Document:

EX-10.(AB) Getman Employment Agreement

 

Exhibit 10(ab)

EXECUTION COPY

CONFIDENTIAL PORTION MARKED [************] HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT
AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT, dated September 11, 2003, between Avatar Holdings Inc., a Delaware
corporation (the “Company”), and Dennis J. Getman (the “Employee”).

W I T N E S S E T H :

     WHEREAS, the Company desires to employ the Employee as its Executive Vice President and
General Counsel and the Employee desires to accept such employment, all on the terms and conditions
specified herein; and

     WHEREAS, the Employee and the Company desire to set forth in writing all of their respective
duties, rights and obligations with respect to the Employee’s employment by the Company; and

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations
hereinafter set forth, the parties hereto, intending to be legally bound, hereby agree as follows:

     1. Employment and Term. The Company hereby employs the Employee, and the Employee
hereby accepts employment by the Company, in the capacity and upon the terms and conditions
hereinafter set forth. The term of employment under this Agreement shall be for the period
commencing as of January 1, 2003 and ending on December 31, 2006, unless earlier terminated as
herein provided (the “Term of Employment”). The last day of the Employee’s Term of Employment
shall be referred to in this Agreement as the “Date of Termination.”

     2. Duties. (a) During the Term of Employment, the Employee shall serve as the
Company’s Executive Vice President and General Counsel, and shall perform such duties, functions
and responsibilities as are associated with and incident to the positions of Executive Vice
President and General Counsel, consistent with the Employee’s current duties, functions and
responsibilities, in accordance with past practice, and as the Company may, from time to time,
require of the Employee, including, but not limited to, the performance of such functions and
duties for the Company’s subsidiaries and affiliates as the Company may require, subject to the
direction of the Company’s Board of Directors. The Employee shall serve the Company faithfully,
conscientiously and to the best of the Employee’s ability and shall promote the interests and
reputation of the Company. Unless prevented by sickness or disability, the Employee shall devote
all of the Employee’s time, attention, knowledge, energy and skills, during normal working hours,
and at such other times as the Employee’s duties may require, to the duties of the Employee’s
employment. The principal place of employment of the Employee shall be the principal executive
offices of the Company and/or such other location in the state of Florida as shall be necessary for
the Employee to discharge the Employee’s duties

 

 

hereunder. The Employee acknowledges that in the course of employment the Employee may be
required, from time to time, to travel on behalf of the Company.

     (b) The Employee and the Company acknowledge that the Employee has been engaged in sales of
non-buildable or environmentally sensitive land and specially designated asset sales made outside
the Company’s ordinary course of business, as determined by the Company. In addition to the duties
described above, the Employee shall continue to be engaged in such sales as requested and
determined by management of the Company.

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

     (a) Base Salary. The Company shall pay the Employee a base salary at an annual rate
of $350,000 payable at such times and in accordance with the Company’s customary payroll practices
as they may be adopted or modified from time to time. On an annual basis or at such other times as
the Company may determine, the Company may review the Employee’s performance and determine whether,
in its sole discretion, the Company will increase (but not decrease) the Employee’s base salary.

     (b) Employee Benefits. The Company shall afford the Employee the opportunity to
participate during the Term of Employment in any medical, dental, disability insurance, retirement,
savings and any other employee benefits plans, policies or arrangements which the Company maintains
for its senior executives in accordance with the written terms of such plans, policies or
arrangements. Nothing in this Agreement shall require the Company or its affiliates to establish,
maintain or continue any benefit plan, policy or arrangement or restrict the right of the Company
or any of its affiliates to amend, modify or terminate any such benefit plan, policy or
arrangement.

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

     (d) Vacations, Holidays or Temporary Leave. The Employee shall be entitled to take
four (4) weeks of vacation per year, without loss or diminution of compensation. Such vacation
shall be taken at such time or times, and as a whole or in increments, as the Employee shall elect,
consistent with the reasonable needs of the Company’s business. The Employee shall further be
entitled to the number of paid holidays, and leaves for illness or temporary disability in
accordance with the policies of the Company for its senior executives (as such policies may be
amended from time to time or terminated in the Company’s sole discretion).

