Document:

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                                                                    EXHIBIT 10.5

                                                                  EXECUTION COPY

                        AGREEMENT OF LIMITED PARTNERSHIP

                                       FOR

                              CL ASHTON WOODS, L.P.

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                         <C>
ARTICLE I   DEFINITIONS                                                                      1
            Section 1.1    Definitions                                                       1
            Section 1.2    Terms Generally                                                  10
            Section 1.3    Other Definitions                                                10
            Section 1.4    Exhibits and Schedules                                           10

ARTICLE II  GENERAL PROVISIONS                                                              11
            Section 2.1    Formation of Partnership                                         11
            Section 2.2    Certificates                                                     11
            Section 2.3    Name                                                             11
            Section 2.4    Place; Registered Agent                                          11
            Section 2.5    Term                                                             11
            Section 2.6    Purposes of Partnership                                          11
            Section 2.7    Nature of Partnership Interests                                  12
            Section 2.8    Form of Entity; Limited Authority                                12
            Section 2.9    Other Activities                                                 13

ARTICLE III CAPITAL CONTRIBUTIONS; PERCENTAGE INTERESTS                                     13
            Section 3.1    Initial Capital Contributions                                    13
            Section 3.2    Additional Capital Contributions                                 13
            Section 3.3    Optional Loans                                                   15
            Section 3.4    Capital Calls                                                    16
            Section 3.5    Capital Accounts                                                 18
            Section 3.6    Rights of Creditors                                              18
            Section 3.7    Percentage Interests and Residual Interests                      19
            Section 3.8    Additions to and Withdrawal of Capital                           19
            Section 3.9    Financing                                                        19
            Section 3.10   Power of Attorney                                                19

ARTICLE IV  DISTRIBUTIONS AND ALLOCATIONS                                                   19
            Section 4.1    Allocation of Net Profit                                         19
            Section 4.2    Allocation of Net Loss                                           20
            Section 4.3    Net Loss Limitation                                              21
            Section 4.4    Intentions and Construction of Allocations                       21
            Section 4.5    Special Allocations                                              21
            Section 4.6    Curative Allocations                                             22
            Section 4.7    Other Allocation Rules                                           22
            Section 4.8    Tax Allocations                                                  23
            Section 4.9    Distributions of Net Receipts                                    23
            Section 4.10   Manner of Distribution                                           24

ARTICLE V   BOOKS OF ACCOUNT, ACCOUNTING AND REPORTS                                        24
            Section 5.1    Books and Records; Fiscal Year                                   24
</TABLE>

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<TABLE>
<S>                                                                                         <C>
             Section 5.2    Financial Statements and Reports                                 25
             Section 5.3    Tax Status and Returns                                           25
             Section 5.4    Bank Accounts                                                    25
             Section 5.5    Accounting, Bookkeeping, Personnel                               25
             Section 5.6    Designation of Tax Matters Partner                               25
             Section 5.7    Tax Elections                                                    26
             Section 5.8    Custody of Partnership Funds                                     26

ARTICLE VI   MANAGEMENT OF THE PARTNERSHIP                                                   26
             Section 6.1    Management                                                       26
             Section 6.2    Powers and Duties of the Managing Partner                        26
             Section 6.3    Insurance                                                        28
             Section 6.4    Employment of Others                                             28
             Section 6.5    Project Development Budget Updates                               29
             Section 6.6    Management Fee                                                   29
             Section 6.7    Licenses                                                         29
             Section 6.8    Indemnification                                                  29
             Section 6.9    Limitations on Power and Authority of the
                            Managing Partner                                                 30
             Section 6.10   Annual Business Plan                                             33
             Section 6.11   Management by Limited Partners Prohibited                        35
             Section 6.12   Inspection                                                       35
             Section 6.13   Consultations                                                    35
             Section 6.14   Compensation                                                     35
             Section 6.15   Removal of Managing Partner                                      36
             Section 6.16   Partner Meetings                                                 36

ARTICLE VII  REPRESENTATIONS, WARRANTIES AND COVENANTS                                       38
             Section 7.1    Representations, Warranties and Covenants                        38
             Section 7.2    Indemnity for Breach of Warranty                                 39
             Section 7.3    Scope of Authority                                               39

ARTICLE VIII CONTRACTS WITH RELATED PARTIES; ACQUISITION
             AND DEVELOPMENT OF THE PROPERTY                                                 40
             Section 8.1    Related Party Contracts                                          40
             Section 8.2    Acquisition of the Real Property                                 40

ARTICLE IX   BUY-SELL                                                                        40
             Section 9.1    Buy-Sell                                                         40

ARTICLE X    TRANSFER OF PARTNERSHIP INTEREST(S)                                             43
             Section 10.1   Transfer of Partnership Interest(s)s Held by the
                            General Partner                                                  43
             Section 10.2   Acquisition of Partnership hiterest(s) for
                            Investment                                                       43
             Section 10.3   Transfer of Partnership Interest(s) Held by any
                            Limited Partner                                                  44
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<TABLE>
<S>                                                                                         <C>
             Section 10.4    Incapacity of a Partner                                         44
             Section 10.5    Assignees                                                       45
             Section 10.6    Substituted Partner                                             45
             Section 10.7    Indirect Transfers                                              45

ARTICLE XI   DEFAULT                                                                         46
             Section 11.1    Events of Default                                               46
             Section 11.2    Elections of Non-Defaulting Partner                             47

ARTICLE XII  TERM; LIQUIDATION AND DISSOLUTION                                               49
             Section 12.1    Term                                                            49
             Section 12.2    Dissolution                                                     49
             Section 12.3    Liquidation and Distribution Procedure                          49

ARTICLE XIII ARBITRATION                                                                     51
             Section 13.1    Initiation                                                      51
             Section 13.2    Court Enforcement of Arbitration Award                          52
             Section 13.3    Consolidation Proceedings                                       52

ARTICLE XIV  GENERAL PROVISIONS                                                              52
             Section 14.1    Independent Parties                                             52
             Section 14.2    Counterparts                                                    52
             Section 14.3    Notices                                                         53
             Section 14.4    Effect and Interpretation                                       54
             Section 14.5    Severability                                                    54
             Section 14.6    Binding Upon Successors                                         54
             Section 14.7    Gender                                                          54
             Section 14.8    Headings                                                        54
             Section 14.9    Entire Agreement                                                54
             Section 14.10   Force Majeure                                                   54
             Section 14.11   Time                                                            55
</TABLE>

Exhibits

Exhibit A  Property

Exhibit B  Development Budget

Exhibit C  Development Plan

Exhibit D  Lot Sale Contract

Exhibit E  Initial Annual Business Plan

Exhibit F  Initial Annual Budget

Exhibit G  Purchase Agreement

                                     -iii-

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Schedules

Schedule 3.1 - Initial Capital Contributions

Schedule 3.2(a) - Partners' Total Project Cost Commitments

Schedule 6.15   - Minimum Sales Requirements

                                      -iv-

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                      AGREEMENT OF LIMITED PARTNERSHIP FOR

                             CL ASHTON WOODS, L.P.

      THIS AGREEMENT OF LIMITED PARTNERSHIP FOR CL ASHTON WOODS, L.P. (the
"Agreement") is made and entered into to be effective as of March 10, 2005, by
and among CL TEXAS I, GP, LLC, a Georgia limited liability company, as a General
Partner ("CLGP"); CL TEXAS, L.P., a Texas limited partnership ("CL"), as a
Limited Partner; AW SOUTHERN TRAILS, INC., a Texas corporation ("Ashton Woods
GP"), as a General Partner; and ASHTON HOUSTON RESIDENTIAL L.L.C., a Texas
limited liability company ("Ashton Woods LP"), as a Limited Partner.

      The parties hereto desire to form a limited partnership under the laws of
the State of Texas, for the purposes and on the terms provided herein.

      NOW, THEREFORE, for and in consideration of the mutual covenants and
agreements herein contained, the General Partner and Limited Partners do hereby
agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

      SECTION 1.1 DEFINITIONS. The following terms, explanations and definitions
of words, phrases and clauses shall govern when the terms are used in this
Agreement unless the context thereof specifically indicates a different meaning:

      ACT means the Texas Revised Limited Partnership Act, as the same from time
to time has been or may be amended.

      ADDITIONAL CAPITAL CONTRIBUTIONS means the contributions to the capital of
the Partnership to be made by each of the Partners, as applicable, in accordance
with the provisions of Sections 3.2 and 3.4 of this Agreement.

      ADJUSTED CAPITAL ACCOUNT DEFICIT means, with respect to a Partner, the
deficit balance, if any, in that Partner's Capital Account as of the end of the
relevant Fiscal Year or other applicable period, after giving effect to the
following adjustments:

                  (a)The Capital Account will be increased by any amount that
  the Partner is obligated to restore, if any, including any amount such Partner
  is deemed to be obligated to restore under the penultimate sentence of
  Regulations Sections 1.704-2(g) (1) and 1.704-2(i)(5); and

                  (b)The Capital Account will be decreased by the items
  described in Regulations Sections 1.704-l(b)(2)(ii)(d)(4), (5) and (6).

This definition of Adjusted Capital Account Deficit is intended to comply with
the provisions of Regulations Section 1.704-l(b)(2)(ii)(d) and shall be
interpreted consistently with those provisions.

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      AFFILIATE means, with respect to any Person, (a) any officer, director,
trustee, partner, employee or current holder of ten percent (10%) or more of any
class of the voting securities of or equity or profits interest in such Person;
(b) any corporation, partnership, trust, estate or other entity controlling,
controlled by or under common control with such Person; (c) any officer,
director, trustee, partner, employee or current holder of ten percent (10%) or
more of the outstanding voting securities of or equity or profits interest in
any corporation, partnership, trust or other entity controlling, controlled by
or under common control with such Person; and (d) any relative (within the third
degree of consanguinity) or spouse (or any relative within the third degree of
consanguinity of any such spouse) of any natural person included in clauses (a),
(b) or (c) above, or any trusts for the benefit of or entities controlled by or
under common control with any such relative or spouse. With regard to CL, for
purposes of clause (b) of the immediately preceding sentence, "Affiliate" shall
include Cousins Real Estate Corporation, a Georgia corporation, and Lumbermen's
Investment Corporation, a Texas corporation, or an Affiliate of either
corporation.

      AGREEMENT means this Agreement of Limited Partnership, as the same may be
amended from time to time.

      ANNUAL BUDGET means the annual budget for the Partnership prepared and
approved as part of the Annual Business Plan pursuant to Section 6.10 herein
which shall be comprised of: (A) an estimate of all receipts from and
expenditures for the ownership, management, development and sale of Lots for
each Fiscal Year (that are not detailed in the Development Budget) and (B) an
estimate of all capital expenditures with respect to the Project for any Fiscal
Year (that are not detailed in the Development Budget).

      ANNUAL BUSINESS PLAN means the annual business plan prepared by the
Managing Partner and Approved by the Partners in accordance with the provisions
of Section 6.10 of this Agreement. Each Annual Business Plan shall include the
Minimum Sales Requirements for such period.

      APPROVED BY THE PARTNERS or APPROVAL OF THE PARTNERS shall mean approved
by or approval of the General Partners and the holders of at least two-thirds
(66.67%) of the Percentage Interests, provided, however, except for the specific
matters described in Section 6.9(a), a Defaulting Partner shall not have a right
to approve any matter hereunder.

      ASHTON WOODS shall mean Ashton Houston Residential L.L.C., a Texas limited
liability company.

      ASHTON WOODS GP shall mean AW Southern Trails, Inc., a Texas corporation.
Ashton Woods GP's principal place of business is located at 11375 West Sam
Houston Parkway South, Suite 100, Houston, Texas 77031.

      ASHTON WOODS LP shall mean Ashton Houston Residential L.L.C. Ashton Woods
LP's principal place of business is located at 11375 West Sam Houston Parkway
South, Suite 100, Houston, Texas 77031.

      BANKRUPTCY or BANKRUPT means and/or refers to bankruptcy or insolvency, or
a bankruptcy or insolvency, reorganization, arrangement, liquidation or similar
proceeding under

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the laws of any jurisdiction, Federal or state, including, but not limited to, a
voluntary or involuntary petition under any bankruptcy or insolvency laws or
under the reorganization provisions of any law, the voluntary or involuntary
appointment of a receiver, the voluntary or involuntary assignment for the
benefit of creditors generally, or an admission in writing of the inability to
pay debts as they become due; provided, however, that, in the case of any
involuntary petition, appointment, assignment or similar involuntary proceeding,
such action shall not constitute a Bankruptcy and the party which is the object
of such action shall not be considered Bankrupt until ninety (90) days has
elapsed from the initiation of such action without the dismissal of such
involuntary proceeding.

      BUSINESS DAY shall mean any day except a Saturday, Sunday or any other day
in which commercial banks in Atlanta, Georgia are authorized or required by law
to close.

      CAPITAL ACCOUNT shall mean one of the individual capital accounts
maintained for each Partner in accordance with the terms of Section 3.5 of this
Agreement.

      CAPITAL CONTRIBUTION means, with respect to any Partner, the amount of
cash and the initial Gross Asset Value of any property (other than money)
contributed to the Partnership with respect to the interest in the Partnership
held by that Partner, net of liabilities encumbering such contributed property
that the Partnership is considered to assume or take subject to under Section
752 of the Code, including all Initial Capital Contributions and Additional
Capital Contributions. Any reference in this Agreement to the Capital
Contribution of a particular Partner will include a Capital Contribution made by
any prior Partner with respect to the Partnership Interest(s) of the applicable
Partner.

      CL shall mean CL Texas, L.P., a Texas limited partnership and a Limited
Partner in the Partnership. CL's principal office is located at 5495 Beltline
Road, Suite 225, Dallas, Texas 75254.

      CLGP shall mean CL Texas I GP, LLC, a Georgia limited liability company
and a General Partner in the Partnership. CLGP's principal office is located at
2500 Windy Ridge Parkway, Suite 1600, Atlanta, Georgia 30339

      CODE shall mean the Internal Revenue Code of 1986, as from time to time
amended, together with all regulations thereunder from time to time in effect.

      CONTRIBUTION LOAN shall have the meaning set forth in Section 3.4(c)
herein.

      DEFAULTING PARTNER shall have the meaning set forth in Section 11.1.

      DEPRECIATION means, for each Fiscal Year or other period, an amount equal
to the depreciation, amortization or other cost recovery deduction allowable
with respect to an asset for the year or other period, except that if the Gross
Asset Value of an asset differs from its adjusted basis for federal income tax
purposes at the beginning of the year or other period Depreciation will be an
amount which bears the same ratio to the initial Gross Asset Value as the
federal income tax depreciation, amortization or other cost recovery deduction
for the year or other period bears to the beginning adjusted tax basis (except
as required by Regulations Section 1.704-3(d)), provided that if the federal
income tax depreciation, amortization, or other cost

                                       3
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recovery deduction for the year or other period is zero, Depreciation will be
determined with reference to the initial Gross Asset Value using any reasonable
method selected by the General Partners.

      DESIGNATED REPRESENTATIVE(s) shall mean Tom Krobot and Bob Salomon with
respect to Ashton Woods GP, and Bruce Smith, Michael Quinley and Craig Knight
with respect to CLGP. Any Designated Representative may be replaced or
additional Designated Representatives may be appointed by the applicable Partner
upon notice to the other Partners. In the event any Partner has more than one
(1) Designated Representative, the decision of any Designated Representative of
such Partner that is in writing signed by a Designated Representative of such
Partner or is reflected in the approved minutes of a meeting shall be binding on
the applicable Partner and the other Designated Representative(s) of such
Partner and may be relied on by the other Partners hereunder.

      DEVELOPER shall mean the "Development Manager" designated in the
Development Agreement.

      DEVELOPMENT AGREEMENT shall mean that certain Development Agreement made
and entered into by and between Aurous Development Services, Ltd., a Texas
limited partnership, and Ashton Southern Trails Joint Venture, a Texas joint
venture, as assigned by Ashton Southern Trails Joint Venture to the Partnership,
or otherwise as approved by the Partners.

      DEVELOPMENT BUDGET shall mean the budget of the anticipated Development
Costs for the Project attached hereto as Exhibit B and incorporated herein by
reference, as the same may be amended from time to time with the Approval of the
Partners.

      DEVELOPMENT COSTS shall mean all costs which have been or are estimated to
be incurred by the Partnership with respect to the acquisition, design,
development, construction, financing, and completion of the Project and the
marketing and sale of Lots, as set forth in the Development Budget.

      DEVELOPMENT PLAN shall mean Development Plan for the Project attached
hereto as Exhibit C and incorporated herein by reference, including the Plans
and Specifications and the Development Budget, as the same may be amended from
time to time with the Approval of the Partners.

      DUE DILIGENCE MATERIALS shall mean all studies, reports, tests, plans,
investigations, entitlements, surveys, permit and zoning applications and/or
approvals, and other due diligence and predevelopment documents, materials and
applications which relate to the Project.

      FINANCING(s) shall mean one or more, as the context shall so indicate, of
those certain loan(s) made by the respective Lender(s) to the Partnership to
finance and/or refinance the acquisition and/or development of the Project, as
Approved by the Partners.

      FINANCING ENHANCEMENTS shall have the meaning set forth in Section 3.2(a).

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      FISCAL YEAR shall mean the fiscal year of the Partnership established
pursuant to Section 5.1, except that the first fiscal year of the Partnership
shall commence on the date hereof and shall terminate on the last day of 2005.

      FORCE MAJEURE EVENT shall mean strikes, embargoes, national emergencies,
acts of God, affirmative acts of governmental agencies relating to the
population in general (as opposed to acts of governmental agencies relating to
the Project or the Property) and other events beyond the reasonable control of
the parties (except for the inability of a party to pay money).

      GENERAL PARTNER(s) shall initially mean CL and Ashton Woods, and any
successors acting in such capacity.

      GROSS ASSET VALUE means, with respect to any asset, the adjusted basis
 of the asset for federal income tax purposes, except as follows:

            (a) The initial Gross Asset Value of any asset contributed (or
deemed contributed under Regulations Section 1.704-l(b)(l)(iv)) by a Partner to
the Partnership will be the fair market value of the asset on the date of the
contribution, as Approved by the Partners.

            (b) The General Partners may adjust the Gross Asset Values of all
Partnership assets to equal the respective fair market values of the assets as
of (i) the acquisition of an additional interest in the Partnership by any new
or existing Partner in exchange for more than a de minimus capital contribution;
(ii) the distribution by the Partnership to a Partner of more than a de minimus
amount of Partnership assets as consideration for an interest in the
Partnership; (iii) the grant of an interest in the Partnership (other than a de
minimums interest) as consideration for the provision of services to or for the
benefit of the Partnership by any new or existing Partner, and (iv) the
liquidation of the Partnership within the meaning of Regulations Section 1.704-
1(b)(2)(ii)(g); provided, however, that the adjustments pursuant to clauses (i),
(ii) and (iii) above shall be made only if the General Partners reasonably
determine an adjustment is necessary or appropriate to reflect the relative
economic interests of the Partners in the Partnership.

            (c) The Gross Asset Value of any Partnership asset distributed to
any Partner shall be adjusted to equal its then gross fair market value on the
date of distribution as reasonably determined by the General Partners.

            (d) The Gross Asset Values of Partnership assets will be increased
(or decreased) to reflect any adjustment to the adjusted basis of the assets
under Code Section 734(b) or 743(b), but only to the extent that the adjustment
is taken into account in determining Capital Accounts under Regulations Section
1.704-l(b)(2)(iv)(m); provided, however, Gross Asset Values will not be adjusted
under this paragraph to the extent that the General Partners reasonably
determine that an adjustment under paragraph (b) above is necessary or
appropriate in connection with a transaction that would otherwise result in an
adjustment under this paragraph (d).

            (e) If the Gross Asset Value of any asset has been determined or
adjusted under paragraphs (a), (b) or (d) above, the Gross Asset Value will
thereafter be adjusted by the Depreciation taken into account with respect to
the asset for purposes of computing Net Profit and Net Loss.

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<PAGE>

      GROSS RECEIPTS shall mean revenues and receipts (other than funds received
as Capital Contributions), calculated on an accrual basis, from the conduct of
the business of the Partnership from all sources, including but not limited to
(a) the gross cash proceeds from any sale, ground lease, exchange, condemnation
or other disposition of Lots or the Project or any portion thereof, including
but not limited to all principal and interest payments received with respect to
any note or other obligation received by the Partnership in connection with a
sale or other disposition of the Project or any portion thereof, plus (b) the
principal amount of all funds borrowed by the Partnership from time to time,
plus (c) the amount of any recovery of title, hazard or casualty insurance
proceeds from time to time (other than rental interruption insurance) in excess
of amounts expended in the restoration or repair of the Project, and the
recovery from any voluntary or involuntary condemnation of the Project or any
portion thereof in excess of amounts expended in the restoration of the Project,
plus (d) infrastructure reimbursements from third parties, including but not
limited to, utility reimbursements.

      IMPROVEMENTS shall mean any and all improvements developed or to be
developed upon or for the benefit of the Project in accordance with the
Development Plan.

      INITIAL CAPITAL CONTRIBUTIONS shall mean the contributions to the capital
of the Partnership to be made by each of the Partners, as applicable, in
accordance with the provisions of Section 3.1 of this Agreement.

      LENDER(s) shall mean the financial institution(s) making the Financing
available to the Partnership, as the context shall so indicate.

      LIMITED PARTNER(s) shall initially mean Ashton Woods and CL, and any
respective permitted successors thereto or assigns thereof.

      LOT shall mean any subdivided lot developed or to be developed as a single
family residential lot in the Project.

      LOT SALE CONTRACT(s) shall mean the contract(s) of sale, substantially in
the form attached hereto as Exhibit D, to be entered into by the Partnership and
[Ashton Woods] providing for the sale of Lots to Ashton Woods or an Affiliate of
Ashton Woods and such other contracts of sale Approved by the Partners for the
sale of Lots to third-party builders.

      MAJOR DECISIONS shall mean those actions which are not to be taken by
either Partner unless and until Approved by the Partners as set forth in Section
6.9 of this Agreement or as required elsewhere in this Agreement.

      MINIMUM SALES REQUIREMENTS shall be include in each Annual Business Plan.
The Minimum Sales Requirements for the period of the first Annual Business Plan
are shown on Schedule 6.15 to this Agreement. Schedule 6.15 also sets forth the
projected Minimum Sales Requirements for periods beyond the period covered by
the first Annual Business Plan, but such projected Minimum Sales Requirements
are not binding on the Managing Partner and are subject to change each time the
Managing Partner prepares an Annual Business Plan and submits such Annual
Business Plan to be Approved by the Partners in accordance with the provisions
of Section 6.10 of this Agreement; provided, however, in no event shall the
Minimum Sales Requirements for any annual period exceed the projected Minimum
Sales Requirements set forth

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<PAGE>

on Schedule 6.15 unless Approved by the Partners. The Minimum Sales Requirements
included within an Annual Business Plan Approved by the Partners shall become
the Minimum Sales Requirements for such period. In determining the Minimum Sales
Requirements to be included within an Annual Business Plan, for a particular
period as the Partners shall consider, among other things, (i) the general
economic conditions of the Houston Metropolitan Area and the specific economic
conditions of the City of Pearland, (iii) the performance or non-performance of
homebuilders (other than Ashton Woods or any Affiliate thereof) under lot sales
contract executed by the Partnership for the sale of lots in the Project, and
(iii) the extent that the lot sales and gross revenues in the periods covered by
previous Annual Business Plans exceed the lot sales or gross revenues set forth
in the Minimum Sales Requirements for such periods. In other words, should the
Managing Partner exceed the Minimum Sales Requirements for a particular period
or periods then the Minimum Sales Requirements included in the next Annual
Business Plan or Plans should reflect such fact and not penalize the Managing
Partner for executing the Minimum Sales Requirements for such period.

      MANAGING PARTNER shall mean Ashton Woods or any successor Managing
Partner.

      NET PROFIT or NET LOSS shall mean, for each Fiscal Year, the Partnership's
taxable income or taxable loss for such Fiscal Year, as determined under Section
703(a) of the Code (including all items required to be separately stated under
Section 703(a)(l) of the Code) and Regulations Section 1.703-1, but with the
following adjustments:

            (a)Any tax-exempt income, as described in Section 705(a)(l)(B) of
  the Code, realized by the Partnership during such Fiscal Year shall be added
  to such taxable income or taxable loss;

            (b)Any expenditures of the Partnership described in Section
  705(a)(2)(B) of the Code for such Fiscal Year or treated as being so described
  in Regulations Section 1.704-l(b)(2)(iv)(i) and not otherwise taken into
  account in this subsection shall be subtracted from such taxable income or
  taxable loss;

            (c)In the event the Gross Asset Value of any Partnership asset is
  adjusted pursuant to clauses (b) or (c) of the definition of "Gross Asset
  Value," the amount of such adjustment shall be taken into account as gain or
  loss from the disposition of such asset for purposes of computing Net Profit
  or Net Loss;

            (d)Any item of income, gain, loss or deduction that is required to
  be specially allocated to a Partner under this Agreement, including without
  limitation Sections 4.5, 4.6, 4.7 and 4.8(b) hereof, shall not be taken into
  account in computing such taxable income or taxable loss;

            (e) The amount of any gain or loss required to be recognized by the
  Partnership during such Fiscal Year by reason of a sale or other disposition
  of the Project, or any part thereof or any other asset of the Partnership,
  shall be computed as if the Partnership's adjusted basis in such property for
  income tax purposes were equal to the Gross Asset Value of the property
  disposed of, notwithstanding that the adjusted tax basis of such property
  differs from its Gross Asset Value; and

                                       7
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            (f) In lieu of depreciation, amortization, and other cost recovery
  deductions taken into account in computing such taxable income or loss, there
  shall be taken into account Depreciation for the Fiscal Year or other
  applicable period.

If the Partnership's taxable income or taxable loss for such Fiscal Year, as
adjusted in the manner provided above in clauses (a) through (f) above, is (i) a
positive amount, such amount shall be the Partnership's Net Profit for such
Fiscal Year, and (ii) a negative amount, such amount shall be the Partnership's
Net Loss for such Fiscal Year.

      NET RECEIPTS shall mean for the applicable period the Gross Receipts of
the Partnership for such period plus any reserves not needed for operations as
reasonably determined by the General Partners, less Operating Expenses for such
period and less a reasonable reserve for the conduct of the business of the
Partnership reasonably established by the General Partners.

      NON-DEFAULTING PARTNER shall have the meaning set forth in Section 11.1.

      OPERATING DEFICIT means, for any particular period of time, the amount (if
any) by which Operating Expenses for such particular period of time exceed, or
are projected to exceed, Gross Receipts for such period of time.

      OPERATING EXPENSES shall mean, all expenses of any kind made with respect
to the operations of the Partnership in the normal course of business determined
on an accrual basis, including, but not limited to: (a) the actual, reasonable
and customary expenses and costs relating to any sale, financing or refinancing
of the Project, including any partial release payment made pursuant to the terms
of any applicable financing encumbering the Property or the portion thereof so
sold, any reserves for warranty items, and/or any prepayment charges or mortgage
broker fees (paid to third parties which are not an Affiliate of any Partners)
or incurred in connection with any financing or refinancing, (b) currently due
and payable principal, interest and extension fees, if any, payable pursuant to
any loans obtained by the Partnership, (c) expenditures for capital
improvements, (d) reasonable working capital reserves for payment of all
obligations of the Partnership for which loan proceeds are not available, as
reasonably established by the General Partners, (e) amounts paid from
condemnation and/or insurance proceeds for restoration and/or repair of the
Project or any portion thereof, (f) any amounts paid for taxes, assessments,
fees, governmental charges, insurance, maintenance costs, and utilities, (g) any
fees paid to consultants and other advisors hired by the Partnership in
conjunction with the Project, (h) any costs and expenses paid by the Partnership
to maintain any agricultural, open space use or other exemption or qualified use
for tax purposes, and (i) any other similar costs and expenses.

      OPTIONAL LOAN shall have the meaning set forth in Section 3.3 herein.

      PARTNER means any partner of the Partnership, including any General
Partner or any Limited Partner, and "Partners" means the General Partners and
the Limited Partners, collectively.

      PARTNERSHIP means CL ASHTON WOODS, L.P., a Texas limited partnership, as
such Partnership may from time to time be constituted.

                                       8
<PAGE>

      PARTNERSHIP INTEREST means, as to any Partner at any time, such Partner's
Capital Account, Percentage Interest, Residual Interest, and right to
distributions, profits and losses of the Partnership in accordance with the
provisions of this Agreement, and any other rights which such Partner has in the
Partnership in accordance with the provisions of this Agreement or under
applicable law.

      PERCENTAGE INTEREST(s) means the respective percentage interests of the
Partners and their respective permitted successors and assigns in the
Partnership, as set forth in Section 3.7(a) of this Agreement.

      PERSON means an individual or an entity such as, but not limited to, a
corporation, general partnership, joint venture, limited partnership, limited
liability partnership, trust or business association. When a Person is an
entity, the words "he," "him" and "his" and similar words shall include or refer
to "it" and "its" and similar words.

      PHASES means one or more sections, phases, portions, parcels or segments
of the Property as reflected or to be reflected in the Development Plan.

      PLANS AND SPECIFICATIONS means the plans, drawings and specifications for
development of the Improvements prepared at the direction of the Managing
Partner for the Partnership and Approved by the Partners.

      PREFERRED RETURN shall mean, with respect to a Partner (and any permitted
transferee), a return on the average daily balance of such partner's (and any
permitted transferee's) Unreturned Contribution Account, commencing on the date
such Partner (and any permitted transferee) first makes (or is deemed to have
made) a Capital Contribution pursuant to this Agreement, during the period to
which such return relates, at a rate equal to eighteen percent (18%) per annum.
The return shall be determined on the basis of the actual number of days in the
period for which the return is being determined, cumulative and compounded
annually to the extent not distributed pursuant to Section 4.9(b).

      PREFERRED RETURN ACCOUNT shall mean, with respect to a Partner (and any
permitted transferee), the excess, if any, of (i) aggregate Preferred Return of
such Partner (and any permitted transferee) over (ii) the aggregate
distributions to such Partner (and any permitted transferee) pursuant to Section
4.9(b), in each case since the inception of the Partnership. In the event of the
sale, transfer, assignment or other disposition of the Partnership Interest in
the Partnership initially issued to such Partner, the transferee of such
Partnership Interest shall succeed to the Preferred Return Account balance, if
any, attributable to the transferred Partnership Interest.

