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                                                                  EXHIBIT 10.115


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                                   $32,000,000


                                CREDIT AGREEMENT


                         dated as of September 21, 2000




                                     between



               CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP,
                         a Delaware limited partnership,
                                 as the Lender,


                                       and



                     CRESCENT DEVELOPMENT MANAGEMENT CORP.,
                             a Delaware corporation,
                                 as the Borrower



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                                CREDIT AGREEMENT



         THIS CREDIT AGREEMENT (this "Agreement"), dated as of September 21,
2000, between CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP, a Delaware
limited partnership (the "Lender") and CRESCENT DEVELOPMENT MANAGEMENT CORP., a
Delaware corporation (the "Borrower").


                                    ARTICLE I

                                    RECITALS

         WHEREAS, the Borrower and the Lender entered into that certain
$48,166,666 Amended and Restated Credit Agreement dated as of January 1, 1999,
pursuant to which the Lender has extended to the borrower a line of credit loan,
the proceeds of which have been and will be used from time to time for working
capital purposes of the borrower in order to provide funds for making equity
investments in East West Resort Development, L. L. L. P.; East West Resort
Development II, L. L. L. P.; East West Resort Development III, L. L. L. P.; EWRD
Summit Holding, L. L. L. P.; and EWRD Perry Holding, L. L. L. P. for the purpose
of providing such partnerships with funds to develop so-called "Approved
Projects"; and

         WHEREAS, the Borrower and the Lender also entered into that certain
$40,000,000 Credit Agreement dated as of January 1, 1999, pursuant to which the
Lender has extended to the borrower a line of credit loan, the proceeds of which
have been and will be used from time to time for working capital purposes of the
borrower in order to provide funds for making equity investments in East West
Resort Development IV, L. L. L. P. for the purpose of providing such partnership
with funds to develop so-called "Approved Projects"; and

         WHEREAS, the Borrower has applied for and Lender is willing, on the
terms and subject to the conditions hereinafter set forth, to extent to the
Borrower another line of credit loan (the "Loan"), in a maximum aggregate
principal amount at any time outstanding not to exceed $32,000,000 from time to
time prior to the Commitment Termination Date; and

         WHEREAS, the proceeds will be used from time to time for working
capital purposes of the Borrower in order to provide funds for making equity
investments, as provided in this Agreement;

         NOW, THEREFORE, the parties hereto agree as follows:

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                                   ARTICLE II

                    COMMITMENTS, ADVANCE PROCEDURES AND NOTES

         Section 2.1 Commitment. On the terms and subject to the conditions of
this Agreement (including Article V), the Lender agrees, until the Commitment
Termination Date, to make advances under the Loan to the Borrower up to an
aggregate outstanding principal amount of Thirty-Two Million and No/100 Dollars
($32,000,000) (the "Commitment Amount") pursuant to Section 2.2. Prior to the
available Commitment Termination Date, the Borrower may repay and reborrow up to
the full amount of the Commitment Amount in accordance with the terms hereof.
The Lender shall not make any advances after the Commitment Termination Date.
The Lender shall not be required to make any advance under this Loan if, after
giving effect thereto, (a) the aggregate principal amount of all Advances made
would exceed the Commitment Amount or (b) with respect to an Approved Project,
the aggregate Project Equity Advance then outstanding with respect to such
Project would exceed the Project Advance Limit for such Project or (c) with
respect to any Project, the aggregate Project Equity Advance made with respect
to such Project (whether or not all or any portion of such Project Equity
Advance remains outstanding) would exceed the Total Equity for such Project.
Notwithstanding anything in this Agreement to the contrary, (i) the Lender shall
not be obligated to advance additional funds with respect to a Project if a
Subpartnership shall default (after notice and expiration of cure periods) under
the Project Loan Documents, (ii) the Lender shall not be obligated to advance
additional funds in excess of the aggregate Commitments pursuant to Approved
Project Plans if there is an Incapacity of Frampton (as defined in the
Partnership Agreement), (iii) the Lender shall not be obligated to advance
additional funds if there is an Event of Default (as defined in the Partnership
Agreement) that occurs under the Partnership Agreement and that remains uncured
and (iv) the Lender shall not be obligated to advance more than 20% of the
Commitment with respect to a Project until the earlier of that point in time
when (A) the Subpartnership with respect to such Project has entered into a
binding contract for the purchase of real property in connection with the
Project or (B) a Project Loan Commitment has been received from a Project Lender
with respect to the Project. The Lender shall not be required to make any
advance under this Loan for any Project other than an Approved Project.

         Section 2.2 Advance Procedure. Prior to the Commitment Termination
Date, the Borrower may from time to time request that an Advance be made. Each
Advance following the Initial Advance shall be in an amount that is equal to the
lesser of (a) the amount of the Commitment Amount not outstanding, or (b) the
allowable Project Equity Advance for the applicable Project. The request shall
be made by delivering a Application for Advance to the Lender not less than
fifteen (15) calendar days prior to the date upon which such Advance is to be
made and, if all such conditions precedent to such Advance have been satisfied,
the Lender shall make such Advance directly to the Borrower by wire transfer to
the accounts the Borrower shall have specified in its Application for Advance.


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         Section 2.3 Note. The Loan shall be evidenced by a single promissory
note (the "Note") payable to the order of the Lender in the maximum principal
amount of Thirty-Two Million Dollars ($32,000,000).

                                   ARTICLE III

                              PAYMENTS AND INTEREST

         Section 3.1 Payments. Payments of the Loan shall be made as set forth
in this Section 3.1 and shall be without premium or penalty.

                  Section 3.1.1 Final Maturity. On the Stated Maturity Date, the
Borrower shall repay in full all accrued but unpaid interest and the entire
unpaid principal amount of the Loan.

                  Section 3.1.2 Mandatory Payments. The Borrower shall, within
one (1) Business Day following (a) the Borrower's receipt of any Distribution
other than a Tax Distribution, make a mandatory payment of the Loan in an amount
equal to such Distribution less an amount that the Lender may approve in its
reasonable discretion for unpaid expenses and payables that the Borrower has
incurred in the ordinary course of business and a reasonable reserve for future
expenses and (b) the Borrower's receipt of any payments on an Emergency Loan,
make a mandatory payment of the Loan in an amount equal to the payments received
(less amounts retained for expenses and payables). All mandatory payments made
under this Section shall be applied first to accrued but unpaid interest and
thereafter to the outstanding principal balance of the Loan. The Borrower
acknowledges to the Lender that (i) each Subpartnership is generally obligated
to distribute all net cash flow (other than tax distributions) to its members
(including the Partnership) and (ii) the Partnership is generally obligated to
distribute all net cash flow (other than tax distributions and amounts
established as reserves) to its partners (including the Borrower).
Notwithstanding anything in this Agreement to the contrary, the Lender shall not
be obligated to make any additional Advance to the Borrower pursuant to this
Agreement if, based on the Lender's determination in its reasonable discretion,
the Partnership or any Subpartnership has failed to satisfy its obligation to
make the distributions described in the preceding sentence and such failure is
continuing.

                  Section 3.1.3 Acceleration of Stated Maturity Date.
Immediately upon any acceleration of the Stated Maturity Date of the Loan
pursuant to Section 8.2 or Section 8.3, the Borrower shall repay the Loan to the
full extent of such acceleration.

         Section 3.2 Interest Provisions. Interest on the outstanding principal
amount of the Loan shall accrue and be payable in accordance with this Section
3.2.

                  Section 3.2.1 Rate. Prior to an Event of Default, the
outstanding principal balance of the Loan shall accrue interest at the rate (the
"Interest Rate") of 11.5%, compounded annually.


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                  Section 3.2.2 Post-Maturity Rates. Upon and after an Event of
Default, the Loan shall accrue interest on the outstanding principal balance of
the Loan and, to the extent permitted by applicable law, on the unpaid interest,
at a rate per annum equal to the Interest Rate plus an additional 5.0% per annum
(the "Default Rate"); provided in no event shall the Default Rate exceed the
maximum rate of interest permitted by applicable law.

                  Section 3.2.3 Accrual. At the end of each calendar year during
the term hereof, all interest that has accrued but has not been paid during such
calendar year shall be added to the outstanding principal balance of the Loan
and shall, thereafter, bear interest, prior to an Event of Default, at the
Interest Rate.


                                   ARTICLE IV

                            CERTAIN OTHER PROVISIONS

         Section 4.1 Payments, Computations, etc. Unless otherwise expressly
provided, all payments by the Borrower pursuant to this Agreement, the Note or
any other Loan Document shall be made, without setoff, deduction or
counterclaim, not later than 12:00 noon, Fort Worth, Texas time, on the date
due, in same day or immediately available funds, to such account as the Lender
shall specify from time to time by written notice delivered to the Borrower.
Whenever any payment to be made shall otherwise be due on a day that is not a
Business Day, such payment shall be made on the next succeeding Business Day and
such extension of time shall be included in computing interest and fees, if any,
in connection with such payment.

         Section 4.2 Setoff. The Lender shall, upon the occurrence of any
Default have the right to appropriate and apply to the payment of the Note
(whether or not then due) all amounts of the Borrower then held by the Lender.
The Lender's rights under this Section are in addition to other rights and
remedies (including other rights of setoff under applicable law or otherwise)
that the Lender may have. The Borrower hereby waives all rights of setoff,
appropriation and application it may have pursuant to applicable law or
otherwise.

         Section 4.3 Use of Proceeds. The Borrower shall use each Advance
(including but not limited to the Initial Advance) solely to make capital
contributions to the Partnership, in an amount that does not exceed the Project
Equity Advance for a Project, and loans permitted by the Partnership Agreement
and to defray expenses incurred in connection with this transaction.


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                                    ARTICLE V

                             CONDITIONS TO BORROWING


         Section 5.1 Initial Advance. The Lender's obligation to fund the
Initial Advance shall be subject to the prior or concurrent satisfaction of each
of the conditions precedent set forth in this Section 5.1.

                  Section 5.1.1 Application for Advance. The Lender shall have
received an Application for Advance.

                  Section 5.1.2 Resolutions, etc. The Lender shall have received
from the Borrower a certificate of resolutions and incumbency as to resolutions
of its Board of Directors then in full force and effect authorizing the
execution, delivery and performance of this Agreement, the Note and each other
Loan Document to which it is a party.

                  Section 5.1.3 Delivery of Note. The Lender shall have received
the Note duly executed and delivered by the Borrower.

                  Section 5.1.4 Borrower Security Agreement. The Lender shall
have received executed counterparts of the Borrower's Security Agreement
together with such UCC-1 financing statements and UCC search reports as the
Lender may require.

                  Section 5.1.5 Financial Information, etc. The Lender shall
have received, in form and scope reasonably satisfactory to the Lender, the
financial statements referred to in Section 6.5.

                  Section 5.1.6 Closing Fees, Expenses, etc. The Lender shall
have received all fees, costs and expenses due and payable pursuant to this
Agreement.

         Section 5.2 All Advances. The Lender's obligation to fund future
Advances shall be subject to the satisfaction of each of the conditions
precedent set forth in this Section 5.2.

                  Section 5.2.1 Application for Advance. The delivery of an
Application for Advance.

                  Section 5.2.2 Compliance with Warranties, No Default, etc.
Both before and after giving effect to any Advances the following statements
shall be true and correct to the Lender's satisfaction:

                           (a) the representations and warranties set forth in
                  this Agreement shall be true and correct with the same effect
                  as if then made; and

                           (b) no Default shall have then occurred and be
                  continuing.

                  Section 5.2.3 Organic Documents. The Lender shall have
received a copy of the Organic Documents for the Subpartnership that will be
capitalized with the proceeds of the requested Advance.