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     (e) Additional Compensation. As compensation for the additional duties set forth in
Section 2(b) above, the Employee shall be entitled to the additional compensation set forth on the
Annex attached hereto.

     (f) Company Vehicle. During the Term of Employment, the Company shall provide the
Employee with the use of a vehicle associated with the Employee’s employment consistent with past
practice.

     4. Protection of Confidential Information.

     (a) Trade Secrets and Know-how.

          (i) During the Term of Employment and for all time following the Date of Termination, the
Employee shall not, directly or indirectly, use, furnish or make accessible to any person, firm or
corporation or other business entity, whether or not he, she, or it competes with the business of
the Company, its subsidiaries and/or affiliates (each of the foregoing entities being referred to
herein, collectively and individually, as the “Avatar Entities”), (x) any trade secret or know-how
acquired by the Employee during the Employee’s employment by the Company which relates to the
business practices, methods, processes or other confidential or secret aspects of the business of
any of the Avatar Entities, (y) any information concerning the business and affairs of the Avatar
Entities and (z) any notes, analysis, compilations, studies, summaries and other material prepared
by or for the Company continuing or based, in whole or in part, on any information included in
clause (x) or (y) above, without the prior written consent of the Company (such information,
subject to Section 4(a)(ii) below, being referred to as the “Confidential Information”).

          (ii) Confidential Information shall not include any information or documents that (A) are or
become publicly available without breach by the Employee of Section 4(a)(i) hereof, (B) the
Employee receives from any third party who, to the best of the Employee’s knowledge upon reasonable
inquiry, is not in breach of an obligation of confidence with any of the Avatar Entities, or (C) is
required to be disclosed by law, statute, governmental or judicial proceeding; provided,
however, that in the event that the Employee is requested by any governmental or judicial
authority to disclose any Confidential Information, the Employee shall give the Company prompt
notice of such request, such that the Company may seek a protective order or other appropriate
relief, and in any such proceeding the Employee shall disclose only so much of the Confidential
Information as is required to be disclosed.

     (b) Remedies. The Employee acknowledges that the Employee’s position with the Company
places the Employee in a position of confidence and trust with the clients and employees of the
Avatar Entities, and that in connection with the Employee’s services to the Company, the Employee
will have access to confidential information vital to the Avatar Entities’ businesses. The
Employee further acknowledges that in view of the nature of the businesses in which the Avatar
Entities are engaged, the foregoing restrictive covenants in this Section 4 hereof are reasonable
and necessary in order to

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protect the legitimate interests of the Avatar Entities and that violation thereof would
result in irreparable injury to the Avatar Entities. Accordingly, the Employee consents and agrees
that if the Employee violates or threatens to violate any of the provisions of this Section 4
hereof the Avatar Entities would sustain irreparable harm and, therefore, one or more of the Avatar
Entities shall be entitled to obtain from any court of competent jurisdiction, without posting any
bond or other security, preliminary and permanent injunctive relief as well as damages and an
equitable accounting of all earnings, profits and other benefits arising from such violation, which
rights shall be cumulative and in addition to any other rights or remedies in law or equity to
which any of the Avatar Entities may be entitled.

     (c) Return of Confidential Information. Upon termination of the Employee’s
employment, the Employee shall promptly return all Confidential Information in tangible form, and
shall not make or retain any copies thereof.

     5. Termination of Employment.

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

          (i) the termination of the Employee’s employment upon and at any time following December 31,
2006, absent the parties having entered into a written agreement of Employment with a term of
employment ending after December 31, 2006;

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

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

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

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

          (vi) the resignation or other withdrawal of employment by the Employee for any reason during
the Term of Employment.

