<PAGE>

     LAND COURT SYSTEM                            REGULAR SYSTEM
--------------------------------------------------------------------------------

AFTER RECORDATION, RETURN BY MAIL (  )  PICK UP (  )
     John R. Aube, Esq.
     WATANABE, ING & KAWASHIMA
     745 Fort Street, 5th & 6th Floors
     Honolulu, Hawaii  96813
--------------------------------------------------------------------------------

Pages:       4
       --------------
TMK:  See attached Exhibit "A"


                         RELEASE OF NEGATIVE PLEDGE AGREEMENT


KNOW ALL MEN BY THESE PRESENTS:

     That FIRST HAWAIIAN BANK, a Hawaii corporation, whose principal place of
business is at 999 Bishop Street, Honolulu, Hawaii, as administrative and
co-syndication agent (the "Agent") for Bank of America NT&SA, The First National
Bank of Chicago, Bank Boston, N.A., Bank of Hawaii, Bank One, Arizona, NA, and
First Hawaiian Bank, collectively, the "Banks" under that certain Negative
Pledge Agreement dated March 29, 1996, made by Schuler Homes, Inc., a Delaware
corporation, filed in the Office of the Assistant Registrar of the Land Court of
the State of Hawaii as Land Court Document No. 2303947, noted on the Transfer
Certificates of Titles described in Exhibit "A" attached hereto, and also
recorded in the Bureau of Conveyances of the State of Hawaii (the "Bureau") as
Document No. 96-056281, as amended by that certain Amendment to Negative Pledge
Agreement dated March 27, 1997, filed in said Office as Document No. 2374602 and
also recorded in said Bureau as Document No. 97-044909, (hereinafter
collectively called the "Negative Pledge"), in consideration of the sum of Ten
Dollars ($10.00) and other valuable consideration, the receipt of which is
hereby acknowledged, does hereby cancel, release and forever discharge the
Negative Pledge;

     PROVIDED ALWAYS that in all other respects, the indebtedness and
obligations secured thereby, shall remain unaltered and unaffected by this
instrument.

<PAGE>

     IN WITNESS WHEREOF, said FIRST HAWAIIAN BANK has caused these presents to
be duly executed by its duly authorized officer this 29th day of April, 1998.

                              FIRST HAWAIIAN BANK

                              By /s/ Alvin Takahashi
                                 -------------------------------------
                                        ALVIN TAKAHASHI
                                   Its  REAL ESTATE LOAN OFFICER
                                                                         "Agent"






STATE OF HAWAII               )
                              )    SS:
CITY AND COUNTY OF HONOLULU   )


          On this 27th day of April, 1998, personally appeared ALVIN TAKAHASHI,
to me personally known, who, being by me duly sworn or affirmed did say that
such person(s) executed the foregoing instrument as the free act and deed of
such person(s), and if applicable, in the capacity shown, having been duly
authorized to execute such instrument in such capacity.



                                   Ramona K. Wright

                                   /s/ Ramona K. Wright
                                   -----------------------------------
                                   Notary Public, State of Hawaii

                                   My commission Expires:  9/4/00
                                                         -------------


                                         -2-