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                  Section 5.2.4 Resolutions, Etc. The Lender shall have received
from the Partnership (in its individual capacity and in its capacity as manager
of the applicable Subpartnership) a certificate of resolutions and incumbency
authorizing the organization of the Subpartnership, and the Subpartnership's
execution, delivery and performance of the Project Loan Documents.

                  Section 5.2.5 Approved Budget. The Lender shall have received
a final Approved Budget with respect to the Project to be constructed by the
Subpartnership in which the Partnership proposes to make a capital contribution
with the proceeds of the requested Advance (the "Contemplated Project").

                  Section 5.2.6 Project Loan Commitment. The Lender shall have
received a fully executed copy of the Project Loan Commitment for the
Contemplated Project if there is a Project Loan Commitment for the Contemplated
Project at the time of the delivery of the Application for Advance. In the event
there is not a Project Loan Commitment for the Contemplated Project at the time
of the delivery of the Application for Advance but such Project Loan Commitment
is later received, the Borrower shall promptly provide a copy of such commitment
to the Lender upon receipt.

                  Section 5.2.7 Evidence of Insurance. The Lender shall have
received adequate evidence that all insurance required by this Agreement is in
effect with respect to the Contemplated Project.

                  Section 5.2.8 Evidence of Approval. The Lender shall have
received evidence, satisfactory to it, that the Project Lender has approved all
conditions precedent to its obligation to advance proceeds of the Project Loan
with respect to the Contemplated Project.

                  Section 5.2.9 Estoppel Letter from Project Lender. If there is
a Project Loan Commitment from a Project Lender at the time of the delivery of
the Application for Advance, the Lender shall have received a duly executed
letter from the Project Lender providing the Lender with written notice of any
event of default under the Project Loan Documents with respect to the
Contemplated Project, and a reasonable opportunity in which the Lender may cure
such default prior to the Project Lender's exercise of any remedies available to
it under the Project Loan Documents.

                  Section 5.2.10 Fees and Expenses. The Lender shall have
received all fees, costs and expenses due and payable pursuant to this
Agreement.

                  Section 5.2.11 Satisfactory Legal Form. All documents executed
or submitted pursuant hereto shall be reasonably satisfactory in form and
substance to the Lender and its counsel; the Lender shall have received all
other information, approvals, opinions, documents or instruments as the Lender
or its counsel may reasonably request.


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                                   ARTICLE VI

                         REPRESENTATIONS AND WARRANTIES

         To induce the Lender to enter into this Agreement and to make the Loan
hereunder and to make each Advance pursuant to the Loan, the Borrower represents
and warrants unto the Lender as of the day and year first written above and on
the date of each Advance as set forth in this Article VI:

         Section 6.1 Organization, etc. The Borrower is a duly formed
corporation under the laws of Delaware, is duly qualified to do business and has
full power and authority and holds all requisite governmental licenses, permits
and other approvals to enter into and perform its obligations under this
Agreement, the Note and each other Loan Document to which it is a party, and to
own and hold its property and to conduct its business substantially as it
currently is conducted.

         Section 6.2 Due Authorization, Non-Contravention, etc. The Borrower's
execution, delivery and performance of this Agreement, the Note and each other
Loan Document executed or to be executed by it, are within the Borrower's
corporate powers, have been duly authorized by all necessary action (including
but not limited to any consent of stockholders required by law or its Organic
Documents) and do not (a) contravene the Borrower's Organic Documents; or (b)
contravene any contractual restriction, law or governmental regulation or court
decree or order binding on or affecting the Borrower except for such
contraventions that will not, singly or in the aggregate, have a material
adverse effect on the Borrower's ability to perform its obligations under this
Agreement or any Loan Document.

         Section 6.3 Government Approval, Regulation, etc. No authorization,
consent or approval or other action by, and no notice to, filing with or license
from, any governmental authority or regulatory body or other Person is required
for the Borrower's due execution or delivery of this Agreement, the Note or any
other Loan Document to which it is a party, or for the consummation and
performance of the transactions contemplated hereby or thereby.

         Section 6.4 Validity, etc. Each of this Agreement and, upon the due
execution and delivery thereof, the Note and each other Loan Document executed
by the Borrower or the Partnership, as the case may be, constitutes the legal,
valid and binding obligation of such party enforceable in accordance with its
terms, except as such enforceability may be limited by applicable bankruptcy,
reorganization, insolvency and other similar laws affecting creditors' rights
generally.

         Section 6.5 Financial Information. All financial information that has
been or shall hereafter be furnished to the Lender by or on behalf of the
Borrower or by any other Person at the Borrower's direction for the purposes of
or in connection with this Agreement present fairly the financial condition as
at the dates thereof (subject to normal year end adjustments in the case of
unaudited financial statements).


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         Section 6.6 No Material Adverse Change. There has been no material
adverse change in the business, financial condition, operations, assets,
revenues, or properties, of the Borrower taken as a whole from the financial
information previously provided to the Lender.

         Section 6.7 No Default Under Indebtedness. No event of default has
occurred and is continuing, and no event has occurred that with the giving of
notice, passage of time or both would become a material event of default under
any of the Indebtedness permitted to be incurred pursuant to Section 7.2.2
hereof.

         Section 6.8 Litigation, Labor Controversies, etc. There is no pending
or, to the Borrower's knowledge, threatened litigation, action, proceeding or
labor controversy affecting the Borrower, the Partnership or any Subpartnership
that, if adversely determined, reasonably could be expected to have a material
adverse effect on the Borrower, the Partnership, any Subpartnership, any Project
or the Lender.

         Section 6.9 Taxes. The Borrower has filed all material tax returns and
reports required by law to have been filed and has paid all taxes and
governmental charges thereby shown to be due and payable.

         Section 6.10 ERISA. Neither the Borrower, nor, to the Borrower's best
knowledge, any other person has taken any action or failed to take any action
that would subject the Borrower, the Partnership or any Subpartnership to any
potential liability under ERISA.

         Section 6.11 Accuracy of Information. All factual information, as
amended, supplemented or modified, furnished by or on behalf of the Borrower in
writing to (or as directed by) the Lender for purposes of or in connection with
this Agreement, any other Loan Document or any transaction contemplated hereby
is true and accurate in all material respects as of the date of execution and
delivery of this Agreement and all other such factual information thereafter
furnished by or on behalf of the Borrower to (or as directed by) the Lender
pursuant to the terms of this Agreement or any other Loan Document is true and
accurate in every material respect on the date as of which such information as
dated or certified, and does not omit any material fact necessary to make such
Information not misleading.


                                   ARTICLE VII

                                    COVENANTS

         Section 7.1 Affirmative Covenants. The Borrower will perform the
obligations set forth in this Section 7.1.

                  Section 7.1.1 Financial Information, Reports, Notices, etc.
The Borrower will furnish, or will cause to be furnished, to the Lender copies
of the following financial statements, reports, notices and information:


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                           (a) As soon as available and in any event within 45
                  days after the end of each Fiscal Quarter of each Fiscal Year
                  of the Borrower (including the final Fiscal Quarter of each
                  Fiscal Year), the Borrower will deliver, or cause to be
                  delivered, balance sheets of the Borrower as of the end of
                  such Fiscal Quarter and statements of income, cash flow and
                  the Borrower's equity for such Fiscal Quarter and for the
                  period commencing at the end of the previous Fiscal Year and
                  ending with the end of such Fiscal Quarter, setting forth in
                  each case in comparative form the figures for the
                  corresponding Fiscal Quarter of the previous Fiscal Year,
                  certified by the Borrower's chief financial officer in a
                  manner acceptable to the Lender.

                           (b) if requested by the Lender for any Fiscal Year,
                  the Borrower will have prepared at the Borrower's expense and
                  the Borrower will deliver, or cause to be delivered, to the
                  Lender a copy of an annual audit report for the Borrower
                  including therein balance sheets of the Borrower as of the end
                  of such Fiscal Year and statements of cash flow, income and
                  the Borrower's equity for such Fiscal Year, in each case
                  certified (without qualification) by independent public
                  accountants reasonably acceptable to the Lender.

                           (c) a copy of all financial accounting and reports
                  that are to be provided to the Partnership's partners pursuant
                  to Article 11 of the Partnership Agreement.

                           (d) As soon as possible and in any event within three
                  Business Days after becoming aware of

                                    (i) the occurrence of any material adverse
                           development with respect to any Project,
                           Subpartnership, Project Loan or the Partnership's
                           investment in any Subpartnership, or

                                    (ii) copies of any material notices or
                           communications from a Project Lender or a
                           Governmental Authority with respect to the Borrower,
                           the Partnership, a Project or the Project Loan
                           Documents; or

                                    (iii) copies of any material notices or
                           communications from the Partnership, a Subpartnership
                           to a Project Lender or Governmental Authority with
                           respect to a Project or the Project Loan Documents.

                  The Borrower will deliver, or will cause to be delivered,
                  notice thereof and copies of all documentation relating
                  thereto.

                           (e) The Borrower will deliver, or will cause to be
                  delivered, such other information respecting the condition or
                  operations, financial or otherwise, of the Borrower, the
                  Partnership or any Subpartnership as the Lender from time to
                  time reasonably may request.


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                  Section 7.1.2 Compliance with Laws, etc. The Borrower will,
and, consistent with the Borrower's rights and obligations under the Partnership
Agreement, will cause the Partnership and each Subpartnership to, comply in all
material respects with all applicable Governmental Requirements such compliance
to include, but not be limited to:

                           (a) the maintenance and preservation of its existence
                  and qualification in all foreign jurisdictions where it is
                  required to do so except where the failure to do so would not
                  be material; and

                           (b) the payment, before the same become delinquent,
                  of all taxes, assessments and governmental charges imposed
                  upon it or upon its property except to the extent they are
                  being diligently contested in good faith by appropriate
                  proceedings and for which adequate reserves in accordance with
                  GAAP shall have been set aside on its books.

                  Section 7.1.3 Maintenance of Properties. The Borrower will,
and, consistent with the Borrower's rights and obligations under the Partnership
Agreement, will cause the Partnership and each Subpartnership to, maintain,
preserve, protect and keep its properties (specifically including but not
limited to, the Projects) in good repair, working order and condition, normal
wear and tear excepted, and make necessary and proper repairs, renewals and
replacements so that its business carried on in connection therewith may be
properly conducted at all times.

                  Section 7.1.4 Books and Records. The Borrower will, and,
consistent with the Borrower's rights and obligations under the Partnership
Agreement, will cause the Partnership and each of its Subpartnerships to, keep
books and records that accurately reflect all of its business affairs and
transactions in all material respects. The Borrower will, and will cause the
Partnership and each Subpartnership to, permit the Lender at reasonable times
and intervals during normal business hours to examine and photocopy extracts
from any of its books or other corporate records. The Borrower shall pay any
fees of its independent public accountant incurred in connection with the
Lender's exercise of its rights pursuant to this Section.

                  Section 7.1.5 Environmental Covenant. The Borrower will, and,
consistent with the Borrower's rights and obligations under the Partnership
Agreement, will cause the Partnership and each of its Subpartnerships to,

                           (a) use and operate all of its assets in compliance
                  in all material respects with all Environmental Laws, keep all
                  necessary and material permits, approvals, certificates,
                  licenses and other authorizations required under Environmental
                  Laws in effect and remain in compliance therewith, and handle
                  all Hazardous Materials in compliance in all material respects
                  with all Environmental Laws; and

                           (b) immediately notify the Lender and provide copies
                  upon receipt of all potentially material written claims,
                  complaints or notices (excluding routine fee or schedule
                  notices) relating to non-compliance with, or liabilities or
                  obligations


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<PAGE>   12


                  arising under or relating in any way to, Environmental Laws
                  with respect to its assets.