     (b) For purposes of this Agreement, the “Disability” of the Employee shall mean the Employee’s
inability, because of mental or physical illness or incapacity, whether total or partial, to
perform one or more of the material functions of the Employee’s employment under this Agreement
with or without reasonable accommodation and which entitles the Employee to receive benefits under
a disability plan, policy or arrangement that is provided to the Employee by the Company.

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

     (d) For purposes of this Agreement, “Without Cause” shall mean any reason other than the
reasons described in Sections 5(a)(i), (ii), (iii), (iv) and (vi) hereof. The parties expressly
agree that a termination of employment Without Cause pursuant to Section 5(a)(v) hereof may be for
any reason whatsoever, or for no reason, in the sole discretion of the Company.

     6. Payments Upon Termination of Employment.

     (a) Death or Disability. If the Employee’s employment hereunder is terminated due to
the Employee’s death or Disability pursuant to Sections 5(a)(ii) or (iii) hereof, the Company shall
pay or provide to the Employee, the Employee’s designated beneficiary or to the Employee’s estate:
(i) all base salary pursuant to Section 3(a) hereof and any vacation pay pursuant to Section 3(d)
hereof, in each case which has been earned but unpaid as of the Date of Termination; (ii) any
benefits to which the Employee may be entitled under any employee benefits plan, policy or
arrangement pursuant to Section 3(b) hereof in which the Employee is a participant in accordance
with the written terms of such plan, policy or arrangement up to and including the Date of
Termination; and (iii) any additional compensation to which the Employee may be entitled as set
forth on the Annex attached hereto. Should the Company wish to purchase insurance to cover the
costs associated with the Employee’s termination of employment pursuant to Sections 5(a)(ii) or
(iii), the Employee agrees to execute any and all necessary documents required in connection with
such insurance.

     (b) Termination for Cause or Resignation By The Employee. If the Employee’s
employment hereunder is terminated by the Company for Cause pursuant to Section 5(a)(iv) or due to
the Employee’s resignation or other withdrawal of employment pursuant to Section 5(a)(vi), the
Company shall pay or provide to the Employee: (i) all base salary pursuant to Section 3(a) hereof
and any vacation pay pursuant to Section 3(d) hereof, in each case which has been earned but unpaid
as of the Date of Termination; and (ii) any benefits to which the Employee may be entitled under
any employee benefits plan, policy or arrangement pursuant to Section 3(b) hereof in which the
Employee is a participant in accordance with the written terms of such plan, policy or arrangement
up to and including the Date of Termination.

     (c) Termination Without Cause. If the Employee’s employment hereunder is terminated
by the Company Without Cause pursuant to Section 5(a)(v), the Company shall pay or provide to the
Employee: (i) all base salary pursuant to Section 3(a) hereof and any vacation pay pursuant to
Section 3(d) hereof, in each case which has

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been earned but unpaid as of the Date of Termination; (ii) any benefits to which the Employee
may be entitled under any employee benefits plan, policy or arrangement pursuant to Section 3(b)
hereof in which the Employee is a participant in accordance with the written terms of such plan,
policy or arrangement up to and including the Date of Termination; (iii) any additional
compensation to which the Employee may be entitled as set forth on the Annex attached hereto; and
(iv) a lump sum payment of $350,000 in lieu of any other payments or benefits. The Company’s
obligation to make the payment pursuant to this Section 6(c) shall be conditioned upon the
Company’s prior receipt of an executed general release of claims that the Employee may have against
the Company, its affiliates and their respective shareholders, directors, officers, employees and
agents, to the maximum extent permitted by law. Any payments made pursuant to Section 6(c)(i),
(ii) and (iv) shall be made within ninety (90) days of the termination of Employee’s employment.

     (d) Termination Upon Expiration of this Agreement. If the Employee’s employment
hereunder is terminated pursuant to Section 5(a)(i) and the Employee is no longer actively employed
(whether or not pursuant to an employment agreement) by the Company, the Company shall pay to the
Employee any additional compensation to which the Employee may be entitled as set forth on the
Annex attached hereto.