      PRIME RATE means the prime lending rate for large U.S. money center
commercial banks, as published in the Money Rates section of the Wall Street
Journal, as the same may vary from time to time during the applicable period;
provided, however, in the event such method of determining the Prime Rate is no
longer available, then a comparable rate shall be used in lieu thereof as
Approved by the Partners.

      PRO FORMA SALES BUDGET shall have the meaning set forth in Section
6.10(a).

                                       9
<PAGE>

      PROJECT shall mean, collectively, the Property and the Improvements to be
developed thereon as Approved by the Partners.

      PROJECT COST COMMITMENT shall have the meaning set forth in Section 3.2(a)
hereof.

      PROPERTY shall mean that certain tract of real property to be acquired by
the Partnership from Ashton Southern Trails Joint Venture, a Texas joint
venture, as of even date herewith and more particularly described on Exhibit A
attached hereto and incorporated herein by reference.

      PURCHASE AGREEMENT shall mean the Contract for the Sale of Real Estate
between the Partnership and Ashton Southern Trails Joint Venture, as approved by
CLGP on behalf of the Partnership and attached hereto as Exhibit G and
incorporated herein.

      REGULATIONS shall mean the Treasury Regulations promulgated under the
Code, as such regulations may be amended from time to time.

      RESIDUAL INTEREST(s) means the respective residual interests of the
Partners (and their respective permitted successors and assigns) in
distributions, if any, pursuant to Section 4.9(d) of this Agreement, as set
forth in Section 3.7(b).

      TOTAL PROJECT COST COMMITMENT shall have the meaning set forth in Section
3.2(a).

      TRANSFER shall mean any transfer, sale, pledge, hypothecation, encumbrance
or assignment of all or any portion of an interest in the Partnership, whether
voluntarily or by operation of law.

      UNRETURNED CONTRIBUTION ACCOUNT shall mean an account maintained for each
Partner equal to, as of any particular date, the excess, if any, of (i) the
aggregate amount of Capital Contributions of such Partner pursuant to this
Agreement, minus (ii) the aggregate amount of distributions to such Partner
pursuant to Section 4.9(c) herein, in each case since the inception of the
Partnership. In the event of the sale, transfer, assignment or other disposition
of the Partnership Interest in the Partnership initially issued to such Partner,
the transferee of such Partnership Interest shall succeed to the Unreturned
Contribution Account balance, if any, attributable to the transferred
Partnership Interest.

      SECTION 1.2 TERMS GENERALLY. The definitions in Section 1.1 above shall
apply equally to both the singular and plural forms of the terms defined herein.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The term "person" or "Party" includes
individuals, partnerships, corporations, trusts and other associations. The
words "include", "includes", and "including" shall be deemed to be followed by
the phrase "without limitation".

      SECTION 1.3 OTHER DEFINITIONS. In addition to the terms defined in Section
1.1, other terms will have the definitions provided elsewhere in this Agreement.

      SECTION 1.4 EXHIBITS AND SCHEDULES. The Exhibits and Schedules attached
hereto and listed in the Table of Contents are hereby incorporated into this
Agreement as if fully set forth herein.

                                       10
<PAGE>

                                   ARTICLE II
                               GENERAL PROVISIONS

      SECTION 2.1 FORMATION OF PARTNERSHIP. The parties hereto hereby create a
limited partnership pursuant to the Act. The rights and liabilities of the
Partners shall be as provided in the Act, except as otherwise set forth herein.
In the event that any provision in this Agreement conflicts with the Act, such
provision in this Agreement shall control and govern to the extent permitted by
applicable law.

      SECTION 2.2 CERTIFICATES. Immediately prior to or contemporaneously with
the execution of this Agreement, the Managing Partner shall cause an appropriate
certificate of limited partnership to be filed with the Secretary of State of
the State of Texas. The Managing Partner shall also forthwith execute all other
certificates required by law, and the Managing Partner shall cause the same to
be filed in accordance with applicable law.

      SECTION 2.3 NAME. The name of the Partnership shall be CL ASHTON WOODS,
L.P. The General Partners may from time to time change the name of the
Partnership if Approved by the Partners.

      SECTION 2.4 PLACE; REGISTERED AGENT. The location of the principal place
of business of the Partnership shall be c/o Ashton Woods GP, 11375 West Sam
Houston Parkway South, Suite 100, Houston, Texas 77031, and shall continue at
such address unless changed by the General Partners. The registered agent for
service of process on the Partnership shall be Tim Hagen, whose address is Hagen
& Parsons, P.C., 14643 Dallas Parkway, Suite 570, Dallas, Texas 75254, unless
and until a new registered agent is designated by the General Partners. The
registered agent shall promptly send copies of all notices, pleadings, and
reports served on or delivered to him to each of the General Partners.

      SECTION 2.5 TERM. The Partnership shall commence on the effective date
hereof and shall terminate upon the earlier of (a) December 31, 2025, (b) such
time as the Partners, by mutual agreement, shall elect to terminate the
Partnership, or (c) as otherwise provided in this Agreement; provided, however,
with respect to subparagraphs (a) and (b) above, if, as of either of such dates,
the Project is not substantially completed (i.e., substantially all the Lots
sold), then the Partnership shall not so terminate until the Project is
substantially completed.

      SECTION 2.6 PURPOSES OF PARTNERSHIP. The purposes of the Partnership are:

            (a) To acquire the Property from an affiliate of Ashton Woods in
accordance with the terms and conditions of the Purchase Agreement.

            (b) To arrange for, obtain, negotiate, and close the Financing(s) on
terms Approved by the Partners, and to utilize the proceeds thereof to acquire,
develop and/or refinance the acquisition and development of the Project, or, in
the alternative, to arrange for, obtain, negotiate, and close such other
financing as may be Approved by the Partners;

            (c) To develop the Project in accordance with the Development Plan,
Development Budget, the provisions of the Development Agreement and the Plans
and Specifications, each as Approved by the Partners;

                                       11
<PAGE>

            (d) To own, finance, develop, market, manage, sell and operate the
Project, and any other property acquired by the Partnership in accordance with
this Agreement, for investment and production of income and profit and, without
limiting the foregoing, to enter into the Lot Sale Contracts;

            (e) To subdivide, market and sell portions of the Project in
accordance with the Development Plan, the Lot Sale Contracts and this Agreement,
each as Approved by the Partners;

            (f) To negotiate and enter into such partnerships, ventures,
entities and other relationships relating to the acquisition, development, sale
and operation of the Property as may be Approved by the Partners from time to
time;

            (g) To engage in any one or more other business transactions
necessary or desirable to effect the purposes of this Agreement described in (a)
through (f) above, including, without limitation, to borrow funds in accordance
with the terms of this Agreement and to execute evidence of such indebtedness
and security instruments in connection therewith, subject to the Approval of the
Partners;

            (h) To take other actions necessary or appropriate in furtherance of
the foregoing purposes in accordance with the provisions of this Agreement; and

            (i) To act as principal, agent, joint venturer or in any other
capacity which may be authorized hereby or Approved by the Partners.

      SECTION 2.7 NATURE OF PARTNERSHIP INTERESTS. The Partnership Interests of
the Partners in the Partnership shall be personal property for all purposes.
Legal title to the Project and all other property and assets of the Partnership
shall be held in the name of the Partnership. Neither any Partner individually,
nor any partners or permitted successors or assigns of any Partner, shall have
any right, title or interest in or to the Project or any other property or
assets of the Partnership; rather the Project and all such property and assets
of the Partnership shall be subject to the terms of this Agreement. Further, the
Partners acknowledge and agree that the Project is not suitable for partition,
and thus all of the Partners hereby irrevocably waive any and all rights to
maintain any action for partition of the Project.

      SECTION 2.8 FORM OF ENTITY; LIMITED AUTHORITY. The entity created hereby
is a limited partnership formed under Texas law. Notwithstanding the foregoing,
except with respect to actions in furtherance of the business and purpose of the
Partnership in a manner consistent with and limited by specific agreements,
covenants, rights, privileges, duties and obligations arising under this
Agreement, neither the creation of the Partnership nor the execution and
delivery by the Partners of this Agreement inter se is intended to create a
general agency relationship or authority, nor shall the same be construed as to
authorize or entitle any Partner to act as a general agent for and on behalf of
the other Partners with respect to any business or activity other than in
furtherance of the specific purposes of the Partnership as described in this
Agreement. Without limiting the generality of the foregoing, neither the
Partnership nor any Partner shall be responsible or liable for any indebtedness
or obligation of a Partner incurred or arising before or after the formation of
the Partnership, except for those joint responsibilities,

                                       12
<PAGE>

liabilities, indebtedness or obligations incurred after the date of formation of
the Partnership pursuant to and in accordance with the terms of this Agreement
or for any such obligations expressly and intentionally assumed pursuant to this
Agreement or any other written agreement duly executed and delivered by all of
the Partners.

      SECTION 2.9 OTHER ACTIVITIES. Each Partner may engage or invest in any
other activity or venture or possess any interest therein independently or with
others, whether or not competitive with the business of the Partnership or the
Property, and whether existing as of the date of this Agreement or hereafter
coming into existence. None of the Partners, the Partnership or any other Person
employed by, related to or in any way affiliated with any Partner or the
Partnership shall have any duty or obligation to disclose to or offer to the
Partnership or the Partners, or obtain for the benefit of the Partnership or the
Partners, any other activity or venture or interest therein. None of the
Partnership, the Partners, the creditors of the Partnership or any other Person
having an interest in the Partnership shall have (i) any claim, right or cause
of action against any Partner or any other Person employed by, related to or in
any way affiliated with, any Partner by reason of any direct or indirect
investment or other participation, whether active or passive, in any such
activity or interest therein, or (ii) any right to any such activity or interest
therein or the income or profits derived therefrom.

                                   ARTICLE III
                   CAPITAL CONTRIBUTIONS; PERCENTAGE INTERESTS

      SECTION 3.1 INITIAL CAPITAL CONTRIBUTIONS. Upon execution hereof, the
Partners shall contribute in cash to the capital of the Partnership as their
Initial Capital Contributions the respective amounts set forth opposite their
names on Schedule 3.1 attached hereto and incorporated herein.

      SECTION 3.2 ADDITIONAL CAPITAL CONTRIBUTIONS.

            (a) The Partners hereby agree to provide Additional Capital
Contributions (in cash or immediately available funds) to the Partnership pro
rata in proportion to their respective Percentage Interests to pay Development
Costs in an aggregate amount for each Partner as set forth on Schedule 3.2(a)
attached hereto and incorporated herein (each Partner's share of the aggregate
Additional Capital Contributions required to pay Development Costs is referred
to herein as such Partner's "Project Cost Commitment"), plus any amounts
guaranteed by such Partner or secured by letters of credit provided by such
Partner (or an Affiliate thereof) ("Financing Enhancements") as set forth on
Schedule 3.2 and pursuant to Section 3.2(e) below. Project Cost Commitment plus
funded Financing Enhancements with respect to the Project shall be sometimes
referred to as the "Total Project Cost Commitment". Such Additional Capital
Contributions shall be made to the Partnership pursuant to the procedures set
forth in Section 3.4 below. Notwithstanding anything to the contrary herein
(except to the extent set forth in Section 3.2(e) hereof), no Partner shall be
required to make any further Additional Capital Contributions with respect to
the Project once such Partner's aggregate Capital Contributions since the
inception of the Partnership equals (i) such Partner's Project Cost Commitment
unless and except to the extent a Financing Enhancement with respect to the
Project has been demanded in writing or drawn upon by the Lender, or (ii) such
Partner's Total Project Cost Commitment if a

                                       13
<PAGE>

Financing Enhancement is reduced by the amount of a draw against or funding
under such Financing Enhancement.

            (b) As of the date of the funding of the Financing for the Project,
each Partner shall be reimbursed by the Partnership for all pre-development
expenses paid by such Partner with respect to the Project provided that such
expenses are set forth in the Development Budget.

            (c) Each Partner hereby transfers and conveys to the Partnership all
of such Partner's right, title and interest in and to the Project (including,
without limitation, all Due Diligence Materials in the possession of such
Partner). Such transfers of Due Diligence Materials shall not be treated as
having any value for purposes of determining the Partners' Capital Accounts.

            (d) If, at any time and from time to time, a General Partner
determines in its reasonable business judgment that additional funds are needed
with respect to the Project due to unforeseen circumstances regarding the
ownership, development, engineering and/or construction of the Project which are
not the obligation or responsibility of the Developer (for example, and not in
limitation, there shall occur events at force majeure, unexpected or unscheduled
price increases in materials, labor or equipment, or unexpected or unscheduled
increases in governmentally-imposed development fees which increase the costs of
any particular item in the Development Budget and/or Annual Budget beyond the
budgeted amount(s) plus contingency therefore), and such additional funds to
cover any increased costs are not on hand and available for use from available
funds of the Partnership after reasonable reserves and holdbacks required by the
Lender and/or Approved by the Partners or cannot be obtained through third party
financing Approved by the Partners, then (without limiting any provisions of
this Agreement regarding Approval by the Partners of amendments or modifications
to the Development Budget and/or Annual Budget), either such General Partner may
make a capital call in accordance with Section 3.4 hereof. However, except to
the extent set forth in Section 3.2(e) below, no Partner shall be required to
make an Additional Capital Contribution to the extent such Partner has already
made aggregate Capital Contributions equal to its Project Cost Commitment with
respect to the Project. If any Partner does not elect to make the voluntary
Additional Capital Contribution requested by a General Partner then such General
Partner may make an Additional Capital Contribution to cover any shortfall of
needed capital. Alternatively, the General Partner may make an Optional Loan,
subject to Section 3.3 below, to fund the needs of the Partnership described in
this Section 3.2(d).

            (e) Any amounts funded or drawn under any Financing Enhancements
provided by a Partner or its Affiliate securing or guaranteeing all or any
portion of any Financing(s) shall be deemed to be an Additional Capital
Contribution to the Partnership by such Partner (but only one Partner shall
receive credit for any Financing Enhancements from any of its Affiliates),
unless such Partner(s) elect(s) in writing to treat such funded amount as an
Optional Loan to the Partnership (with such election being made within five (5)
Business Days of making such funding or draw under such Financing Enhancement).
A General Partner shall make a Capital Call in accordance with Section 3.4 below
within ten (10) days after receipt by such General Partner of notice of the
funding, or a request or demand for funding under any Financing Enhancements,
and each of the Partners shall make an Additional Capital Contribution to the
Partnership in whatever proportions and amounts as are necessary so that, unless
otherwise

                                       14
<PAGE>

set forth on Schedule 3.2(a) or agreed by the Partners, the amounts funded or
drawn under the Financing Enhancements are shared by the Partners pro rata in
accordance with their respective Percentage Interests. Upon the Partnership's
receipt of any Additional Capital Contributions made pursuant to this Section
3.2(e), the Partner whose Financing Enhancement was funded or drawn upon shall
be repaid an amount sufficient to reduce such Partner's Additional Capital
Contribution pursuant to this Section 3.2(e) to the amount which would have been
paid by such Partner on a pro rata basis of the total Additional Capital
Contribution, as applicable, in accordance with its Percentage Interest.
Notwithstanding anything to the contrary herein, this Section 3.2(e) shall not
apply to any letter of credit or guaranty or other contractual obligation
provided by Ashton Woods or any Affiliate thereof as earnest money under any Lot
Sale Contracts.

            (f) It is expressly understood and agreed by the Partners that each
Partner and its respective Affiliates are not required to advance or re-advance
Additional Capital Contributions or make loans to the Partnership once the Total
Project Cost Commitment for such Partner has been made to the Partnership,
notwithstanding subsequent distributions and reductions in such Partner's
Unreturned Contribution Account

      SECTION 3.3 OPTIONAL LOANS. Notwithstanding the foregoing, in the event
either General Partner shall determine in good faith that the Partnership
requires any amounts described in Section 3.2(d) or to pay Operating Deficits,
then such General Partner shall have the right to advance to the Partnership a
loan (in lieu of an Additional Capital Contribution(s) or in combination with
such Additional Capital Contribution(s)) that does not carry personal liability
to the Partners (hereinafter referred to as an "Optional Loan"), in an amount
sufficient to provide the needed funds. Prior to making any Optional Loan, a
General Partner shall notify the other Partners of its intent to make such
advance at least ten (10) Business Days prior to the date of such advance (an
"Optional Loan Notice"), and at any time within such period, the other
Partner(s) may elect to participate in making the Optional Loan. Each Partner at
its sole option may elect to loan to the Partnership its pro rata share (based
on its then respective Percentage Interest) of the amount described in such
Optional Loan Notice by delivering such amount into the Partnership operating
account on the date specified in such Optional Loan Notice. If a Partner does
not wish to loan its share of a requested loan pursuant to an Optional Loan
Notice, it shall not be required to do so, but it shall give the other
Partner(s) written notice of its decision not to make such loan (a "Refusal
Notice") within five (5) Business Days after the delivery of such Optional Loan
Notice. If a Refusal Notice is delivered in connection with an Optional Loan
Notice or if a Partner otherwise fails for any reason to make its full pro rata
share of such loan on the date requested, then any other Partner may advance the
amount of such shortfall as an Optional Loan. Any Optional Loan shall bear
interest at a fixed rate determined as of the date of the Optional Loan equal to
eighteen percent (18%) per annum, but shall not exceed the maximum rate allowed
by law, and shall be payable only out of the Net Receipts of the Partnership as
provided in Section 4.9(a) below or out of the Partnership's assets upon
liquidation of the Partnership. In the event there is more than one Optional
Loan outstanding at any time in which there is a distribution made pursuant to
Sections 4.9(a) or 12.3(c) hereof, then amounts distributed under such Sections
shall first be applied to repay the most recent Optional Loan, and if more than
one Partner has made an Optional Loan at the same time (or otherwise pursuant to
the same Optional Loan Notice) then as between the Partners such Optional Loans

                                       15
<PAGE>

shall be repaid pro rata in proportion to the outstanding balance of such
Optional Loans (but still giving priority to the most recent Optional Loan(s)).

      SECTION 3.4 CAPITAL CALLS.

            (a) When the Partners are required to contribute Additional Capital
Contributions under this Agreement, the Partners shall make such Additional
Capital Contributions in accordance with the provisions herein ("Capital Call")
and in such amounts that are sufficient to provide such funds. Each Partner and
any permitted transferee(s) under Article X hereof shall be jointly and
severally liable for making any of their respective required contributions to
the Partnership under Section 3.2 or this Section 3.4. Notwithstanding anything
to the contrary herein, no Partner shall be required to make any Additional
Capital Contributions that would cause such Partner's (or its predecessors in
interest) aggregate Capital Contributions since inception of the Partnership
with respect to the Project to exceed such Partner's Total Project Cost
Commitment.

            (b) When Additional Capital Contributions are needed by the
Partnership, the Managing Partner (or if he fails to do so, any other General
Partner) shall give a notice (a "Capital Call Notice") to each Partner in the
manner provided in Section 14.3 hereof. Each Capital Call Notice shall specify
in reasonable detail the amount and purpose of any such Additional Capital
Contributions and that it is or is not pursuant to the Development Budget.
Capital Call Notices, other than pursuant to the Development Budget, shall also
include (A) a statement of the anticipated cash receipts and obligations for the
immediately following calendar quarter with the reasons, if ascertainable, that
the available funds of the Partnership will be insufficient to meet the
obligations for which the additional funds have been requested as they come due,
and (B) a representation from such General Partner that it has made a draw
request under the Financing for the Project to pay a portion of the expenditures
identified in the Capital Call Notice to the maximum extent permitted thereunder
or that the line item in the budget therefore has been exhausted, that no
uncured default under the Financing then exists, that the Lender under the
Financing has not declined to advance funds to pay all or any portion of any
costs identified in any Capital Call Notice to be paid pursuant to the draw
request. With respect to a Capital Call Notice, the following provisions shall
apply:

                  (i) Each Partner shall, within ten (10) Business Days (time
      being of the essence) after the receipt of such Capital Call Notice,
      deposit, by wire transfer of immediately available federal funds into the
      Partnership's bank account, the Additional Capital Contribution specified
      in the Capital Call Notice, to be credited to the contributing Partner's
      Capital Account.

                  (ii) If a Partner does not pay its share of any
      required Additional Capital Contribution (recognizing that no
      contributions are required once a Partner has made aggregate Capital
      Contributions to the Partnership with respect to the Project in the
      aggregate amount equal to its Total Project Cost Commitment) in accordance
      with any Capital Call Notice, the other Partner shall have the option, in
      addition to other rights and remedies set forth herein, (A) to make a
      Contribution Loan as provided in Section 3.4(c) hereof, or (B) to withdraw
      its Additional Capital Contribution, because the other Partner

                                       16
<PAGE>

      failed to pay its share of the Additional Capital Contribution, or (C)
      bring suit against the other Partner for a breach of this Agreement.

                  (iii) If a Partner disputes whether any Additional
      Capital Contributions are due hereunder, the dispute shall be resolved
      pursuant to arbitration in accordance with Article XIII herein.

            (c) In addition to the rights set forth in Section 3.4(b)(ii) and
Article XI hereof, if a Partner fails to make any Additional Capital
Contribution within the time specified in Section 3.4(b) hereof, (a
"Non-Contributing Partner"), the other Partner who makes the requested
contribution of additional capital (the "Contributing Partner") shall have the
right but not the obligation to advance directly to the Partnership the funds
required from the Non-Contributing Partner as a loan ("Contribution Loan") to
the Non-Contributing Partner. If and when a Contribution Loan is made, the
Non-Contributing Partner shall not become a Defaulting Partner (as provided in
Article XI) but the Non-Contributing Partner shall be deemed to have waived the
right to make the requested capital contribution as of the date of such
Contribution Loan. Such Contribution Loan shall bear interest at a rate equal to
eighteen percent (18%) per annum, compounded annually, but in no event more than
the maximum rate permitted by law. The Non-Contributing Partner may prepay the
Contribution Loan at any time, but in any event the Contribution Loan shall be
due and payable on demand at any time upon written notice to the
Non-Contributing Partner. Failure of the Non-Contributing Partner to pay the
Contribution Loan within three (3) Business Days following demand shall
constitute a default hereunder. If the Contributing Partner does not elect to
advance the full amount of the additional funds required from the
Non-Contributing Partner, the Contributing Partner may withdraw its Additional
Capital Contribution or treat the failure of the Non-Contributing Partner to
make the Additional Capital Contribution as an Event of Default under Article XI
hereof.

            (d) A Contribution Loan shall be repaid on a first priority basis
out of any subsequent distributions to which the Non-Contributing Partner for
whose account the Contribution Loan was made would otherwise be entitled in
accordance with this Agreement, which amounts shall be applied first to accrued
interest and then to principal, until the Contribution Loan is paid in full.
Each Non-Contributing Partner irrevocably assigns its rights to distributions
from the Partnership to the Contributing Partner for the purpose of effectuating
this repayment until the Contribution Loan is repaid. Repayment of any Partner's
Contribution Loan shall also be secured by the Non-Contributing Partner's
Interest in the Partnership, and the Non-Contributing Partner hereby grants a
security interest in such Partnership Interest to the Contributing Partner who
has advanced such Contribution Loan and hereby irrevocably appoints the
Contributing Partner, and any of its agents, officers or employees, as its
attorney-in-fact, such appointment being coupled with an interest, to execute,
acknowledge and deliver any documents, instruments and agreements including, but
not limited to, any note evidencing the Contribution Loan, and such Uniform
Commercial Code financing statements, continuation statements, and other
security instruments as may be appropriate to perfect and continue such security
interest in favor of the Contributing Partner.

                                       17
<PAGE>

      SECTION 3.5 CAPITAL ACCOUNTS. A Capital Account shall be established and
maintained for each Partner in accordance with the rules set forth in this
Section 3.5 and Regulations Section 1.704-1(b)(2)(iv).

                  (a) Each Partner's Capital Account shall be (i) increased by
   (A) the aggregate amount of cash contributed by or on behalf of such Partner
   to the Partnership, (B) the agreed upon Gross Asset Value (as of the date of
   contribution) of any property other than cash contributed by such Partner to
   the Partnership (net of liabilities encumbering such contributed property
   that the Partnership is considered to assume or take subject to under Section
   752 of the Code), (C) the aggregate amount of allocations of the
   Partnership's Net Profit to such Partner for income tax purposes in
   accordance with Section 4.1 hereof and the amount of items of income or gain
   which are specially allocated to such Partner, and (D) any other positive
   adjustments required by the Regulations which have not been previously taken
   into account in determining Capital Accounts, and shall be (ii) decreased by
   (A) the aggregate amount of cash distributed to or on behalf of such Partner
   by the Partnership, (B) the Gross Asset Value (as of the date of
   distribution) of all other property distributed to such Partner by the
   Partnership (net of liabilities encumbering such distributed property that
   such Partner is considered to assume or take subject to under Section 752 of
   the Code), (C) the aggregate amount of the Partnership's Net Loss that has
   been allocated to such Partner as of such date pursuant to Sections 4.2 and
   4.3 and the amount of any item of expense, deduction or loss which is
   specially allocated to such Partner, and (D) any other negative adjustments
   required by Regulations and which have not been previously taken into account
   in determining Capital Accounts, and (iii) otherwise adjusted in accordance
   with the rules of this Section 3.5 and Regulations Section 1.704-1(b)(2)(iv).

                  (b) Upon the permitted transfer of all or any portion of a
   Partner's Partnership Interest(s), the Capital Account of the transferor that
   is attributable to the transferred Partnership Interest(s) shall carry over
   to the transferee.

                  (c) The Capital Accounts shall be adjusted as and to the
   extent required by Regulations Section 1.704-1(b)(2)(iv)(m) in connection
   with the adjustment to the tax basis of any Partnership asset pursuant to
   Section 734(b) or Section 743(b) of the Code.

                  (d) The foregoing provisions and the other provisions of this
   Agreement relating to the maintenance of Capital Accounts are intended to
   comply with Regulations Section 1.704-1(b), and shall be interpreted and
   applied in a manner consistent with such Regulations. In the event the
   General Partners shall determine that it is prudent to modify the manner in
   which the Capital Accounts, or any debits or credits thereto are computed in
   order to comply with such Regulations, the General Partners may make such
   modification.

      SECTION 3.6 RIGHTS OF CREDITORS. The provisions of this Article III are
not intended to be for the benefit of any creditor or other Person (other than a
Partner in its capacity as a Partner herein) to whom any debts, liabilities or
obligations are owed or who otherwise has a claim against the Partnership or any
of the Partners, and no such creditor or other person shall obtain any right
under any of the foregoing provisions against the Partnership or any Partner by
reason of any such debt, liability or obligation, or otherwise.

                                       18
<PAGE>

      SECTION 3.7 PERCENTAGE INTERESTS AND RESIDUAL INTERESTS.

            (a)   The Partners shall have the following Percentage Interests:

                  (i)   Ashton Woods GP       --       0.5%
                        Ashton Woods LP       --      19.5%

                  (ii)  CLGP                  --       0.5%
                        CL                    --      79.5%

            (b)   The Partners shall have the following Residual Interests:

                  (i)   Ashton Woods GP       --       0.5%
                        Ashton Woods LP       --      29.5%

                  (ii)  CLGP                  --       0.5%
                        CL                    --      69.5%

      SECTION 3.8 ADDITIONS TO AND WITHDRAWAL OF CAPITAL. Other than as provided
in Sections 3.1, 3.2 and 3.4 above, no Partner shall be required or permitted to
contribute capital to the Partnership. In addition and except as provided in
Section 3.4 hereof, no Partner shall have the right to withdraw from the
Partnership, and no Partner shall be entitled to a return of, its contributions
to the capital of the Partnership hereunder, except by way of the distribution
to it under the terms of this Agreement or by way of the distribution to it of
assets of the Partnership upon the winding up of the Partnership pursuant to the
provisions of this Agreement.

      SECTION 3.9 FINANCING. The General Partners will proceed with reasonable
diligence and in good faith to obtain the Financing(s) in the name of the
Partnership for the Project in accordance with the Development Budget.
Notwithstanding anything to the contrary set forth herein, any Financing and the
terms and conditions thereof shall be subject to the Approval of the Partners.
The Partners shall execute such documents, instruments and agreements as may be
required to effectuate the Financing as Approved by the Partners.

      SECTION 3.10 POWER OF ATTORNEY. Each Defaulting Partner hereby irrevocably
appoints the Non-Defaulting General Partner as its attorney-in-fact following
default to execute all documents reasonably necessary to accomplish the remedies
specified in Section 3.4(d) hereof, such appointment being coupled with an
interest (and being intended to survive the dissolution or incapacitation of any
Defaulting Partner, to the fullest extent permitted by law), and including,
without limitation, the power to execute UCC-1 Financing Statements,
assignments, bills of sale and amendments to this Agreement to effect any of
such remedies.

                                   ARTICLE IV
                          DISTRIBUTIONS AND ALLOCATIONS

      SECTION 4.1 ALLOCATION OF NET PROFIT. After giving effect to the special
allocations as provided in Sections 4.5, 4.6 and 4.7 and subject to the overall
directions of Section 4.4 (and

                                       19
<PAGE>

giving effect to Section 4.7(c)), all Net Profit of the Partnership for each
Fiscal Year shall be allocated to the Partners as follows:

            (a) First, to the Partners, in proportion to and to the extent of
the negative balances, if any, in the Partners' respective Capital Accounts (as
of the last day of such Fiscal Year, but adjusted to reflect any allocations to
the Partners pursuant to Sections 4.5, 4.6 and 4.7);

            (b) Second, to the Partners, in proportion to and to the extent of
the amounts necessary to cause their respective Capital Accounts (as of the last
day of such Fiscal Year, but adjusted to reflect any allocations pursuant to
Sections 4.1 (a), 4.5, 4.6 and 4.7) to equal their respective Unreturned
Contribution Account balances (it being acknowledged that an allocation to a
Partner pursuant to this subparagraph may be zero because such Partner's Capital
Account balance already equals or exceeds the amount referred to in this
sentence);

            (c) Third, to the Partners in proportion to and to the extent of the
amounts necessary to cause their respective Capital Accounts (as of the last day
of such Fiscal Year, but adjusted to reflect any allocations pursuant to
Sections 4.1 (a), 4.1(b), 4.5, 4.6 and 4.7) to equal the sum of the balances in
their respective Unreturned Contribution Accounts and Preferred Return Accounts
(it being acknowledged that an allocation to a Partner pursuant to this
subparagraph may be zero because such Partner's Capital Account balance already
equals or exceeds the amount referred to in this sentence);

            (d) Fourth, to the Partners in proportion to and to the extent
necessary to cause the amounts by which their respective Capital Accounts (as of
the last day of such Fiscal Year, but adjusted to reflect allocations pursuant
to Sections 4.1(a)-(c), 4.5, 4.6 and 4.7) exceed the sum of the balances in
their respective Unreturned Contribution Accounts and Preferred Return Accounts
to be in the same proportions as their then respective Residual Interests (it
being acknowledged that an allocation to the Partners pursuant to this
subparagraph may be zero because the Partners' respective Capital Account
balances are already in such proportions); and

            (e) The balance of Net Profits, if any, shall be allocated among the
Partners pro rata in proportion to their then respective Residual Interests.

