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                                AMENDMENT NO. 1
                                      TO
                             EMPLOYMENT AGREEMENT
                                       
     
     THIS AMENDMENT NO. 1 (the "Amendment") to that certain Employment
Agreement, dated as of August 17, 1994 (the "Employment Agreement"), is made
and entered into effective as of the 1st day of July, 1997, by and among
Richard G. Berry (the "Executive"), Evans Withycombe Residential, Inc., a
Maryland corporation (the "Company"), and Evans Withycombe Management Inc., an
Arizona corporation ("EWMI").
                                       
                                R E C I T A L S
     
     WHEREAS, the Executive, the Company and EWMI have entered into the
Employment Agreement; and
     
     WHEREAS, the Executive, the Company and EWMI wish to amend the Employment
Agreement as set forth herein.
     
     NOW THEREFORE, in consideration of the premises and the mutual covenants
and agreements set forth herein and for other good and valuable consideration,
the adequacy and receipt of which are hereby acknowledged, the parties hereto
agree as follows:
     
     A.   Capitalized terms used herein and not defined herein shall have the
respective meanings assigned to such terms in the Employment Agreement.
     
     B.   Paragraph 5(a) of the Employment Agreement is hereby amended to
include the following paragraph at the end of such Section:
          
          "Notwithstanding the foregoing, for the period from January 1,
          1997 through December 31, 1997, the Executive hereby waives his
          right to receive his Annual Base Salary and Bonus Compensation.
          Executive shall receive, however, on the effective date of this
          Amendment or as soon thereafter as is practicable, Twelve
          Thousand Four Hundred Ninty Four (12,494) restricted shares of
          Common Stock of the Company issued pursuant to the Company's
          Stock Incentive Plan in lieu of his Annual Base Salary.
          Executive shall further receive that number of restricted shares
          of Common Stock equal to the amount of his Bonus Compensation,
          multiplied by 1.155, divided by the closing price of the
          Company's common stock on the February 27, 1998, the day Bonus
          Compensation is declared.  All such shares of Common Stock shall
          have such vesting provisions and be subject to such other terms
          and conditions as set forth in the operative award agreements
          evidencing the foregoing award of restricted shares of Common
          Stock."

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     C.   Except as expressly modified herein, the terms and provisions of the
Employment Agreement shall remain in full force and effect and such Employment
Agreement, as amended by this Amendment, is hereby ratified and confirmed in
all respects.
     
     D.   This Amendment shall be governed, construed, interpreted and enforced
in accordance with the substantive laws of the State of Arizona, without regard
to the conflict of laws principles thereof.
     
     IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the
date and year first above written.
                              
                              
                              
                                     EXECUTIVE
                              
                              
                              
                                     /s/ Richard G. Berry
                                     -----------------------------------------
                                                Richard G. Berry
                                                6537 Exeter
                                                Scottsdale, Arizona  85251
                              
                              
                              
                                     EVANS WITHYCOMBE RESIDENTIAL, INC., a
                                     Maryland corporation
                              
                              
                              
                                     By: /s/ Stephan O. Evans
                                         -------------------------------------
                              
                              
                              
                              
                              
                                     EVANS WITHYCOMBE MANAGEMENT INC.,
                                     an Arizona corporation
                              
                              
                              
                                     By: Stephen O. Evans
                                         -------------------------------------
                              
                              
                                   
                                   


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