0000950144-03-006616 Sample Contracts

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March 27, 2003
Stock Option Agreement • May 14th, 2003 • Avatar Holdings Inc • Operative builders

Reference is hereby made to that Nonqualified Stock Option Agreement (the "Option Agreement") dated as of February 13, 1997 between Avatar Holdings Inc. ("Avatar") and Gerald D. Kelfer. I hereby relinquish all right and interest in the option to purchase 225,000 shares of common stock of Avatar at a price of $34 per share granted to me pursuant to the Option Agreement. I acknowledge that the Option Agreement is being terminated without the option granted thereunder having been exercised.

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