                  Section 7.1.6 ERISA Compliance. The Borrower will, and will
cause each of its ERISA affiliates to, maintain all employee benefit plans in
compliance in all material respects with all applicable law, including any
reporting requirements, and make all contributions due under the terms of each
employee benefit plan or as required by law.

         Section 7.2 Negative Covenants. The Borrower will comply with the
obligations set forth in this Section 7.2.

                  Section 7.2.1 Business Activities. The Borrower will not, and,
consistent with the Borrower's rights and obligations under the Partnership
Agreement, will not permit the Partnership or any of its Subpartnerships to,
engage in any business activity other than those activities set forth in the
Organic Documents for each such entity.

                  Section 7.2.2 Indebtedness. The Borrower will not, and,
consistent with the Borrower's rights and obligations under the Partnership
Agreement, will not permit the Partnership or any of its Subpartnerships to,
create, incur, assume or suffer to exist or otherwise become or be liable in
respect of any indebtedness, other than, without duplication, the following:

                           (a) indebtedness in respect of the Loan, other
                  indebtedness to the Lender, and other obligations;

                           (b) unsecured Indebtedness incurred in the ordinary
                  course of its business in the nature of open accounts extended
                  by suppliers and other vendors on normal trade terms in
                  connection with purchases of goods and services, accrued
                  liabilities, deferred income and deferred taxes;

                           (c) Emergency Loans, as described in the Partnership
                  Agreement and the Subpartnership Organic Documents, and loans
                  used to exercise the Advance Remedy as described in the
                  Partnership Agreement;

                           (d) the Project Loans incurred by Subpartnerships on
                  terms that are consistent with the requirements of this
                  Agreement; and

                           (e) other unsecured Indebtedness of the Borrower, the
                  Partnership and the Subpartnerships in an aggregate amount not
                  to exceed $50,000 for the Borrower, $50,000 for the
                  Partnership and $10,000 for any Subpartnership.

                  Section 7.2.3 Asset Dispositions, etc. The Borrower will not,
and, consistent with the Borrower's rights and obligations under the Partnership
Agreement, will not permit the Partnership or any of its Subpartnerships to,
sell, transfer, lease, contribute, convey or otherwise dispose of all or any
part of its assets to any Person, unless


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                           (a) no Default has occurred and is continuing or
                  would occur after giving effect thereto; or

                           (b) such sale, transfer, lease or other disposition
                  is approved by the Lender or is approved in the then-current
                  Approved Annual Business Plan under the Partnership Agreement.

                  Section 7.2.4 Restriction on Distributions. The Borrower will
not make dividend distributions to its shareholders at any time when there
exists an outstanding balance on the Loan.


                                  ARTICLE VIII

                                EVENTS OF DEFAULT

         Section 8.1 Listing of Events of Default. Each of the following events
or occurrences described in this Section 8.1 shall constitute an "Event of
Default." Upon the occurrence of an Event of Default (or any event or state of
facts that, with the giving of notice or the passage of time or both, would
constitute an Event of Default), the Borrower shall give notice thereof to the
Lender.

                  Section 8.1.1 Non-Payment of Obligations. The Borrower shall
default in the payment when due of any principal of the Loan, the East West
Resorts Term Loan, the East West Resorts Credit Loan, or any Other Crescent
Indebtedness, or of any interest in respect of the Loan, the East West Resorts
Term Loan, the East West Resorts Credit Loan, or any Other Crescent
Indebtedness.

                  Section 8.1.2 Breach of Warranty. Any representation or
warranty made or deemed to be made hereunder or in any other Loan Document, any
East West Resorts Loan Document, any Other Crescent Indebtedness Loan Document,
or any other writing or certificate furnished by or on behalf of the Borrower to
the Lender for the purposes of or in connection with this Agreement, either of
the East West Resorts Loans, or any Other Crescent Indebtedness or any such
other Loan Document, any other East West Resorts Loan Document, or any Other
Crescent Indebtedness Loan Document, is or shall be incorrect when made in any
material respect.

                  Section 8.1.3 Non-Performance of Other Covenants and
Obligations. There shall be a default in the due performance and observance of
any other agreement contained herein or in any other Loan Document, any East
West Resorts Loan Document, or any Other Crescent Indebtedness Loan Document
executed by the Borrower, and such default shall continue unremedied for a
period of 30 days after the Lender shall have given notice thereof to the
Borrower.


                                       12
<PAGE>   14


                  Section 8.1.4 Bankruptcy, Insolvency, etc. The Borrower, the
Partnership, any Subpartnership, any Other Tahoe Area Investment Vehicle, East
West Resorts or any EWRD Partnership shall:

                           (a) become insolvent or generally fail to pay, or
                  admit in writing its inability or unwillingness to pay, debts
                  as they become due;

                           (b) apply for, consent to, or acquiesce in, the
                  appointment of a trustee, receiver, sequestrator or other
                  custodian for the Borrower, the Partnership, any
                  Subpartnership, any Other Tahoe Area Investment Vehicle, East
                  West Resorts or any EWRD Partnership or any property of any
                  thereof, or make a general assignment for the benefit of
                  creditors;

                           (c) absent such application, consent or acquiescence
                  permit or suffer to exist the appointment of a trustee,
                  receiver, sequestrator or other custodian for the Borrower,
                  the Partnership, any Subpartnership, any Other Tahoe Area
                  Investment Vehicle, East West Resorts or any EWRD Partnership
                  for a substantial part of the property of any thereof, and
                  such trustee, receiver, sequestrator or other custodian shall
                  not be discharged within 60 days, provided that the Borrower,
                  the Partnership, each Subpartnership, any Other Tahoe Area
                  Investment Vehicle, East West Resorts and each EWRD
                  Partnership hereby expressly authorize the Lender to appear in
                  any court conducting any relevant proceeding during such
                  60-day period to preserve, protect and defend their rights
                  under the Loan Documents and the East West Resort Loan
                  Documents;

                           (d) permit or suffer to exist the commencement of any
                  (x) bankruptcy, reorganization, debt arrangement or other case
                  or proceeding under any bankruptcy or insolvency law, or (y)
                  any dissolution, winding up or liquidation proceeding, in
                  respect of the Borrower, the Partnership, any Subpartnership,
                  any Other Tahoe Area Investment Vehicle, East West Resorts or
                  any EWRD Partnership, and, if any such case or proceeding is
                  not commenced by the Borrower, the Partnership, any
                  Subpartnership, any Other Tahoe Area Investment Vehicle, East
                  West Resorts or any EWRD Partnership, such case or proceeding
                  shall be consented to or acquiesced in by the Borrower, the
                  Partnership, such Subpartnership, such Other Tahoe Area
                  Investment, Vehicle East West Resorts or any EWRD Partnership
                  or shall result in the entry of an order for relief or, in the
                  event of any case or proceeding described in clause (x), shall
                  remain for 120 days undismissed, provided that the Borrower,
                  the Partnership, each Subpartnership, each Other Tahoe Area
                  Investment, Vehicle East West Resorts and each EWRD
                  Partnership hereby expressly authorizes the Lender to appear
                  in any court conducting any such case or proceeding during
                  such 120-day period to preserve, protect and defend their
                  rights under the Loan Documents or the East West Loan
                  Documents; or


                                       13
<PAGE>   15


                           (e) take any partnership, limited liability company
                  or corporate action authorizing, or with intent to further any
                  of the foregoing.

         Section 8.2 Action if Bankruptcy. If any Event of Default described in
clauses (a) through (e) of Section 8.1.4 shall occur with respect to the
Borrower, the Partnership, any of its Subpartnerships, East West Resorts, or any
EWRD Partnership, the Commitment (if not theretofore terminated) to make
Advances shall automatically terminate and the outstanding principal amount of
the Loan shall automatically be and become immediately due and payable, without
notice or demand.

         Section 8.3 Action if Payment Event of Default under East West Loan. If
any Event of Default described in Section 8.1.1 shall occur due to the
Borrower's default in the payment when due of any principal or interest in
respect of the East West Resorts Term Loan, the East West Resorts Credit Loan or
any Other Crescent Indebtedness (but not for any other reason), and the Borrower
fails to pay such principal or interest in full within 30 days after the due
date thereof, then the Lender shall by notice to the Borrower declare all or any
portion of the outstanding principal amount of the Loan and other obligations to
be due and payable and the Commitment (if not theretofore terminated) to be
terminated, whereupon the full unpaid amount of the Loan shall be and become
immediately due and payable, without further notice, demand or presentment and
the Commitment shall terminate.

         Section 8.4 Action if Other Event of Default under East West Loan or
Other Crescent Indebtedness. If any Event of Default (other than any Event of
Default described in Section 8.2 or Section 8.3) shall occur with respect to any
East West Resorts Loan Document or Other Crescent Indebtedness Loan Document
(but not for any other reason) for any reason, whether voluntary or involuntary,
and (a) be continuing for a period of 90 days if an Event of Default under
Section 8.1.2 or (b) ,be continuing for a period of 90 days after notice thereof
shall have been given to the Borrower by the Lender if an Event of Default under
Section 8.1.3, then the Lender shall by notice to the Borrower declare all or
any portion of the outstanding principal amount of the Loan and other
obligations to be due and payable and the Commitment (if not theretofore
terminated) to be terminated, whereupon the full unpaid amount of the Loan shall
be and become immediately due and payable, without further notice, demand or
presentment and the Commitment shall terminate.

         Section 8.5 Action if Other Event of Default. If any Event of Default
(other than any Event of Default described in Section 8.2, Section 8.3, or
Section 8.4) shall occur for any reason, whether voluntary or involuntary, and
be continuing, the Lender shall by notice to the Borrower declare all or any
portion of the outstanding principal amount of the Loan and other obligations to
be due and payable and the Commitment (if not theretofore terminated) to be
terminated, whereupon the full unpaid amount of the Loan shall be and become
immediately due and payable, without further notice, demand or presentment and
the Commitment shall terminate.

         Section 8.6 Rescission of Event of Default. If an Event of Default
occurs hereunder and such Event of Default would not have occurred but for the
default by a Subpartnership (for


                                       14
<PAGE>   16


purposes of this Section, the "Defaulting Subpartnership") under Section 8.1.4
hereof, (such Events of Default being described in this Section as "Specified
Events of Default") then the Lender shall be required to rescind and annul the
Event of Default if and only if, within twenty (20) Business Days following such
Specified Event of Default:

                  (a) all Defaults and Events of Default, other than the
         Specified Events of Default, are remedied or waived to the Lender's
         sole satisfaction; and

                  (b) the partners of the Partnership or Other Tahoe Area
         Investment Vehicle, as appropriate, have approved of a revised business
         plan with respect to the Project owned by the Defaulting
         Subpartnership, the Borrower, on the basis of such revised business
         plan, has submitted to the Lender a revised Annual Business Plan and
         the Lender, in its reasonable discretion, has Approved such Annual
         Business Plan.

No action taken by the Lender pursuant to this provision shall affect any
subsequent Default or Event of Default with respect to the Borrower or impair
any right or remedy consequent thereon.


                                   ARTICLE IX

                            MISCELLANEOUS PROVISIONS

         Section 9.1 Waivers, Amendments, etc. The provisions of this Agreement
and of each other Loan Document may from time to time be amended, modified or
waived, if such amendment, modification or waiver is in writing and consented to
by the Borrower and the Lender. No failure or delay on the part of the Lender,
or the holder of any Note in exercising any power or right under this Agreement
or any other Loan Document shall operate as a waiver thereof, nor shall any
single or partial exercise of any such power or right preclude any other or
further exercise thereof or the exercise of any other power or right. No notice
to or demand on the Borrower in any case shall entitle it to any notice or
demand in similar or other circumstances. No waiver or approval by the Lender or
the holder of any Note under this Agreement or any other Loan Document shall,
except as may be otherwise stated in such waiver or approval, be applicable to
subsequent transactions. No waiver or approval hereunder shall require any
similar or dissimilar waiver or approval thereafter to be granted hereunder.