      SECTION 4.2 ALLOCATION OF NET LOSS. Except as provided in Section 4.3,
after giving effect to the special allocations as provided in Sections 4.5, 4.6
and 4.7 and subject to the overall directions of Section 4.4 (and giving effect
to Section 4.7(c)), all Net Loss of the Partnership for each Fiscal Year shall
be allocated to the Partners as follows:

            (a) First, to the Partners in proportion to and to the extent of the
amounts necessary to cause the amounts by which their respective Capital
Accounts (as of the last day of such Fiscal Year, but adjusted to reflect
allocations pursuant to Sections 4.5, 4.6 and 4.7) exceed the sum of the
balances in their respective Unreturned Contribution Accounts and Preferred
Return Accounts to be in the same proportion as their then respective Residual
Interests (it being acknowledged that an allocation to the Partners pursuant to
this subparagraph may be zero because the Partners' respective Capital Account
balances are already in such proportions);

            (b) Second, to the Partners in proportion to and to the extent of
the amounts necessary to cause their respective Capital Accounts (as of the last
day of such Fiscal Year, but

                                       20
<PAGE>

adjusted to reflect allocations pursuant to Sections 4.2(a), 4.5, 4.6 and 4.7)
to equal the sum of the balances in their respective Unreturned Contribution
Accounts and Preferred Return Accounts (it being acknowledged that an allocation
to a Partner pursuant to this subparagraph may be zero because such Partner's
Capital Account balance already equals or is less than the amount referred to in
this sentence);

            (c) Third, to the Partners in proportion to and to the extent of the
amounts necessary to cause their respective Capital Accounts (as of the last day
of such Fiscal Year, but adjusted to reflect allocations pursuant to Sections
4.2(a), 4.2(b), 4.5, 4.6 and 4.7) to equal their respective Unreturned
Contribution Account balances (it being acknowledged that an allocation to a
Partner pursuant to this subparagraph may be zero because such Partner's Capital
Account balance already equals or is less than the amount referred to in this
sentence);

            (d) Fourth, to the Partners in proportion to and to the extent of
the amounts necessary to cause their respective Capital Accounts (as of the last
day of such Fiscal Year, but adjusted to reflect allocations pursuant to
Sections 4.2(a)-(c), 4.5, 4.6 and 4.7) to equal zero (it being acknowledged that
an allocation to a Partner pursuant to this subparagraph may be zero because
such Partner's Capital Account balance already equals or is less than the amount
referred to in this sentence); and

            (e) The balance of Net Loss, if any, shall be allocated among the
Partners pro rata in proportion to their then respective Percentage Interests.

      SECTION 4.3 NET LOSS LIMITATION. Notwithstanding any provision of this
Agreement to the contrary, except as otherwise specifically provided in this
Section 4.3, in no event shall Net Loss be allocated to a Partner if such
allocation would result in such Partner's having an Adjusted Capital Account
Deficit at the end of any Fiscal Year. All Net Loss in excess of the limitation
set forth in this Section 4.3 shall be allocated to any remaining Partner
without an Adjusted Capital Account Deficit, and if all Partners have an
Adjusted Capital Account Deficit, then to the Partners pursuant to Section
4.2(e) above.

      SECTION 4.4 INTENTIONS AND CONSTRUCTION OF ALLOCATIONS. It is the
intention of the Partners to allocate Net Profit and Net Loss in such a manner
as to cause each Partner's Capital Account as of the last day of each Fiscal
Year to always equal the amount of cash such Partner would be entitled to
receive if the Partnership sold its assets for their adjusted Gross Asset Values
and, after satisfying all Partnership liabilities (limited to the Gross Asset
Value of any asset that the Lender's sole recourse with respect to such
liability is such asset), the proceeds from such sale, as well as all other
funds of the Partnership, were then distributed to the Partners pursuant to
Section 4.9. This Article 4 shall be interpreted as necessary to accomplish such
result.

      SECTION 4.5 SPECIAL ALLOCATIONS.

      The following special allocations shall be made in the following order:

            (a) Minimum Gain Chargeback. To the extent required by Section
1.704-2(f) of the Regulations, if there is a net decrease in "partnership
minimum gain" (within the meaning

                                       21
<PAGE>

of Section 1.704-2(b)(2) of the Regulations) in a Fiscal Year, then each Partner
will be allocated items of income and gain for that Fiscal Year, before any
other allocation of Net Profit or Net Loss, equal to that Partner's share of the
net decrease in partnership minimum gain.

            (b) Partner Minimum Gain Chargeback. If a Partner suffers a net
decrease in "partner nonrecourse debt minimum gain" (within the meaning of
Section 1.704-2(i)(4) of the Regulations) in any Fiscal Year, then that Partner
will be allocated items of income and gain to the extent required by Section
1.704-2(i)(4) of the Regulations.

            (c) Qualified Income Offset. In the event any Partner unexpectedly
receives any adjustments, allocations, or distributions described in Regulations
Sections 1.704-1(b)(2)(ii)(d)(4), Sections 1.704-1(b)(2)(ii)(d)(5) or Sections
1.704-1(b)(2)(ii)(d)(6), items of Partnership income and gain shall be specially
allocated to each such Partner in an amount and manner sufficient to eliminate,
to the extent required by the Regulations, the Adjusted Capital Account Deficit
of such Partner as quickly as possible, provided that an allocation pursuant to
this Section 4.5(c) shall be made if and only to the extent that such Partner
would have an Adjusted Capital Account Deficit after all other allocations
provided for in this Article have been tentatively made as if this Section
4.5(c) were not in the Agreement.

            (d) Nonrecourse Deductions. If there are any "nonrecourse
deductions" (within the meaning of Sections 1.704-2(b)(l) and 1.704-2(c) of the
Regulations) in a Fiscal Year, then such deductions shall be allocated to the
Partners pro rata in proportion to their then respective Percentage Interests.

            (e) Partner Nonrecourse Deductions. If there are any "partner
nonrecourse deductions" (within the meaning of Section 1.704-2(i)(l) of the
Regulations) in a Fiscal Year, then such deductions will be allocated to the
Partner who bears the economic risk of loss for the "partner nonrecourse
liability" (within the meaning of Section 1.704-2(b)(4) of the Regulations) to
which the deductions are attributable.

      SECTION 4.6 CURATIVE ALLOCATIONS. The allocations set forth in Sections
4.5(a) through 4.5(e) (the "Regulatory Allocations") are intended to comply with
certain requirements of Regulations Sections 1.704-1(b) and 1.704-2(b).
Notwithstanding any other provisions of this Agreement, other than the
Regulatory Allocations, with the Approval of the Partners the Regulatory
Allocations shall be taken into account in allocating other items of income,
gain, loss and deduction among the Partners so that, to the extent possible, the
net amount of such allocations of other items and the Regulatory Allocations to
each Partner shall be equal to the net amount that would have been allocated to
such Partner if the Regulatory Allocations had not occurred.

      SECTION 4.7 OTHER ALLOCATION RULES. The following rules shall apply for
purposes of making tax allocations:

            (a) For purposes of determining the Net Profit, Net Loss, or any
other items allocable to any period, Net Profit, Net Loss, and any such other
items shall be determined on a daily, monthly, or other basis, using any
permissible method under Code Section 706 and the Regulations as reasonably
selected by the Managing Partner and Approved by the Partners.

                                       22
<PAGE>

            (b) If an amount paid or deemed paid by the Partnership to a Partner
(or any other Person) as interest, a guaranteed payment, or a payment for
property or services, is treated for federal income tax purposes as a
distribution to such Partner in its capacity as a partner for tax purposes and
is neither a guaranteed payment under Section 707(c) of the Code nor a payment
under Section 707(a) of the Code to a partner not acting in its capacity as a
partner, such Partner shall be allocated as soon as possible an amount of
Partnership's gross income or gain equal to the amount of such payment.

            (c) For purposes of determining the amount of Net Profit and Net
Loss to be allocated pursuant to Sections 4.1 and 4.2 for any Fiscal Year, the
Capital Account of each Partner shall be increased by such Partner's share of
"partnership minimum gain" as of the last day of such Fiscal Year, determined
pursuant to Regulations Section 1.704-2(g)(l), and by such Partner's share of
"partner non-recourse debt minimum gain" as of the last day of such Fiscal Year,
determined pursuant to Regulations Section 1.704-2(i)(5).

            (d) The Partners are aware of the income tax consequences of the
allocations made by this Article 4 and hereby agree to be bound by the
provisions of this Article 4 in reporting their shares of Partnership income and
loss for income tax purposes.

      SECTION 4.8 TAX ALLOCATIONS.

            (a) Except as provided in Section 4.8(b) herein, for income tax
purposes, Partnership income, gain, loss, deduction or credit (or any item
thereof) for each Fiscal Year shall be allocated to and among the Partners in
order to reflect the allocations made pursuant to the provisions of this Article
4 for such Fiscal Year (other than allocations of items which are not deductible
or are excluded from taxable income).

            (b) Notwithstanding any other provision of this Agreement to the
contrary, any gain or loss and any depreciation and cost recovery deductions
recognized by the Partnership for income tax purposes in any Fiscal Year with
respect to all or any part of the Partnership's property that is required or
permitted to be allocated among the Partners in accordance with Section 704(c)
of the Code and any Regulations promulgated thereunder so as to take into
account the variation, if any, between the adjusted tax basis of such property
and the initial Gross Asset Value of such property at the time of its
contribution, or following the adjustment to the Gross Asset Value of
Partnership property pursuant to this Agreement, shall be allocated to the
Partners for income tax purposes in the manner so required or permitted. Any
elections or other decisions relating to such allocations shall be Approved by
the Partners.

      SECTION 4.9 DISTRIBUTIONS OF NET RECEIPTS. Except as provided in Section
12.3(c) hereof, and giving effect to the Contribution Loan provisions of Section
3.4(c), Net Receipts shall be distributed to the Partners as follows:

            (a) First, Net Receipts shall be used to pay any accrued but unpaid
interest on, and then to pay the unpaid principal balance, if any, of any and
all Optional Loans made by the Partners to the Partnership in priorities set
forth in, and otherwise in accordance with, Section 3.3 hereof;

                                       23
<PAGE>

            (b) Next, Net Receipts shall be distributed to the Partners pro rata
in accordance with the respective balances in their Preferred Return Accounts,
until such account balances are reduced to zero;

            (c) Next, Net Receipts shall be distributed to the Partners pro rata
in accordance with the respective amounts of each Partner's Unreturned
Contribution Account until such account balances are reduced to zero; and.

            (d) Finally, Net Receipts shall be distributed to the Partners, pro
rata in accordance with their then respective Residual Interests.

      SECTION 4.10 MANNER OF DISTRIBUTION.

            (a) Prior to repayment and discharge of the Financing(s), the
Partnership shall not distribute any Net Receipts pursuant to Sections 4.9(b),
(c) or (d) hereof (but, for clarity, the Partnership may make distributions
pursuant to Section 4.9(a) hereof in repayment of Optional Loans) unless
Approved by the Partners and unless such distributions are not prohibited by the
Lender(s). Thereafter, Net Receipts shall be distributed within fifteen (15)
days after the end of each calendar month during the term of the Partnership.

            (b) All distributions of Net Receipts shall be subject to adjustment
by reference to the financial statements for such monthly period prepared as
required by Section 5.2 hereof. If any additional amount is to be distributed by
reason of such financial statements, such additional amount shall be deemed a
distribution for such monthly period, and if any excess amount was distributed
during such monthly period as reflected by such financial statements, the excess
amount shall be taken into account in reducing subsequent distributions.

                                    ARTICLE V
                    BOOKS OF ACCOUNT, ACCOUNTING AND REPORTS

      SECTION 5.1 BOOKS AND RECORDS; FISCAL YEAR. The Partnership's books and
records shall be maintained at the office of the Managing Partner, or at such
other place or places as Approved by the Partners from time to time. Upon
reasonable notice, each Partner and its authorized agents and representatives
shall have access to all of such books and records at all reasonable times for
purposes of examination, copying and/or audit, at the sole expense of the
Partner conducting or causing same. The books and records of the Partnership (a)
shall be kept in accordance with the accrual basis method of accounting in
accordance with generally accepted accounting principles ("GAAP") consistently
applied, (b) shall reflect all Partnership transactions, (c) shall be
appropriate and adequate for the Partnership's business, and (d) if requested by
any Partner, shall be audited annually by the independent certified public
accountants for the Partnership (the "Partnership's Accountants") Approved by
the Partners, at the expense of the Partnership. Notwithstanding the foregoing,
for federal income tax accounting purposes, (i) the Partnership shall maintain
any and all books and records required under the Regulatory Allocations (as
defined in Section 4.6), and (ii) the Managing Partner shall satisfy or cause to
be satisfied any financial reporting requirements of any Lender(s) and the
Partners and as otherwise required herein. The fiscal year and tax year of the
Partnership shall be the Fiscal Year, unless another period is required by the
Code or Regulations.

                                       24
<PAGE>

      SECTION 5.2 FINANCIAL STATEMENTS AND REPORTS.

            (a) Within ten (10) Business Days after the close of each calendar
month and within ten (10) Business Days after the end of each Fiscal Year of the
Partnership, the Managing Partner shall prepare or cause to be prepared, at the
cost of the Partnership, and shall furnish to the Partners a copy of (i) the
balance sheet of the Partnership for the month or Fiscal Year, as the case may
be, (ii) a statement of income or loss for the Partnership for such month or
Fiscal Year, as applicable, (iii) a statement of sources and uses of Net
Receipts, (iv) a budget-to-actual comparison for the Annual Business Plan and
Development Budget, and (v) a written status report on the development and sale
of Lots comprising the Project. All such statements and reports shall be
prepared in accordance with GAAP and shall be certified by the Managing Partner,
or its designee, as applicable, as being true and correct in all material
respects.

            (b) At the expense of the Partnership, the Managing Partner shall
also provide the Partners with such periodic reports (not more frequently than
monthly) as any Partner may reasonably request regarding the progress of
Partnership in pursuit of the current Annual Business Plan and the activities of
the Partnership.

      SECTION 5.3 TAX STATUS AND RETURNS. The Managing Partner shall, at the
Partnership's expense, on or before March 15 of each year, cause to be prepared
a statement of income or loss showing any item of income, deduction, credit or
loss allocable for federal income tax purposes pursuant to the terms of this
Agreement for the prior Fiscal Year, and all required tax returns and statements
for the prior Fiscal Year of the Partnership which must be prepared and/or filed
with any taxing authority on behalf of the Partnership, and shall submit such
returns and statements to the Partners for their approval by such date, and,
when Approved by the Partners, shall make timely filing thereof as required. In
addition, within thirty (30) days following the end of each calendar quarter,
the Managing Partner shall use reasonable efforts, at the expense of the
Partnership, to cause to be sent to each Partner an estimate of the
Partnership's taxable income for the current quarter and the year to date, and
such Partner's distributive share of such income. The Partnership shall furnish
to the Partners a projection of the Partnership's taxable income or loss for
each tax year of the Partnership by December 1 of each such year to assist in
year-end tax planning, all at the Partnership's expense.

      SECTION 5.4 BANK ACCOUNTS. Operating funds and monies of the Partnership
shall be deposited in special accounts to be maintained with such financial
institutions as are Approved by the Partners.

      SECTION 5.5 ACCOUNTING, BOOKKEEPING, PERSONNEL. Except as otherwise
provided herein, the Managing Partner (or its designee) shall perform the
accounting and bookkeeping functions of the Partnership until the General
Partners shall otherwise determine.

      SECTION 5.6 DESIGNATION OF TAX MATTERS PARTNER. CLGP shall act as the "tax
matters partner" of the Partnership as provided in the Regulations promulgated
under Section 6231 of the Code. The tax matters partner shall promptly take such
action as may be necessary to cause Ashton Woods GP to become a "notice partner"
within the meaning of Section 6223 of the Code. The tax matters partner shall
promptly inform the other Partners of all material matters that come to its
attention in its capacity as tax matters partner by giving written notice
thereof to the other

                                       25
<PAGE>

Partners and shall forward to the other Partners copies of all material written
communications it may receive in that capacity. The tax matters partner shall
not take any action permitted or contemplated by Section 6222 through 6231 of
the Code to be made by a tax matters partner without the Approval of the
Partners. The tax matters partner shall receive no compensation for its
services. All third-party costs and expenses incurred by the tax matters partner
in performing its duties as such (including legal and accounting fees) shall be
borne by the Partnership. Nothing herein shall be construed to restrict the
Partnership from engaging an accounting firm and/or a law firm to assist the tax
matters partner in discharging his duties hereunder.

      SECTION 5.7 TAX ELECTIONS. Except as expressly provided otherwise herein,
all tax elections and decisions, including without limitation, an election on
behalf of the Partnership under Section 754 of the Code in connection with a
sale of a Partnership Interest or part thereof shall be Approved by the
Partners.

      SECTION 5.8 CUSTODY OF PARTNERSHIP FUNDS. The Managing Partner shall have
fiduciary responsibility for the safekeeping and use of all funds and assets of
the Partnership, whether or not in its immediate possession or control. The
funds of the Partnership shall be used exclusively for the benefit of the
Partnership and the purposes set forth in this Agreement, and shall not be
commingled with the funds of any other Person. The Managing Partner shall not
employ, or permit any Developer or any other person to employ, such funds in any
manner except for the benefit of the Partnership.

                                   ARTICLE VI
                          MANAGEMENT OF THE PARTNERSHIP

      SECTION 6.1 MANAGEMENT. The powers of the Partnership shall be exercised
by or under the authority of, and the business and affairs of the Partnership
shall be managed by or under the direction of, the General Partners. Any Person
dealing with the Partnership, other than a Limited Partner, may rely on the
authority of the General Partners and their respective officers and agents in
taking any action in the name of the Partnership without inquiry into the
provisions hereof or compliance herewith, regardless of whether that action is
actually taken in accordance with the provisions of this Partnership Agreement.

      SECTION 6.2 POWERS AND DUTIES OF THE MANAGING PARTNER.

            (a) Except as provided in this Agreement, including without
limitation Section 6.9, herein, the Managing Partner, without the consent or
approval of any other Partner, shall have the authority and power in accordance
with its fiduciary duties to manage and administer the business and affairs of
the Partnership and to do all things necessary to carry on the business and
purposes of the Partnership, in pursuit of the Project in accordance with the
Annual Business Plans, Annual Budgets, and Development Plan, and otherwise in
accordance with this Agreement and applicable laws and permits. Except as
provided in Section 6.2(e) with respect to change orders, the Development Plan
(or any component thereof) may not be amended without the Approval of the
Partners.

                                       26
<PAGE>

            (b) Without limiting the generality of the foregoing and except as
provided in Section 6.9, the Managing Partner shall have the following rights
and powers, which it may exercise in a manner consistent with its fiduciary
duties and otherwise in accordance with, this Agreement, at the cost, expense
and risk of the Partnership:

                  (i) To perform all acts necessary to improve, develop,
operate, manage and maintain the Project and to sell Lots to third parties in
accordance with, and as limited by, the Annual Business Plans and the
Development Plan;

                  (ii) To protect and preserve the assets of the Partnership;

                  (iii) To acquire such tangible personal property and
intangible personal property necessary for the Project in accordance with, and
as limited by, the Annual Business Plans and the Development Plan, as may be
necessary or desirable to carry on the business of the Partnership and sell,
exchange or otherwise dispose of such personal properties in the ordinary course
of business;

                  (iv) To keep accurate books of account and other business
records of the Partnership;

                  (v) To negotiate and contract with all utility companies
servicing the Project and to grant utility easements in the ordinary course;

                  (vi) To pay all debts and other obligations of the
Partnership, including amounts due under the Financings and other loans to the
Partnership, the costs of formation of the Partnership and of ownership,
improvement, construction, operation and maintenance of the Project and the sale
of Lots, all subject to and in accordance with the Development Plan;

                  (vii) To do and perform all such other acts and things as are
reasonably necessary or appropriate to the conduct of the Partnership's
business.

            (c) The Managing Partner shall devote itself to the business and
purposes of the Partnership, as set forth above, to the extent reasonably
necessary for the efficient carrying on thereof, without compensation except as
otherwise provided herein. The acts of the Managing Partner shall bind the
Partners and the Partnership when within the scope of the Managing Partner's
authority expressly granted hereunder. The Managing Partner, at the expense of
and on behalf of the Partnership, shall make commercially reasonable efforts to
implement all decisions Approved by the Partners and shall conduct or cause to
be conducted the management of the business and affairs of the Partnership in
accordance with, and as limited by, this Agreement. The Partnership shall have
no employees.

            (d) The rights and obligations of the Managing Partner under this
Agreement shall not be assignable voluntarily or by operation of law by the
Managing Partner without the express prior written Approval of the Partners, and
any attempted assignment without such Approval shall be void.

            (e) The Managing Partner shall not amend, modify, alter or change
the Development Plan (or any component thereof) or enter into or approve any
change order relating

                                       27
<PAGE>

to the Improvements without the Approval of the Partners; provided, however,
that the Approval of the Partners shall not be required for non-material change
orders if (i) such change order is legally mandated or is required in order to
obtain necessary governmental permits or approvals, or (ii)(A) the increased
cost resulting from such change order does not exceed the greater of (1)
Twenty-Five Thousand Dollars ($25,000.00) and (2) three percent (3%) of the
applicable line item in the Development Budget or (B) the increased cost
resulting from such change orders, together with the increased cost resulting
from all prior change orders not Approved by the Partners, does not exceed Two
Hundred Thousand Dollars ($200,000.00). Without limiting the generality of the
foregoing, a change order shall be considered "material" if it results in any of
the following: (i) a material downgrading of the quality of the Improvements
from those specified in the Development Plan, (ii) a material change in the
Development Plan relating to the Lots or the phases of development, or any
change in Lot prices in a contract with Ashton Woods or any Affiliate of Ashton
Woods that has been Approved by the Partners, or any change of more than 5% in
Lot prices in any other contracts that have been Approved by the Partners, or
any change in tract prices that have been Approved by the Partners, (iii) a
change which materially affects the design or appearance of the Project or any
public area (interior or exterior) of the Project, or (iv) any material delay in
or extension of the development schedule. The Managing Partner shall deliver to
the Partners all change orders as part of the next monthly report following the
execution thereof together with a written explanation supporting the need for
such change order and copies of all contract modifications relating to such
change order required to be delivered by the Developer pursuant to the
Development Agreement

      SECTION 6.3 INSURANCE.

            (a) At the expense of the Partnership, the Managing Partner shall
cause the Partnership to maintain insurance covering the injury or death of
employees (if any) or others, as well as insurance against fire and other
standard risks, and to adjust all losses and claims pertaining to or arising out
of such insurance in such amounts are Approved by the Partners. All coverages
will be obtained under policy terms, scope of coverage and conditions and from
companies acceptable to and Approved by the Partners and will be non-cancelable
except upon thirty (30) days notice to the General Partners. The Managing
Partner shall provide or cause to be provided copies of the applicable
certificates of insurance to each Partner. Insurance carriers must be licensed
to conduct business in the State of Texas.

            (b) The Managing Partner will cause the Developer to require all
contractors and subcontractors to maintain in force insurance with coverages,
Approved by the Partners, at all times while engaged in activities relating to
the Project. All coverages will be obtained under policy terms and conditions
and from companies acceptable to the Managing Partner and Approved by the
Partners and will be non-cancelable except upon thirty (30) days notice to the
Partnership. The Managing Partner shall provide or cause to be provided copies
of the applicable certificates of insurance to each Partner. Insurance carriers
must be licensed to conduct business in the State of Texas.

      SECTION 6.4 EMPLOYMENT OF OTHERS. The Managing Partner shall be authorized
to appoint or contract with, any Person (other than an Affiliate) it may deem
necessary or desirable for the transaction of the business of the Partnership
for the Project; provided, however, the Partnership shall have no employees. The
cost and expense of such Person shall be borne by the

                                       28
<PAGE>

Managing Partner unless such expenditures are expressly set forth in the
Development Budget or an approved Annual Budget. In any case, the Partnership
shall not have any employees without the Approval of the Partners.

      SECTION 6.5 PROJECT DEVELOPMENT BUDGET UPDATES. The Managing Partner shall
periodically update or cause the Developer to update the Development Budget, as
Approved by the Partners, and provide copies thereof to the Partners (a) on not
less than a quarterly and annual basis, (b) at periodic times during the year
when and as circumstances warrant such updates and/or modifications, and (c) as
reasonably requested (not more frequently than monthly) by a Partner.

      SECTION 6.6 MANAGEMENT FEE. The Partnership shall pay a fee to the
Managing Partner while it serves in such capacity equal to One Thousand and
No/100 Dollars ($1,000.00) per developed Lot in the Project sold, to be paid at
or following the closing at which such Lot is actually sold and transferred. No
such fee shall be due or payable on any tract sales or on the sale of any Lots
from such tracts, except that a commission may be paid to an employee of an
Affiliate of Ashton Woods GP in connection with the sale of that certain tract
out of the Property containing approximately 116 acres known as the Briggs
parcel, in an amount equal to five percent (5%) of the portion (if any) of the
sales price, net of any sales or broker commissions paid or incurred to any
third party, for such tract that exceeds the projected net sales price of
$4,650,000 for such tract included as part of the Development Budget.

      SECTION 6.7 LICENSES. The Managing Partner shall, at its own expense,
qualify to do business and obtain and maintain such licenses as may be required
for the performance by such Managing Partner of its services hereunder. The
Managing Partner shall apply for and obtain in a timely manner on behalf of the
Partnership and at the Partnership' expense all necessary licenses and permits
for the development of the Project and the sale of the Lots.

      SECTION 6.8 INDEMNIFICATION.

            (a) The Partnership shall indemnify, save harmless and pay all
judgments arising against the General Partners (including the Managing Partner)
and their respective members, partners, employees and agents (each a "GP
Indemnified Party") from any cost, expense, claim, liability or damage incurred
by reason of such GP Indemnified Party's relationship to the Partnership or any
act performed or omitted to be performed by them in connection with this
Agreement or the business of the Partnership, including reasonable attorney's
fees and costs incurred by them in connection with the defense of any action
based on any such act or omission, which reasonable attorneys' fees and costs
may be paid as incurred, except that the Partnership shall have no
indemnification obligation hereunder with respect to any act or omission of any
GP Indemnified Party that constitutes willful misconduct or gross negligence or
was outside the scope of such GP Indemnified Party's authority under this
Article VI. All judgments against the Partnership with respect to which any GP
Indemnified Party is entitled to indemnification may only be satisfied from the
Partnership's assets. Any Person entitled to be indemnified hereunder shall also
be entitled to recover from the Partnership's assets its reasonable attorney's
fees and costs of enforcing this indemnity. Notwithstanding anything to the
contrary herein contained, if any Affiliate of a Partner has a contractual

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<PAGE>

agreement with the Partnership, such Affiliate will look solely to the terms and
provisions set forth in such contract for indemnification, if any, and shall
have no rights hereunder.

            (b)   Each General Partner shall indemnify, save harmless and pay
all judgments arising against the Partnership or the other Partners and their
respective members, partners, employees, agents and Affiliates from any cost,
expense, claim, liability or damage incurred by reason of any act performed or
omitted to be performed by such General Partner that constitutes willful
misconduct or gross negligence or was outside the scope of the General Partner's
authority under this Article VI, including reasonable attorney's fees and costs
incurred by them in connection with the defense of any action based on any such
act or omission, which reasonable attorneys' fees and costs may be paid as
incurred.

      SECTION 6.9 LIMITATIONS ON POWER AND AUTHORITY OF THE MANAGING PARTNER.
      Notwithstanding any other provision in this Agreement to the contrary, all
"Major Decisions" shall require the Approval of the Partners and, without such
Approval of the Partners, the Managing Partner shall not (and shall not have any
authority to) take any action with respect thereto unless and until so Approved
by the Partners. A "Major Decision" as used in the Agreement means any decision
or action by or on behalf of the Partnership described in this Section 6.9,
including Sections 6.9(a), 6.9(b) and 6.9(c). If the Designated Representatives
of the Partners are unable to agree unanimously on any Major Decision, and if
such failure continues for ten (10) days after either the Managing Partner or
any other Partner gives the other Partners written notice of such disagreement,
then the Partners shall be deemed to be deadlocked in the matter in question
("Deadlock"). Upon the occurrence of a Deadlock, the following provisions of
this Section 6.9 apply.

            (a)   If the Deadlock occurs with respect to any of the matters
described in this Section 6.9(a), then the Managing Partner shall not take any
further action with respect to such matter, unless and until it is Approved by
the Partners, and any such matter shall not be subject to dispute resolution
pursuant to Article XIII and shall not trigger the Buy/Sell provisions of
Article IX herein. With respect to any matter described in this Section 6.9(a),
a Partner may withhold its approval in its sole and absolute discretion (without
regard to whether the withholding of such approval is unreasonable or
arbitrary).

      Notwithstanding any provision of this Agreement to the contrary, a Partner
that is a Defaulting Partner will continue to have a right of approval over the
specific matters set forth in this Section 6.9(a)(i), (ii), (iii), (iv), (v),
(vi), (x) and (xiv), (but with respect to (xv), only to the extent of any
amendment to the Certificate of Limited Partnership or this Agreement that would
treat the Preferred Return Accounts or Unreturned Contribution Accounts of
Ashton Woods GP, Ashton Woods LP, CLGP and CL other than on a pari passu basis
among them), notwithstanding the uncured Default. The matters requiring Approval
of the Partners pursuant to this Section 6.9(a) are the following:

                  (i)   Lend funds belonging to the Partnership to a Partner or
      to any third party, or extend to any person, firm or corporation credit on
      behalf of the Partnership except in accordance with the terms of this
      Agreement.

                  (ii)  Take any action in contravention of this Agreement.

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<PAGE>

                  (iii)  Possess the Project or any other Partnership assets or
      assign its rights in the Project or any other Partnership assets for other
      than a Partnership purpose, or use the Project or any other Partnership
      assets except for the account and benefit of the Partnership.

                  (iv)   Require any Additional Capital Contributions, except as
      provided under Sections 3.2 and/or 3.4 hereof.

