	WCI COMMUNITIES, INC.
		
	By:	 	 

	Title:	 	Sr. Vice President/HR

 Accepted by Participant this 
          day of                     , 2007 
  

			
	  
	 	

 «First_Name» «Last_Name» 
  

 Page 4 – Performance-Conditioned Restricted Stock Unit Agreement 

 Appendix A 
 PERFORMANCE GOALS and AWARD CALCULATION 
  

																	
	 2007 Adjusted Free Cash Flow(1)
	  	< $	827 million	 	 	$	827 million	 	 	$	930 million	 	 	$	1.034 billion or >	 
	 % of Target Award Earned(1)(2)
	  	 	0	%	 	 	20	%	 	 	60	%	 	 	100	%

	 1
	 When performance falls between
two points, straight line interpolation shall be applied. 

	 2
	 Denotes Units earned as a percentage of the maximum number of Units that could be earned.

 Definitions 
 2007 Adjusted Free
Cash Flow. 2007 Adjusted Free Cash Flow shall be defined as 2007 Free Cash Flow, computed by subtracting “Change in plant and equipment” from “Net cash (used in) provided by operating activities” as reflected on
the Company’s “Consolidated Cash Flow Statement” for the year ending December 31, 2007, and further adjusted to exclude the effects of the following items to the extent that they have the affect of increasing net cash
provided by operating activities: 
  

	 	(a)	the sale of substantially all of the assets or ownership interests of those operations that currently comprise the Northeast U.S. Region and/or the Mid-Atlantic Region of WCI
Communities, Inc.; and 

  

	 	(b)	the sale of substantially all of the assets or ownership interests of those operations that are currently considered a part of and expected to be developed by the Tower Homebuilding
division of WCI Communities, Inc.; and 

  

	 	(c)	the sale of currently owned real estate assets for a significant value in a transactions that includes an option to purchase developed lots or land parcels subdivided and/or
developed on such real estate from the third party purchaser at a future date; and 

  

	 	(d)	any proceeds from the sale of the Tuscany Reserve development (the “Community”) or portions thereof to the extent that such amounts represent a recovery of the adjusted
basis of the Community as of January 1, 2007, as increased for additional amounts invested in developing the portions of the Community that are sold during 2007. Furthermore, the amount of such proceeds will be reduced by the amount of net
income that had been planned to be generated by the Community through the date of its sale. The prorated amount of income shall be determined by reference to the approved 2007 Business Plan less associated taxes calculated at an approximate
effective tax rate of 39%. 

  

 Page 5 – Performance-Conditioned Restricted Stock Unit Agreement

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