         Section 9.2 Notices. All notices and other communications provided to
any party hereto under this Agreement or any other Loan Document shall be in
writing and addressed, delivered or transmitted to such party at its address or
facsimile number set forth below its signature hereto, or at such other address
or facsimile number as may be designated by such party in a notice to the other
parties. Any notice, if sent via United States Postal Service Express Mail or
certified mail, properly addressed with postage prepaid or if sent via
nationally recognized overnight courier service, properly addressed with
delivery fees prepaid, shall be deemed given when received; any notice, if
transmitted by facsimile, shall be deemed given one business day after receipt
of electronic confirmation of transmission.


                                       15
<PAGE>   17


         Section 9.3 Payment of Costs and Expenses. The Borrower agrees to pay
on demand all of the Lender's reasonable expenses (including the reasonable fees
and out-of-pocket expenses of the Lender's counsel and of local counsel, if any,
who the Lender's counsel may retain) in connection with this transaction

         Section 9.4  Indemnification.

                  (a) In consideration of the execution and delivery of this
         Agreement by the Lender and the extension of the Commitment, the
         Borrower hereby indemnifies, exonerates and holds the Lender and each
         of its respective trustees, partners, stockholders, officers,
         directors, employees, agents, attorneys, consultants and experts
         (collectively, the "Indemnified Parties") free and harmless from and
         against any and all actions, causes of action, suits, judgments,
         claims, demands, losses, costs, liabilities (including, without
         limitation, strict liability), penalties, fines and damages,
         (including, without limitation, punitive damages), and expenses
         incurred in connection therewith (irrespective of whether any such
         Indemnified Party is a party to the action for which indemnification
         hereunder is sought), including reasonable attorneys, consultants and
         experts fees and disbursements (collectively, the "Indemnified
         Liabilities"), imposed upon or incurred by the Indemnified Parties or
         any of them as a result of, or arising out of, or relating to

                           (i) any transaction financed or to be financed in
                  whole or in part, directly or indirectly, with the Loan
                  proceeds;

                           (ii) the entering into and performance of this
                  Agreement and any other Loan Document by any of the
                  Indemnified Parties;

                           (iii) the actual or alleged release or presence of
                  any Hazardous Substance at, to or from any asset or former
                  asset of the Borrower, the Partnership, any Other Tahoe Area
                  Investment Vehicle, or any Subpartnership; or

                           (iv) the actual or alleged violation of any
                  Environmental Law by any person at or in connection with any
                  current asset or former asset of the Borrower, the
                  Partnership, any Other Tahoe Area Investment Vehicle, or any
                  of any Subpartnership.

                  except for any such Indemnified Liabilities arising for the
                  account of a particular Indemnified Party by reason of the
                  relevant Indemnified Party's gross negligence or wilful
                  misconduct, and if and to the extent that the foregoing
                  undertaking may be unenforceable for any reason, the Borrower
                  hereby agrees to make the maximum contribution to the payment
                  and satisfaction of each of the Indemnified Liabilities that
                  is permissible under applicable law, except as aforesaid to
                  the extent not payable by reason of the Indemnified Party's
                  gross negligence or wilful misconduct or breach of such
                  obligations.


                                       16
<PAGE>   18


                  (b) THE LENDER SHALL NOT BE RESPONSIBLE OR LIABLE TO ANY OTHER
         PARTY HEREUNDER OR ANY OTHER PERSON FOR CONSEQUENTIAL DAMAGES THAT MAY
         BE ALLEGED AS A RESULT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT.

         Section 9.5 Severability. Any provision of this Agreement or any other
Loan Document that is prohibited or unenforceable in any jurisdiction shall, as
to such provision and such jurisdiction, be ineffective to the extent of such
prohibition or unenforceability without invalidating the remaining provisions of
this Agreement or such Loan Document or affecting the validity or enforceability
of such provision in any other jurisdiction.

         Section 9.6 Headings. The various headings of this Agreement and of
each other Loan Document are inserted for convenience only and shall not affect
the meaning or interpretation of this Agreement or such other Loan Document or
any provisions hereof or thereof.

         Section 9.7 Execution in Counterparts, Effectiveness, etc. This
Agreement may be executed by the parties hereto in several counterparts, each of
which shall be an original and all of which shall constitute together but one
and the same agreement. This Agreement, together with each other Loan Document,
shall become effective when counterparts hereof executed on behalf of the
Borrower and the Lender (or notice thereof satisfactory to the Lender) shall
have been received by the Lender and notice thereof shall have been given by the
Lender to the Borrower.

         Section 9.8 Governing Law: Entire Agreement. THIS AGREEMENT, THE NOTES
AND EACH OTHER LOAN DOCUMENT SHALL EACH BE DEEMED TO BE A CONTRACT MADE UNDER
AND GOVERNED BY THE LAWS OF THE STATE OF TEXAS WITHOUT REGARD FOR CONFLICT OF
LAWS PRINCIPLES. Except as otherwise provided herein, this Agreement and the
other Loan Documents constitute the entire understanding among the parties
hereto with respect to the subject matter hereof and supersede any prior
agreements, written or oral, with respect thereto.

         Section 9.9 Successors and Assigns. This Agreement shall be binding
upon and shall inure to the benefit of the parties hereto and their respective
successors and assigns; provided, however, that the Borrower may not assign or
transfer its rights or obligations hereunder without the Lender's prior written
consent.

         Section 9.10 REIT Compliance. The Borrower acknowledges that the
Lender's affiliate, Crescent Real Estate Equities Company ("Crescent"), is a
real estate investment trust under the Code. The Borrower agrees that it will
not knowingly or intentionally take or omit to take any action that the Borrower
knows would or could result in Crescent being disqualified from treatment as a
real estate investment trust under the Code.


                                       17
<PAGE>   19


                                    ARTICLE X

                                   DEFINITIONS

         Section 10.1 Defined Terms. In addition to the terms defined in
previous portions of this Agreement, the following terms when used in this
Agreement shall, except where the context otherwise requires, have the following
meanings (such meanings to be equally applicable to the singular and plural
forms thereof):

         "1999 Credit Loan" means that line of credit loan, and related
$40,000,000 Credit Agreement, promissory note, and security agreement, from the
Lender to the Borrower, effective January 1, 1999, and all extensions,
modifications, amendments, and renewals thereof.

         "Advance" means all money advances under the Loan made by the Lender
pursuant to an Application for Advance in accordance with Article II.

         "Agreement" means, on any date, this Credit Agreement.

         "Amended and Restated Credit Loan" means that line of credit loan, and
related $48,166,666 Amended and Restated Credit Agreement, promissory note, and
security agreement, from the Lender to the Borrower effective January 1, 1999,
and all extensions, modifications, amendments, and renewals thereof.

         "Annual Business Plan" is defined in the Partnership Agreement.

         "Application for Advance" means a loan request and certificate duly
executed by the Borrower, in the form that is attached hereto as Exhibit A or
such other form that is approved by the Lender from time to time.

         "Approved" has the meaning ascribed to "Approval of," "Approved by,"
and similar expressions in the Partnership Agreement.

         "Approved Budget" means the Proposed Budget in the Approved Project
Plan, as adjusted and approved by the Partnership, the Borrower (both general
and limited partners) and the Project Lender.

         "Approved Project Plan" shall be each of the Approved Project Plans
contemplated by Section 3.2 of the Partnership Agreement which shall, among
other things, include a Proposed Budget and for Projects to be developed in more
than one phase, a Project Advance Limit.

         "Borrower" means Crescent Development Management Corp., a Delaware
corporation, and its successors and assigns permitted hereunder.


                                       18
<PAGE>   20


         "Borrower Security Agreement" means the Security Agreement executed and
delivered by the Borrower granting the Lender a security interest in (a) all
Partner Loans now or hereafter owing to the Borrower and all security therefor,
and (b) the Borrower's partnership interest in the Partnership.

         "Business Day" means any day that is neither a Saturday or Sunday nor a
legal holiday on which banks are authorized or required to be closed in New
York, New York.

         "CERCLA" means the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended.

         "Code" means the Internal Revenue Code of 1986, as amended, reformed or
otherwise modified from time to time.

         "Commitment" is defined in the Partnership Agreement.

         "Commitment Termination Date" means the earlier of (i) the occurrence
of an Event of Default or (ii) the Stated Maturity Date.

         "Default" means any Event of Default or any condition, occurrence or
event that, after notice or lapse of time or both, would constitute an Event of
Default.

         "Distribution" means each Distribution (other than deemed
distributions) made to the Borrower pursuant to Section 4.1 or Article 10 of the
Partnership Agreement.

         "East West Loans" means the East West Resorts Term Loan and East West
Resorts Credit Loan.

         "East West Resorts" means East West Resorts, LLC, a Delaware limited
liability company, and its successor or successors by merger, consolidation or
any other business combination as a result of which, by operation of law or by
agreement, such successor or successors assume the obligations or liabilities of
East West Resorts, LLC under any or all East West Resorts Loans.

         "East West Resorts Credit Loan" means that line of credit loan, and
related Credit Agreement, promissory note, and security agreement, from the
Lender to the Borrower made effective January 1, 1998, and all extensions,
modifications, amendments, and renewals thereof.

         "East West Resorts Loan Documents" means all documents evidencing,
securing or governing either of the East West Loans, including but not limited
to that Promissory Note dated February 29, 1996 in the principal amount of
$3,100,000, that Security Agreement dated February 29, 1996, that Credit
Agreement dated as of January 1, 1998, and all "Loan Documents" as defined
therein, and all extensions, modifications, amendments, and renewals thereof.


                                       19
<PAGE>   21


         "East West Resorts Term Loan" means that term loan, and related
promissory note and Security Agreement made by the Borrower, from the Lender to
the Borrower made February 29, 1996, and all extensions, modifications,
amendments and renewals thereof.

         "Emergency Loan" means each Emergency Loan made by the Borrower
pursuant to Section 3.4 of the Partnership Agreement.

         "Environmental Laws" means all applicable foreign, federal, state or
local statutes, laws, ordinances, codes, rules, regulations (including, without
limitation, consent decrees and orders and administrative orders) judgments and
permits or other authorizations relating to health, safety or the environment,
including, without limitation, CERCLA and RCRA.

         "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended, and any successor statute of similar import, together with the
regulations thereunder, in each case as in effect from time to time.

         "Event of Default" is defined in Section 8.1.

         "EWRD Partnerships" means East West Resort Development, L. L. L.P.,
East West Resort Development II, L. L. L. P., East West Resort Development III,
L. L. L. P., EWRD Summit Holding, L. L. L. P., EWRD Perry Holding, L. L. L. P.,
East West Resort Development IV, L. L. L. P. and East West Resort Development
VI, L. L. L. P.

         "Governmental Authority" means the United States, the state, county and
city or other political subdivision in which a Project is located and any other
political subdivision, agency or instrumentality exercising jurisdiction over
the Borrower, the Partnership, Subpartnership or a Project.

         "Governmental Requirement" means all laws, ordinances, rules and
regulations of any Governmental Authority applicable to the Borrower, the
Partnership, Subpartnership, or a Project.

         "Hazardous Material" means any pollutant, hazardous substance,
radioactive substance, toxic substance, hazardous waste, medical waste,
radioactive waste, special waste, petroleum or petroleum-derived substance or
waste, asbestos, polychlorinated biphenyls, or any hazardous or toxic
constituent thereof and includes, but is not limited to, any substance defined
in or regulated under Environmental Laws.