                  (v)    Take any act which would make it impossible to carry on
      the purpose and ordinary business of the Partnership except pursuant to
      Article XII hereof.

                  (vi)   Elect for the Partnership to be treated as other than a
      partnership for federal, state and local income tax purposes.

                  (vii)  Other than in connection with the development of the
      Property in accordance with the Development Plan, partition all or any
      portion of the Project or any other property of the Partnership, or file
      any complaint or institute any proceeding at law or in equity seeking such
      partition.

                  (viii) Cause the Partnership to enter into any profit
      participation or sharing agreement or arrangement with any other Person
      with respect to the Project, except for incentive compensation
      arrangements in the ordinary course with on site personnel or Persons
      engaged to market and sell Lots in the Project, but in any case only to
      the extent set forth in the Development Budget.

                  (ix)   The transfer by any Partner of its Partnership Interest
      in the Partnership or other rights or interests which are derived by it
      under this Agreement, or any part thereof or any interest therein, except
      as expressly permitted in Article X herein.

                  (x)    Except as otherwise specifically permitted herein,
      cause the Partnership to enter into any agreement or contract for goods,
      services or property, or any other transaction, with any Partner or any
      Affiliate of any Partner, or any modification of or amendment to any such
      agreement, contract or transaction Approved by the Partners.

                  (xi)   Admit, or cause the admission of, any additional
      Partners to the Partnership.

                  (xii)  Except as required by the Development Plan, cause the
      Partnership to enter into any business combination, joint venture,
      partnership, limited liability Partnership or other entity with any other
      Person for the ownership, development or financing of the Project.

                  (xiii) Institute a filing of Bankruptcy by the Partnership.

                  (xiv)  Amend this Agreement or the Certificate of Limited
      Partnership except as may be required by applicable law.

                                       31
<PAGE>

            (b)    If the Deadlock occurs with respect to any of the matters
described in this Section 6.9(b), then the Managing Partner shall not take any
further action with respect to such matter, unless and until it is Approved by
the Partners, and any such matter shall be subject to dispute resolution
pursuant to Article XIII and shall not trigger the Buy/Sell provisions of
Article IX herein. With respect to any matter described in this Section 6.9(b),
a Partner may withhold its approval in its sole and absolute discretion (without
regard to whether the withholding of such approval is unreasonable or
arbitrary). A Partner that is a Defaulting Partner shall not continue to have a
right of approval over the matters set forth in this Section 6.9(b) while such
Partner is a Defaulting Partner. The matters requiring Approval of the Partners
pursuant to this Section 6.9(b) are the following:

            (i)    Amend the Development Plan, Development Budget, any Annual
      Business Plan, any Annual Budget or the Minimum Sales Requirements
      contained in any Annual Business Plan, except to the extent such plan or
      change would require or permit any action, commitment or inaction of the
      Partnership that is described in either Section 6.9(a) or 6.9(c), which
      shall be subject to those sections.

            (ii)   Except as provided in the Development Plan, acquire any
      material real property.

            (iii)  Change the name of the Partnership.

            (iv)   Enter into any Lot Sale Contract except in accordance with
      the Development Plan and at a price not less than 95% of the price for
      such Lot(s) set forth in the Pro Forma Sales Budget; provided any Lot Sale
      Contract with Ashton Woods or any of its Affiliates shall be subject to
      prior written approval of CLGP.

            (v)    Cause the Partnership to commit to any activities or business
      unrelated to the Project.

            (vi)   Terminate, dissolve or wind up the Partnership except as
      provided in Section 12.1 or 11.2.(d) hereof.

            (vii)  Commence, settle, or cause the settlement of, any claims,
      suits, debts, demands or judgments against the Partnership if the amount
      involved exceeds $50,000.

            (viii) Except as required by the Development Plan, pledge, mortgage,
      hypothecate or otherwise encumber any of the Partnership's assets.

            (ix)   Except as required by the Development Plan and any Optional
      Loans, cause the Partnership to become liable with respect to any
      obligation for any Financings or other indebtedness (including guarantees
      of the indebtedness or other obligations of any person or of any
      subsidiary or affiliate of the Partnership), or to issue any notes or
      other evidences of indebtedness, in any transaction or series of
      transactions that result or will result in such obligations and
      indebtedness being outstanding at any time.

                                       32
<PAGE>

            (x)    Modify any loan to increase the amount of the loan or
      increase the rate of interest or change the terms of repayment outside of
      the parameters provided in the approved Development Plan.

            (xi)   Any determination of the Gross Asset Value of Partnership
      property.

            (xii)  Establishing cash reserves to be retained when determining
      Net Receipts for distribution.

            (xiii) Approve any other matter reserved to the Partners or
      requiring the Approval of the Partners under this Agreement.

            (xiv)  Change the Fiscal Year or the method of accounting of the
      Partnership.

            (xv)   Amend any agreement in any material manner the entering into
      of which was a Major Decision described in this Section 6.9(b).

               (c)    If the Deadlock occurs with respect to any of the matters
described in this Section 6.9(c), then any such matter shall not be subject to
dispute resolution pursuant to Article XIII hereto and any Partner may invoke
the Buy/Sell provisions set forth in Article IX herein. With respect to any
matter contained in this Section 6.9(c), no Partner may unreasonably withhold,
delay or condition its approval. A Partner that is a Defaulting Partner shall
not continue to have a right of approval over the matters set forth in this
Section 6.9(c) while such Partner is a Defaulting Partner. The matters requiring
Approval of the Partners pursuant to this Section 6.9(c) are the following:

                  (i)   Sell, or cause the sale by the Partnership of, any
      portion of the Project, or all or substantially all of the assets of the
      Partnership, other than the sale of single family Lots and budgeted tract
      sales in the ordinary course of business in accordance with the Annual
      Business Plan, the Development Budget, the Pro Forma Sales Budget, and the
      form Lot Sale Contract.

                  (ii)  Revise in a material manner the agreed upon scope of the
      Project or make any material change to the Development Plan.

                  (iii) Any determination of or adjustment to the Gross Asset
      Value of any Partnership property.

                  (iv)  Amend any agreement in any material manner the entering
      into of that was a Major Decision described in this Section 6.9(c).

      SECTION 6.10 ANNUAL BUSINESS PLAN.

            (a)   On or prior to October 1 of each year, the Managing Partner
shall prepare and deliver to each Designated Representative a description of the
proposed development activities of the Partnership planned for the following
Fiscal Year as provided in this Section 6.10(a) (the "Annual Business Plan").
The Annual Business Plan for each year shall

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<PAGE>

reflect the current expectations of the Managing Partner regarding the
development of the Property and, in particular, shall include a description of:

                  (i)    the planned development activities of the Partnership
            during the year pursuant to the Development Plan and the reasons for
            any deviations from the Development Plan or the Development Budget;

                  (ii)   the amount of the expected capital expenditures of the
            Partnership pursuant to the Development Budget and the anticipated
            amount of capital that may be called from the Partners in accordance
            with Sections 3.2 and 3.4 herein and the Development Budget;

                  (iii)  the Lots expected to be marketed and sold by the
            Partnership and the budgeted gross and net revenues from such sales;

                  (iv)   the amount of anticipated distributions to each
            Partner, if any;

                  (v)    the marketing activities of the Partnership;

                  (vi)   any change to the anticipated phasing of the
            development of the Property as reflected in the Development Plan;

                  (vii)  a proposed Annual Budget for the next Fiscal Year in
            accordance with the Development Plan and the proposed Annual
            Business Plan;

                  (viii) prior to the sale of the first Lot by the Partnership,
            a proposed sales budget for the initial phase of the development of
            the Property, and prior to the sale of the first lot in each
            subsequent phase another proposed sales budget shall be prepared
            (each a "Pro Forma Sales Budget"). Each Pro Forma Sales Budget will
            establish a targeted sales price for each lot to be sold in the
            applicable phase that is consistent with the then Annual Business
            Plan;

                  (ix)   the proposed Minimum Sales Requirements for the Fiscal
            year; and

                  (x)    any other matter relating to the development of the
            Property that the Managing Partner determines should be provided for
            in the Annual Business Plan.

      (b)   The Managing Partner shall be available to discuss the proposed
Annual Business Plan and answer any questions related thereto at the meeting of
the Designated Representatives scheduled for the fourth quarter of such year.
Within thirty (30) days of receipt of the Annual Business Plan, or within ten
(10) days after the fourth quarter meeting of the Designated Representatives,
which ever is later, the Designated Representatives shall either approve or
disapprove the proposed Annual Business Plan, in whole or in part. The Annual
Business Plan generally must be approved by all Designated Representatives. If
at the end of such thirty (30) day or ten (10) day period, as applicable, the
proposed Annual Business Plan in its entirety has not been approved in the
manner required, then it shall be deemed disapproved in its entirety.

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<PAGE>

      (c)   If a proposed Annual Business Plan, or any portion thereof, is not
approved in the time period specified in Section 6.10(b) above then the General
Partners shall cooperate with each other to resolve any questions with respect
to the proposed plan and any suggested revisions thereto and shall use their
good faith efforts to agree upon an Annual Business Plan for the Fiscal Year in
question prior to the beginning of such Fiscal Year. If an Annual Business Plan
for any Fiscal Year is not approved prior to the commencement thereof, then,
pending final resolution of any dispute, the Managing Partner shall continue to
manage, maintain, supervise, direct, and operate the activities of the
Partnership in accordance with the approved Annual Business Plan for the
previous Fiscal Year (or if no such plan exists, the Development Plan) until the
requisite approval of a new Annual Business Plan is obtained; except that the
Managing Partner shall be authorized during any interim period to reasonably
exceed the prior Fiscal Year's approved Annual Budget amounts for taxes, utility
charges and other items not within the reasonable control of the Partnership as
well as for increases in contract services and personnel costs to the extent
required to maintain the same level of service provided for during the previous
Fiscal Year. If after sixty (60) days following the end of the period described
in Section 6.10(b) above an Annual Business Plan has not been approved, then the
Partners shall be deemed to be in deadlock and any General Partner may initiate
the arbitration provisions of Article XIII herein; provided, however, no part of
any proposed Annual Business Plan shall be subject to arbitration if such matter
would require the Approval of the Partners under Section 6.9(a) or 6.9(c) of
this Agreement.

      (d)   Upon approval of an Annual Business Plan pursuant to Section 6.10(c)
above (whether by approval of the Partners or by arbitration), the Managing
Partner shall promptly take all action necessary to cause the Annual Business
Plan to be implemented by the Partnership.

      SECTION 6.11 MANAGEMENT BY LIMITED PARTNERS PROHIBITED. Except as
otherwise provided herein, the Limited Partners, as such, shall not participate
in or have control over the management of the Partnership's business and shall
not transact any business for the Partnership.

      SECTION 6.12 INSPECTION. Each Partner shall at all times have the right,
power and authority, at its sole cost and expense, to perform (or have its
agents or representatives perform) such tests, inspections, surveys and reviews
of the business and affairs of the Partnership as it shall, in its sole
discretion, deem necessary or advisable.

      SECTION 6.13 CONSULTATIONS. The Managing Partner shall, on a continuing
basis, use reasonable efforts to provide adequate opportunity for reasonable
consultations with the Partners (or their agents) prior to any recommendation
(preliminary or otherwise) with respect to any matter requiring the consent or
Approval of the Partners.

      SECTION 6.14 COMPENSATION.

            (a)   Except as otherwise set forth in Section 6.6, no Partner or
Affiliate thereof shall be paid compensation for serving as a Partner or in
connection with any services, directly or indirectly, rendered to or for the
Partnership.

            (b)   The General Partners will be reimbursed by the Partnership for
all reasonable costs and expenses incurred in connection with the management and
operation of the Partnership's assets and business, with the exception of
general overhead expenses, provided that

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<PAGE>

(i) all such costs and expenses are evidenced by reasonable substantiating
documentation such as receipts, invoices, canceled checks and statements, and
(ii) such amounts are set forth in the Development Budget and/or Annual Business
Plan.

      SECTION 6.15 REMOVAL OF MANAGING PARTNER. Upon (i) the occurrence of an
Event of Default with respect to Ashton Woods GP or Ashton Woods LP (or any
Affiliate or any permitted transferee thereof); (ii) any Transfer of an interest
in Ashton Woods GP or Ashton Woods LP not permitted by Article X; (iii) the
occurrence of an event of default under the Financing (after giving effect to
any applicable grace or cure periods) that is not caused by CLGP, CL, or any
Affiliate of CLGP or CL; or (iv) the Partnership shall for any reason within the
reasonable control of the Managing Partner fail to achieve any of the Minimum
Sales Requirements included within an Approved Business Plan for two (2)
consecutive quarterly periods, then in each case CLGP shall have the right (but
not the obligation) in it sole discretion to remove Ashton Woods GP as the
Managing Partner by giving written notice of such removal to Ashton Woods GP;
provided that the time period by which the Minimum Sales Requirements must be
achieved shall be subject to extensions for an aggregate period of up to six (6)
months on account of one (1) or more Force Majeure Events. Items not within the
reasonable control of the Managing Partner: shall include, but not be limited
to, (i) the default by a homebuilder (other than Ashton Woods) in its obligation
to acquire Lots in the Project from the Partnership pursuant to a Lot Sales
Contract executed by the Partnership, and (ii) the failure of a contractor to
perform its obligations in accordance with a contract or agreement executed by
the Partnership. Any such removal shall be effective immediately upon the giving
of such notice, and CLGP or an Affiliate thereof designated by CLGP shall be the
Managing Partner and the Partnership shall continue, subject to the terms of
Article XI. CLGP, or its designee, shall have all power necessary to amend the
Partnership's Certificate of Limited Partnership and this Agreement as necessary
to reflect any such removal and the designation of CLGP, or its designee, as the
Manager Partner. Following any such removal, Ashton Woods GP shall continue to
be a General Partner, except as otherwise provided in Article XI. The Managing
Partner shall have the right to submit proposed updates of the Minimum Sales
Requirements and the reasons for such proposed changes to CLGP on a semi-annual
basis. If CLGP shall approve such proposed changes in the Minimum Sales
Requirements in its sole discretion, such revised Minimum Sales Requirements
shall be substituted for the sale requirements set forth on Schedule 6.15. The
parties acknowledge that the failure to achieve the Minimum Sales Requirement
will not give rise to any claim or action for damages unless such failure is due
to the default or material breach by the Managing Partner of its obligations
under this Agreement.

      SECTION 6.16 PARTNER MEETINGS.

            (a)   It is expressly understood and agreed that the Partners shall
reasonably cooperate with each other to meet, review documents and/or make
decisions. Furthermore, the Partners may be contacted, and decisions made, by
telephone, facsimile or email in lieu of face-to-face meetings, subject,
however, to those matters requiring the Approval of the Partners.

            (b)   Quarterly meetings of the Partners shall be held at 10:00
a.m., Atlanta, Georgia time, unless another date, time is or place is Approved
by the Partners. Any action may be taken at the quarterly meetings which is
reserved to the Partners pursuant hereto or is otherwise presented to the
Partners at the meeting.

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<PAGE>

            (c)   Special meetings of the Partners may be called by any Partner
by delivering to the other Partners a written request stating that the
requesting Partner wishes to call a meeting and indicating the specific purpose
for which the meeting is to be held. Action at the meeting shall be limited to
those matters specified in the call of the meeting. This provision shall not be
construed to require the holding of any special meetings.

            (d)   Unless waived or otherwise not required pursuant hereto, a
notification of all meetings, stating the place, day and hour of the meeting and
the purpose or purposes for which the meeting is called, shall be delivered by
the Managing Partner or any Partner to each Partner. If the applicable party
fails to timely deliver such notices, then any Partner may deliver such notices,
provided that, in such event, the notices shall be delivered to each Partner no
less than two (2) nor more than sixty (60) days before the meeting.
Notwithstanding the foregoing, any Partner may request one postponement of the
meeting date for a period not to exceed five (5) Business Days by giving written
notice to the non-requesting Partners at least one (1) Business Day prior to the
scheduled date of such meeting.

            (e)   Attendance at a meeting shall constitute a waiver of
notification of the meeting, except where such Person attends for the express
purpose of objecting to the transaction of any business on the grounds that the
meeting is not lawfully called or convened. Notification of a meeting may also
be waived in writing. Attendance at a meeting is not a waiver of any right to
object to the consideration of matters required to be included in the
notification of the meeting but not so included, if the objection is expressly
made at the meeting.

            (f)   Any Partner may designate other parties to attend Partner
meetings in an ex-officio capacity, unless objected to by any other Partner.
Such parties may consult with and advise the Partners but may not vote at such
meetings.

            (g)   All Partners who are not in default hereunder may vote either
in person or by proxy at any meeting. Each Partner's percentage voting power at
a meeting shall be equal to its Percentage Interest. Notwithstanding anything
contained herein to the contrary, all references to approval or voting by the
Partners shall mean those Partners who are entitled to vote hereunder at the
time the vote is taken on such matter. All decisions reserved to the Partners
shall be made by the concurring majority vote of the Partners entitled to vote
at and attending such meeting; provided, however, any decisions which must be
Approved by the Partners or are subject to the Approval of the Partners shall be
made by the requisite percentage vote of the Percentage Interests of the
Partners entitled to vote at such meeting, whether attending the meeting or not,
and reduced to writing and signed by the Partners in order to be effective.

            (h)   Partners may participate in a meeting by means of conference
telephone or similar communications equipment by means of which all persons
participating in the meeting can hear each other, and participation in a meeting
pursuant to this subsection shall constitute presence in person at the meeting.

            (i)   Any action that may be taken at a meeting of the Partners may
be taken without a meeting if a consent in writing, setting forth the action to
be taken, shall be signed by all Partner(s) who are entitled to vote hereunder
and who are holding the percentage of Partner's Percentage Interests and/or are
required to approve such action under the Act or this Agreement.

                                       37
<PAGE>

Such consent shall have the same force and effect as a vote of the signing
Partners at a meeting duly called and held pursuant to this Section 6.16. No
prior notice from the signing Partner(s) to the other Partner(s) shall be
required in connection with the use of a written consent pursuant to this
Section 6.16. Notification of any action taken by means of a written consent of
Partners shall, however, be sent within a reasonable time after the date of the
consent to all Partners who did not sign the written consent. In this regard, if
a Partner is requested in writing to consent to or reject any actions specified
in such request, such Partner shall be deemed to have rejected such action if
such Partner fails to respond in writing within five (5) business days after
receipt of such request.

            (j)   A Partner may vote either in person or by proxy executed in
writing by the Partner. A photographic, photo static, facsimile, email or
similar reproduction of a writing executed by the Partner, shall be treated as
an execution in writing for purposes of this Section 6.16. Proxies for use at
any meeting of Partners or in connection with the taking of any action by
written consent shall be filed with the Managing Partner before or at the time
of the meeting or execution of the written consent, as the case may be. No proxy
shall be valid after eleven (11) months from the date of its execution unless
otherwise provided in the proxy. A proxy shall be revocable unless the proxy
form conspicuously states that the proxy is irrevocable and the proxy is coupled
with an interest. Such person's proxy shall be deemed automatically revoked upon
the death, resignation or removal from such office of a Partner as such person
previously held.

            (k)   In addition to the other rights specifically set forth in this
Agreement, each Partner is entitled to all information to which that Partner is
entitled to have access pursuant to the Act under the circumstances and subject
to the conditions therein stated.

                                   ARTICLE VII
                    REPRESENTATIONS, WARRANTIES AND COVENANTS

      SECTION 7.1 REPRESENTATIONS, WARRANTIES AND COVENANTS.

            (a)   Ashton Woods GP and Ashton Woods LP hereby represent and
warrant to and covenant with the other Partners the following:

                  (i)   Ashton Woods GP is corporation duly organized and
      validly existing in the State of Texas, and has full power to carry on its
      business and to own and operate its assets and to carry out the
      transactions contemplated in this Agreement. Ashton Woods LP is a limited
      liability company duly organized and validly existing in the State of
      Texas, and has full power to carry on its business and to own and operate
      its assets and to carry out the transactions contemplated in this
      Agreement.

                  (ii)  Each of Ashton Woods GP and Ashton Woods LP has duly
      authorized, executed and delivered this Agreement, and this Agreement is
      the legal and binding obligation of each of Ashton Woods GP and Ashton
      Woods LP.

                  (iii) The execution, delivery and performance of this
      Agreement by each of Ashton Woods GP and Ashton Woods LP does not and will
      not conflict with, violate or constitute a breach or default under the
      respective organizational documents of Ashton Woods GP or Ashton Woods LP,
      any agreement or instrument by which either is

                                       38
<PAGE>

      bound or to which its properties or assets are subject, or any law,
      regulation, writ, order, injunction or decree to which either is subject.

                  (iv)  There is no action, suit or proceeding pending against
      such Partner or, to its knowledge, threatened in any court or by or before
      any other governmental agency or instrumentality that could adversely
      affect or would prohibit its entering into or performing its obligations
      under this Agreement.

            (b)   CLGP and CL hereby represent and warrant to and covenant with
the other Partners the following:

                  (i)   CLGP is a Georgia limited liability company duly
      organized and validly existing in the State of Georgia, and has full power
      to carry on its business, to own and operate its assets and to carry out
      the transactions contemplated in this Agreement. CL is a Texas limited
      partnership duly organized and validly existing in the State of Texas, and
      has full power to carry on its business, to own and operate its assets and
      to carry out the transactions contemplated in this Agreement.

                  (ii)  Each of CLGP and CL has duly authorized, executed and
      delivered this Agreement, and this Agreement is the legal and binding
      obligation of each of CLGP and CL.

                  (iii) The execution, delivery and performance of this
      Agreement by each of CLGP and CL does not and will not conflict with,
      violate or constitute a breach or default under the certificate of
      formation or operating agreement of CLGP or the certificate of limited
      partnership or limited partnership agreement of CL, any agreement or
      instrument by which either is bound or to which its properties or assets
      are subject, or any law, regulation, writ, order, injunction or decree to
      which either is subject.

                  (iv)  There is no action, suit or proceeding pending against
      such Partner or, to its knowledge, threatened in any court or by or before
      any other governmental agency or instrumentality that could adversely
      affect or would prohibit its entering into or performing its obligations
      under this Agreement.

      SECTION 7.2 INDEMNITY FOR BREACH OF WARRANTY. If there is a breach by a
Partner of any of the representations, warranties set forth in Section 7.1
above, and if the non-breaching Partner(s) or the Partnership, as applicable,
suffer any loss or damages as a result thereof, then the breaching Partner shall
duly, irrevocably and unconditionally indemnify, defend and hold the other
Partners and the Partnership harmless from and against any claims, causes of
action, liabilities, costs, expenses, damages or losses of any nature whatsoever
arising out of, incident to or resulting from such breach, including without
limitation reasonable attorneys' fees and costs of litigation.

      SECTION 7.3 SCOPE OF AUTHORITY. Each Partner agrees to indemnify, defend
and hold harmless the other Partners and the Partnership from and against all
claims, causes of action, liabilities, costs, expenses, damages or losses of any
nature whatsoever arising or resulting from or by reason of (a) such Partner's
acting outside of the scope of its authority under this Agreement, or (b) such
Partner's gross negligence or willful misconduct (excluding, however,

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<PAGE>

failure to make a required Additional Capital Contribution) in the performance
of its obligations and duties under this Agreement.

                                  ARTICLE VIII
                   CONTRACTS WITH RELATED PARTIES; ACQUISITION
                         AND DEVELOPMENT OF THE PROPERTY

      SECTION 8.1 RELATED PARTY CONTRACTS.

            (a)   With the exception of Lot Sale Contracts with an Affiliate of
Ashton Woods that are approved by CLGP, the Partnership shall not enter into any
agreement with any Partner or with any Affiliate of such Partner for the
furnishing to the Partnership of goods or services for the Project or for the
acquisition or sale of property, unless such relationship has been disclosed, in
writing, to the other Partners and such agreement is approved by the holders of
at least a majority of the Percentage Interests held by the Partners who are not
Affiliates of such Partner, with the rates of compensation, commission,
remuneration or purchase price not in excess of those prevailing in the market
place.

            (b)   Notwithstanding anything in this Agreement to the contrary, in
the event Ashton Woods or any Affiliate of Ashton Woods is in default under any
Lot Sale Contract (after giving effect to any applicable notice and cure period)
with the Partnership, then in such event and as long as the default is
continuing, CLGP will have the sole, exclusive and unilateral right on behalf of
the Partnership (i) to select which remedy or remedies that the Partnership may
exercise, and (ii) if a Lot Sale Contract is terminated, to thereafter remarket
to third parties the Lots in the Project which are the subject of such
terminated Lot Sale Contract (or portion thereof). In addition, notwithstanding
anything in this Agreement to the contrary, CLGP shall have the sole, exclusive
and unilateral right on behalf of the Partnership (1) to give all notices on
behalf of the Partnership under or with respect to all Lot Sale Contracts with
Ashton Woods or any Affiliate of Ashton Woods, (2) to terminate any Lot Sale
Contract executed by Ashton Woods or any Affiliate of Ashton Woods with the
Partnership if Ashton Woods or any Affiliate of Ashton Woods is in default with
respect to such Lot Sale Contract (after giving effort to any applicable notice
and cure period thereunder), (3) to select which remedy or remedies that the
Partnership may exercise, and (4) to remarket and sell to third parties the Lots
which are the subject of any terminated Lot Sale Contract(s).

            (c)   The Managing Partner shall have the unilateral right to
designate one or more third party national title companies to be used for all
lot closings.

      SECTION 8.2 ACQUISITION OF THE REAL PROPERTY. The Partnership shall
acquire the Real Property pursuant to the Purchase Agreement.

                                   ARTICLE IX
                                    BUY-SELL

      SECTION 9.1 BUY-SELL.

            (a)   At any time after the execution of this Agreement if any Major
Decision described in Section 6.9(c) hereof, is proposed by a Partner and
Approval of the Partners is not

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<PAGE>

obtained within thirty (30) days following delivery of such proposal in writing
to the General Partners, the Partners agree to meet again within seven (7)
Business Days of a "Deadlock" (herein so called) on such Major Decision and
attempt in good faith to negotiate a mutually acceptable resolution to the
Deadlock. In the event the Partners are unable to reach such agreement and
resolve the Deadlock within ten (10) days thereafter, any Partner (that is not a
Defaulting Partner) shall have the right, by giving written notice (the "Offer
Notice") to the other Partner(s), to offer to purchase the other Partners' who
are not its Affiliates entire Partnership Interest(s) in the Partnership. The
Offer Notice shall state that the Partner giving such notice (on behalf of
itself and its Affiliates in this Partnership) (the Partner giving such notice
and all of such Partner's Affiliates in the Partnership shall hereinafter be
collectively referred to as the "Offering Party") desires to purchase (1) the
entire Partnership Interest(s) of the other Partner(s) and such other Partner's
Affiliates in the Partnership (the other Partner and such other Partner's
Affiliates in the Partnership shall hereinafter be collectively referred to as
the "Other Party"). The Offer Notice shall also specify (A) an amount (the
"Stated Amount") which the Offering Party would pay for all Partnership assets
which Stated Amount shall in any case be not less than the aggregate of all
indebtedness owed at that time by the Partnership, and which shall be used in
the calculations under this Section 9.1, and (B) the total amount of all
indebtedness for the Partnership.

            (b)   The aggregate purchase price (the "Interest Purchase Price")
for the Partnership Interest(s) of the Selling Partner (as defined in Section
9.1(d) below) pursuant to this Section 9.1 shall be the aggregate amount which
would be distributed to the Selling Partner pursuant to Section 4.9 of this
Agreement (after giving effect to all applicable provisions of this Agreement
and after liquidating all Partnership indebtedness and all the indebtedness and
reserves then existing but without establishing any additional reserves) if all
of the assets then held by the Partnership were sold on the Purchase Closing
Date (as defined below) for a gross sales price equal to the Stated Amount and
the proceeds of such sale were distributed pursuant to Section 4.9. In the event
that the amount described above which would be distributed to the Selling
Partner under Section 4.9 would be zero, then the Interest(s) Purchase Price
shall be Ten and No/100 Dollars ($10.00), subject to the provisions of Section
9.1(f) hereof. The Interest Purchase Price to be paid for the Selling Partner's
Partnership Interest(s) in the Partnership, and the terms of payment and closing
of such transaction, shall be subject to the provisions hereof.

            (c) The Other Party shall have a period of twenty (20) days after
the receipt of the Offer Notice within which to notify the Offering Party in
writing whether such Other Party shall, at the Other Party's option, (i)
purchase all of the Partnership Interest(s) of the Offering Party at the pro
rata Interest(s) Purchase Price and subject to the other terms established as
provided above, or (ii) sell its (and its Affiliates') entire Partnership
Interest(s) in the Partnership to the Offering Party at the pro rata Interest(s)
Purchase Price and subject to the other terms established as provided above. The
Other Party's failure to timely deliver such written notice shall be deemed to
be its election to sell its Interest(s) to the Offering Party.

            (d) If the Selling Partner (or its Affiliate) is also the Developer
then such Development Agreement may be terminated in whole or in part at the
option of the Purchasing Partner (as defined in Section 9.1(e) below) on notice
to the Selling Partner; provided, however, notwithstanding such termination of
the Development Agreement, the Developer will be entitled to be paid any unpaid
Development Fees and expenses accrued through the date of termination

                                       41
<PAGE>

of the Development Agreement(s) and shall remain liable for any of its
obligations arising prior to such termination. In the event the Managing Partner
is a Selling Partner, no further fees shall be payable to it under Section 6.6
except as may accrue prior to the Purchase Closing Date (as defined in (e)
below).

            (e)   Irrespective of whether the Other Party timely notifies the
Offering Party that such Other Party desires to purchase the Partnership
Interest of the Offering Party or to sell its Partnership Interest to the
Offering Party, and irrespective of whether the Other Party fails to timely
reply within the specified twenty (20) day period, the purchase and sale
transaction to be effectuated pursuant to this Section 9.1 hereof with respect
to the applicable Partnership Interest(s) shall be closed on the date (the
"Purchase Closing Date"), whichever is earlier, that is (A) ninety (90) days
from the receipt by the Other Party of the original Offer Notice given by the
Offering Party, or (B) the date specified in the Offer Notice, but not earlier
than sixty (60) days from receipt of the Offer Notice. On the Purchase Closing
Date, the selling Partner and its Affiliates in the Partnership (the selling
Partner and its Affiliates are hereafter collectively referred to as the
"Selling Partner") shall convey, transfer and assign to the purchasing Partner
(herein the "Purchasing Partner"), by deed, bill of sale and/or other
instruments of transfer as may be reasonably requested by the Purchasing
Partner, the Selling Partner's entire Partnership Interest(s) in the Partnership
and shall then and thereafter, to the extent requested by the Purchasing
Partner, cooperate to effect an efficient continuation of the affairs of the
Partnership and the operation, management and maintenance of the Project. On the
Purchase Closing Date, the Purchasing Partner shall pay to the Selling Partner
the Interest(s) Purchase Price for the Selling Partner's interest(s) in the
Partnership.