     (e) No Other Payments. Except as provided in this Section 6, the Employee shall not
be entitled to receive any other payments or benefits from the Company due to the termination of
the Employee’s employment, including but not limited to, any employee benefits under any of the
Company’s employee benefits plans or programs (other than at the Employee’s expense under the
Consolidated Omnibus Budget Reconciliation Act of 1985 or pursuant to the terms of any pension
benefit plan which the Company may have in effect from time to time) or any right to be paid
severance pay. If the Employee is entitled to any notice or payment in lieu of any notice of
termination required by Federal, State or local law, including but not limited to the Worker
Adjustment and Retraining Notification Act, the Company’s obligation to make payments pursuant to
Section 6(c)(i) shall be reduced by the amount of any such payment in lieu of notice.

     7. No Conflicting Agreements.

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

     (b) The Employee agrees that the compensation provided for in Section 3 hereto represents the
sole compensation to be paid to the Employee in respect of the services performed or to be
performed for the Company and/or its affiliates by such

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

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

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

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

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

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

     13. Assignability. The obligations of the Employee may not be delegated and, except
as expressly provided in Section 6(a) relating to the designation of beneficiaries, the Employee
may not, without the Company’s written consent thereto, assign, transfer, convey, pledge, encumber,
hypothecate or otherwise dispose of this Agreement or any interest therein. Any such attempted
delegation or disposition shall be null and void and without effect. The Company and the Employee
agree that this Agreement and all of the Company’s rights and obligations hereunder may be assigned
or transferred by the Company to and may be assumed by and become binding upon and

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may inure to the benefit of any affiliate of or successor to the Company. The term
“successor” shall mean (with respect to the Company or any of its subsidiaries) any other
corporation or other business entity which, by merger, consolidation, purchase of the assets, or
otherwise, acquires all or a material part of the assets of the Company. Any assignment by the
Company of its rights and obligations hereunder to any affiliate of or successor to the Company
shall not be considered a termination of employment for purposes of this Agreement.

     14. Severability. If any provision of this Agreement as applied to either party or to
any circumstances shall be adjudged by a court of competent jurisdiction to be void or
unenforceable, the same shall in no way affect any other provision of this Agreement or the
validity or enforceability of this Agreement.

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

Dennis J. Getman

848 Brickell Key Drive

Unit 3601

Miami, Florida 33131

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

Avatar Holdings Inc.

201 Alhambra Circle

Coral Gables, Florida 33134

Attention: Chief Executive Officer

Facsimile: (305) 441-7876

with a copy to:

Avatar Holdings Inc.

201 Alhambra Circle

Coral Gables, Florida 33134

Attention: Corporate Secretary

Facsimile: (305) 441-7876

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

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

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

     18. Prevailing Party Expenses. The Employee and the Company agree that in the event
that any provision of this Agreement becomes subject to any litigation or arbitration or any party
seeks an adjudication to enforce his rights under, or to recover damages for breach of, this
Agreement, the prevailing party in such litigation or arbitration shall be entitled to recover all
costs and expenses (including reasonable legal fees) incurred in connection therewith from the
other party.

[signature page follows]

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

	 	 	 	 	 
	 	AVATAR HOLDINGS INC.

 	 
	 	By:  	/s/ Gerald D. Kelfer
 	 
	 	 	Name:  	Gerald D. Kelfer 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 
	 	 	 
	 	                                                       /s/ Dennis J. Getman
 	 
	 	Employee 	 
	 	Name:  Dennis J. Getman 	 
	 

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Annex To Employment Agreement

Terms of Additional Compensation

	1.	 	The Employee will be awarded an opportunity to receive (x) a percentage (the “Percentage”) of
the Net Sale Proceeds (as defined below) received by the Company on certain asset sales of
non-buildable or environmentally sensitive land and specially designated asset sales (the
“Eligible Properties”) that are made outside of the Company’s ordinary course of business, as
determined by the Company, during the Employee’s Term of Employment less (y) the Deductible
(as defined below), subject to the Employee’s active involvement and engagement in procuring
such sales for the benefit of the Company (the “Additional Compensation”). Notwithstanding
anything to the contrary contained herein, the maximum aggregate Additional Compensation
payable to the Employee hereunder is $1,600,000 (the “Aggregate Cap”).
	 