         "Initial Advance" means the first Advance made hereunder.

         "Loan" is defined in the preamble.

         "Loan Document" means this Agreement, the Note, the Partnership
Security Agreement and all other documents evidencing, securing or governing the
Loan, as such documents may be amended, renewed, extended, restated or
supplemented from time to time.


                                       20
<PAGE>   22


         "Northstar LLC" means Northstar Mountain Properties, L. L. C., a
Delaware limited liability company. Northstar LLC is a Subpartnership.

         "Note" means the Line of Credit Note of the Borrower delivered to the
Lender pursuant to this Agreement and any note subsequently given in exchange,
substitution, modification, renewal or extension therefor.

         "Organic Document" means, relative to the Borrower or any of the
Subpartnerships, its articles or certificate of incorporation, as the case may
be, its articles of organization, its by-laws and all partnership agreements,
operating agreements, shareholder agreements, voting trusts and similar
arrangements applicable to any partnership or limited liability company
interests issued by such person or authorized shares of capital stock issued by
such person.

         "Other Crescent Indebtedness" means all indebtedness for borrowed
monies owing from Borrower to Lender, other than the Loan and the East West
Loans but including the Amended and Restated Credit Loan and the 1999 Credit
Loan.

         "Other Crescent Indebtedness Loan Documents" means all credit
agreements, loan agreements, notes, security agreements and other documents
evidencing, securing or governing any Other Crescent Indebtedness, as such
documents may be amended, renewed, extended, restated or supplemented from time
to time.

         "Other Tahoe Area Investment Vehicles" means partnerships, limited
liability companies, corporations and other entities, other than the
Partnership, formed for the purpose of acquiring, developing, operating and
selling real properties and related operating businesses in the region of Lake
Tahoe, California; Other Tahoe Area Investment Vehicles include but are not
limited to entities formed pursuant to or in connection with the Partnership
Agreement.

         "Partner Loan" means each Partner Loan made by the Borrower pursuant to
Section 3.5 of the Partnership Agreement.

         "Partnership" means East West Resort Development V, L. L. L. P., a
Delaware registered limited liability limited partnership.

         "Partnership Agreement" means that certain Limited Partnership
Agreement of East West Resort Development V, L. L. L. P., dated August 23, 2000.

         "Person" means any natural person, corporation, partnership, firm,
association, trust, government, governmental agency or any other entity, whether
acting in an individual, fiduciary or other capacity.

         "Phased Project" means an Approved Project that is to be developed in
more than one phase.


                                       21
<PAGE>   23


         "Project" is defined in the Partnership Agreement.

         "Project Advance Limit" means, with respect to each Phased Project the
amount designated as the Commitment for the Project in the Approved Project Plan
and the Approved Budget.

         "Project Entity" is defined in the Partnership Agreement.

         "Project Equity Advance" means the amount advanced hereunder by the
Lender to the Borrower (in one or more Advances) to enable it to make an equity
contribution to the Partnership.

         "Project Lender" means the lender who issues a Project Loan Commitment.

         "Project Loan" means the loan contemplated by a Project Loan
Commitment, the proceeds of which will be used in connection with the
acquisition, construction and development of the Project described in such
Project Loan Commitment.

         "Project Loan Commitment" means the commitment issued by a Project
Lender to a Subpartnership to make a Project Loan to be secured by a first lien
on the Subpartnership's Project containing only such conditions to funding as
are reasonable and customary.

         "Project Loan Documents" means the instruments and documents
evidencing, securing, pertaining to or governing a Project Loan.

         "Project Mortgage" means a mortgage or deed of trust and security
agreement securing the payment of the Project Loan and evidencing a first lien
on the Project.

         "Proposed Budget" means a budget or cost itemization included in each
Approved Project Plan specifying the cost by item of (a) the real estate that
will constitute a part of the Project, (b) all labor, materials and services
necessary for the construction of the Project in accordance with the Plans and
all Governmental Requirements, and (b) all other expenses anticipated that are
incident to the Project Loan and the construction of the Project. The Proposed
Budget shall include a calculation of the anticipated Total Equity for such
Project.

         "RCRA" means the Resource Conservation and Recovery Act, 42 U.S.C.
Section 6901, et seq., as in effect from time to time.

         "Stated Maturity Date" means September 20, 2008.

         "Subpartnership" means each limited liability company, whether now
existing or hereafter formed, in which the Partnership or an Other Tahoe Area
Investment Vehicle has an equity interest. Northstar LLC is a Subpartnership.


                                       22
<PAGE>   24


         "Tax Distribution" means each Distribution made to the Borrower
pursuant to Section 4.2 of the Partnership Agreement.

         "Total Equity" means, with respect to each Project, 80% of the
difference between the total costs set forth in the Approved Budget as the cost
of the Project and the amount of the Project Loan.

         "UCC" means the Uniform Commercial Code as in effect, from time to
time, in the State of Texas.

         "United States" or "U.S." means the United States of America, its fifty
States and the District of Columbia.


                                       23
<PAGE>   25


         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized as of the day
and year first above written.



BORROWER:                       CRESCENT DEVELOPMENT MANAGEMENT
                                  CORP., a Delaware corporation



                                By:
                                   ---------------------------------------------

                                Name:
                                     -------------------------------------------

                                Title:
                                      ------------------------------------------



LENDER:                         CRESCENT REAL ESTATE EQUITIES LIMITED
                                  PARTNERSHIP, a Delaware limited partnership

                                By:  Crescent Real Estate Equities, Ltd., a
                                      Delaware corporation, Sole General Partner



                                         By:
                                            ------------------------------------

                                         Name:
                                              ----------------------------------

                                         Title:
                                               ---------------------------------


                                       24
<PAGE>   26


                                    EXHIBIT A

                             APPLICATION FOR ADVANCE

         This Application for Advance is submitted by the undersigned to
Crescent Real Estate Equities Limited Partnership (the "Lender") pursuant to
that Credit Agreement dated as of September 21, 2000, between the Lender and the
undersigned (the "Credit Agreement"). Capitalized terms used herein and not
otherwise defined shall have the meanings set forth in the Credit Agreement.

<TABLE>
<S>                                                                                     <C>
1.       The undersigned hereby requests an Advance under the
         Credit Agreement in the amount of:                                             $
                                                                                         -----------
2.       The undersigned hereby requests this Advance to be made
         effective (the "Advance Date"):
                                                                                        ------------

2.       The undersigned hereby warrants and represents the following to the
         Lender:

         A.       The Advance is being requested in connection and will be used
                  solely to fund the following Project (the "Applicable
                  Project"):

                     -------------------------------------------------------------------------

         B.       Project Advance Limit approved
                  for the Applicable Project:                                           $
                                                                                         -----------
         C.       Total Advances made in accordance with the Credit
                  Agreement prior to the Advance Date:                                  $
                                                                                         -----------
         D.       Additional capital contributions made by the Shareholders
                  which were subsequently used for the Applicable Project:              $
                                                                                         -----------
         E.       To Date Total Project Investment for the Applicable
                  Project made prior to the Advance Date (Sum of C and D):              $
                                                                                         -----------
         F.       Both before and after giving effect to the Advance that is
                  requested hereby, the warranties and representations set forth
                  in Article VI of the Credit Agreement are true and correct
                  with the same effect as if made on the date hereof.
</TABLE>

                                         CRESCENT DEVELOPMENT MANAGEMENT CORP.

                                         By:
                                            ------------------------------------

                                         Name:
                                              ----------------------------------

                                         Title:
                                               ---------------------------------


                                       25
<PAGE>   27


                                   SCHEDULE A

                      Crescent Development Management Corp.
            Approved Projects for September 21, 2000 Credit Agreement
                       Schedule dated September 21, 2000*

<TABLE>
<CAPTION>
                                                           Project          To Date Total      Aggregate
                                         Approved          Advance          Amount             Remaining
Partnership         Project              Budget            Limit            Advanced           Project Advances
-----------         -------              ------            -----            --------           ----------------
<S>                 <C>                  <C>               <C>              <C>                <C>
East West Resort    Northstar-at-Tahoe   $32,000,000       $32,000,000      $28,450,000        $3,550,000
Development V,
L.L.L.P.
</TABLE>







*After giving effect to Initial Advance. "Aggregate Remaining Project Advances"
means the total remaining amounts which may be advanced by Lender to Borrower in
accordance with this Credit Agreement, which equals the Project Advance Limit
less the To Date Total Project Investment. At no time hereafter shall the To
Date Total Project Investment exceed the Project Advance Limit, either
collectively or individually, without prior written consent from the Lender.



                                       26
<PAGE>   28


                               LINE OF CREDIT NOTE


$32,000,000                                                   September 21, 2000

         FOR VALUE RECEIVED, CRESCENT DEVELOPMENT MANAGEMENT CORP., a Delaware
corporation ("Borrower") promises to pay to CRESCENT REAL ESTATE EQUITIES
LIMITED PARTNERSHIP, a Delaware limited partnership ("Lender"), at 777 Main
Street, Suite 2100, Fort Worth, Texas 76102, the principal sum of THIRTY-TWO
MILLION AND NO/100 DOLLARS ($32,000,000.00), or so much thereof as may be
advanced, with interest on the principal balance from time to time remaining
unpaid at the rates hereinafter provided.

         Interest on the principal balance hereof from time to time remaining
unpaid prior to an Event of Default shall be payable at the Interest Rate
prescribed in the Credit Agreement (as hereinafter defined), provided that the
interest payable shall not exceed the maximum rate permitted by applicable law
(the "Maximum Rate"). Interest on the principal hereof from time to time
remaining unpaid and, to the extent permitted by applicable law, interest on the
unpaid interest, shall bear interest from and after an Event of Default at the
Default Rate provided that in no event shall the Default Rate be more than the
Maximum Rate.

         This Note is the "Note" referred to in the Credit Agreement dated
September 21, 2000, executed by Lender and Borrower (the "Credit Agreement").
Borrower may borrow, repay and reborrow amounts under this Note as permitted by
the Credit Agreement. Terms defined in the Credit Agreement and not otherwise
defined herein are used herein with the meanings given those terms in the Credit
Agreement.

         Borrower may request and receive Advances hereunder only in accordance
with the terms and provisions of the Credit Agreement. This Note shall be
payable as provided in Article III of the Credit Agreement.

         Upon the occurrence of any Event of Default (after the giving of any
notice required in the Credit Agreement and the expiration of any applicable
grace periods provided for in the Credit Agreement), all amounts then remaining
unpaid on this Note shall become or may be declared to be immediately due and
payable and the holder hereof shall have all rights and remedies of Lender under
the Credit Agreement and other Loan Documents. The failure to exercise the
option to accelerate the maturity of this Note upon the happening of any one or
more of the Events of Default hereunder shall not constitute a waiver of the
right of the holder of this Note to exercise the same or any other option at
that time or at any subsequent time with respect to such uncured default or any
other event of uncured default hereunder or under any other of the Loan
Documents. The remedies of the holder hereof, as provided in this Note and in
any other of the Loan Documents, shall be cumulative and concurrent and may be
pursued separately, successively or together, as often as occasion therefor
shall arise, at the sole discretion of the holder hereof. The acceptance by the
holder hereof of any payment under this Note which is less than payment in full
of all amounts due and payable at the time of such payment shall not constitute
a waiver of or impair, reduce, release or extinguish any of the rights or
remedies of the holder hereof to exercise the foregoing option or any other
option granted to the holder in this Note or in any other of the Loan Documents,
at that time or at any subsequent time, or nullify any prior exercise of any
such option.