            (f)   It shall be a condition precedent to the closing of the
purchase and sale of the Selling Partner's Partnership Interest(s) that the
Purchasing Partner shall either (i) pay in full any loan to the Partnership from
any Person under which the Selling Partner (or any Affiliate thereof) has
personal liability (plus any deferred and accrued and unpaid interest thereon
and any required prepayment premium and/or yield maintenance fees), or (ii) have
the Selling Partner (or any Affiliate thereof) released from personal liability
for payment of the principal and interest of such loan (and provide a complete
indemnity to the Selling Partner from the Purchasing Partner for other
obligations thereunder or relating thereto). In addition, the Selling Partner
may, in its sole, absolute and unilateral discretion, and without prejudice to
any other legal or equitable remedies it may have, unilaterally prohibit the
closing from occurring unless simultaneously therewith either (1) any such loan
is so repaid, or (2) such release from liability is obtained. For the avoidance
of doubt, the Interest Purchase Price shall not be increased or adjusted whether
any such loan is repaid or such release is obtained (it being understood and
agreed for purposes of calculation of the Interest Purchase Price that the
amount of any such indebtedness shall be deducted from the Stated Amount in
determining the Interest Purchase Price).

            (g) In the event a Partner (or any Affiliate) is at the time of the
Offer Notice holding a bona fide written third party offer to buy any Interest
in the Partnership (or all or substantially all of the Project), such offer must
be disclosed to the other Partner.

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<PAGE>

                                    ARTICLE X
                       TRANSFER OF PARTNERSHIP INTEREST(S)

      SECTION 10.1 TRANSFER OF PARTNERSHIP INTEREST(S)S HELD BY THE GENERAL
PARTNER. Except as otherwise herein expressly provided, no General Partner may,
without the prior Approval of the Partners, voluntarily retire or withdraw from
the Partnership, substitute any person, firm or corporation in its stead or
sell, assign, transfer or otherwise dispose of all or any part of its
Partnership Interest(s) in the Partnership; provided, however, that nothing in
this Section 10. 1 shall prevent or restrict a General Partner from:

            (a)   pledging, granting a security interest in or otherwise
encumbering its Partnership Interest(s) to secure the Financing(s); or

            (b)   selling, assigning, transferring or otherwise disposing of its
right to receive distributions with respect to its respective Partnership
Interest(s) to Affiliates of the General Partner, provided that no such transfer
shall dissolve the Partnership or entitle the assignee to become a partner or to
interfere or otherwise participate in the management or administration of the
affairs or business of the Partnership, to require any information or accounts
of Partnership transactions, to inspect the Partnership's books or otherwise to
have any connection with or rights against the Partnership or the Partners
(except the assigning Partner), and provided further that the Partnership shall
not be required to recognize any such transfer until the Partners shall have
received from the General Partner notice and other evidence reasonably
satisfactory to the Partners of such transfer; or

            (c)   in the case of CLGP, transferring or assigning all of its
Partnership Interest to CREC and/or Lumberman's Investment Corporation or any
other Affiliate of CREC and/or Lumberman's Investment Corporation.

      SECTION 10.2 ACQUISITION OF PARTNERSHIP INTEREST(S) FOR INVESTMENT.

            (a)   Each Partner hereby represents and warrants to the other
Partners and to the Partnership that the acquisition of its Partnership
Interest(s) is made for its own account for investment purposes only and not
with a view to the resale or distribution of such Partnership Interest(s).

            (b)   Each Partner represents and agrees that it is aware that its
Partnership Interest has not been registered under the Securities Act of 1933,
as amended, or under any applicable state securities laws, and agrees that it
will not sell, assign or otherwise transfer its Partnership Interest(s) or any
fraction thereof unless the Partnership Interest(s) has(have) been registered
under the Securities Act of 1933, as amended, and under any applicable state
securities laws, or such sale, assignment or transfer is exempt from such
registration (and, if requested, opinions of counsel to such effect are obtained
and Approved by the Partners) and, in any event, it will not so sell, assign or
otherwise transfer its Partnership Interest(s) or any fraction thereof to any
person or entity who does not similarly represent, warrant and agree as provided
herein.

            (c)   Each Partner understands that its right to sell, pledge,
transfer, assign or dispose of its Partnership Interest is restricted by the
terms of this Agreement and state and federal securities laws.

                                       43
<PAGE>

            (d)   Each Partner represents that it is a sophisticated and
knowledgeable investor with experience in making investments such as the one it
is making in the Partnership, it has been provided with, or has had access to,
such information as it deems necessary to or useful in its evaluation of the
merits, risks and tax consequences of an investment in the Partnership and of
making an informed investment decision, and it has been advised by its counsel,
accountants, financial advisors or such other Persons it has deemed appropriate
concerning this Agreement and its investment in the Partnership

      SECTION 10.3 TRANSFER OF PARTNERSHIP INTEREST(S) HELD BY ANY LIMITED
PARTNER.

            (a)   Except as otherwise herein expressly provided, no Partnership
Interest(s) of any Limited Partner nor any fraction thereof may be voluntarily
sold, exchanged, pledged, assigned or transferred by any Limited Partner without
being Approved by the Partners; provided, however, nothing in this Section
10.3(a) shall prevent or restrict any Limited Partner from (i) pledging,
granting a security interest in or otherwise encumbering its Partnership
Interest(s) for the Financing(s) subject to the terms and provisions of this
Agreement, including specifically, but not limited to, Section 10.5 hereof, and
(ii) transferring or assigning its Partnership Interest(s) to one or more
Affiliates of such Limited Partner.

            (b)   Any Approval of the Partners of a permitted sale, exchange,
transfer or assignment under Section 10.3(a) above shall be conditioned upon
receipt by the General Partners of a written opinion of counsel (if requested by
a Partner) reasonably satisfactory in all respects to counsel for the
Partnership and counsel for the Partner requesting same confirming that,

                  (i)   such sale, exchange, transfer or assignment would not
      violate the Securities Act of 1933, as amended, or any state securities or
      "blue sky" laws (including any investor suitability standards) applicable
      to the Partnership or the Partnership Interest(s) to be sold, exchanged,
      transferred or assigned;

                  (ii)  such sale, exchange, transfer or assignment would not
      terminate the Partnership or cause the Partnership to lose its status as a
      partnership for federal income tax purposes; and

                  (iii) such sale, exchange, transfer or assignment, when added
      to the total of all other sales, exchanges, transfers or assignments of
      Partnership Interest(s) within the preceding twelve (12) months, shall not
      result in the Partnership being considered to have terminated within the
      meaning of Section 708(b)(1)(B) of the Code.

      SECTION 10.4 INCAPACITY OF A PARTNER. Upon the incapacity of any Partner
that is a natural person, its permitted successors or assigns shall have (i) all
the rights of such Partner for the purpose of settling or managing its affairs,
and (ii) such power as the incapacitated Partner possessed to assign all or any
part of its Partnership Interest(s) and to join with such assignee in satisfying
conditions precedent to such assignee becoming a substituted Partner. The
incapacity of any Partner shall not dissolve the Partnership.

                                       44
<PAGE>

      SECTION 10.5 ASSIGNEES.

            (a)   The Partnership shall not recognize for any purpose any
purported sale, exchange, pledge, assignment or transfer of all or any fraction
of the Partnership Interest(s) of any Partner unless (i) such Partner complies
with the provisions of this Article X, (ii) the Partnership shall have received
evidence satisfactory to the unaffected Partners that the proposed purchaser,
assignee or transferee has the financial capacity to fully perform and observe
the obligations of such Partner under this Agreement, and (iii) there shall have
been filed with the Partnership a written and dated notification of such sale,
exchange, pledge, assignment or transfer, in form Approved by the Partners,
executed and acknowledged by both the seller, assignor or transferor and the
purchaser, assignee or transferee, and such notification (1) contains the
acceptance and assumption by the purchaser, assignee or transferee of all of the
terms and provisions of this Agreement in a manner reasonably satisfactory to
the Partners, and (2) represents that such sale, exchange, pledge, assignment or
transfer was made in accordance with all applicable laws and regulations.
Notwithstanding anything to the contrary, no assignment hereunder shall release
the Partner assigning its Interest hereunder from the obligations and
indemnities contained herein and arising prior to the date of the assignment.

            (b)   If any Partner shall sell, assign or transfer all of its
Partnership Interest(s), it shall cease to be a Partner hereunder, as the case
may be, except that, unless and until a substituted partner is admitted in its
stead, such Partner shall retain the statutory rights of the assignor of a
partner's interest under the Act.

            (c)   A person who is the assignee of all or any fraction of the
Partnership Interest(s) of any Partner, but does not become a substituted
partner and desires to make a further assignment of such Partnership
Interest(s), shall be subject to all the provisions of this Section 10.5 to the
same extent and in the same manner as the assigning Partner.

      SECTION 10.6 SUBSTITUTED PARTNER. No Partner shall have any right to
substitute a purchaser, assignee, transferee, donee or other recipient of all or
any portion of such Partner's Partnership Interest as a partner in its place.
Any such purchaser, assignee, transferee, donee or other recipient of any such
Partner's Partnership Interest(s) shall be admitted to the Partnership as a
substituted partner only with the Approval of the Partners, which consent may
be arbitrarily granted or withheld in the sole discretion of the General
Partners. Any such consent by the General Partners shall be binding and
conclusive and shall be evidenced by the execution by the General Partners of an
amendment to this Agreement evidencing the admission of such person as a
substituted partner.

      SECTION 10.7 INDIRECT TRANSFERS. In order to effectuate the purpose of
this Article X, each Partner agrees that, except as expressly authorized in
Section 10.1 and Section 10.3 hereof, no transfer or other disposition of any
stock, partnership, limited liability company, or other beneficial interest in
any Partner or other such Person which controls any part of any Partnership
Interest will be effected, directly or indirectly, unless Approved by the
Partners; provided, however, the trading of shares of stock of any Person whose
shares are traded on a national securities exchange or in the over-the-counter
securities market, or a sale of all or substantially all the assets of such a
Person, or the merger or consolidation of such a Person, or acquisition of

                                       45
<PAGE>

a controlling interest in such a Person, shall be permitted and will not be
deemed to violate the provisions of this Article X.

                                   ARTICLE XI
                                     DEFAULT

      SECTION 11.1 EVENTS OF DEFAULT. The occurrence of any of the events set
forth below shall constitute an event of default ("Event of Default") hereunder
on the part of a Partner with respect to whom such Event of Default occurs (the
Partner with respect to whom such Event of Default has occurred, shall
hereinafter be referred to as the "Defaulting Partner") if, within fifteen (15)
Business Days following the receipt of written notice of such Event of Default
described in Subsection 11.1(g), (h), (i), or (j) below from any other Partner,
the Defaulting Partner fails to pay such monies or, in the case of non-monetary
defaults, fails to cure such default; provided, however, notwithstanding the
foregoing, the occurrence of any of the events described in Subsections 11.1(a)
through (f) below shall constitute an Event of Default immediately upon such
occurrence without any requirement of notice or passage of time except as
specifically set forth in any such subsection. The Partners, other than the
Defaulting Partner and its Affiliate, shall hereinafter be collectively referred
to as the "Non-Defaulting Partners." The following shall be Events of Default as
set forth above and for all purposes of this Agreement:

            (a)   The violation of a Partner of any of the restrictions or
prohibitions set forth in this Agreement upon the right of a Partner to sell,
exchange, pledge, assign or transfer its Partnership Interest(s) or any portion
thereof or any interest therein;

            (b)   Institution of any Bankruptcy affecting a Partner or the
commencement of any other proceedings of any nature under any laws of the United
States or of any state for the relief of debtors wherein such Partner is seeking
relief as a debtor;

            (c)   A general assignment by a Partner for the benefit of
creditors;

            (d)   A proposed plan, arrangement or other action by a Partner's
creditors taken as a result of a general meeting of the creditors of such
Partner;

            (e)   Admission by a Partner in writing of its or his inability to
pay its or his debts as they mature;

            (f)   Attachment, execution or other judicial seizure of all or any
substantial part of a Partner's Partnership Interest(s) or other assets, such
attachment, execution or seizure remaining undismissed or undischarged for a
period of ninety (90) days after the levy thereof;

            (g)   Default in performance of or failure to comply with any
material agreement, obligation or undertaking of a Partner contained herein or
material breach of fiduciary duty by such Partner, or in the case of a General
Partner, any other event not specified herein which would constitute an "event
of withdrawal" of such general partner under the Act;

            (h)   Failure of a Partner to make an Additional Capital
Contribution when required pursuant to Article III of this Agreement;

                                       46
<PAGE>

            (i)   Failure to repay any Contribution Loan when required pursuant
to Section 3.4(c) herein; and

            (j)   If any representation or warranty made by a Partner in this
Agreement shall be false or misleading or otherwise untrue in any material
respect.

      SECTION 11.2 ELECTIONS OF NON-DEFAULTING PARTNER.

            (a)   Purchase of Defaulting Partner's Interest. Within one-hundred
eighty (180) days following the occurrence of an Event of Default that is
continuing, any Non- Defaulting Partner that is not an Affiliate of the
Defaulting Partner shall have the right to acquire the entire Partnership
Interests of the Defaulting Partner (and such Defaulting Partner's Affiliates)
for cash, except as provided in Section 11.2(b) hereof, at a "Purchase Price"
determined pursuant to the procedure set forth in Section 11.2(c), subject to
reduction by the amount of any indebtedness, plus accrued interest thereon, owed
to the Non-Defaulting Partner (or its Affiliates) or the Partnership by the
Defaulting Partner (and such Defaulting Partner's Affiliates) as of the date on
which the Non-Defaulting Partner's purchase of the Defaulting Partner's (and
such Defaulting Partner's Affiliates) entire Partnership Interests is closed and
consummated, whereupon such indebtedness shall be simultaneously canceled. Any
indebtedness owed by the Partnership to the Defaulting Partner (and such
Defaulting Partner's Affiliates) as of such closing date shall be repaid at
closing. In furtherance of such right, the Non-Defaulting Partner may notify the
Defaulting Partner, at any time following an Event of Default and prior to a
cure thereof, of its election to institute the arbitration procedure set forth
in Article XIII to determine the Purchase Price of the Partnership Interests.
Upon receipt of notice of determination of the "Fair Market Value" pursuant to
Section 11.2(c), of the Defaulting Partner's (and its Affiliates') entire
Partnership Interests in the Partnership, the Non-Defaulting Partner may notify
the Defaulting Partner of its election to purchase the Partnership Interests of
the Defaulting Partner and its Affiliates. The right of the Non-Defaulting
Partner to institute the procedures for purchase of the Defaulting Partner's and
its Affiliates' entire Partnership Interests in the Partnership as set forth in
this Section 11.2 shall continue until either the Event of Default is cured or
the Non-Defaulting Partner elects to exercise its right to dissolve and
terminate the Partnership as provided in Section 11.2(d) below.

            (b)   Closing.

                  (i)   The purchase by the Non-Defaulting Partner of the
      Defaulting Partner's (and such Defaulting Partner's Affiliates) entire
      Partnership Interests shall be closed and consummated in the principal
      office of the Partnership at 11:00 a.m., local time, on a date specified
      by the Non-Defaulting Partner on at least five (5) days' notice to the
      Defaulting Partner, to be not later than the one hundred eightieth (180th)
      calendar day following the date of the Non-Defaulting Partner's notice of
      its election to purchase such Partnership Interests from the Defaulting
      Partner (and such Defaulting Partner's Affiliates). The Defaulting Partner
      (and such Defaulting Partner's Affiliates) shall transfer to the
      Non-Defaulting Partner their entire Partnership Interests free and clear
      of all liens, security interests, encumbrances and competing claims. The
      Non-Defaulting Partner shall deliver to the Defaulting Partner the
      Purchase Price, as provided in Section 11.2(g), by wire transfer of
      immediately available Federal Reserve System funds to an

                                       47
<PAGE>

      account designated by the Defaulting Partner (such designation to be
      deemed given by the Defaulting Partner for itself and its Affiliates).
      Simultaneously with the receipt of such cash payment, the Defaulting
      Partner (and such Defaulting Partner's Affiliates) shall execute and
      deliver, and each does irrevocably constitute and appoint the
      Non-Defaulting Partner as its true and lawful attorney to execute and
      deliver for and on its behalf, such instruments of transfer, such evidence
      of due authorization, execution and delivery, and such evidence of the
      absence of any claims, security interests or competing claims as the
      Non-Defaulting Partner shall reasonably request.

                  (ii)  In addition to the adjustment provided for in Section
      11.2(c) the Non-Defaulting Partner may elect to offset against the cash
      portion of the purchase price, when such cash portion is paid, the amount
      of any loss, damage or injury, the amount of which has been caused to it
      by the Event of Default.

            (c)   Determination of Price. The purchase price (the "Purchase
Price") for the Defaulting Partner and its Affiliates' aggregate Partnership
Interests shall equal eighty percent (80%) of the Fair Market Value of the
Defaulting Partner's (and such Defaulting Partner's Affiliates') Partnership
Interests. The Partners shall first attempt to agree upon such Fair Market Value
of the Defaulting Partner's (and its Affiliates') Partnership Interests. The
"Fair Market Value" of the Partnership Interests shall mean the aggregate
amount, if any, that would be distributed by the Partnership to the Defaulting
Partner or its Affiliates, as the case may be, with respect to such Partnership
Interest (other than in repayment of loans made by such Partner to the
Partnership) if all of the assets then held by the Partnership were sold for a
gross sales price equal to their Fair Market Value and the proceeds thereof,
after payment of all debts and obligations of the Partnership (including loans
owed to Partners), were distributed to the Partners pursuant to Section 4.9
hereof. For this purpose, the "Fair Market Value" of the assets of the
Partnership shall mean the cash price which a bona fide arm's length purchaser
would pay on the date of the valuation for all assets of the Partnership. The
Fair Market Value of the Defaulting Partner's (and its Affiliates') Partnership
Interests, shall be determined pursuant to the arbitration provisions in Article
XIII unless the Partner otherwise agree regarding such value prior to either
Partners involving the arbitrator. In the event that the amount distributed to
the Defaulting Partner and its Affiliates under Section 4.9 would be zero, then
the Purchase Price shall be ten dollars ($10.00).

            (d)   Election to Dissolve. If the Non-Defaulting Partners do not
elect to acquire the entire Partnership Interests of the Defaulting Partner (and
such Defaulting Partner's Affiliates) as set forth in Section 11.2(a), the
holders of a majority of the Percentage Interests held by the Non-Defaulting
Partners may elect to dissolve and terminate the Partnership pursuant to Section
12.2 of this Agreement by written notice to the Defaulting Partner.

            (e)   Voting Rights of Defaulting Partner. Following the occurrence
and during the continuance of an Event of a Default by a Partner, such Partner
(and its Affiliates) shall cease to have any voting or approval rights as a
Partner or Managing Partner in the Partnership, except only that the Defaulting
Partner shall retain the right to approve and veto actions or decisions that are
set forth in Section 6.9(a) as surviving such Event of Default (except as
otherwise provided in Section 6.9(a)).

                                       48
<PAGE>

            (f)   Conversion of Defaulting Partners' Partnership Interests. Any
Defaulting Partner and any Affiliate of a Defaulting Partner who may have been a
General Partner shall have its Partnership Interests automatically converted
into a Partnership Interest of a Limited Partner in the Partnership and the
Partnership shall continue with any remaining General Partners continuing to
serve as such, or in the event such Defaulting Partner is at the time of the
Event of Default the only general partner, such Person as shall be appointed as
successor general partner by the Non-Defaulting Partners acting by the vote of
the holders of a majority of the Partnership Interests held by Persons who are
not Affiliates of the Defaulting Partner. The Defaulting Partner (and its
Affiliates) shall not be entitled to exercise any voting right or other right of
approval, consent or determination under this Agreement, or otherwise to
participate in the management of the business of the Partnership, or to vote
upon or otherwise participate in Major Decisions or any of the other affairs of
the Partnership for so long as the Event of Default remains uncured, except as
otherwise may be provided in Section 6.9(a).

            (g)   Remedies. Non-Defaulting Partners shall be entitled to pursue
such other rights and remedies as may be available at law or in equity as a
result of the Event of Default by the Defaulting Partner. Notwithstanding
anything contained herein to the contrary, no party herein shall be entitled to
seek, claim, receive or collect any consequential, speculative, exemplary,
multiple or punitive damages except in the case of proven fraud or willful
misconduct.

                                   ARTICLE XII
                        TERM; LIQUIDATION AND DISSOLUTION

      SECTION 12.1 TERM. The Partnership shall commence on the date hereof and
shall continue until terminated in accordance with the provisions of Section 2.5
or this Article XII, provided that if it is not sooner terminated, the
Partnership shall terminate on December 31, 2025 (the applicable termination
date is hereinafter referred to as the "Partnership Termination Date") and will
be dissolved and its affairs shall be wound up, unless an extension is Approved
by the Partners. No Partner shall have the right to cause, and each Partner
hereby agrees not to cause, the dissolution, termination or liquidation of the
Partnership, or to petition a court for a dissolution, termination or
liquidation of the Partnership, except as provided in this Agreement. No Partner
at any time shall have the right to take any action or to subject the
Partnership's assets or any part thereof to the authority of any court of
bankruptcy, insolvency, receivership or similar proceedings, without the express
written consent and approval of the other Partners.

      SECTION 12.2 DISSOLUTION. The Partnership shall only be dissolved in the
event that (i) the General Partners determine to dissolve the Partnership, (ii)
the Partnership by its terms, as set forth in Section 12.1, is terminated by
virtue of the occurrence of the Partnership Termination Date, as extended in
accordance with the provisions of Section 12.1, if applicable, or (iii) an Event
of Default has occurred and the Non-Defaulting Partner(s) elect(s) to dissolve
the Partnership.

      SECTION 12.3 LIQUIDATION AND DISTRIBUTION PROCEDURE.

            (a)   Upon the dissolution of the Partnership, the General Partners
shall cause the Partnership to wind up the business and affairs of the
Partnership, to pay all just debts and

                                       49
<PAGE>

obligations of the Partnership and to distribute the assets of the Partnership
in accordance with this Section 12.3. The expenses of liquidation shall be
expenses of the Partnership. Upon completion of any such distribution and
winding up, the parties hereto shall be relieved of all obligations hereunder
except for obligations, duties or rights which have not been determined or
ascertained as of the date of such termination and for rights or remedies which
a Non-Defaulting Partner may have against a Defaulting Partner at law or in
equity. During the period of such winding up, the business and affairs of the
Partnership shall be conducted so as to preserve the assets of the Partnership
in a manner consistent with the winding up of the affairs thereof.

            (b)   In the event of a liquidation and distribution as a result of
the occurrence of an Event of Default pursuant to Article XI hereof, the
Defaulting Partner shall have no power or authority to bind the Partnership or
Partners or to participate in any decisions pertaining to the liquidation and
winding up of the Partnership, but shall assist the other Partners in the
dissolution and winding up of the Partnership and the distribution of the assets
hereof. The Non-Defaulting Partners shall have the unilateral right to continue
or to terminate, in whole or in part, any Development Agreement between the
Defaulting Partner and the Partnership.

            (c) The assets of the Partnership shall be applied or distributed in
liquidation in the following order of priority (giving effect to repayment of
Contribution Loans pursuant to Section 3.4(c) hereof):

                  (i)   In payment of debts and obligations of the Partnership
      to third parties and to the establishment of such capital reserves as may
      be Approved by the Partners;

                  (ii)  In repayment of any loans, plus accrued interest
      thereon, made to the Partnership by the Partners (including Optional Loans
      in the priorities set forth in, and otherwise in accordance with the
      provisions of, Section 3.3 hereof); and

                  (iii) Then to the Partners in accordance with the provisions
      of Section 4.9 hereof.

            (d)   Upon dissolution, every reasonable effort shall be made to
dispose of the Partnership's assets so that distributions may be made to the
Partners in cash. If, upon termination of the Partnership, the Partnership shall
nevertheless own non-cash assets, such assets, if any, may be distributed in
kind to the Partners in lieu of cash, in proportion to their right to receive
the cash assets of the Partnership, on the basis of undivided interests in each
non-cash asset in proportions reflecting the net fair market value of the
assets so distributed, and reflecting all allocations that would have been made
had the assets distributed in kind been sold by the Partnership for their fair
market value.

            (e)   Notwithstanding any other provision of this Agreement, no
Partner will be required to pay to the Partnership or to any other Partner any
deficit or negative balance which may exist from time to time in such Partner's
Capital Account.

                                       50
<PAGE>

                                  ARTICLE XIII
                                   ARBITRATION

      SECTION 13.1 INITIATION.

            (a)   Following either a Deadlock regarding any matter described in
Section 6.9(b) or a deadlock regarding the determination of Fair Market Value of
a Defaulting Partner's (and its Affiliates) Partnership Interests pursuant to
Section 11.2(c), (i) the Partners and their respective Affiliates shall attempt
in good faith for a period of at least ten (10) days following notice by one
Partner to the others, which notice is entitled "Notice of Dispute", to resolve
the dispute, and (ii) if the dispute is not resolved in such ten (10) day
period, arbitration may be invoked by one Partner after such Partner has
presented its (and its Affiliates) written proposal for resolution of the
dispute entitled "Proposal for Resolution" to the other and the other Partner
(and its Affiliates) have failed to deliver a written acceptance of such
proposal within five (5) days of receipt. The Partner invoking arbitration shall
do so by sending a notice entitled "Notice of Arbitration."

            (b)   In such cases where this Agreement provides for the
determination of any matter by arbitration, the same shall be settled and
finally determined by arbitration in accordance with the Rules of Commercial
Arbitration of the American Arbitration Association, subject to the provisions
of this Section 13.1. Any arbitration pursuant to this Agreement shall be
conducted by one (1) arbitrator, and the arbitration proceeding shall be held in
Atlanta, Georgia. The General Partners shall mutually select the arbitrator, who
shall be required to have at least ten (10) years of experience in real estate
finance or investment in the Southwestern United States and independent of each
of the Partners. If the General Partners are unable to agree upon an arbitrator
within twenty (20) days of the sending of a Notice of Arbitration, then at the
written request of either General Partner each shall select one arbitrator
within twenty (20) days of receipt of such request, and the two arbitrators so
selected shall appoint the arbitrator to make the determination under this
Section. In the event a General Partner fails to appoint its arbitrator in
accordance with the preceding sentence, the arbitrator appointed by the other
shall be the arbitrator for purposes of settling the dispute which is the
subject of such arbitration. In the event there is only one General Partner,
such General Partner and the unaffiliated Limited Partner holding the greatest
Percentage Interest among the unaffiliated Limited Partners shall select the
arbitrator(s).

            (c)   In all cases in which an arbitrator is required to render a
decision under this Section 13.1, each General Partner (or, if applicable,
Limited Partner) shall submit to the arbitrator, within ten (10) days of his
selection, its complete proposal for resolution of the issue in dispute. The
arbitrator shall be required to select one such proposal as the sole resolution
of the matter within ten (10) days of receipt of each party's proposal or after
receipt of any evidence and briefs requested by the arbitrator from the parties,
provided that the arbitrator's decision must be based on the standard of
determining which proposal is in the best interest of the Partnership and also
prudent in terms of permitting the Partnership to realize revenues sufficient to
pay the Preferred Return payable to the Partners and to return the amounts in
the Unreturned Contribution Accounts of the Partners, and taking into account
practices normally and customarily followed by real estate operating companies
with respect to comparable property in the Houston, Texas metropolitan area. The
arbitrator may, in its sole discretion, require that each

                                       51
<PAGE>

party to the arbitration submit briefs and evidence to support its position,
which the parties shall be required to produce within ten (10) days after the
request by the arbitrator. Evidence submitted by the parties may be admitted or
excluded in the sole discretion of the arbitrator. The arbitrator shall
determine the rules of the hearing procedures for the arbitration, but each
party shall have the right to present witnesses to support its position, with
the other parties having the right to pose questions or cross-examine such
witnesses.

      SECTION 13.2 COURT ENFORCEMENT OF ARBITRATION AWARD. The decision of the
arbitrator and any award thereunder including award of costs and attorneys' fees
shall be binding upon all Partners and the Partnership and may be confirmed by
the judgment of a court of competent jurisdiction. The prevailing party in
arbitration shall be entitled to recover its costs and attorneys' fees in the
arbitration and in any subsequent legal proceedings required to enforce the
award.

      SECTION 13.3 CONSOLIDATION PROCEEDINGS. If Notices of Arbitration are sent
with respect to more than one Notice of Dispute involving some or all of the
same parties and arising from the same transactions or series of similar
transactions, all such arbitration proceedings for which hearings have not yet
commenced shall be consolidated through a Notice of Consolidation sent to all
General Partners and the Partnership. The process for selecting the arbitrator
shall be the same as set forth in Section 13.1, except the time periods for the
selection process shall run from the date of the deemed receipt of the Notice of
Consolidation instead of running from the sending of the Notice of Arbitration.

                                   ARTICLE XIV
                               GENERAL PROVISIONS

      SECTION 14.1 INDEPENDENT PARTIES. Nothing herein contained shall be
construed to constitute any Partner hereof as the agent of any other Partner
hereof or to limit in any manner the Partners or their respective Affiliates in
the carrying on of their own respective projects, businesses or activities.

      SECTION 14.2 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be effective only upon delivery and thereafter
shall be deemed an original, and all of which shall be taken to be one and the
same instrument, for the same effect as if all parties hereto had all signed the
same signature page. Any signature page of this Agreement may be detached from
any counterpart of this Agreement without impairing the legal effect of any
signature thereon and may be attached to another counterpart of this Agreement
identical in form hereto but having attached to it one or more additional
signature pages.