	2.	 	For purposes of this Annex, capitalized terms not otherwise defined shall have the following
meanings:
	 
	 	 	“Net Sale Proceeds” shall mean the sale proceeds actually received by the Company less any and
all expenses and costs related to the sale (including closing costs) and any expenditures made
by the Company in contemplation of, or in connection with, such sale.
	 
	 	 	“Deductible” for any calendar year shall mean an amount equal to (i) the product of (x)
$100,000 and (y) the Calendar Year Multiplier less (ii) the sum of Deductibles in prior
calendar years (to the extent that each such Deductible did not reduce Additional Compensation
for such prior year below 0).
	 
	 	 	“Calendar Year Multiplier” shall be equal to:

	 	1	 	for Additional Compensation paid to the Employee in calendar year 2003;
	 
	 	2	 	for Additional Compensation paid to the Employee in calendar year 2004;
	 
	 	3	 	for Additional Compensation paid to the Employee in calendar year 2005;
	 
	 	4	 	for Additional Compensation paid to the Employee in calendar year 2006;
	 
	 	4	 	for Additional Compensation paid to the Employee in calendar year 2007;
	 
	 	4	 	for Additional Compensation paid to the Employee in calendar year 2008;
	 
	 	4	 	for Additional Compensation paid to the Employee in calendar year 2009;
	 
	 	4	 	for Additional Compensation paid to the Employee in calendar year 2010.

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	3.	 	The Employee is hereby awarded the following Percentages for asset sales of the following
Eligible Properties:

	 	 	 	 	 	 	 
	 	 	Eligible Property	 	Percentage
	–

	 	WalMart Transactions
	 	$100,000 flat sum

	–

	 	American Cablevision
	 	 	.75	%
	–

	 	*******************************************
	 	 	**	%
	–

	 	Ocala Sale to Government or Not-For-Profit Buyer
	 	 	2.5	%
	–

	 	*******************************************
	 	 	**	%
	–

	 	**************************************************************************************
	 	 	**	%
	–

	 	*******************
	 	 	**	%
	–

	 	Rio Rico Utilities
	 	 	1	%
	–

	 	*******************************************
	 	 	**	%

	4.	 	In the event that the Company identifies additional Eligible Properties for similar sale,
the terms of other compensation, if any, payable to the Employee shall be determined at such
time.
	 
	5.	 	All decisions with respect to, or in connection with, the sale of Eligible Properties shall
be made solely by authorized officers of the Company, including all transaction terms and
conditions (i.e., price, holdbacks, timing, etc.). The Company may limit or abandon any sales
or proposed sales of Eligible Properties at any time for any reason or for no reason in its
sole discretion. The Company shall have no obligation to take any action with respect to any
sales or proposed sales of Eligible Properties.
	 
	6.	 	All determinations relating to Eligible Properties, the Additional Compensation payable to
the Employee and the amount of Net Sale Proceeds will be made by and administered under the
supervision of the Company’s Compensation Committee in its sole and absolute discretion, and
all determinations of the Company’s Compensation Committee will be final and binding on the
Employee and the Company.
	 
	7.	 	The maximum cash amount that may be paid to Employee as Additional Compensation shall not
exceed $200,000 per calendar year through and including 2007 (the “Initial Annual Cap”) and
$266,667 per calendar year from 2008 through and including 2010 (the “Secondary Annual Cap”);
provided however, that any Additional Compensation that has been earned but not paid as a
result of the Initial Annual Cap shall be deferred and payable within the first ninety (90)
days of the following calendar year, subject again to the Initial Annual Cap, and if
necessary, to successive calendar years, subject to the Initial Annual Cap and the Aggregate
Cap. The Company shall not pay any interest on any amounts of Additional Compensation that
are deferred or payable in future calendar years. If there is any earned but unpaid
Additional Compensation as of December 31, 2006, such amount shall be forfeited unless the
Employee provides consulting services to the Company after the Term of Employment, in which
case, the Company shall pay any earned but unpaid Additional Compensation subject to the
Secondary Annual Cap and the Aggregate Cap for three additional calendar years beginning in
2008, subject to the Employee providing the