         The undersigned and all other parties now or hereafter liable for the
payment hereof, whether as endorser, surety or otherwise, except as provided in
the Credit Agreement, severally waive demand, presentment, notice of dishonor,
notice of intention to accelerate the indebtedness evidenced hereby, notice of
the acceleration of the maturity hereof, diligence in collecting, grace, notice
and protest, and consent to all extensions which from time to time may be
granted by the holder hereof and to all partial payments hereon, whether before
or after maturity.

         If this Note is not paid when due, whether at maturity or by
acceleration, or if it is collected through a bankruptcy, probate or other
court, whether before or after maturity, the undersigned agrees to pay all costs
of collection, including, but not limited to, reasonable attorneys' fees and
expenses incurred by the holder hereof.

         All agreements between the undersigned and the holder hereof, whether
now existing or hereafter arising and whether written or oral, are hereby
limited so that in no contingency, whether by reason of acceleration of the
maturity


                                       1
<PAGE>   29


hereof or otherwise, shall the interest contracted for, charged, received, paid
or agreed to be paid to the holder hereof exceed the maximum amount permissible
under applicable law. If from any circumstance the holder hereof shall ever
receive anything of value deemed interest by applicable law in excess of the
maximum lawful amount, an amount equal to any excessive interest shall be
applied to the reduction of the principal hereof and not to the payment of
interest, or if such excessive interest exceeds the unpaid balance of principal
hereof, such excess shall be refunded to the undersigned. All interest paid or
agreed to be paid to the holder hereof shall, to the extent permitted by
applicable law, be amortized, prorated, allocated, and spread throughout the
full period until payment in full of the principal so that the interest hereon
for such full period shall not exceed the maximum amount permitted by applicable
law. This paragraph shall control all agreements between the undersigned and the
holder hereof.

         This Note may be prepaid only in accordance with the terms of the
Credit Agreement.

         The loan transaction evidenced hereby shall not be governed by, or be
subject to, Chapter 303 or Chapter 346 of the Texas Finance Code.

         EXCEPT WHERE FEDERAL LAW IS APPLICABLE (INCLUDING, WITHOUT LIMITATION,
ANY FEDERAL USURY CEILING OR OTHER FEDERAL LAW WHICH, FROM TIME TO TIME, IS
APPLICABLE TO THE INDEBTEDNESS EVIDENCED HEREIN AND WHICH PREEMPTS STATE USURY
LAWS), THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
TEXAS AND THE LAWS OF THE UNITED STATES APPLICABLE TO TRANSACTIONS IN SUCH
STATE.

                  THIS NOTE, TOGETHER WITH THE CREDIT AGREEMENT AND EACH OTHER
LOAN DOCUMENT REFERENCED HEREIN OR THEREIN, REPRESENT THE FINAL AGREEMENTS
BETWEEN THE PARTIES WITH RESPECT TO THE LOAN AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

                                     CRESCENT DEVELOPMENT MANAGEMENT CORP., a
                                     Delaware corporation



                                     By:
                                        ----------------------------------------
                                     Name:
                                          --------------------------------------
                                     Title:
                                           -------------------------------------



                                       2
<PAGE>   30


                               SECURITY AGREEMENT
         (Partnership Interests and Limited Liability Company Interests)

                                                        Date: September 21, 2000


A. PARTIES

         1.       Secured Party     CRESCENT REAL ESTATE EQUITIES LIMITED
                                       PARTNERSHIP
                                            777 Main Street, Suite 2100
                                            Fort Worth, TX  76102

         2.       Debtor (whether
                  one or more):     CRESCENT DEVELOPMENT MANAGEMENT CORP.
                                            C/O Harry Frampton
                                            100 East Thomas Place, Drawer 2770
                                            Avon, Colorado  81620

                                            Attention: Harry Frampton, President

B. AGREEMENT

         1. Security Interest. Subject to the applicable terms of this Security
Agreement, Debtor grants to Secured Party a security interest in the Collateral
(hereinafter defined) to secure the payment of the Obligations (hereinafter
defined).

C. OBLIGATIONS

         1. Description of Obligations. The following obligations
("Obligations") are secured by this Security Agreement:

                  a. The debt, obligations, liabilities and agreements of Debtor
         under (i) that Line of Credit Note in the principal sum of $32,000,000
         executed by Debtor of even date herewith, bearing interest and being
         payable to the order of Secured Party as therein provided (the "Note"),
         (ii) the Credit Agreement executed by Debtor and Secured Party of even
         date herewith (the "Credit Agreement") , (iii) all other documents
         evidencing, governing, securing or otherwise pertaining to the
         indebtedness evidenced by the Note, or any other debts for borrowed
         monies owing from Debtor to Secured Party where a default or breach by
         Debtor thereunder would cause a default or breach under the Credit
         Agreement (the Note, Credit Agreement and all other such documents
         being called "Loan Documents"), and (iv) all renewals, extensions,
         modifications or rearrangements of the foregoing.

                  b. All costs incurred by Secured Party to obtain, preserve,
         perfect and enforce this Security Agreement and collect the
         Obligations, and maintain, preserve, collect and enforce the Collateral
         (hereinafter defined), including but not limited to reasonable
         attorneys' fees and legal expenses and expenses of sale.

                  c. Interest on the above amounts at the Default Rate as
         defined in the Note.

                  d. All debt, obligations and liabilities of Debtor to Secured
         Party of the kinds described in this Item C., now existing or hereafter
         arising.

D. COLLATERAL

         1. Description of the Collateral. Debtor assigns to Secured Party and
grants to Secured Party security interests in the following, whether now
existing or hereafter arising (the "Collateral"):

                  a. All of the rights and interests of Debtor as a limited
         partner of each of East West Resort Development, L.P., a Delaware
         limited partnership ("EWRD I"); East West Resort Development II, L. P.,
         a Delaware limited partnership ("EWRD II"); EWRD Summit Holding, L. P.,
         a Delaware limited partnership ("Summit"); East West Resort Development
         III, L. P., a Delaware limited partnership ("EWRD III"); EWRD Perry
         Holding, L. P., a Delaware limited partnership ("Perry"); East West
         Resort Development IV, L. L. L. P., a Delaware registered limited
         liability limited partnership ("EWRD IV"); East West Resort


<PAGE>   31


         Development V, L. L. L. P., a Delaware registered limited liability
         limited partnership ("EWRD V"); and East West Resort Development VI, L.
         L. L. P., a Delaware registered limited liability limited partnership
         ("EWRD VI")(each a "Subpartnership" and collectively the
         "Subpartnerships"); and all of the rights and interests of Debtor as a
         member of East West Resorts, LLC, a Delaware limited liability company
         ("Resorts"); including, without limitation, Debtor's rights as a
         partner or a member to receive distributions of any sale, exchange,
         refinancing or other disposition of property owned by EWRD I under the
         Limited Partnership Agreement of East West Resort Development, L. P.,
         entered into effective as of August 11, 1995, as hereinbefore or
         hereinafter from time to time amended (the "EWRD I Partnership
         Agreement"); owned by EWRD II under the Limited Partnership Agreement
         of East West Resort Development II, L. P., dated as of September 26,
         1996, as hereinbefore or hereinafter from time to time amended (the
         "EWRD II Partnership Agreement"); owned by Summit under the Limited
         Partnership Agreement of EWRD Summit Holding, L. P., entered into
         effective as of September 23, 1997, as hereinbefore or hereinafter from
         time to time amended (the "Summit Partnership Agreement"); owned by
         EWRD III under the Limited Partnership Agreement of East West Resort
         Development III, L. P., dated as of January ___, 1998, as hereinbefore
         or hereinafter from time to time amended (the "EWRD III Partnership
         Agreement"); owned by Perry under the Limited Partnership Agreement of
         EWRD Perry Holding, L. P., entered into effective as of November 1,
         1998, as hereinbefore or hereinafter from time to time amended (the
         "Perry Partnership Agreement"); owned by EWRD IV under the Limited
         Partnership Agreement of East West Resort Development IV, L. L. L. P.,
         dated January 1, 1999, as hereinafter from time to time amended (the
         "EWRD IV Partnership Agreement"); owned by EWRD V under the Limited
         Partnership Agreement of East West Resort Development V, L. L. L. P.,
         dated August 23, 2000, as hereinafter from time to time amended (the
         "EWRD V Partnership Agreement"); owned by EWRD VI under the Limited
         Partnership Agreement of East West Resort Development VI, L. L. L. P.,
         dated May 1, 2000, as hereinafter from time to time amended (the "EWRD
         VI Partnership Agreement"); and owned by Resorts under the Third
         Amended and Restated Operating Agreement entered into effective as of
         July 1, 1999, as hereinbefore or hereinafter from time to time amended
         (the "Resorts Operating Agreement"); and all other profits, income, and
         distributions, whether in cash or in kind, owing to Debtor under the
         EWRD I Partnership Agreement, the EWRD II Partnership Agreement, the
         Summit Partnership Agreement, the EWRD III Partnership Agreement, the
         Perry Partnership Agreement, the EWRD IV Partnership Agreement, the
         EWRD V Partnership Agreement and the EWRD VI Partnership Agreement
         (each a "Partnership Agreement" and collectively the "Partnership
         Agreements") and under the Resorts Operating Agreement.

                  b. All Partner Loans and Default Loans (as those terms are
         defined in the EWRD I Partnership Agreement, the EWRD II Partnership
         Agreement, the Summit Partnership Agreement, and the EWRD VI
         Partnership Agreement), all Partner Loans (as that term is defined in
         the EWRD III Partnership Agreement, the EWRD IV Partnership Agreement,
         the Perry Partnership Agreement, and the EWRD V Partnership Agreement),
         and all Emergency Loans (as that term is defined in the Resorts
         Operating Agreement) now or hereafter owing to Debtor and all security
         therefor.

                  c. All present and future rights and interests Debtor may have
         or be or become entitled to in the real and personal property (the
         "Collateral Property") now or hereafter owned by any Subpartnership.

                  d. All present and future proceeds, profits, combinations,
         reclassification, improvements, and products of, accessions,
         attachments, and other additions to, and substitutes and replacements
         for, all or any part of the Collateral described herein.

                  e. All present and future accounts, contract rights, general
         intangibles, chattel paper, documents, instruments, cash and noncash
         Proceeds, and other rights arising from or by virtue of, or from the
         voluntary or involuntary sale, lease, or other disposition of, or
         collections with respect to, or insurance or condemnation proceeds
         payable with respect to, or proceeds payable by virtue of warranty,
         indemnity, guaranty, or other claims, causes and rights of action,
         settlements thereof, judicial and arbitration judgments and awards
         against any person with respect to, all or any part of the Collateral
         or the Collateral Property described herein. As used herein, the term
         "Proceeds" shall have the meaning assigned to it under the UCC and, to
         the extent not otherwise included, shall include, but not be limited
         to, (i) all income, revenues, fees, distributions, reimbursements and
         payments from whatever source received by, or on behalf of Debtor, in
         respect of the Collateral, (ii) any and all payments (in any form
         whatsoever) made or due and payable to Debtor from time to time in
         connection with any casualty with respect to the Collateral Property or
         any of the Collateral (whether or not pursuant to an insurance policy),
         or any requisition, confiscation, condemnation, seizure or forfeiture
         of all or any part of the Collateral by any governmental authority,
         (iii) all claims of Debtor for losses or damages arising out of or
         related to or for any breach of any agreements, covenants,
         representations or warranties or any default under any of the
         Collateral described herein, and (iv) any and all other amounts from
         time, to time paid or payable to, or on behalf of, Debtor under, or in
         connection with, any of the Collateral.