                                       52
<PAGE>

      SECTION 14.3 NOTICES. Any notice, request, demand or other communication
required or permitted hereunder shall be in writing and shall be (a) effective
(i) upon delivery of the same to the intended addressee by hand delivery,
facsimile (with confirmation of delivery), or email (with confirmation of
delivery), (ii) upon deposit of the same with a reputable overnight courier
service (such as Federal Express) for delivery to the intended addressee, or
(iii) upon deposit of the same in the United States mail, postage prepaid,
registered or certified mail, return receipt requested, and (b) sent to the
intended addressee at the following addresses:

      Ashton Woods GP:           c/o AW Southern Trails, Inc.
               or                11375 West Sam Houston Parkway South, Suite 100
      Ashton Woods LP            Houston, Texas 77031
                                 Attn: Bob Salomon
                                 Fax: 281-561-7774

      with a copy to:            Ashton Woods Homes
                                 1080 Holcomb Bridge Road
                                 Building 200, Suite 350
                                 Atlanta, Georgia 30076
                                 Attn: Bob Salomon
                                 Fax: 770-998-7493

      with a copy to:            Hagen & Parsons, P.C.
                                 14043 Dallas Parkway, Suite 570
                                 Dallas, Texas 75254
                                 Attn: Tim Hagen
                                 Fax: 972-386-0443

      CLGP or CL:                CL Texas I GP, LLC
                                 c/o Cousins Properties Incorporated
                                 2500 Windy Ridge Parkway, Suite 1600
                                 Atlanta, Georgia 30339-5683
                                 Attn: Corporate Secretary
                                 Fax: 770-303-2893

      with copy to:              CL Texas I GP, LLC
                                 5495 Beltline Road, Suite 225
                                 Dallas, Texas 75254
                                 Attention: Craig Knight and Tom Burleson
                                 Telephone: (972) 702-8699
                                 Facsimile: (972) 702-8372
                                 Email: tburleson@guarantygroup.com

      with copy to:              Cousins Properties Incorporated
                                 2500 Windy Ridge Parkway, Suite 1600
                                 Atlanta, Georgia 30339-5683
                                 Attn: Chuck Olderman, Esq.
                                 Fax: 770-857-2362

                                       53
<PAGE>

      with a copy to:    Troutman Sanders LLP
                         600 Peachtree Street, N.E.
                         Suite 5200
                         Atlanta, Georgia 30308-2216
                         Attn: Richard H. Brody, Esq.
                         Fax: 404-962-6514

or to such different address as the intended addressee shall have designated by
written notice sent in accordance herewith.

      SECTION 14.4 EFFECT AND INTERPRETATION. This Agreement shall be governed
by and shall be construed in conformance with the laws of the State of Texas.

      SECTION 14.5 SEVERABILITY. In the event any one or more of the provisions
contained in this Agreement shall for any reason be held to be invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions of this Agreement, but this Agreement
shall be construed as if such invalid or unenforceable provision shall
automatically and retroactively be amended to the minimum extent absolutely
necessary to render such provision valid, legal and/or enforceable.

      SECTION 14.6 BINDING UPON SUCCESSORS. Subject to any restrictions on
transfer, sale, assignment, pledge, hypothecation or encumbrance contained in
this Agreement, this Agreement shall inure to the benefit of and be binding upon
the heirs, personal representatives, assigns, successors (including successor
trustees), distributees, transferees or other successors in interest to all of
the parties hereto. Anyone to whom any Partnership Interest(s) in the
Partnership may be properly transferred pursuant to the terms of this Agreement,
or who shall take such Partnership Interests) by operation of law, shall
automatically take such Partnership Interest(s) subject to all of the terms and
conditions of this Agreement and shall not be considered to have title to such
Partnership Interest(s) until such party has signified his acceptance and
assumption of the terms and conditions of this Agreement in writing delivered to
each of the Partners in form and substance Approved by the Partners.

      SECTION 14.7 GENDER. All words denoting gender herein shall be deemed to
include the masculine, feminine, neuter, singular or plural as the context and
facts require.

      SECTION 14.8 HEADINGS. The headings, titles and subtitles herein are
inserted for convenience of reference only and shall not control or affect the
meaning or construction of any of the provisions hereof.

      SECTION 14.9 ENTIRE AGREEMENT. This Agreement contains the entire
understanding among the parties with respect to this Partnership and shall not
be modified except in writing by all of the parties hereto. This Agreement may
not be amended or modified, except by a written amendment signed by the
Partners.

      SECTION 14.10 FORCE MAJEURE. If any party shall be unable to perform its
obligations in whole or in part due to a Force Majeure Event, such party shall
promptly notify the other parties of the nature of such Force Majeure Event and
the obligations affected thereby. Upon delivery of such notice, the performance
by the notifying party of the obligations set forth in such notice

                                       54
<PAGE>

shall be suspended to the extent, but solely to the extent, performance of such
obligations is adversely affected by such Force Majeure Event.

      SECTION 14.11 TIME. Time is of the essence in this Agreement, In computing
a period of days for performance or payment as provided hereunder, the first day
shall be excluded and the last day shall be included. If the last day of any
such period is a Saturday, Sunday or legal holiday, the period shall extend to
include the next day which is not a Saturday, Sunday or legal holiday. Any
performance or payment which must be taken or made under this Agreement must be
taken or made prior to 5:00 p.m. Atlanta, Georgia time on the last day of the
applicable period provided hereunder for such action, unless another time is
expressly specified. All references to time shall be Atlanta, Georgia time.

                     [SIGNATURE PAGE IMMEDIATELY FOLLOWING]

                                       55
<PAGE>

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

                            AW SOUTHERN TRAILS, INC.,
                            a Texas corporation

                            By: /s/ Robert L. Saldmon
                                ------------------------------------------------
                            Name: Robert L. Saldmon
                            Title: Authorized Representatives

                            ASHTON HOUSTON RESIDENTIAL L.L.C.,
                            a Texas limited liability company

                            By: /s/ Robert L. Saldmon
                                ------------------------------------------------
                            Name: Robert L. Saldmon
                            Title: Authorized Representatives

                            CL Texas I GP, L.L.C.,
                            a Georgia limited  liability company

                            By: C L Realty, LLC
                            By: [ILLEGIBLE] Real Estate Corporation

                            By: /s/ Michael J. Quinley
                                ------------------------------------------------
                            Name: Michael J. Quinley
                            Title: Senior Vice President

                            CL TEXAS, L.P.,
                            a Taxas limited partnership

                            By: CL Texas I GP, L.L.C., a Georgia limited company
                            Its: General Partner
                            By: C L Realty, LLC
                            By: [ILLEGIBLE] Real Estate Corporation

                            By: /s/ Michael J. Quinley
                                ------------------------------------------------
                            Name: Michael J. Quinley
                            Title: Senior Vice President

                                       56<PAGE>

                                                                    EXHIBIT 10.6

                       LIMITED LIABILITY COMPANY AGREEMENT
                          OF PALM COVE DEVELOPERS. LLC

      THIS LIMITED LIABILITY COMPANY AGREEMENT (this "AGREEMENT") of PALM COVE
DEVELOPERS, LLC (the "Company") is made and entered into effective as of the
19th day of January, 2005 ("Effective Date"), by and between ASHTON TAMPA
RESIDENTIAL, LLC, a Nevada limited liability company ("Ashton") and M/I HOMES OF
TAMPA LLC, a Florida limited liability company ("M/I"). M/I and Ashton are
sometimes referred to herein collectively as "Members" and individually as a
"Member."

                                    RECITALS

      WHEREAS, Ashton and Pulte Home Corporation entered into that certain
Agreement for Sale of Land (the "Pulte Contract") for the purchase and sale of
certain real and other related property subject to the Pulte Contract (defined
therein as the "Property") (The Pulte Contract is attached hereto as Exhibit "A"
and incorporated by reference herein) and;

      WHEREAS, as contemplated by that certain Letter Agreement ("Letter
Agreement") dated as of December 22, 2004, by and between Ashton and M/I, Ashton
assigned the Pulte Contract to Company and the Company acquired the Property
(the "Property Closing"); and

      WHEREAS, as further contemplated by the Letter Agreement, Company, Ashton
and M/I are entering into this Agreement to consummate M/I's subscription for
one-half (i.e., 50%) of the total equity or membership interests in and to the
Company and to set forth certain terms and conditions applicable to the
development of the Property by Company, the distribution of finished lots to the
Members and other applicable terms and conditions related to the business
affairs of the Company and the development of the Property; and

      NOW, THEREFORE, the Members, by the execution and delivery of this
Agreement, set forth the agreement for the Company under the laws of the State
of Florida upon the terms and subject to the conditions of this Agreement.

   1. DEFINITIONS. All capitalized terms not defined in this Agreement shall
have the meaning ascribed to them in the Pulte Contract. When used in this
Agreement, the following terms shall have the meanings set forth below:

         (a) "ACT" shall have the meaning ascribed to it in Section 2.1. All
references herein to sections of the Act shall include any corresponding
provisions of succeeding law.

         (b) "AFFILIATE" shall mean, when used with reference to a specified
Person, any Person who controls, is controlled by or is under common control
with the specified Person.

         (c) "AGREEMENT" shall mean this Limited Liability Company Agreement, as
originally executed and as amended from time to time.

                                       1
<PAGE>

         (d) "APPROVED BUSINESS PLAN" means collectively, after submission and
approval as described herein, the following: (i) a pro-forma budget and
development plan for the Property (the "Project") in accordance with the Pulte
Contract, the Development Agreement (defined in Section 1.(o) hereof,) and this
Agreement (the "Project Budget and Plan") and (ii) a Member capital contribution
plan for the capital contributions by the Membere for the construction of the
Project by the Company (the "Project Contribution Plan"), as each of the same
may be amended from time to time in accordance with this Agreement. The
Day-to-Day Manager shall endeavor to prepare and provide for M/I's approval the
applicable Project Budget and Plan and the Project Contribution Plan within
fifteen (15) days after the Effective Date. M/I shall endeavor to approve such
Project Budget and Plan and the Project Contribution Plan submitted by the
Day-to-Day Manager within fifteen (15) days of M/I's receipt of the submitted
Project Budget and Plan and Project Contribution Plan; provided, the parties
intend to work together as reasonably possible in preparing and reviewing all
matters applicable to the Approved Business Plan (as defined in the following
sentence). Upon each party's written approval of the Project Budget and Plan and
Project Contribution Plan, such plans shall be considered and referred to herein
as the "Approved Project Budget and Plan" and the "Approved Project Contribution
Plan," and collectively shall be considered and referred to herein as the
"Approved Business Plan." The Approved Business Plan is intended to be the
overall plan and budget for the planning, development, and construction of the
Project, including the distribution of finished lots to the Members, the
projection and timing of annual Project expenditures, including, without
limitation, development costs, construction costs, and maintenance costs, all of
which shall be set forth in detail with each category of expense listed as a
separate line item and a preliminary cost analysis for the Project. Such
expenses shall be further separately delineated into two major categories of
line item expenses as follows: (a) those line item expenses constituting
"Operating Costs" and (b) those line item expenses constituting "Development
Costs." The parties acknowledge that the Approved Business Plan will require
updating or modification during the term of the Project as a result of changes
to projected and actual costs, permitting conditions, etc. The Day-to-Day
Manager shall regularly consult with and seek the input of the other Member in
connection with the Day-to-Day Manager's updating of the Approved Business Plan.
The Day-to-Day Manager shall use its commercially reasonable efforts to cause
the Project to be developed, constructed, operated and disposed of substantially
in accordance with the Approved Business Plan as it is updated and approved from
time to time, including, without limitation, the line items contained therein.
Subject to the approval rights set forth in Section 5.2 (a), below, and the
obligation of the Day-to-Day Manager to maintain the originally Approved
Business Plan as a comparative measure of how well the Company actually
performed in comparison to the such originally Approved Business Plan, the
Day-to-Day Manager shall update the Approved Business Plan as follows; (1) the
Approved Project Budget and Plan shall be updated on not less than a semi-annual
basis and the (2) the Approved Project Contribution Plan shall be updated every
fiscal quarter. No update, modification or amendment of the Approved Business
Plan (or any component budget item or plan thereof) shall be effective unless
and until approved by all Members, subject to Section 5.5(c).

         (e) "ARTICLES" shall mean the Articles of Organization of the Company
as filed with the Secretary of State of the State of Florida, as the same may be
amended from time to time by the approval of the Members.

                                       2
<PAGE>

         (f) "AVAILABLE CASH" shall mean all cash and cash equivalents of the
Company on hand and in financial institutions or depositories and cash
equivalents, on the date of any proposed distribution, after payment or
provision for payment of all debts and liabilities of the Company then due
(including, without limitation, debts and liabilities to Members who are
creditors of the Company and payments then due under third-party loans to the
Company), provision for reasonable working capital reserves and payment or
provision for payment of operating expenditures, all as reasonably determined by
the Day-to-Day Manager and approved by the Members, subject to Section 5.5(c).
Available Cash shall not include Capital Contributions of the Members.

         (g) "BASE RATE" means the commercial loan rate of interest announced
publicly from time to time by Bank of America, N.A. (or any successor thereto)
in Tampa, Florida as such bank's "reference rate" or "prime rate" as from time
to time in effect.

         (h) "CAPITAL ACCOUNT" shall mean a capital account established for each
Member to which such Member's respective Capital Contributions shall from time
to time be credited, which shall be maintained in accordance with the provisions
of Section 704(b) of the Code and the Treasury Regulations promulgated
thereunder.

         (i) "CAPITAL CONTRIBUTIONS" shall mean the Initial Contributions and
any additional contributions contributed to the Company by each Member in
accordance with Section 3 of this Agreement.

         (j) "CODE" shall mean the Internal Revenue Code of 1986, as amended
from time to time.

         (k) "COMPANY" shall mean the limited liability company. Palm Cove
Developers, LLC, created on December 22,2004 and governed by this Agreement.

         (l) "DATE OF VALUE" shall have the meaning ascribed to it in
Section 12.

         (m) "DAY-TO-DAY MANAGER" shall mean Ashton or any other Person(s) that
succeeds to it in that capacity with the consent of the other Member.

         (n) "ENGINEERING AND PRE-DEVELOPMENT COSTS" shall mean those pre- and
post-formation engineering and pre-development costs incurred by or on behalf of
a Member to contract for the Property and conduct the engineering and
pre-development work for the Project, such as consulting fees and costs and
filing, investigatory and regulatory fees and costs, plus any additional similar
costs. To the extent the foregoing are paid by a Member in the ordinary course
of business on or prior to the Property Closing, they shall be referred to
herein as the "Paid Engineering and Pre-Development Costs," as more particularly
set forth on EXHIBIT "B" attached hereto. As provided herein, a Member shall
receive an initial contribution credit and Capital Account credit equal to the
amount paid by each respectively of the Paid Engineering and Pre-Development
Costs. The Company shall then assume and be responsible for paying

                                       3
<PAGE>

those Engineering and Pre-Development Costs other than the Paid Engineering and
Pre-Development Costs.

         (o) "FINISHED LOT(s)" shall mean a residential lot developed by the
Company in accordance with the Pulte Contract, that certain Development
Agreement by and between Pulte and Company executed as part of the Property
Closing (the "Development Agreement"), this Agreement and all applicable
restrictions, governmental requirements and Laws, and that has (i) a recorded
plat that is acceptable to both Members with a copy of such recorded plat
delivered to both Members, (ii) public sanitary sewer lines extended to a
boundary of the lot with taps installed, (iii) public potable water lines
extended to a boundary of the lot with taps installed, (iv) installed stormwater
drainage lines and related facilities required by applicable Laws to serve the
lot, with all stormwater ponds and related facilities serving such lines and
facilities completed, (v) installed curbs and paved streets serving the lot that
are within a publicly dedicated right-of-way, (vi) conduits to accommodate
underground electric lines sufficient to service the lot extended to a boundary
of the lot with the applicable electric company having extended service to the
lot, (vii) graded in accordance with lot grading and drainage plans previously
approved by both Members and graded materially in accordance with the elevations
required for each lot on such plans, (viii) not been determined to be within the
"100 Year Flood Plane" and (ix) been compacted to not less than ninety five
(95%) modified proctor, maximum density (AASHTO T-180) and otherwise to such
standards as are applicable for the types of construction contemplated by each
Member and (x) all other work necessary to allow development and the subsequent
use by homeowners of the intended residential improvements on the lot completed
in accordance with all Laws (including, but not limited to, the issuance of the
applicable building permit and certificate of occupancy for such lot) and any
recorded covenants.

         (p) "LAWS" means all federal, state and local laws, moratoria,
initiatives, referenda, ordinances, rules, regulations, standards, orders,
judicial decisions, common law and other governmental, quasi-governmental and
utility company requirements (including those relating to the environment,
health and safety, or disabled persons).

         (q) "LIQUIDATING DISTRIBUTION AMOUNT" shall have the meaning ascribed
to it in Section 12.

         (r) "MAJOR DECISION" shall have the meaning ascribed to it in
Section 5.

         (s) "MEMBER" shall mean each Person who (a) is an initial signatory to
this Agreement or has been admitted to the Company as a Member in accordance
with the express provisions set out in this Agreement and (b) has not resigned,
withdrawn, been expelled or, if other than an individual, dissolved.

         (t) "MEMBER LOAN" shall mean any authorized loan made by a Member to
the Company during the term hereof.

                                       4
<PAGE>

         (u) "MEMBERSHIP INTEREST" shall mean a Member's entire right, title and
interest in, to and against the Company, the Project and the profits, losses,
capital and distributions of the Company, the right to vote on or participate in
the management and the right to receive information concerning the business and
affairs, of the Company.

         (v) "OFFERING NOTICE" shall have the meaning ascribed to it in
Section 12.

         (w) "PAID ENGINEERING AND PRE-DEVELOPMENT COSTS" shall have the meaning
provided above in the definition of Engineering and Pre-Development Costs.

         (x) "PERCENTAGE INTEREST" shall mean fifty percent (50.0%) for M/I and
fifty percent (50.0%) for Ashton, as adjusted pursuant to this Agreement. Each
Member's Percentage Interest shall equal the ratio of such Member's Capital
Account relative to the aggregate amount of all Capital Accounts.

         (y) "PERSON" shall mean an individual, general partnership, limited
partnership, limited liability company, corporation, trust, estate, real estate
investment trust association or any other entity or combination of Persons.

         (z) "PURCHASE PRICE" shall have the meaning ascribed to it in
Section 12.

         (aa) "REGULAR MEETING" shall have the meaning ascribed to it in
Section 4. (bb) "RESPONDING MEMBER" shall have the meaning ascribed to it in
Section 12.

         (cc) "SPECIAL MEETING" shall have the meaning ascribed to it in
Section 4.

         (dd) "TRANSFER" shall have the meaning ascribed to it in Section 9.

   2. ORGANIZATIONAL MATTERS.

      2.1 FORMATION OF COMPANY. The Company has been formed pursuant to the
provisions of the Florida Limited Liability Company Act, Florida Statutes
Chapter 608, as the same may be amended from time to time (the "Act"), and shall
be governed by the terms and conditions contained in this Agreement. The terms
"Member" and "Members" include the Members and their respective permitted
successors and assigns as members in the Company.

      2.2 NAME. The business of the Company shall be conducted under the name of
"Palm Cove Developers, LLC" or any name mutually agreed upon by the Members.

      2.3 TERM. The term of the Company commenced on December 22, 2004 (the
"Commencement Date") and shall continue until the Company is dissolved as
provided herein.

                                       5
<PAGE>
      2.4 CHARACTER OF BUSINESS. The express, limited and only purpose for which
the Company is formed is, and the business of the Company shall be, to acquire
the Property and to develop, improve, and distribute the Finished Lots to the
Company's Members as described herein. The Company shall have the power to do
and perform all things necessary for, connected with or arising out of such
activities and shall have the power to take such actions as may be necessary or
appropriate to accomplish such purposes and conduct such business. The Company
shall not engage in any other business without the prior written consent of the
Members. No Member shall have the authority to bind the other Member in any
capacity other than as a Member the of the Company, and nothing in this
Agreement shall create a relationship between the Members other than for the
purposes set forth in this Agreement.

      2.5 NAMES AND ADDRESSES OF MEMBERS. The names of the Members are as shown
above. The addresses of the Members are set forth hereinafter.

      2.6 PRINCIPAL PLACE OF BUSINESS. The principal place of business of the
Company shall be located at 500 N. Westshore Boulevard, Suite 1020, Tampa,
Florida 33609, and may be relocated with the approval of all the Members to any
location within Florida.

      2.7 REGISTERED OFFICE AND REGISTERED AGENT.

         (a) For purposes of the Act, the registered office of the Company is
500 N. Westshore Boulevard, Suite 1020, Tampa, Florida 33609. The registered
office of the Company may be changed from time to time with the approval of the
Members; provided, any replacement of the Day-to-Day Manager shall automatically
be deemed the approval of a change in the registered office of the Company to
that of the address of the new Day-to-Day Manager.

         (b) For purposes of the Act, the Company's registered agent for service
of process is Charles H. Carver, Esq., who, in addition to the Company, shall
provide a copy of each such notice to each Member. The registered agent of the
Company may be changed from time to time with the approval of the Members;
provided, any replacement of the Day-to-Day Manager shall automatically be
deemed the approval of a change in the registered agent of the Company to that
of the new Day-to-Day Manager.

      2.8 TRADE NAME AFFIDAVITS. The Company will file such trade or fictitious
name affidavits as may be necessary or desirable in connection with the
formation, existence and operation of the Company (including those filings
required in any jurisdiction where the Company owns or operates property).

      2.9 QUALIFICATION. The Company will promptly apply for authority to
transact business in those jurisdictions where it is required or elects to do
so. The Company will file such other certificates and instruments as may from
time-to-time be necessary or desirable in connection with its formation,
existence or operation.

      2.10 MANAGER-MANAGED. The Company shall be manager-managed by the Day-to-
Day Manager.

                                       6
<PAGE>

   3. CAPITAL CONTRIBUTIONS, LOANS AND FUNDING OF PROJECT COSTS.

      3.1 INITIAL CAPITAL CONTRIBUTION BY M/I. On or before the date that is
one (1) business day following the Members' execution and delivery of this
Agreement (or such other date as agreed to in writing by the Members), M/I shall
pay to Ashton in readily available federal funds Five Million Nine Hundred
Fifteen Thousand Five Hundred Sixty-six and 46/ 100 U.S. Dollars ($5,915,566.46)
(the "M/I Membership Interest Purchase Price") to acquire one-half (i.e., 50%)
of the total equity and Membership Interests in the Company, such that M/I's
Percentage Interest shall be 50%, and to reimburse Ashton for one half (i.e.,
50%) of the aggregate of the Paid Engineering and Pre-Development Costs, closing
costs, title and escrow fees and premiums and prorations paid by Ashton on or
before the Effective Date. The M/I Membership Interest Purchase Price, less the
amount to reimburse Ashton for one half (i.e., 50%) of the aggregate of the Paid
Engineering and Pre-Development Costs, closing costs, title and escrow fees and
premiums and prorations paid by Ashton on or before the Property Closing, is
intended to be 50.0% of the Purchase Price for the Property paid to Pulte to
acquire the Property. As part of M/I's payment of the M/I Membership Interest
Purchase Price, the M/I Deposit (as defined in the Letter Agreement) shall be
paid by the Escrow Agent (as defined in the Letter Agreement) to Ashton and
credited against the M/I Membership Interest Purchase Price. All amounts paid
under this Section 3.1 by M/I, including the M/I Membership Interest Purchase
Price, shall be credited to M/I's Capital Account upon the date of such payment
and the Members intend that on the date of such payments by M/I, Ashton's and
M/I's Capital Accounts shall be equal. As part of M/I's acquisition of its
Membership Interest, Ashton shall execute and deliver to M/I an assignment of
such Membership Interest in form and substance reasonably acceptable to Ashton
and M/I.

      3.2 ADDITIONAL CAPITAL CONTRIBUTIONS. Except as otherwise provided below
in this Section 3.2, no Member shall be obligated to contribute additional
capital to the Company. Each Member, upon written call therefor (the "Capital
Call Notice") by the Day-to-Day Manager, shall promptly contribute to the
Company, in proportion to its respective Percentage Interest, additional Capital
Contributions (each, an "Additional Capital Contribution") in the event there
are insufficient funds to pay costs and expenses which are due and payable and
are in accordance with the Approved Project Budget and Plan. Capital Call
Notices shall only be made in accordance with the Approved Business Plan. In
addition to the foregoing, the Day-to-Day Manager shall reasonably consider and
consult with the non-managing Member on any request by the non-managing Member
to make a Capital Call Notice. Upon receipt of a Capital Call Notice delivered
pursuant to this Section 3.2, each Member shall have seven (7) business days to
make its share of the Additional Capital Contribution required thereby. If a
Member ("Non-Contributing Member") fails to fund to the Company its pro rata
share of any Additional Capital Contribution (a "Cash Deficit"), then the other
Member ("Contributing Member"), provided such Contributing Member has funded all
amounts required of such Contributing Member, shall have the right, but not the
obligation, to elect to do the following (which, except as provided in Section
5.5(c), shall be the sole and exclusive remedies of such Contributing Member
against such Non-Contributing Member):

                                       7
<PAGE>

      (a) DEFICIT LOAN. Fund the Cash Deficit to the Company, in which event the
amount so funded shall constitute a loan from the Contributing Member to the
Non-Contributing Member ("Deficit Loan"). The Non-Contributing Member shall
receive a credit to its Capital Account in the amount of such Deficit Loan. Each
Deficit Loan shall be an obligation with recourse and shall bear interest at the
per annum rate of four hundred (400) basis points over the Base Rate prevailing
on the date such loan is made, compounded monthly, and shall be due and payable
no later than upon demand (the "Due Date"). Until such Deficit Loan is paid in
full, all fees, payments and distributions otherwise payable to the
Non-Contributing Member shall be deemed to be paid or distributed to the
Non-Contributing Member for Company tax and accounting purposes, but such fees,
payments or distributions shall actually be paid or distributed directly to the
Contributing Member in repayment of such Deficit Loan, with such funds being
applied first to reduce any interest accrued on such Deficit Loan and then to
reduce the principal amount of such Deficit Loan. If such Deficit Loan and all
accrued interest thereon is not paid by the Due Date, the Contributing Member
may elect to (i) convert the outstanding principal amount of the Deficit Loan
and the accrued and unpaid interest thereon to capital of the Contributing
Member, thereby diluting the Non-Contributing Member's Percentage Interest as
detailed in Section 3.2(b) (the "Dilution Contribution"), (ii) exercise the
buy/sell provisions of Section 12 pursuant to Section 3.2(c), or (iii) extend
the Due Date of the Deficit Loan for an additional period of time.

      (b) DILUTION. If a Contributing Member elects to convert the principal
amount of the Deficit Loan and the accrued interest thereon into a Dilution
Contribution in accordance with Section 3.2(a), the Capital Account of the
Members shall be adjusted such that the Non-Contributing Member's Capital
Account shall be decreased by amount due on the Deficit Loan and the
Contributing Member's Percentage Interest shall be similarly increased, with the
Members' Percentage Interests properly adjusted.

      (c) BUY/SELL. Rather than make or continue a Deficit Loan as provided in
Section 3.2(a), a Contributing Member shall have the right to invoke the
provisions of Section 12, and the Non-Contributing Member shall be considered,
for purposes of Section 12, to be in default hereunder.

      3.3 MEMBER LOANS. Except with the prior consent of all Members, no Member
shall be obligated or authorized to lend or advance money to the Company. To the
extent a Member Loan is made by a Member to the Company pursuant to this
Agreement, it shall be made without personal liability to any of the Members and
shall be unsecured. The unpaid principal balance of the Member Loan shall bear
interest at the Base Rate announced at the time of the making of the Member
Loan, not to exceed the maximum rate permitted by law. The Company shall pay in
full (i) the accrued interest on any such Member Loan and then (ii) the
principal amount of any such Member Loan, prior to any cash distributions
otherwise required or permitted pursuant to this Agreement to any of the
Members.

      3.4 THIRD-PARTY LOANS AND GUARANTEES. It is the intention of the Members
that the Company will not seek third-party financing for the development and
improvement of the Project. However, the Day-to-Day Manager and the non-managing
Member shall, pursuant to

                                       8
<PAGE>

Section 5.1(c), regularly consult regarding the Approved Business Plan and the
need for and mutually satisfactory terms, if any, of third-party financing for
the second phase of the Project. If the Members do not agree on the need for, or
the terms or conditions of, third-party financing, then no such third-party
financing shall be obtained. The Members' failure to agree upon any third-party
financing shall not invoke the provisions of Section 14.10(b).

      3.5 CAPITAL CONTRIBUTIONS IN GENERAL. Except as otherwise expressly
provided in this Agreement or as may otherwise be agreed to in writing by the
Members (a) no part of the Capital Contributions of any Member may be withdrawn
by such Member, (b) no Member shall be entitled to receive interest on its
Capital Contributions, (c) no Member shall have the right to demand or receive
property, other than Finished Lots and except as otherwise provided herein, in
return for its Capital Contributions and (d) no Capital Contributions or loan
made by any Member to the Company shall increase its Percentage Interest.

   4. MEMBERS.

      4.1 LIMITED LIABILITY. Except as otherwise specifically provided herein,
no Member shall be personally liable under any judgment of a court, or in any
other manner, for any debt, obligation, or liability of the Company, whether
that liability or obligation arises in contract, tort, or otherwise.

      4.2 ADMISSION OF ADDITIONAL MEMBERS. No additional Members shall be
admitted to the Company unless approved by all of the Members.

      4.3 WITHDRAWALS OR RESIGNATIONS. No Member may withdraw or resign from the
Company without the prior written approval of all other Members.

      4.4 REMUNERATION TO MEMBERS. Except as otherwise authorized in, or
pursuant to, this Agreement, no Member is entitled to remuneration for acting in
the Company business, including, without limitation, the Day-to-Day Manager of
the Company.

      4.5 MEMBERS ARE NOT AGENTS. Pursuant to Section 5.1, the day-to-day
management of the Company is vested in the Day-to-Day Manager. Except as
expressly provided in this Agreement, no Member, acting solely in the capacity
of a Member, is an agent of the Company, nor can any Member in such capacity
bind, or execute any instrument on behalf of, the Company.

      4.6 VOTING RIGHTS. The Members shall have the voting, approval or consent
rights provided in this Agreement.

      4.7 MEETING OF THE MEMBERS.

         (a) MEETINGS. Unless otherwise agreed to by the Members, regular
meetings of the Members shall be held not less often than monthly at the office
of the Day-to-Day Manager or such other place in Hillsborough or Pasco County as
the Members shall mutually determine (in each case, the "Regular Meeting"). Such
Regular Meetings may be held

                                       9
<PAGE>

telephonically. In addition to any Regular Meetings, any Member may call a
special meeting ("Special Meeting") by giving at least four (4) days (if the
meeting is to be held in person) or two (2) days (if the meeting is held
telephonically) oral or written notice to the other Member. The notice shall
specify the place, date and hour of the meeting and the general nature of the
business to be transacted. If the place of any scheduled meeting is inconvenient
to any Member, such Member may require by at least one (1) business day's oral
or written notice to the other Member that such meeting be held telephonically.