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	 	 	required consulting services described below, provided, however, that any Eligible Properties
set forth in paragraph 3 above that are subject to executed sale contracts as of December 31,
2006 for which the Company receives Net Sale Proceeds in calendar year 2007 shall be treated as
if such sales occurred in 2006, and any Additional Compensation payable to the Employee as a
result of such sales shall be payable in calendar year 2007 if and only if the Employee has not
already been paid Additional Compensation in an amount equal to the Initial Annual Cap in 2006,
and then only in an amount up to the Initial Annual Cap. To eliminate any ambiguity, it is
understood and agreed that (X) no Additional Compensation shall be paid in 2007 unless (i) the
Employee has not been paid Additional Compensation in an amount equal to $200,000 in calendar
year 2006 and (ii) Eligible Properties set forth in paragraph 3 are subject to executed sales
contracts as of December 31, 2006 and the Company receives Net Sales Proceeds from such sales
in calendar year 2007 and (Y) the maximum aggregate amount of Additional Compensation payable
in calendar years 2006 and 2007 is $200,000. In each year, such payments shall be made within
the first ninety (90) days of the calendar year following the Employee’s completion of one year
of consulting services. If there is any earned but unpaid Additional Compensation as of March
31, 2010, such amount shall be forfeited, provided that any Additional Compensation resulting
from sales of Eligible Properties which provided for deferred payments to the Company shall be
payable to the Employee upon receipt of such deferred payments by the Company, subject to the
Secondary Annual Cap and the Aggregate Cap. The Employee shall provide consulting services
relating to all Company matters in which the Employee was involved prior to the expiration of
the Term of Employment and such other matters relating to Company activities as may be
reasonably requested from time to time by the Company. During the consulting period, the
Employee shall be an independent contractor and shall not be an employee or agent of the Avatar
Entities. The Employee shall provide consulting services in calendar years 2007-2009 for the
required amount of days and for the consulting fee set forth on the following table in order to
receive any Additional Compensation in the calendar year following the Employee’s completion of
such consulting services:

	 	 	 	 	 
	Calendar Year	 	Required Consulting Services	 	Consulting Fee
	2007
	 	6 days per month; 72 days per annum
	 	$83,333 per annum payable quarterly
	2008
	 	5 days per month; 60 days per annum
	 	$83,333 per annum payable quarterly
	2009
	 	4 days per month; 48 days per annum
	 	$83,333 per annum payable quarterly

If the Employee does not provide the required consulting services for the applicable calendar year,
the Company shall not be obligated to pay the Employee any Additional Compensations or the
consulting fees with respect thereto.

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	8.	 	If the Employee’s employment is terminated by reason of his death or Disability, the Company
shall pay to the Employee, the Employee’s designated beneficiary or to the Employee’s estate
the amount of earned but unpaid Additional Compensation as of the date of the Employee’s death
or Disability, as would otherwise be payable
pursuant to this Annex as though the Employee’s employment had not been terminated, within
ninety (90) days of Employee’s death or Disability or seven days after such later date as an
executor or administrator of the decedent’s estate shall be appointed, provided that any
Additional Compensation resulting from sales of Eligible Properties which provided for deferred
payments to the Company shall be payable to the Employee upon receipt of such deferred payments
by the Company. In addition, the Employee shall be entitled to receive the Additional
Compensation for any Eligible Properties set forth in paragraph 3 above that are subject to
executed sale contracts at the time of termination of the Employee’s employment by reason of
the Employee’s death or Disability, provided that the Employee was actively engaged in such
sale at the time his employment is terminated. Payment of the Additional Compensation for such
sales shall be made within ninety (90) days of the closing of such sales. Notwithstanding
anything to the contrary contained herein, in no event shall the Employee be entitled to
receive Additional Compensation in excess of the amount as would otherwise be payable pursuant
to this Annex if the Employee’s employment had not been terminated.
	 