                                       2
<PAGE>   32


                  f. All present and future security for the payment to Debtor
         of any of the Collateral described herein and goods which gave, or will
         give, rise to any of such Collateral or are evidenced, identified, or
         represented therein or thereby.

         The description of Collateral contained in this paragraph shall not be
deemed to permit any action prohibited by this Security Agreement or by terms
incorporated in this Security Agreement. Portions of the Collateral constitute
accounts, contract rights, general intangibles, chattel paper, documents or
instruments, and all books and records of Debtor concerning such Collateral are,
and shall be, located at the offices of the Debtor specified above.

E. DEBTOR'S WARRANTIES

         Debtor represents, warrants, and covenants to Secured Party now and so
long as any Obligations secured hereby are outstanding as follows:

         1. No financing statement covering any portion of the Collateral is on
file in any public office, except the financing statements relating to this
security interest created hereunder or other security interests in favor of
Secured Party.

         2. Debtor is the sole owner of the Collateral and each item
constituting the Collateral, free and clear of all liens except for the security
interest granted to Secured Party pursuant to this Security Agreement or other
security agreements in favor of Secured Party.

         3. All actions necessary or desirable to perfect the Security Interest
in the Collateral in each state in which any portion of the Collateral is or
will be located have been, or will forthwith be, duly taken.

         4. Each of the Partnership Agreements and the Resorts Operating
Agreement is in full force and effect and, to the knowledge of Debtor, there
exists no material default thereunder, or event or condition which, with the
passage of time or the giving of notice, or both, would constitute a material
default thereunder.

         5. Neither any Partnership Agreement nor the Resorts Operating
Agreement will be amended or modified in any manner that would materially affect
Debtor's interest thereunder, or in any manner which would materially impair or
adversely affect the Collateral, nor shall Debtor consent to any such amendment
without the prior written consent of Secured Party.

         6. There is no condition, circumstance, event, agreement, document,
instrument, restriction, litigation or other proceeding and, to the best of
Debtor's knowledge, there is no threatened litigation or proceeding or basis
therefor, which could materially adversely affect the validity or priority of
the liens and security interests granted, or intended to be granted, hereunder
when executed, delivered, recorded and filed as required hereunder, or that
could materially adversely affect the ability of Debtor to perform its
obligations hereunder and under the other Loan Documents to which Debtor is a
party, or which would constitute an Event of Default.

         7. Each Subpartnership, Resorts and Debtor have fully complied with all
requirements imposed on them in connection with (a) the organization and
formation of such Subpartnership or Resorts, as applicable, and (b) the sale,
distribution and offer of partnership interests in such Subpartnership and
membership interests in Resorts.


F. DEBTOR'S COVENANTS

         Debtor covenants to Secured Party and agrees with Secured Party as
follows:

         1. Debtor shall promptly perform all of Debtor's agreements herein, and
any other agreements between Debtor and Secured Party.

         2. Debtor shall defend the Collateral against all claims and demands of
all persons at any time claiming the same or any interest therein adverse to
Secured Party.

         3. Debtor shall keep the Collateral free from liens and other security
interests (except liens for taxes not yet due), and shall not create or suffer
to exist any lien or security interest in the Collateral hereafter acquired
except for the security interests hereby granted or otherwise granted to Secured
Party. Debtor shall not file, or permit to be filed, any financing statements or
other security instruments, covering the Collateral, unless by, or on behalf of,
Secured Party in connection with this Security Agreement


                                       3
<PAGE>   33


or another security agreement in favor of Secured Party or to effectuate the
assignment to Debtor of the financing statements currently of record against the
Collateral.

         4. Debtor shall pay all costs necessary to obtain, preserve, perfect,
defend and enforce the security interests hereby granted, collect the sums owing
under the Collateral Loan Documents, and preserve, defend, enforce, service and
collect the Collateral, including specifically, but without limitation, the
payment of taxes, assessments, reasonable attorneys' fees and legal expenses,
and expenses of sales. If Debtor shall have failed to pay such costs and
expenses within five (5) days after request by Secured Party, Secured Party may,
at its option, pay any such costs and expenses, and discharge encumbrances on
the Collateral. Debtor agrees to reimburse the Secured Party on demand for any
costs so incurred, and, until such reimbursement, the amount of any such payment
shall be a part of the Obligations.

         5. Prior to or immediately following the occurrence thereof, Debtor
will notify the Secured Party of (i) any material adverse change occurring in or
to any of the Collateral, (ii) any change in Debtor's office address or mailing
address, (iii) any material change in any fact or circumstance warranted or
represented by Debtor in this Security Agreement or furnished to the Secured
Party by Debtor, (iv) any Event of Default or (v) any notices, communications,
or correspondence to be or which have been delivered to Debtor under any
Partnership Agreement or the Resorts Operating Agreement and deliver to Secured
Party copies thereof.

         6. Debtor shall execute and deliver to Secured Party a financing
statement for filing to perfect the security interests hereunder and any other
papers furnished by Secured Party which are necessary in the judgment of Secured
Party to obtain, maintain and perfect the security interest hereunder and to
enable Secured Party to comply with any applicable federal or state law in order
to obtain or perfect Secured Party's interest in the Collateral. Debtor shall
have each Subpartnership and Resorts make appropriate entries in its partnership
or membership records to reflect the existence of the security interest granted
hereby in the Collateral.

         7. Debtor shall cause Subpartnerships and Resorts to comply with all of
the representations, warranties, covenants, agreements, indemnities and terms
contained in the Partnership Agreements and the Resort Operating Agreement and
all other material agreements to which the Subpartnerships and Resorts, or any
of them, is bound and to enforce rights of Subpartnerships and Resorts under all
material agreements by which any of them is bound, in a timely manner,
consistent with prudent practices and all applicable laws, and also as required
by Secured Party.

         8. Debtor shall fully perform all of Debtor's duties under and in
connection with each transaction to which the Collateral, or any part thereof,
relates, so that the amounts thereof shall actually become payable in their
entirety to Secured Party.

         9. Debtor shall promptly notify Secured Party of any claim, action, or
proceeding affecting title to all or any of the Collateral or the security
interest and, at the request of Secured Party, appear in and defend, at Debtor's
expense, any such claim, action, demand or proceeding.

         10. At Debtor's expense and upon Secured Party's request, after an
Event of Default, Debtor shall file or cause to be filed such applications and
take such other actions as Secured Party may request to obtain the consent or
approval of any governmental authority to Secured Party's rights hereunder,
including, without limitation, the right to sell all of the Collateral upon an
Event of Default without additional consent or approval from such governmental
authority (and, because Debtor agrees that Secured Party's remedies at law for
failure of Debtor to comply with this provision would be inadequate and that
such failure would not be adequately compensable in damages, Debtor agrees that
its covenants in this provision may be specifically enforced).

         11. Upon demand by Secured Party, Debtor will deposit upon receipt all
checks, drafts, cash or other remittances on account or accounts or contracts or
received as proceeds of any other Collateral in a special bank account in a bank
of Secured Party's choice over which Secured Party alone shall have power of
withdrawal. The funds in said account shall be held by Secured Party as security
for the Obligations. Said proceeds shall be deposited in the form received,
except for the endorsement of Debtor where necessary to permit collection of
items, which endorsements Debtor agrees to make, but which Secured Party is
authorized to make on Debtor's behalf. Secured Party may from time to time apply
the whole or any part of the funds in such special account against the
Obligations. Any portion of said funds on deposit which Secured Party elects not
to apply to the Obligations may be paid by Secured Party to Debtor.

         12. Debtor shall give Secured Party written notice of each office of
Debtor in which records of Debtor pertaining to accounts in the Collateral are
kept, and of any change of any office or location. Except as such notice is
given, all records of Debtor pertaining to the Collateral and to accounts are
and shall be kept in the location shown at the beginning hereof.


                                       4
<PAGE>   34


G. RIGHTS AND POWERS OF SECURED PARTY

         1. Secured Party may in its discretion after an Event of Default but
only after prior written notice to Debtor, without liability to Debtor, obtain
from any person information regarding Debtor or Debtor's business, which
information any such person also may furnish without liability to Debtor;
endorse as Debtor's agent any instruments, documents or chattel paper in the
Collateral or representing proceeds of the Collateral; contact any account
debtors directly to verify information furnished by Debtor; take control of
proceeds; release the Collateral in its possession to any Debtor, temporarily or
otherwise; after default, take control of funds generated by the Collateral,
such as cash dividends, interest and proceeds or refunds from insurance, and use
same to reduce any part of the Obligations and exercise all other rights which
an owner of such collateral may exercise; after default, at any time transfer
any of the Collateral or evidence thereof into its own name or that of its
nominee; demand, collect, convert, redeem, receipt for, settle, compromise,
adjust, sue for, foreclose or realize upon the Collateral, in its own name or in
the name of Debtor, as Secured Party may determine. The foregoing rights and
powers of Secured Party will be in addition to, and not a limitation upon, any
rights and powers of Secured Party given by law, elsewhere in this agreement, or
otherwise.

         2. Secured Party may while any Event of Default continues hereunder
present for conversion any instrument (including any investment security) in the
Collateral which is convertible into any other instrument or investment security
or a combination thereof with cash. But Secured Party shall not have any duty to
present for conversion any instrument in the Collateral unless it shall have
received from Debtor written instructions to that effect at a time reasonably
far in advance of the final conversion date to make such conversion possible.

H. DEFAULT

         1. Events of Default. The occurrence of a default under the Note, the
Credit Agreement or any document evidencing, governing, securing, guaranteeing,
indemnifying or otherwise pertaining to the Loan shall constitute an event of
default ("Event of Default") hereunder.

         2. Remedies of Secured Party Upon Default. Should an Event of Default
occur and be continuing, Secured Party may, at its election, exercise any and
all rights and remedies available to a secured party under the UCC, in addition
to any and all other rights and remedies afforded by the Loan Documents, at law,
in equity, or otherwise, including, without limitation, such rights and remedies
as (a) Party, (b) applying by appropriate judicial proceedings for appointment
of a receiver for all or part of the Collateral (and Debtor hereby consents to
any such appointment), and (c) applying to the Obligations any cash held by
Secured Party under this Security Agreement. The exercise of one or more rights
or remedies by Secured Party hereunder shall not prejudice or impair the
concurrent or subsequent exercise of any other rights or remedies by Secured
Party. If, in the opinion of Secured Party, there is any question that a public
or semipublic sale or distribution of any Collateral will violate any state or
federal securities law, Secured Party in its discretion (a) may offer and sell
securities privately to purchasers who will agree to take them for investment
purposes and not with a view to distribution and who will agree to imposition of
restrictive legends on the certificates representing the security, or (b) may
sell such securities in an intrastate offering under Section 3(a)(11) of the
Securities Act of 1933, and no sale so made in good faith by Secured Party shall
be deemed to be not "commercially reasonable" because so made.

                  a. Notice. Reasonable notification of the time and place of
         any public sale of the Collateral, or reasonable notification of the
         time after which any private sale or other intended disposition of the
         Collateral is to be made, shall be sent to Debtor and to any other
         Person entitled to notice under the UCC. It is agreed that notice sent
         or given not less than twenty (20) business days prior to the taking of
         the action to which the notice relates is reasonable notification and
         notice for the purposes of this subparagraph.

                  b. Application of Proceeds. Secured Party shall apply the
         proceeds of any sale or other disposition of the Collateral under this
         paragraph in the following order: first, to the payment of all its
         expenses incurred in retaking, holding, and preparing any of the
         Collateral for sale(s) or other disposition, in arranging for such
         sale(s) or other disposition, and in actually selling or disposing of
         the same (all of which are part of the Obligations); second, toward
         repayment of amounts expended by Secured Party under Paragraph H.3; and
         third, toward payment of the balance of the Obligations in accordance
         with the Credit Agreement. If the proceeds are insufficient to pay the
         Obligations in full, Debtor shall remain liable for any deficiency to
         the extent provided in the Credit Agreement.