         (b) PURPOSE AND EFFECT. The Day-to-Day Manager shall endeavor to
prepare a written agenda for all Regular Meetings and deliver the same to each
Member prior to such meeting; provided, however, each Member shall be entitled
to add any matter it elects to such agenda at or before such meeting. The Member
calling a Special Meeting shall prepare a written agenda for such meeting and
deliver the same to the other Member prior to such meeting; provided, however,
each Member shall be entitled to add any matter it elects to such agenda at or
before such meeting. The Day-to-Day Manager shall be responsible for having
written minutes taken at each meeting (including each telephone conference
meeting) of the Members, which shall be sent to each Member within seven (7)
business days following such meeting. Whenever in this Agreement the consent or
approval of a Member is required, such consent or approval may be given without
a meeting if a writing signed by such Member evidences the same. Furthermore,
the Members may reach decisions regarding any matter which requires the approval
of all Members without a meeting if the decision is approved in writing by all
of the Members.

   5. MANAGEMENT AND CONTROL OF THE COMPANY.

      5.1 MANAGEMENT OF THE COMPANY BY DAY-TO-DAY MANAGER.

         (a) Subject to the restrictions set forth in this Agreement, the
Day-to-Day Manager shall be the manager of the Company and shall use its
commercially reasonable efforts consistent with customary practices in the
industry utilized by top-tier residential land developers on projects which are
similar in type and size to the Project (the "Standard of Care") to manage and
administer the day-to-day business and affairs of the Company and to implement
the Approved Business Plan, all on the terms set forth herein. Ashton shall be
the Day-to-Day Manager of the Company unless and until it is replaced pursuant
to Section 5.5. The Day-to-Day Manager shall at all times perform its duties and
responsibilities in compliance with all Laws and this Agreement (including,
without limitation, the restrictions on Major Decisions set forth in Section 5.2
below), and in an efficient, thorough, businesslike manner, devoting such time,
efforts and managerial resources to the business of the Company as is necessary
for the efficient operation of the day-to-day business and affairs of the
Company consistent with the Standard of Care. The Day-to-Day Manager shall not
retire, resign, dissolve, withdraw or cause or suffer any event which terminates
the continued status of the Day-to-Day Manager as a Member or as the Day-to-Day
Manager hereunder without the prior written consent of M/I or as otherwise
expressly permitted by Section 5.5 below. The Day-to-Day Manager shall
faithfully discharge the duties and obligations set forth in this Agreement
consistent with the Standard of Care.

                                       10
<PAGE>

         (b) Without limiting the generality of the foregoing, the Day-to-Day
Manager shall have the following duties with respect to the development and
improvement of the Project, all to be carried out in accordance with this
Agreement and the Approved Business Plan:

            (i) Obtain and maintain in compliance with all Laws, all
governmental and agency approvals, permits and other entitlements necessary to
proceed with the development and improvement of the Project;

            (ii) Coordinate, control and supervise the preparation of such maps,
plats, plans and specifications as are necessary for the design, development and
construction of the Project;

            (iii) Negotiate and award contracts with appropriate firms, persons,
or entities to obtain all materials and services required in order to complete
the Project in accordance with the Approved Business Plan;

            (iv) Retain or employ and coordinate the services of all employees,
supervisors, architects, engineers, accountants, attorneys, real estate brokers,
advertising personnel and other persons necessary or appropriate for the
development of the Project;

            (v) Supervise the performance of all work in connection with the
planning, development, construction, and sale of the Project;

            (vi) Cause the Company to improve the Project in accordance with the
Pulte Contract, the Development Agreement, the Approved Project Budget and Plan
and substantially in accordance with the approved plans and specifications;

            (vii) Enforce all of the Company's rights and cause the Company to
perform all of the Company's obligations arising in connection with any contract
or agreement entered into in connection with the Project;

            (viii) Deliver to the Members copies of any notices or other written
materials received by the Day-to-Day Manager in connection with any material
disputes or claims relating to the Project (said disputes and claims shall be
deemed "material" if they reasonably could be anticipated to exceed the sum of
$50,000); and

            (ix) Otherwise diligently perform those duties and services in order
to plan, develop and improve the Project in accordance with the Approved
Business Plan.

         (c) The parties acknowledge that the Approved Business Plan will
require updating during the term of the Project. The Day-to-Day Manager shall
use good faith and diligent efforts to regularly consult with and update the
non-managing Member and shall seek the input of the non-managing Member in
connection with any material updating of the Approved Business Plan. The
Day-to-Day Manager shall use its commercially reasonable efforts to cause the
Project to be developed substantially in accordance with the Approved Business
Plan as it is

                                       11
<PAGE>

updated and approved from time to time, including, without limitation, the line
items contained therein. Subject to the approval rights set forth in Section
5.2, the Day-to-Day Manager shall update the Approved Business Plan as set forth
below. Without limiting the generality of Sections 5.1(a) and 5.1(b), the
Day-to-Day Manager shall have the following additional rights and duties with
respect to the overall operation of the Company and ownership of the Project,
all to be carried out in accordance with this Agreement and the Approved
Business Plan:

            (i) Update the Approved Project Budget and Plan on a not less often
than a semi-annual basis. In connection therewith, the Day-to-Day Manager shall
deliver on or before May 1 and November 1 of each year a draft of an updated
Approved Project Budget and Plan for approval by M/I, which approval shall not
be unreasonably withheld, delayed or denied. Unless and until approved by M/I,
the existing Approved Project Budget and Plan shall remain in effect subject to
modifications required by any increases in "Non-Discretionary Expenditures"
(defined below) in order to avoid a material adverse change to the financial
condition or assets of the Company. As used herein, "Non-Discretionary
Expenditures" shall mean expenditures which the Company is required to pay by
law or pursuant to existing contracts between the Company and any third party in
accordance with the Approved Business Plan and shall include unforeseen material
cost increases; change orders to the contractor contract required by the project
engineer, the soils engineer, the county, or because of unforeseen site
conditions confirmed by the appropriate engineer; repair costs necessary because
of engineer errors and omissions, repair costs beyond contractual obligation of
contractor; losses and replacements; costs of addressing emergencies; and costs
associated with weather or other matters of force majeure. At such time as the
draft updated Approved Project Budget and Plan has been approved by M/I, it
shall become the Approved Project Budget and Plan in effect until the same has
been updated and such update has been approved by M/I in accordance herewith. If
M/I has not approved a draft updated Approved Project Budget and Plan within
thirty (30) days following receipt thereof, it shall be deemed disapproved by
M/I; and

            (ii) Update the Approved Project Contribution Plan (subject to the
limitations contained herein) on a not less than a quarterly basis. In
connection therewith, the Day-to-Day Manager shall deliver on or before February
1, May 1, August 1 and November 1 of each year a draft of the updated Project
Contribution Plan for approval by M/I, which approval shall not be unreasonably
withheld, delayed or denied. Unless and until approved by M/I and the Day-to-Day
Manager, the existing Approved Project Contribution Plan shall remain in effect;
provided, however, that if such existing Approved Project Contribution Plan is
insufficient to pay the costs and expenses of the Company in accordance with the
Approved Project Budget and Plan, then the Members shall fund such costs and
expenses through additional Capital Contributions pursuant to Section 3.2 above.
At such time as the draft updated Approved Project Contribution Plan has been
approved by M/I and the Day-to-Day Manager, it shall become the Approved Project
Contribution Plan in effect until the same has been updated and such update has
been approved by M/I and the Day-to-Day Manager in accordance herewith. If M/I
or the Day-to-Day Manager has not approved a draft updated Approved Project
Contribution Plan within thirty (30) days following receipt thereof, it shall be
deemed disapproved by M/I or the Day-to-Day Manager, as applicable.

                                       12
<PAGE>

         (d) Notify the Members (i) in advance of public hearings and other
proceedings relating to entitlements and permits for the Project and (ii) of any
matter giving rise to a Major Decision pursuant to Section 5.2 below.

      5.2 MAJOR DECISIONS. Except for actions taken by the Day-to-Day Manager
with respect to an Emergency Situation in accordance with Section 5.9 below, the
Day-to-Day Manager shall not take any of the following actions on behalf of the
Company (in each case the taking of which shall be hereinafter referred to as a
"Major Decision") without the prior written consent of each Member. Major
Decisions shall bind the Company and all Members upon such written consent.

         (a) Update (or otherwise amend or modify) any component of the Approved
Business Plan in any manner;

         (b) Sell, convey, exchange, lease, hypothecate, pledge, encumber or
otherwise transfer any portion of or any interest in the Project or the Company,
other than contemplated in the Approved Project Business Plan and this
Agreement;

         (c) Sell, convey, exchange or otherwise transfer any portion of the
Property in either (i) a bulk sale, or (ii) any other transaction inconsistent
with this Agreement;

         (d) Expend funds or enter into an obligation on behalf of the Company
if the amount of such expenditure or obligation would either (i) exceed 112% of
any line item of the Development Costs component of the Approved Project Budget
and Plan; (ii) exceed 110% of any line item of the Operating Costs component of
the Approved Project Budget and Plan, (iii) increase the cost per Finished Lot
by more than $500 in the aggregate or (iv) result in an increase in the Capital
Contributions previously approved by or required from any Member beyond the
amounts required or permitted by Section 3 of this Agreement;

         (e) Incur any indebtedness on behalf of the Company, make or deliver on
behalf of the Company any indemnity bond or surety bond, lend funds belonging to
the Company to any Member or its Affiliate or to any third party, or extend
credit on behalf of the Company to any person, or obligate the Company or
another Member as a surety, guarantor, or accommodation party to any obligation,
or grant any lien or encumbrance on the Property, including, without limitation,
any modification of any of the foregoing, unless in accordance with the Approved
Business Plan;

         (f) Submit proposals to, or enter into agreements with, government
officials relating to mapping, development, zoning, subdivision, environmental
or other land use or entitlement matters, unless in accordance with the Approved
Business Plan (provided, however, the foregoing only applies to governmental
approvals or agreements that are discretionary and not ministerial in nature,
such ministerial acts by themselves not being deemed to be a Major Decision so
long as such ministerial action is consistent with the Approved Business Plan
and current entitlements for the Property). Without limiting the above, the
Day-to-Day Manager shall

                                       13
<PAGE>

not cause any entitlements existing as of the Commencement Date to be modified
without the consent of M/I;

         (g) The delegation by the Day-to-Day Manager of any of its duties set
forth herein (other than to its manager, directors, officers, employees and any
contractors, agents or consultants engaged by the Company in accordance with the
Approved Project Budget and Plan, including the site development contractor
approved by the Members); provided, however, that the Day-to-Day Manager shall
only delegate its duties to such individuals and entities with the appropriate
level of experience and seniority to perform such duties in accordance with this
Agreement and, provided further, the selection of a site development contractor,
and its contract with the Company, shall be a Major Decision;

         (h) Except as otherwise expressly authorized by this Agreement, enter
into any transaction on behalf of the Company with a Member or an Affiliate or
related party of any Member;

         (i) Take any other action or make any other decision that this
Agreement provides must be approved or consented to by each Member;

         (j) Possess, assign, or use funds or other property of the Company for
other than a Company purpose;

         (k) Make, execute or deliver on behalf of the Company an assignment for
the benefit of creditors; cause the Company, a Member's Membership Interest or
the Project or any part thereof or interest therein to be subject to the
authority of any trustee, custodian or receiver or to be subject to any
proceeding for bankruptcy, insolvency, reorganization, arrangement, readjustment
of debt, relief of debtors, dissolution or liquidation or similar proceedings;

         (l) Partition all or any portion of the assets of the Company, or file
any complaint or institute any proceeding at law or in equity seeking such
partition;

         (m) Confess a judgment against the Company; settle or adjust any claims
against the Company; or commence, negotiate or settle any legal actions or
proceedings brought by the Company against unaffiliated third parties in excess
of $25,000;

         (n) Except as provided in this Agreement, dissolve, terminate or
liquidate the Company prior to the expiration of its term;

         (o) Effectuate the recapitalization, equity splitting or any similar
transaction of or with respect to the Company, or the issuance of any equity
interest, debentures or other securities of or in the Company or the issuance of
any options, warrants or rights to purchase or acquire or effectuate any of the
foregoing; or

         (p) Do any act that would make it impossible to carry on the business
of the Company.

                                       14
<PAGE>

      5.3 EXECUTION OF COMPANY DOCUMENTS. The Day-to-Day Manager, acting alone,
shall have the authority to execute and deliver, on behalf of the Company,
agreements, instruments or other documents to which the Company will be a party
or be bound, so long as such agreements, instruments or other documents are
consistent with this Agreement and the Approved Business Plan.

      5.4 INSURANCE.

         (a) COMPANY POLICIES. In accordance with the Approved Business Plan,
the Day-to-Day Manager shall purchase and maintain, or shall cause to be
purchased and maintained, or shall retain existing coverage and maintain, for
and at the expense of the Company, policies of insurance standard for businesses
such as the Company (i) for the Company's operations, (ii) for the protection of
the Company's assets, and (iii) as may be reasonably required to comply with
third-party requirements, and shall provide the Members with the certificates or
other evidence of insurance coverage as provided therein.

         (b) CONTRACTORS' INSURANCE OBLIGATIONS. The Day-to-Day Manager shall
require the Project's general contractors and all subcontractors to at all times
obtain and comply with the insurance requirements set forth on EXHIBIT "C"
attached and incorporated herein by reference.

         (c) FUTURE COOPERATION. The Members recognize that the commercial
availability of insurance to cover the Company's and its contractors' and
agents' operations is subject to changing market conditions. In connection
therewith, the Members agree to cooperate and work together in good faith to
find alternative risk management strategies in the event that any of the
insurance required by this Agreement becomes commercially unavailable or is
financially prohibitive in cost.

      5.5 ELECTION, RESIGNATION, REMOVAL OF DAY-TO-DAY MANAGER.

         (a) NUMBER, TERM, AND QUALIFICATIONS. The Company shall have one Day-
to-Day Manager. Unless it is removed or resigns with the consent of the
non-managing Member, the Day-to-Day Manager shall hold office until a successor
shall have been elected and qualified. Unless the Day-to-Day Manager is removed
pursuant to Section 5.5(c), a new Day-to-Day Manager may not be appointed
without the unanimous affirmative vote of all Members. The Day-to-Day Manager
shall be a Member, but need not be an individual, a resident of the State of
Florida or a citizen of the United States.

         (b) RESIGNATION. The Day-to-Day Manager may not resign without the
prior written approval of all the Members. The approved resignation of the
Day-to-Day Manager shall not affect the Day-to-Day Manager's rights as a Member,
and shall not constitute a withdrawal of the Day-to-Day Manager as a Member.

                                       15
<PAGE>

         (c) REMOVAL. Ashton shall cease to be the Day-to-Day Manager if Ashton
(or its authorized successor) ceases to be a Member of the Company or ceases to
beneficially own its Membership Interest, and, in such event, M/I shall have the
sole right to remove Ashton and appoint a new Day-to-Day Manager. Otherwise, the
Day-to-Day Manager may be removed only for "cause." For purposes of this Section
5.5(c), "cause" shall mean (i) the fraud, gross negligence, willful misconduct,
embezzlement or bankruptcy of the Day-to-Day Manager or (ii) a breach of the
Day-to-Day Manager's obligations as (A) a Member or (B) Day-to-Day Manager.
Unless waived in writing by the non-managing Member, the Day-to-Day Manager
shall be removed immediately upon the occurrence of such for "cause" event;
provided, however, with respect to the for "cause" events under clause (ii)
above such removal shall only be effective where the Day-to-Day Manager has
failed to cure such breach within thirty (30) days following its receipt of
notice from the non-managing Member of such for "cause" event, except for
monetary breaches which must be cured within fifteen (15) days from receipt of
such notice.

         Except as set forth above in this Section 5.5(c), the Day-to-Day
Manager may only be removed upon the decision of all Members, in which event the
Members shall, as a Major Decision, mutually agree upon a new Day-to-Day Manager
within thirty (30) days of the removal of the previous Day-to-Day Manager and,
if unable to do so, either party, as its sole remaining remedy, may exercise the
buy-sell provisions of Section 12 hereof. Upon the removal of the Day-to-Day
Manager, the Members shall account to each other with respect to all uncompleted
business, and shall otherwise cooperate in good faith to effect an orderly
transition of the management of the affairs of the Company. The party or parties
appointing the new Day-to-Day Manager may enter into a contract on behalf of the
Company with such new Day-to-Day Manager on such terms and conditions
(including, without limitation, compensation) as are determined in the
reasonable business judgment of the appointing party or parties. Upon its
removal, any former Day-to-Day Manager shall deliver to the Company all books,
records and other instruments in its possession or under its control relating to
the Project. The removal of Ashton (or its authorized successor) as the
Day-to-Day Manager shall not affect Ashton's (or such successor's) rights as a
Member, and shall not constitute a withdrawal of Ashton (or such successor) as a
Member; however, (a) such removed Day-to-Day Manager shall not receive any
further payments of the fee set forth in Section 6.2 below and (b) upon any such
removal, (i) M/I may appoint a new Day-to-Day Manager, and (ii) notwithstanding
anything herein to the contrary, neither Ashton nor its authorized successor
shall thereafter have any right to vote on Major Decisions or otherwise manage
or participate in the business, affairs or management of the Company if Ashton
is removed solely as a result of Ashton's fraud, willful misconduct,
embezzlement or bankruptcy.

      5.6 MEMBERS HAVE NO DAY-TO-DAY MANAGERIAL AUTHORITY. The Members shall
have no power to participate in the management of the Company except as
expressly authorized by this Agreement.

      5.7 COMPETING ACTIVITIES. The Members and their respective Affiliates may
engage or invest in, independently or with others, any business activity of any
type or description, including, without limitation, those that might be the same
as or similar to the Company's business and that might be in direct or indirect
competition with the Company. Neither the

                                       16
<PAGE>

Company nor any Member shall have any right in or to such other ventures or
activities or to the income or proceeds derived therefrom, and the fiduciary
duties of the Members to each other and the Company shall be limited solely to
those arising from the purposes of the Company described in Section 2.4 above.
The Members shall not be obligated to present any investment opportunity or
prospective economic advantage to the Company, even if the opportunity is of the
character that, if presented to the Company, could be taken by the Company. The
Members shall have the right to hold any investment opportunity or prospective
economic advantage for their own account or to recommend such opportunity to
persons other than the Company.

      5.8 THIRD PARTY RELIANCE. Any person not a party to this Agreement who
shall deal with the Company shall be entitled to rely conclusively upon the
power and authority of the Day-to-Day Manager as set forth herein.

      5.9 EMERGENCY SITUATIONS. Notwithstanding anything herein to the contrary,
if the Day-to-Day Manager, in its reasonable business judgment, concludes that
emergency repairs, replacements or other actions (including by way of example
and not limitation, the signing of documents) are immediately necessary for the
preservation or safety of persons or any portion of the Project (individually or
collectively, an "Emergency Situation") and the Day-to-Day Manager, after using
reasonably diligent efforts, is unable to consult with the non-managing Member
prior to taking any action in such Emergency Situation, then the Day-to-Day
Manager may take said action without the prior approval of the non-managing
Member. If the Day-to-Day Manager takes such action by reason of an Emergency
Situation, the Day-to-Day Manager shall notify the non-managing Member in
writing as quickly as possible after the taking of such action, the reasons
therefore and the cost thereof. The Members agree to cooperate to establish
appropriate emergency notification procedures under this Agreement.

      6. COMPENSATION AND REIMBURSEMENTS TO MEMBERS.

         6.1 NO RIGHT TO COMPENSATION FOR SERVICES. Except as provided in this
Agreement, no Member shall receive compensation for services rendered to the
Company or for overhead expenses of any kind whatsoever. The fees to the
Day-to-Day Manager set forth in this Section 6 are fees and not distributions
for the purposes of this Agreement.

         6.2 MANAGER FEE. In consideration for the services to be performed
hereunder by the Day-to-Day Manager in connection with its obligations set out
in this Agreement, M/I shall pay the Day-to-Day Manager a fee (the "Manager
Fee") equal to Three Hundred Dollars ($300.00) per Finished Lot distributed to
M/I pursuant to this Agreement as and when such a Finished Lot is delivered. The
Company anticipates having approximately 364 Finished Lots.

         6.3 EXPENSES. The Day-to-Day Manager shall be entitled to receive
reimbursement from the Company for only those reasonable third-party costs and
expenses actually incurred by the Day-to-Day Manager on behalf of the Company in
accordance with the Approved Project Budget and Plan; provided, however, the
Day-to-Day Manager shall not be entitled to any reimbursement or credit of any
kind whatsoever for the costs and expenses incurred by the Day-

                                       17
<PAGE>

to-Day Manager or any Affiliate of the Day-to-Day Manager in the performance of
its obligations hereunder which are covered by the Manager Fee.

         6.4 COMMISSIONS, BROKER'S FEES, ETC. M/I and Ashton hereby represent
and warrant to the other that such Member has employed no broker or finder in
connection with the formation of the Company or acquisition of the Property. M/I
and Ashton each agree to indemnify and hold the other harmless from and against
any and all claims, liabilities, damages, losses and expenses (including,
without limitation, attorneys' fees) arising from or in connection with such
party's breach of the representation set forth in this Section 6.4.

      7. ALLOCATIONS OF NET PROFITS AND NET LOSSES AND DISTRIBUTIONS.

         7.1 TAX AND ACCOUNTING. The Members intend that the Company shall be
treated as a "partnership" for Federal, state and local income and franchise tax
purposes. In furtherance of the foregoing intention, the Company and (at the
request of and at the direction of the Company) the Members shall take such
actions as may be required in order to give affect to such intent. Under no
circumstance shall the Company or any Member take any action that is
inconsistent with the foregoing intention.

         7.2 ALLOCATIONS OF LOSSES. Except to the extent provided in Section
7.4, if there shall be taxable losses of the Company for a fiscal year of the
Company, such taxable losses shall be allocated between the Members in the
following order:

            (i) first, to the Members (in proportion to the amounts of losses to
be allocated in accordance with this Section 7.2(i)) until there have been
allocated to each Member losses equal to the excess, if any, of (X) the
cumulative amount of income allocated to such Member pursuant to Section
7.3(iii) hereof through and including such fiscal year; and (Y) the cumulative
amount of losses allocated to such Member pursuant to this Section 7.2(i)
through and including such fiscal year;

            (ii) next, to the Members to cause, to the extent possible, their
respective Capital Account balances to be in proportion to their then respective
Percentage Interests; and

            (iii) next, to the Members, in accordance with their then respective
Percentage Interests.

         7.3 ALLOCATIONS OF INCOME. Except to the extent provided in Section
7.4, if there shall be taxable income of the Company for a fiscal year of the
Company, such taxable income shall be allocated between the Members in the
following order:

            (i) first, to the Members (in proportion to the amounts of income to
be allocated in accordance with this Section 7.3(i)) until there shall have been
allocated to each Member income equal to the excess, if any, of (X) the
cumulative amount of losses allocated to such Member pursuant to Section
7.2(iii) hereof through and including such fiscal year; and (Y)

                                       18
<PAGE>

the cumulative amount of income allocated to such Member pursuant to this
Section 7.3(i) through and including such fiscal year;

            (ii) next, to the Members to cause, to the extent possible, their
respective Capital Account balances to be in proportion to their then respective
Percentage Interests; and

            (iii) next, to the Members, in accordance with their then respective
Percentage Interests.

         7.4 SPECIAL ALLOCATIONS.

            (a) QUALIFIED INCOME OFFSET. If any Member unexpectedly receives an
adjustment, allocation or distribution described in Regulations Section
1.704-1(b)(2)(ii)(d)(4), (5) or (6) in any fiscal year or other period which
would cause such Member to have a deficit Capital Account balance as of the end
of such fiscal year or other period, items of Company income and gain
(consisting of a pro rata portion of each item of Company income, including
gross income and gain) shall be specially allocated to such Member in an amount
and manner sufficient to eliminate, to the extent required by the Regulations,
the deficit Capital Account balance of such Member as quickly as possible. This
Section 7.4(a) is intended to comply with the qualified income offset provision
in Regulations Section 1.704-1(b)(2)(ii)(d), and shall be interpreted
consistently therewith.

            (b) COMPANY MINIMUM GAIN CHARGEBACK. If there is a net decrease in
"Partnership Minimum Gain" (as determined in accordance with the principles of
Regulation Section 1.704-2(d)) during a Company fiscal year or other period,
each Member shall be allocated items of Company income and gain for such fiscal
year or other period (and, if necessary, for subsequent fiscal years or periods)
in proportion to, and to the extent of, such Member's share of such net
decrease, except to the extent such allocation would not be required by
Regulations Section 1.704-2(f). The amounts referred to in this Section 7.4(b)
and the items to be so allocated shall be determined in accordance with
Regulations Section 1.704-2. This Section 7.4(b) is intended to constitute a
"minimum gain chargeback" provision as described in Regulations Section
1.704-2(f), and shall be interpreted consistently therewith and with Regulation
Section 1.704(e)(3).

            (c) MEMBER NONRECOURSE DEBT MINIMUM GAIN CHARGEBACK. If there is a
net decrease in "Partner Nonrecourse Debt Minimum Gain" (as defined in
Regulation Section 1.704-2(i)(2)) during a Company fiscal year or other period,
each Member shall be allocated items of Company income and gain for such fiscal
year or other period (and, if necessary, for subsequent fiscal years or periods)
equal to such Member's share of such net decrease, except to the extent such
allocation would not be required by Regulations Section 1.704-2(i)(4). The
amounts referred to in this Section 7.4(c) and the items to be so allocated
shall be determined in accordance with Regulations Section 1.704-2. This Section
7.4(c) is intended to comply with the minimum gain chargeback requirement
contained in Regulations Section 1.704-2(i)(4), and shall be interpreted
consistently therewith.

                                       19
<PAGE>

            (d) MEMBER NONRECOURSE DEDUCTIONS. "Partner Nonrecourse Deductions"
(as defined in Regulation Section 1.704-2(b)(1)) for any fiscal year or other
period shall be specially allocated to the Members who bear the economic risk of
loss for the Partner Nonrecourse Debt (as defined in Regulations Section
1.704-2(b)(4)) to which such Member Nonrecourse Deductions are attributable, as
provided in Regulations Section 1.704-2(i)(1).

            (e) NONRECOURSE DEDUCTIONS. Nonrecourse Deductions for any fiscal
year shall be allocated to the Members in accordance with their respective
Percentage Interests.

            (f) EXCESS NONRECOURSE LIABILITIES. Nonrecourse Debts of the Company
which constitute "Excess Nonrecourse Liabilities" (as defined in Regulations
Section 1.704-2(b)(3)) shall be allocated among the Members in accordance with
their respective Percentage Interests.

            (g) ORDERING RULES. Anything contained in this Agreement to the
contrary notwithstanding, allocations for any fiscal year or other period of
Nonrecourse Deductions or Member Nonrecourse Deductions, or of items required to
be allocated pursuant to the minimum gain chargeback requirements contained in
Section 7.4(b) and Section 7.4(c) hereof, shall be made before any other
allocations hereunder.

            (h) SECTION 704(C) ALLOCATIONS. Notwithstanding Section 7.2 and 7.3,
the gain or loss for federal income tax purposes from the sale or other
disposition of Finished Lots and parcels at the Project shall be allocated to
the Members in accordance with the requirements of Section 704(c) of the Code
and the Treasury Regulations promulgated thereunder, using the traditional
method of allocations contained in Section 1.704-3(b) of the Treasury
Regulations and based upon the fair market values set forth in Section 3.1. Any
gain or loss in excess of the amount allocated pursuant to the preceding
sentence shall be allocated between the Members as provided in Section 7.2 or
Section 7.3, as the case may be.

         7.5 NO NEGATIVE CAPITAL ACCOUNT MAKEUP. No Member shall have any
obligation to contribute funds to bring any negative balance in its Capital
Account to zero.

         7.6 ORDER OF DISTRIBUTION OF AVAILABLE CASH. Available Cash may be
distributed to the Members pro rata in accordance with their respective
Percentage Interests at such times, and in such amounts as reasonably determined
by the Day to Day Manager; provided, however, that Available Cash shall not be
distributed without the consent of the non-Managing Members), which consent
shall not be unreasonably withheld or delayed.

         7.7 FORM OF DISTRIBUTION. A Member has no right to demand and receive
any distribution from the Company in any form other than the Finished Lots
except as otherwise provided herein.

         7.8 RETURN OF DISTRIBUTIONS. Except for distributions made in violation
of the Act or this Agreement, no Member shall be obligated to return any
distribution to the Company or pay the amount of any distribution for the
account of the Company or to any creditor of the Company.

                                       20
<PAGE>

The amount of any distribution returned to the Company by a Member or paid by a
Member for the account of the Company or to a creditor of the Company pursuant
to the previous sentence shall be added to the account or accounts from which it
was subtracted when it was distributed to the Member.

      8. DISSOLUTION AND WINDING UP.

         8.1 DISSOLUTION. The Company shall be dissolved, its assets shall be
disposed of, and its affairs wound up on the first to occur of the following:

            (a) upon the sale or distribution of all or substantially all of the
assets of the Company including the distribution of all Finished Lots to the
Members and conveyance of any common areas to the homeowners association, and
the collection by the Company of any and all cash and other assets derived
therefrom; or

            (b) an election to dissolve the Company made in writing by all the
Members.

         8.2 WINDING UP. Upon the occurrence of any event specified in Section
8.1, the Members shall determine the manner in which the affairs of the Company
shall be wound up (which may include the sale of any remaining portion of the
Property). The Company shall engage in no further business thereafter other than
that necessary to wind up the business and distribute the assets. The Company
shall continue to allocate profits and losses during the winding up period in
the same manner as such amounts were divided before dissolution.

         8.3 ORDER OF PAYMENT OF LIABILITIES UPON DISSOLUTION. After determining
that all debts and liabilities of the Company in the process of winding-up,
debts and liabilities to Members and other parties who are creditors of the
Company, and the repayment of construction or other loans to the Company have
been paid or adequately provided for, the remaining assets shall be distributed
to the Members in accordance with Section 7.6 above.

         8.4 LIMITATIONS ON PAYMENTS MADE IN DISSOLUTION. Each Member shall only
be entitled to look solely to the assets of the Company for the return of its
positive Capital Contribution, and shall have no recourse for the return of its
Capital Contribution and/or share of net profits (upon dissolution or otherwise)
against the Day-to-Day Manager or any Member.