	9.	 	If Employee’s employment is terminated by the Company without Cause, the Employee shall be
entitled to receive the amount of earned but unpaid Additional Compensation through the Date
of Termination as would otherwise be payable pursuant to this Annex as though the Employee’s
employment had not been terminated. In addition, Employee shall be entitled to receive the
Additional Compensation for any Eligible Properties set forth in paragraph 3 above that are
subject to executed sale contracts at the time of termination of Employee’s employment by the
Company without Cause, provided that the Employee was actively engaged in such sale at the
time of his termination. Notwithstanding anything to the contrary contained herein, in no
event shall the Employee be entitled to receive Additional Compensation in excess of the
amount as would otherwise be payable pursuant to this Annex if the Employee’s employment had
not been terminated.
	 
	10.	 	If the Employee’s employment is terminated by the Company with Cause or by the Employee, the
Employee shall forfeit any and all Additional Compensation, including such Additional
Compensation that has been earned but not paid to the Employee, and shall cease to have any
right to any future Additional Compensation.

A-4EX-10.(AG) 1st Amend. Getman Employment Agreement

 

Exhibit 10(ag)

CONFIDENTIAL PORTION MARKED [************] HAS BEEN OMITTED PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

FIRST AMENDMENT TO

EMPLOYMENT AGREEMENT

          First Amendment, dated as of August 11, 2004 (“Amendment”), to Employment Agreement, dated
September 11, 2003, between Avatar Holdings Inc., a Delaware corporation (the “Company”), and
Dennis J. Getman (the “Employee”).

WITNESSETH:

          WHEREAS, the Company and the Employee entered into an Employment Agreement (the “Agreement”)
dated September 11, 2003; and

          WHEREAS, the Company and the Employee desire to amend the Agreement.

          NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations
hereinafter set forth, the Company and Employee, intended to be legally bound, hereby agree as
follows:

          1. Paragraph 3 of the Annex to the Agreement is amended and restated in its entirety as set
forth in Exhibit A to this Amendment.

          2. Except as expressly set forth herein, the Agreement remains unmodified and in full force
and effect.

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

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

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

	 	 	 	 	 
	 	AVATAR HOLDINGS INC.

 	 
	 	By:  	/s/ Gerald D. Kelfer
 	 
	 	 	Name:  	Gerald D. Kelfer 	 
	 	 	Title:  	President and Chief Executive
Officer 	 
	 

	 	 	 	 	 
	 	 	 
	 	/s/ Dennis J. Getman
 	 
	 	Employee 	 
	 	Name:  Dennis J. Getman 	 
	 

 

 

Exhibit A

	3.	 	The Employee is hereby awarded the following Percentages for asset sales of the following
Eligible Properties:

	 	 	 	 	 
	Eligible Property	 	Percentage
	–   WalMart Transactions
	 	$ 	100,000	 flat sum 
	–   American Cablevision
	 	 	1.75	%
	–   *******************************************
	 	 	**	%
	–   Ocala Sale to Government or Not-For-Profit Buyer(a)
	 	 	2.25	%
	–   *******************************************
	 	 	**	%
	–   *******************************************
*******************************************
	 	 	**	%
	–   Rio Rico Utilities
	 	 	1	%
	–   *******************************************
	 	 	**	%

 

(a) If Ocala is not sold to a Government or Not-for-Profit buyer and an unappealable
Development Order is signed for Ocala by applicable governmental agencies and Avatar
Properties Inc. as a result of Employee’s active involvement and engagement in procuring
such Development Order, then upon such signing an amount of $28,366,666.66 shall be deemed
the “Net Sale Proceeds” from this Eligible Property, and the Employee shall not be entitled
to any further compensation with respect to this Eligible Property.

2

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