         3. Other Rights of Secured Party.

                  a. Performance. In the event Debtor shall fail to pay when due
         all taxes, subject to contest rights permitted by the Credit Agreement,
         on any of the Collateral, or to preserve the priority of the Security
         Interest in any of the Collateral, or


                                       5
<PAGE>   35


         otherwise fail to perform any of its obligations under the Loan
         Documents with respect to the Collateral, then Secured Party may, at
         its option, but without being required to do so, pay such taxes,
         prosecute or defend any suits in relation to the Collateral, or insure
         and keep insured the Collateral in any amount deemed appropriate by
         Secured Party, or take all other action which Debtor is required, but
         has failed or refused, to take under the Loan Documents. Any sum which
         may be expended or paid by Secured Party under this subparagraph
         (including, without limitation, court costs and attorneys' fees) shall
         bear interest from the dates of expenditure or payment at the Default
         Rate (as defined in the Credit Agreement) until paid and, together with
         such interest, shall be payable by Debtor to Secured Party upon demand
         and shall be part of the Obligations.

                  b. Collection. After the occurrence of an Event of Default and
         during the continuation thereof, upon notice from Secured Party, each
         obligor with respect to any payments on any of the Collateral
         (including without limitation condemnation proceeds, dividends and
         other distributions with respect to securities, and insurance proceeds
         payable by reason of loss or damage to any of the Collateral Property)
         is hereby authorized and directed by Debtor to make payment directly to
         Secured Party, regardless of whether Debtor was previously making
         collections thereon. Subject to Subparagraph H.3(d) hereof, until such
         notice is given, Debtor is authorized to retain and expend all payments
         made on the Collateral. After the occurrence of an Event of Default and
         during the continuation thereof, Secured Party shall have the right in
         its own name or in the name of Debtor to compromise or extend the time
         of payment with respect to all or any portion of the Collateral for
         such amounts and upon such terms as Secured Party may determine; to
         demand, collect, receive, receipt for, sue for, compound, settle,
         compromise, adjust, realize upon and give acquittances for any and all
         amounts due or to become due with respect to Collateral; to file any
         claims or take any action or initiate any proceedings which Secured
         Party may deem necessary or desirable for the collection of any of the
         Collateral or to otherwise enforce the rights or remedies of Debtor
         with respect to any Collateral; to take control of cash and other
         Proceeds of any Collateral; to endorse the name of Debtor on any notes,
         acceptances, checks, drafts, money orders, or other evidences of
         payment on Collateral that may come into the possession of Secured
         Party; to sign the name of Debtor on any drafts against obligors or
         other Persons making payment with respect to Collateral, on assignments
         and verifications of accounts or other Collateral and on notices to
         obligors making payment with respect to Collateral; to send requests
         for verification of obligations to any such obligor; to take any action
         Debtor is required to take or any other necessary action to obtain,
         preserve, and enforce this Security Agreement, and maintain, preserve
         and collect the Collateral, without notice to Debtor, and add the costs
         of same to the Obligations; to release Collateral in Secured Party's
         possession to any Person, temporarily or otherwise; to set standards
         from time to time to govern what may be deemed after-acquired
         Collateral; to transfer any of the Collateral, or evidence thereof,
         into its own name or that of its nominee and receive the Proceeds
         therefrom and hold the same as security for the Obligations, or apply
         the same thereon; to exercise as to the Collateral all the rights of
         the owner thereof; and to do all other acts and things necessary to
         carry out the intent of this Security Agreement. If any obligor fails
         or refuses to make payment on any Collateral when due, Secured Party is
         authorized, in its sole discretion, either in its own name or in the
         name of Debtor, to take such action as Secured Party shall deem
         appropriate for the collection of any amounts owed with respect to the
         Collateral or upon which a delinquency exists. Regardless of any other
         provision hereof, however, Secured Party shall never be liable for its
         failure to collect, or for its failure to exercise diligence in the
         collection of, any amounts owed with respect to Collateral, nor shall
         it be under any duty whatever to anyone except Debtor to account for
         funds that it shall actually receive hereunder. Without limiting the
         generality of the foregoing, Secured Party shall have no responsibility
         for ascertaining any maturities, calls, conversions, exchanges, offers,
         tenders, or similar matters relating to any Collateral, or for
         informing Debtor with respect to any of such matters (irrespective of
         whether Secured Party actually has, or may be deemed to have, knowledge
         thereof). The receipt of Secured Party to any obligor shall be a full
         and complete release, discharge, and acquittance to such obligor, to
         the extent of any amount so paid to Secured Party.


                  c. Certain Proceeds. After the occurrence and during the
         continuance of an Event of Default, any cash Proceeds of Collateral
         which come into the possession of Secured Party (including, without
         limitation, insurance and condemnation proceeds) may, at Secured
         Party's option, be applied in whole or in part to the Obligations, be
         released in whole or in part to or on the written instructions of
         Debtor for any general or specific purpose, or be retained in whole or
         in part by Secured Party as additional Collateral. Any cash Collateral
         in the possession of Secured Party may be invested by Secured Party but
         Secured Party shall never be obligated to make any such investment and
         shall never have any liability to Debtor for any loss which may result
         therefrom. All interest and other amounts earned from any investment of
         Collateral may be dealt with by Secured Party in the same manner as
         other cash Collateral.

                  d. Use and Operation of Collateral. Should any Collateral come
         into the possession of Secured Party, Secured Party may use or operate
         such Collateral for the purpose of preserving it or its value pursuant
         to the order of a court of appropriate jurisdiction or in accordance
         with any other rights held by Secured Party with respect to such
         Collateral. Debtor covenants promptly to reimburse and pay to Secured
         Party, at Secured Party's request, the amount of all reasonable
         expenses (including, without limitation, the cost of any insurance and
         payment of taxes or other charges) incurred by Secured Party in


                                       6
<PAGE>   36


         connection with its custody and preservation of Collateral, and all
         such expenses, costs, taxes, and other charges shall bear interest at
         the Maximum Rate (as defined in the Note) until repaid and, together
         with such interest, shall be payable by Debtor to Secured Party upon
         demand and shall become part of the Obligations. However, the risk of
         accidental loss or damage to, or diminution in value of, Collateral is
         on Debtor, and Secured Party shall have no liability whatever for
         failure to obtain or maintain insurance, nor to determine whether any
         insurance ever in force is adequate as to amount or as to the risks
         insured. With respect to Collateral that is in the possession of
         Secured Party, Secured Party shall have no duty to fix or preserve
         rights against prior parties to such Collateral and shall never be
         liable for any failure to use diligence to collect any amount payable
         in respect of such Collateral, but shall be liable only to account to
         Debtor for what it may actually collect or receive thereon. The
         provisions of this subparagraph shall be applicable whether or not an
         Event of Default has occurred and is continuing.

                  e. Diminution in Value of Collateral. Secured Party shall have
         no liability or responsibility whatsoever for any diminution in or loss
         of value of any Collateral.

I. MULTIPLE COUNTERPARTS

         This Security Agreement may be executed in counterparts, each of which
shall be deemed an original, and all of which shall be deemed but one and the
same instrument.

J. GENERAL

         1. Waiver. No delay on the part of Secured Party in exercising any
power or right shall operate as a waiver thereof; nor shall any single or
partial exercise of any power or right preclude other or further exercise
thereof or the exercise of any other power or right. No waiver by Secured Party
of any right hereunder or of any default by Debtor shall be binding upon Secured
Party unless in writing, and no failure by Secured Party to exercise any power
or right hereunder or waiver of any default by Debtor shall operate as a waiver
of any other or further exercise of such right or power or of any further
default.

         2. Parties Bound. The rights of Secured Party hereunder shall inure to
the benefit of its successors and assigns. The terms of this Security Agreement
shall be binding upon the successors and assigns of the parties. All
representations, warranties and agreements of Debtor are joint and several if
Debtor is more than one and shall bind Debtor's personal representatives, heirs,
successors and assigns.

         3. Definitions. Unless the context indicates otherwise, definitions in
the UCC apply to words and phrases in this Security Agreement; if UCC
definitions conflict, Chapter 9 definitions apply.

         4. Notice. Notice shall be deemed reasonable if mailed postage prepaid
at least ten (10) days before the related action (or if the UCC elsewhere
specifies a longer period, such longer period) to Debtor's address given above.

         5. Expenses. Debtor agrees to reimburse Secured Party's out-of-pocket
expenses, including reasonable attorney's fees, incurred in negotiating,
administering or enforcing any part of the Obligations, and in preparation,
execution, delivery and recording of any documents in connection with any part
of the Obligations, when not contrary to law.

         6. Limitation on Interest. All agreements between Debtor and Secured
Party, whether now existing or hereafter arising and whether written or oral,
are hereby expressly limited so that in no contingency, whether by reason of
demand or acceleration of the indebtedness secured hereby or otherwise, shall
the interest contracted for, charged, received, paid or agreed to be paid to
Secured Party exceed the maximum amount permissible under applicable law. If,
from any circumstance whatsoever interest would otherwise be payable to the
holder hereof in excess of the maximum lawful amount, the interest payable to
Secured Party shall be reduced to the maximum amount permitted under applicable
law; and if from any such circumstance Secured Party shall ever receive anything
of value deemed interest by applicable law in excess of the maximum lawful
amount, an amount equal to any excessive interest shall be applied to the
reduction of the principal amount owing on the indebtedness secured hereby and
not to the payment of interest, or if such excessive interest exceeds such
unpaid balance of the principal, such excess shall be refunded to the
undersigned. All interest paid or agreed to be paid to Secured Party on the
indebtedness secured hereby shall, to the extent permitted by applicable law, be
amortized, prorated, allocated and spread throughout the full term of such
indebtedness (including the period of any renewal or extension thereof) until
payment in full so that the interest on account of such indebtedness shall not
exceed the maximum amount permitted by applicable law. The terms and provisions
of this paragraph shall control all agreements between Debtor and Secured Party.


                                       7
<PAGE>   37


         7. Modifications. No provision hereof shall be modified or limited
except by a written agreement expressly referring hereto and to the provision so
modified or limited and signed by the Debtor and Secured Party, nor by course of
conduct, usage of trade, or by the law merchant.

         8. Severability. The unenforceability of any provision of this Security
Agreement shall not affect the enforceability or validity of any other
provision.

         9. Gender and Number. Where appropriate, the use of one gender shall be
construed to include the others or any of them; and the singular number shall be
construed to include the plural, and vice versa.

         10. Applicable Law and Venue. THIS SECURITY AGREEMENT SHALL BE
CONSTRUED ACCORDING TO THE LAWS OF THE STATE OF TEXAS.

         11. Financing Statement. A carbon, photographic or other reproduction
of this Security Agreement or any financing statement covering the Collateral
shall be sufficient as a financing statement.

         EXECUTED as of the date and year first above written.

DEBTOR:                      CRESCENT DEVELOPMENT MANAGEMENT CORP.,
                             a Delaware corporation




                             By:
                                ------------------------------------------------
                                    Name:
                                         ---------------------------------------
                                    Title
                                         ---------------------------------------




SECURED PARTY:               CRESCENT REAL ESTATE EQUITIES LIMITED PARTNERSHIP,
                             a Delaware limited partnership

                             By:   Crescent Real Estate Equities, Ltd.,
                                   Sole general partner



                                   By:
                                      ------------------------------------------
                                   Name:
                                        ----------------------------------------
                                   Title
                                        ----------------------------------------



                                       8