         9. TRANSFER OF INTEREST.

         9.1 TRANSFER AND ASSIGNMENT OF INTERESTS. A Member shall not transfer,
assign, convey, sell, encumber or in any way alienate (collectively, "Transfer")
all or any part of its Membership Interest without the prior written consent of
the other Member(s), except as otherwise provided herein. Transfers in violation
of this Section 9.1 shall be null and void ab initio. After the consummation of
any Transfer of any part of a Membership Interest, the Membership Interest so
transferred shall continue to be subject to the terms and provisions of this
Agreement and any further Transfers shall be required to comply with all the
terms and provisions of this Agreement.

                                       21
<PAGE>

         9.2 FURTHER RESTRICTIONS ON TRANSFER OF INTERESTS. In addition to other
restrictions found in this Agreement, no Member shall Transfer all or any part
of such Member's Membership Interest without compliance with all applicable
federal and state securities law.

         9.3 SUBSTITUTION OF MEMBERS. An assignee of a Membership Interest shall
have the right to become a substitute Member only if (i) the requirements of
this Section 9 are satisfied, (ii) the assignee executes an instrument
satisfactory to all of the Members accepting and adopting the terms and
provisions of this Agreement, (iii) the Assignee pays any reasonable expenses
incurred by the Company in connection with its admission as a new Member, and
(iv) the other Member consents in writing to the substitution in its sole and
absolute discretion.

         9.4 PERMITTED TRANSFERS. Notwithstanding the restrictions set forth in
Sections 9.1 or 9.3, a Member shall have the right without the consent of the
other Member to Transfer all or a portion of its Membership Interest to an
Affiliate; provided, however, that for so long as Ashton is the Day-to-Day
Manager, any such Transfer by Ashton must be to an Affiliate approved by M/I in
writing, which approval shall not be unreasonably withheld, delayed or denied.
The admission of a Member's Affiliate as a substitute Member in place of such
Member shall not result in the release of the Member who assigned the Membership
Interest from any liability or obligations that such Member may have to the
Company.

         9.5 RIGHT OF FIRST REFUSAL. Notwithstanding the restrictions set forth
in Sections 9.1 or 9.3, M/I grants to Ashton and Ashton grants to M/I the right
of first refusal to purchase the other party's Membership Interest in the
Company on the following terms and conditions:

            (a) Each party's right of first refusal shall be exclusive and
neither party shall grant similar or the same right to any other;

            (b) If M/I or Ashton, directly or indirectly, enter into a bona
fide, arms length and binding agreement to sell its Membership Interest in the
Company (the "Notifying Party's Agreement"), such party shall notify ("Notifying
Party") the other party (the "Receiving Party") that the Notifying Party entered
into such Notifying Party's Agreement, which notice to be valid must include a
complete and legible copy of the Notifying Party's Agreement, including all
exhibits and any other terms and conditions applicable to the Notifying Party's
Agreement;

            (c) The Receiving Party shall have thirty (30) days following the
Receiving Party's receipt of the Notifying Party's notice (which notice shall
not be deemed sufficient unless it complies with the terms and conditions of
this Agreement) to elect to accept the terms and conditions of the Notifying
Party's Agreement, except as set forth below, by delivering written notice
thereof to the Notifying Party on or before the end of such thirty (30) days;
notwithstanding the foregoing, however, if the Receiving Party elects to accept
the terms and conditions of the Notifying Party's Agreement, the Receiving Party
shall have the further right to purchase the Membership Interest of the
Notifying Party for a purchase equal to the lesser of (i) the purchase price for
the Notifying Member's Membership Interest as set forth in the Notifying Party's
Agreement and (ii) the amount allocated to such Notifying Party's Capital
Account.

                                       22
<PAGE>

            (d) If the Receiving Party elects in its sole discretion not to (or
fails to) accept the terms of the Notifying Party's Agreement, the Notifying
Party shall be free to sell the Notifying Party's Membership Interest in the
Company under the terms and conditions of the Notifying Party's Agreement but
only so long as (i) the transaction contemplated by the Notifying Party's
Agreement closes within ninety (90) days from the date of the Notifying Party's
receipt of the Receiving Party's election not to accept the Notifying Party's
Agreement (regardless of any contrary terms of the Notifying Party's Agreement)
and (ii) such closing occurs on substantially the same terms and conditions
under the Notifying Party's Agreement (without limiting the generality of the
foregoing, a reduction of the purchase price under the Notifying Party's
Agreement of greater then two percent (2%) shall be deemed a substantial change
in the Notifying Party's Agreement);

            (e) If the Receiving Party elects not to accept the Notifying
Party's Agreement and the transaction described in the Notifying Party's
Agreement fails to timely close or to close on the conditions herein required
for any reason, then the Receiving Party's right of first refusal shall be
deemed reinstated and the Notifying Party shall not be entitled to close under
the Notifying Party's Agreement or any other agreement without re-offering or
offering the Notifying Party's Agreement or such other to the Receiving Party;

            (f) A Notifying Party shall not be entitled to sell less than one
hundred percent (100%) of its Membership Interest in the Company;

            (g) Delivery of any notice required hereunder by the Notifying Party
or Receiving Party shall be made in writing under the terms required for
delivery of notice hereunder;

            (h) A direct or indirect transfer of an interest in the Property
that does not strictly comply with the terms and conditions of this Agreement
shall not terminate the non-transferring party's right of first refusal; and

            (i) If the Receiving Party accepts the terms of the Notifying
Party's Agreement but fails to close as required, then the Notifying Party's
sole and exclusive remedy shall be to either enforce an action for specific
enforcement and receive its costs of such action or to terminate the Receiving
Party's right of first refusal as agreed upon liquidated damages.

   10. ACCOUNTING, RECORDS, REPORTING BY MEMBERS.

      10.1 BOOKS AND RECORDS. The books and records of the Company shall be
kept, and the financial position and the results of its operations recorded, on
an accrual basis by the Day-to-Day Manager in accordance with generally accepted
accounting principles. The books and records of the Company shall reflect all
the Company transactions and shall be appropriate and adequate for the Company's
business. The Company shall maintain at its principal office in Florida all of
the following:

                                       23
<PAGE>

            (a) A current list of the full name and last known business or
residence address of each Member set forth in alphabetical order, together with
the Capital Contributions, Capital Account and Percentage Interest of each
Member;

            (b) A copy of the Articles and any and all amendments thereto
together with executed copies of any powers of attorney pursuant to which the
Articles or any amendments thereto have been executed;

            (c) A copy of this Agreement and any and all amendments thereto
together with executed copies of any powers of attorney pursuant to which this
Agreement or any amendments thereto have been executed;

            (d) Copies of the Company's federal, state, and local income tax or
information returns and reports, if any, for the six (6) most recent taxable
years;

            (e) Copies of the financial statements of the Company, if any, for
the six (6) most recent fiscal years; and

            (f) The Company's books and records as they relate to the internal
affairs of the Company for at least the current and past four (4) fiscal years.

      10.2 INSPECTION. Each Member has the right, upon reasonable written
request to the Day-to-Day Manager (made at least five (5) business days prior to
such Member's intent to exercise their rights under this Section 10.2) for
purposes reasonably related to the interest of the Person as Member, to inspect
and copy during normal business hours any of the Company records described in
Sections 10.1.

      10.3 FINANCIAL STATEMENTS AND OTHER REPORTS.

            (a) ANNUAL FINANCIAL STATEMENTS. At the expense of the Company, the
Day-to-Day Manager shall provide each Member with financial statements of the
Company prepared by a certified public accounting firm selected by the Members,
within ninety (90) days after the completion of the Company's fiscal year. In
the event of a dispute between the Members regarding the Company's financial
statements, either Member has the right to require that the financial statements
of the Company be audited by a certified public accounting firm selected by the
Member desiring such audited financial statements (an "Audit"). The cost of any
such Audit shall be paid by the Company; provided, however, if any such Audit is
not, in the opinion of such accounting firm, materially different than the
unaudited financial statements of the Company, then the Audit shall be paid by
the Member which requested such Audit and such Member shall also pay to the
Day-to-Day Manager a liquidated amount equal to the cost of such audit to offset
the time and expense of the Day-to-Day Manager in connection with such audit.

            (b) QUARTERLY FINANCIAL REPORTS. The Day-to-Day Manager shall, by
the 15th day of each calendar quarter during the term of the Company, prepare,
or cause to be prepared, and deliver to the Members a balance sheet showing the
assets and liabilities of the

                                       24
<PAGE>

Company as of the last day of the previous calendar quarter, an income statement
presenting the results of the operations of the Company for such quarter. On a
quarterly basis, Day-to-Day Manager shall prepare and deliver to the members a
job cost report for the Project which shall include all Project costs incurred
to the then current date, a variance schedule showing any deviations from the
cost line items provided for in the Approved Project Budget and Plan and a year
to date summary of such operations and, if requested by any Member, a statement
of sources and applications of funds.

            (c) FILINGS. The Day-to-Day Manager, at Company expense, shall
 cause the income tax returns for the Company to be prepared and timely filed
 with the appropriate authorities. The Day-to-Day Manager, at Company expense,
 shall also cause to be prepared and timely filed, with appropriate federal and
 state regulatory and administrative bodies, amendments to, or restatements of
 the Articles and all reports required to be filed by the Company with those
 entities under the Act or other then current applicable laws, rales, and
 regulations.

            (d) ACCOUNTING DECISIONS. All decisions as to accounting
 matters, except as otherwise specifically set forth herein, shall be made by
 the Members jointly.

      10.4 TAX MATTERS PARTNER. The Day-to-Day Manager shall be the "tax matters
partner" of the Company as such term is defined in Section 6231(a)(7) of Code
(the "Tax Matters Partner"), and it shall serve as such at the expense of the
Company with all powers granted to a tax matters partner under the Code. The Tax
Matters Partner shall use its commercially reasonable efforts to prepare and
file on a timely basis, with due regard to extensions, all tax and information
returns that the Company may be required to file, all at Company expense. No tax
or information return shall be filed unless approved by the Members, such
approval not to be unreasonably withheld or delayed. Each Member shall give
prompt notice to each other Member of any and all notices it receives from the
Internal Revenue Service concerning the Company, including any notice of audit,
any notice of action with respect to a revenue agent's report, any notice of a
30-day appeal letter and any notice of a deficiency in tax concerning the
Company's federal income tax return. The Tax Matters Partner shall, at Company
expense, furnish each Member with status reports regarding any negotiation
between the Internal Revenue Service and the Company, and each such Member, if
it so requests, may participate in such negotiation. The Tax Matters Partner
shall not enter into any settlement with any taxing authority (federal, state or
local) or extend the statute of limitations on behalf of the Company or the
Members without the approval of all Members.

      11. INVESTMENT REPRESENTATIONS.

      11.1 REPRESENTATIONS AND WARRANTIES. Each Member hereby represents and
warrants to the Company and each other Member as follows:

            (a) AUTHORIZATION. The Member is duly organized, validly existing,
and in good standing under the law of its state of organization and that it has
full power and authority to execute and agree to this Agreement and to perform
its obligations hereunder and that all actions

                                       25
<PAGE>

necessary for the due authorization, execution, delivery and performance by that
Member of this Agreement have been duly taken.

            (b) COMPLIANCE WITH OTHER INSTRUMENTS. The Member's authorization,
execution, delivery, and performance of this Agreement do not conflict with any
other agreement or arrangement to which such Member is a party or by which it is
bound.

            (c) PURCHASE ENTIRELY FOR OWN ACCOUNT. The Member is acquiring its
Membership Interest in the Company for the Member's own account for investment
purposes only and not with a view to or for the resale, distribution,
subdivision or fractionalization thereof and has no contract, understanding,
undertaking, agreement or arrangement of any kind with any person to sell,
transfer or pledge to any person its interest or any part thereof nor does such
Member have any plan to enter into any such agreement.

            (d) INVESTMENT EXPERIENCE. By reason of its business or financial
experience, the Member has the capacity to protect its own interest in
connection with the transactions contemplated hereunder, is able to bear the
risks of an investment in the Company, and at the present time could afford a
complete loss of such investment.

            (e) DISCLOSURE OF INFORMATION. The Member is aware of the Company's
business affairs and financial condition and has acquired sufficient information
about the Company to reach an informed and knowledgeable decision to acquire an
interest in the Company.

            (f) FEDERAL AND STATE SECURITIES LAWS. The Member acknowledges that
the Membership Interests have not been registered under the Securities Act of
1933 or any state securities laws, inasmuch as they are being acquired in a
transaction not involving a public offering, and, under such laws and subject to
the transfer restrictions set forth in Article 9 may not be resold or
transferred by the Member without appropriate registration or the availability
of an exemption from such requirements. In this connection, the Member
represents that it is familiar with SEC Rule 144, as presently in effect, and
understands the resale limitations imposed thereby and by the Securities Act of
1933.

      11.2 REPRESENTATIONS AND WARRANTIES OF ASHTON. In addition to the
representations, warranties set forth in Section 11.1 above, and as an
inducement to M/I to enter into this Agreement, Ashton represents and warrants
to M/I that:

      (a) The Pulte Contract has been duly and validly assigned to the Company
by Ashton and, to Ashton's knowledge, neither the seller nor the purchaser
therein is now or ever has been in default thereunder and all payments due to be
made thereunder have been paid in full;

      (b) To Ashton's knowledge: no dispute currently exists between the seller
and purchaser or any other party with respect to the Pulte Contract; no
condition has been discovered upon the land or exists with respect thereto which
would result in a default or give either party the right to terminate the Pulte
Contract; and, to Ashton's actual knowledge, there are no title,

                                       26
<PAGE>

survey, soil, environmental, governmental or other condition exists which would
materially and adversely effect the development of the Property in accordance
with, and as contemplated, herein and in the Pulte Contract;

      (c) To Ashton's actual knowledge, there are no actions, suits, proceedings
or investigations pending or threatened with respect to the Pulte Contract, the
Property or the Project;

      (d) No notices have been received by Ashton from any governmental
authority that the Project or Property is in violation of any Laws and, to
Ashton's knowledge, the Property can be developed as contemplated herein and in
the Pulte Contract;

      (e) To Ashton's knowledge, neither this Agreement or any related document,
exhibit or schedule attached hereto prepared or furnished by Ashton contains an
untrue statement in material fact or misstates a material fact relating to the
Property, the Project or the Pulte Contract.

      (f) Prior to M/I acquiring the M/I Interest: no other party other than
Ashton owned or controlled any interest in and to the equity or Membership
Interests of the Company; and the Company has no employees or consultants and no
assets or liabilities other than those contemplated by the Pulte Contract and
this Agreement.

      11.3 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations and
warranties herein shall survive the execution and delivery of this Agreement,
the formation of the Company and the dissolution and final liquidation of the
Company.

   12. BUY/SELL.

      12.1 PUT/CALL OFFERING NOTICE. A Member (the "Initiating Member") shall
have the right to invoke the provisions of this Section 12 by giving written
notice (the "Offering Notice") to the other Member (the "Responding Member") of
its intent to rely on this Section 12 and to purchase all, but not less than
all, of the Responding Member's Membership Interest only under the following
circumstances: (i) By the non-defaulting Member, if at any time a Member is in
default hereunder and more than thirty (30) days have elapsed since such
non-defaulting Member has given written notice thereof to such defaulting Member
and such default has not been cured, or (ii) as otherwise provided in this
Agreement, including Sections 3.2(c), 5.5(c) and 14.10(b). In any such event,
the provisions set forth in this Section 12 shall apply. The Initiating Member
shall specify in its Offering Notice the all cash purchase price per percent of
Percentage Interest ("Purchase Price") at which the Initiating Member would be
willing to purchase all the Responding Member's Membership Interest.

12.2 EXERCISE OF PUT/CALL. Within 30 days after the delivery date of the
Offering Notice, the Responding Member shall then be obligated either to:

                                       27
<PAGE>

            (a) Sell to the Initiating Member its Membership Interest for the
Purchase Price times its Percentage Interest; or

            (b) Purchase the Membership Interest of the Initiating Member for
the Purchase Price times the Initiating Member's Percentage Interest.

      The Responding Member shall notify the Initiating Member of its election
(the "Election Notice") within thirty (30) days after the date of its receipt of
the Offering Notice. In the event the Responding Member fails to give such
notice within the required time period, the Initiating Member shall purchase the
Responding Member's Membership Interest according to the terms of this Section
12. For purposes of this Section 12 the term "Purchasing Member" shall mean the
Member who is obligated to purchase the other Member's Membership Interest
(whether such Member is the Initiating Member or the Responding Member) and the
term "Selling Member" shall mean the Member who is obligated to sell its
Membership Interest to the Purchasing Member.

      12.3 DESIGNEE; FINANCING. In the event that any Member purchases the other
Member's Membership Interest pursuant to this Section 12, such Purchasing Member
shall be entitled to designate any third party to be the transferee of such
interest or obtain financing from any third party with respect to such purchase,
provided that the foregoing shall not be a condition to or delay any transaction
described in this Section 12.

      12.4 CLOSING.

            (a) The Members shall meet and exchange documents and pay any
amounts due, and otherwise do all things necessary to conclude the transaction
set forth herein at the closing of such purchase (the "Closing"). The Closing
shall occur in Florida at the office of the Selling Member's legal counsel at
1:00 p.m. on the date specified in the Responding Member's Election Notice,
which date shall not be more than thirty (30) days after the date of delivery of
the Election Notice (or the date such Election Notice was due if no Election
Notice was timely given). At the Closing, the Selling Member shall deliver to
the Purchasing Member a duly executed assignment of its Membership Interest and
shall also, upon the request of the Purchasing Member, concurrently therewith
(or at any time and from time to time thereafter) execute and deliver such other
customary documents and records as the Purchasing Member reasonably requests to
conclude the Closing and to transfer ownership, title and control of the
Membership Interest (including, but not limited to, execution, in recordable
form, of amended Articles). The Purchasing Member shall deliver to the Selling
Member cash in an amount determined pursuant to Section 12.2 (less the amount of
any outstanding debt owed by the Selling Member to the Purchasing Member (or an
Affiliate of the Purchasing Member)) for the full amount of the consideration,
if any, for such Membership Interest, and shall deliver any other documents
necessary from the Purchasing Member to conclude the Closing. The Selling Member
shall transfer its Membership Interest free of all liens or encumbrances.
Further, at the Closing, and as an express condition to the Selling Member's
obligation to transfer its Membership Interest pursuant to this Section 12, the
Selling Member and/or its Affiliates shall have been released from its liability
under any third-party loans to the Company and any guarantees made in connection
therewith. If a Company creditor refuses to so release the Selling

                                       28
<PAGE>

Member and/or its Affiliates, the Purchasing Member shall indemnify the Selling
Member and/or its Affiliates from liability to any Company creditor. In
furtherance thereof, the Purchasing Member shall provide or shall cause one of
its Affiliates to provide guarantees or such other security as reasonably
requested by Selling Member.

            (b) If the Purchasing Member fails to close as aforesaid, in
addition to any other remedies available at law or in equity, the Selling Member
shall have the right, exercisable by written notice to the Purchasing Member
given within thirty (30) days of the date set for the Closing, to purchase under
this Section 12 the Membership Interest of the Purchasing Member. If the Selling
Member exercises such option, the Purchase Price used shall be seventy-five
percent (75%) of the Purchase Price the Purchasing Member was obligated to pay
at the originally scheduled Closing.

      13. FINISHED LOT DISTRIBUTION. Subject to the terms and conditions of this
Agreement, each Member shall be allocated the Finished Lots owned by the Company
from time to time, which Finished Lots shall be allocated in accordance with the
Members' respective Percentage Interests and as set forth on EXHIBIT "D"
attached hereto (EXHIBIT "D" to be adjusted as necessary should the respective
Percentage Interests of the Members change). Each Member shall be responsible
for all its customary closing costs associated with such allocation and
distribution. The Finished Lots shall be distributed to the Members in two
phases, Phase I and Phase II. Should the Members agree to a disproportionate
distribution of Phase I Finished Lots, then the distribution of the Phase II
Finished Lots shall be adjusted accordingly such that the total number of
Finished Lots distributed to each Member were allocated in accordance with the
Members' respective Percentage Interests. Should such reallocation of Phase I
Finished Lots occur following the Company's distribution of such Phase I
Finished Lots to the Members, the Members shall divide all customary closing
costs associated with such transfer equally. The Members' failure to agree upon
any disproportionate distribution shall not invoke the provisions of Section
14.10(b). The Members agree that all Finished Lots shall have an equal value.

      14. MISCELLANEOUS.

      14.1 NOTICES. Any notice which a party is required or may desire to give
the other party shall be in writing and may be personally delivered, delivered
by telecopy or given by United States certified mail, return receipt requested,
addressed as follows (subject to the right of a party to designate a different
address for itself by notice similarly given):

TO ASHTON:                                    Ashton Tampa Residential, LLC
                                              500 N. Westshore Boulevard
                                              Suite 1020
                                              Tampa, Florida 33609
                                              Attn: Mr. James D. Bowen
                                              Facsimile No.: (813) 281-0242

And:                                          Ashton Woods Homes
                                              1080 Holcomb Bridge, Building 200,

                                       29
<PAGE>

                                              Suite 350
                                              Roswell, Georgia 30076
                                              Attn.: Thomas Krobot
                                              Facsimile No.: (770) 998-7494

And:                                          Charles H. Carver, Esquire
                                              Ward Rovell, Professional
                                              Association
                                              101 E. Kennedy Blvd, Suite 4100
                                              Tampa, Florida 33602
                                              Facsimile No.: (813) 222-8701

TO M/I:                                       M/I Homes of Tampa, LLC
                                              4904 Eisenhower Blvd., Suite 150
                                              Tampa, Florida 33634
                                              Attention: Fred Sikorski
                                              Area President
                                              Facsimile No. (813) 290-8203

And:                                          M/I Homes of Tampa, LLC
                                              c/o Tom Mason, Esq.
                                              General Counsel
                                              3 Easton Oval, Suite 500
                                              Columbus, Ohio 43219
                                              Telephone: (614)418-8000
                                              Facsimile: (614)418-8622

And:                                          Lee E. Nelson, Esquire
                                              Williams Schifino Mangione &
                                              Steady, P.A.
                                              One Tampa City Center, Suite 2600
                                              Tampa, Florida 33602
                                              Facsimile No.: (813) 221-7335

Any notice so given by United States mail shall be deemed to have been given on
the third day after the same is deposited in the United States mail as a
certified matter, return receipt requested, addressed as above provided, with
postage thereon fully prepaid. Any notice not given by certified mail as
aforesaid shall be deemed to be given upon actual receipt of the same by the
party to whom the same is to be given, provided that the refusal by such party
to receive any such notice shall be deemed such party's receipt of the same.

      14.2 ENTIRE AGREEMENT This Agreement, together with the exhibits attached
hereto, represents the entire agreement of the parties with respect to the
subject matter hereof and supersedes any and all prior agreements, writings or
understandings between the parties with

                                       30
<PAGE>

respect to the subject matter hereof. Except as otherwise expressly provided
herein, no amendment or modification to this Agreement shall be binding unless
it shall be in writing and signed by all Members.

      14.3 BINDING EFFECT. Subject to the provisions of this Agreement relating
to transferability, this Agreement will be binding upon and inure to the benefit
of the Members and their respective successors and assigns This Agreement may be
executed by facsimile and in any number of counterparts, each of which when
executed and delivered shall be an original, but all such counterparts shall
constitute one and the same instrument. This Agreement, and any amendment
thereof, shall not be effective as against M/I unless executed and delivered by
at least one of the following officers on behalf of M/I (collectively, the
"Authorized Officers"): Robert H. Schottenstein, its Chief Executive Officer and
President; Steven Schottenstein, its Chief Operating Officer; Phillip G. Creek,
its Senior Vice President, Chief Financial Officer and Treasurer; J. Thomas
Mason, Senior Vice President, General Counsel, and Timothy C. Hall, Jr, its Vice
President, Assistant General Counsel and Assistant Secretary. Execution and
delivery by any one in addition to, or in lieu of, any of the Authorized
Officers may be for M/Ts convenience but is not to be relied upon or effective
as against M/I unless, as noted above, at least one of the Authorized Officers
also executes and delivers this Agreement or any amendment thereof; provided,
however, the foregoing shall not limit M/I's right, through a duly adopted
resolution of M/I, to add to, reduce or substitute the above named Authorized
Officers for any general or special purpose.

      14.4 PARTIES IN INTEREST. Nothing in this Agreement shall confer any
rights or remedies under or by reason of this Agreement on any Persons other
than the Members and their respective successors and assigns nor shall anything
in this Agreement relieve or discharge the obligation or liability of any third
person to any party to this Agreement nor shall any provision give any third
person any right of subrogation or action over or against any party to this
Agreement.

      14.5 PRONOUNS; STATUTORY REFERENCES. All pronouns and all variations
thereof shall be deemed to refer to the masculine, feminine, or neuter, singular
or plural, as the context in which they are used may require. Any reference to
the Code, the Act, or other statutes or laws will include all amendments,
modifications, or replacements of the specific sections and provisions
concerned.

      14.6 HEADINGS. All headings herein are inserted only for convenience and
case of reference and are not to be considered in the construction or
interpretation of any provision of this Agreement.

      14.7 INTERPRETATION, BUSINESS DAYS. In the event any claim is made by any
Member relating to any conflict, omission or ambiguity in this Agreement, no
presumption or burden of proof or persuasion shall be implied by virtue of the
fact that this Agreement was prepared by or at the request of a particular
Member or its counsel. The term "Business Days" as used herein shall mean all
days other than Saturdays, Sundays and Federal or State of Florida holidays.

                                       31
<PAGE>

      14.8 REFERENCES TO THIS AGREEMENT/APPROVALS. Numbered or lettered
articles, sections and subsections herein contained refer to articles, sections
and subsections of this Agreement unless otherwise expressly stated. Except as
otherwise expressly stated herein, all consents and approvals by any party
hereto shall be in the sole and absolute discretion of such party.

      14.9 GOVERNING LAW/JURISDICTION. The laws of the State of Florida shall
govern the interpretation and effect of this Agreement. Each Member hereby
consents to the exclusive jurisdiction of the state courts sitting in Florida in
any action on a claim arising out of, under or in connection with this Agreement
or the transactions contemplated by this Agreement. Each Member further agrees
that personal jurisdiction over it may be effected by service of process by
certified mail addressed as provided in Section 14 of this Agreement, and that
when so made shall be as if served upon him or her personally within the State
of Florida.

      14.10 DISPUTED MATTERS.

      (a) In the event of a dispute ("Dispute") under this Agreement, the
parties (collectively, the "Parties") intend that, prior to the commencement of
any litigation proceedings, the Parties shall meet at the offices of a mutually
acceptable engineer or attorney, as appropriate, to attempt to resolve any
Dispute. The Parties shall have such a resolution meeting within ten (10)
business days of written notice to the other Party invoking any Dispute
provision, although there shall be no requirement that the meeting last for any
length of time or to have further meetings. Each Party must appoint a duly
authorized representative at each resolution meeting and the Parties must
negotiate with diligence and in good faith to avoid any further Dispute. The
Parties intend that M/I shall not delay or materially and adversely impact the
construction or timing of the construction of Ashton's intended projects in
connection with this Agreement. Likewise, the parties intend that Ashton shall
not delay or materially and adversely affect any of M/I's projects in connection
with this Agreement. Therefore, each Party has a mutual and identifiable
interest in the timely, good faith and diligent cooperation between each other
to ensure that each Party can pursue its projects in an orderly, cost-effective
and timely manner. Notwithstanding anything in this Agreement to the contrary,
if any Dispute remains unresolved, in whole or in part, after the initial
meeting described above, any such continuing Dispute shall be resolved by
binding arbitration, as hereinafter described. Within ten (10) days of written
demand by one Party to the other requiring binding arbitration, each Party shall
appoint a designated arbitrator with a minimum of seven (7) years of substantial
experience in the Tampa, Florida, single-family development market, including,
without limitation, an engineer, land planner, residential developer or
attorney, provided any such proposed arbitrator shall not be affiliated with any
party to this Agreement or involved in any transaction with the nominating
party. Each Party shall notify the other as to the name and address of the
nominated arbitrator within such ten (10) day period after any Party delivers
written notice to the other Party demanding binding arbitration. The two (2)
nominated arbitrators shall, during the following ten (10) days, meet and agree
upon a third (3rd) arbitrator that is acceptable to both of the arbitrators
appointed by M/I and Ashton, provided any such third arbitrator must also
satisfy the requirements set forth above as to experience, non-affiliation and
non-involvement. Within twenty (20) days of the selection of a third arbitrator,
the three (3) arbitrators (collectively, the

                                       32
<PAGE>

"Arbitrators") shall make a determination on the merits of the dispute (the
"Final Decision"), which Final Decision shall be made in writing. Each Party
shall cooperate with the Arbitrators as they require. The Final Decision will be
final and binding on M/I and Ashton for all purposes. When prepared to issue a
ruling, the Arbitrators shall first so inform the Parties, who will have ten
(10) business days to resolve the Dispute by a binding agreement between them.
If the Parties resolve the Dispute, the Arbitrators will not make any award. If
the Parties do not resolve the Dispute in such ten (10) business day period, the
Arbitrators shall issue a written ruling on the eleventh (11th) day following
the notification to the Parties that the Arbitrators were prepared to issue a
ruling. The Arbitrators' written decision will resolve the Dispute, will include
written statements of fact and conclusions of law, and will be final and
binding. The phrase "final and binding" shall mean that it is not subject to any
further controversy and may not be the subject of any lawsuit or other action
between the Parties, shall not be appealable and that the Parties shall fully
and timely implement the Final Decision. No Party may petition a court to
correct or vacate the Final Decision. Any Final Decision will not prohibit
either Party from later determining that a Dispute of the same or similar nature
has occurred. Each Party will bear its own costs in connection with the
arbitration until such time as a Final Decision is issued. Thereafter, the
prevailing Party, as determined by the Arbitrators, will be entitled to recover
all costs and reasonable attorneys' fees from the non-prevailing Party or such
portion thereof as determined by the Arbitrators. If the Arbitrators do not make
a determination of a prevailing Party pursuant to their Final Decision, then in
that event, the Parties shall equally divide the costs and fees of the
arbitration proceedings. A court of competent jurisdiction shall be directed to
give full effect to the Parties' desire that the Final Decision in fact be final
and binding.

      (b) Should the Members be unable to agree upon any item requiring all
Members' approval such as, by way of example and not of limitation, Major
Decisions, but specifically excluding amendment of this Agreement or as
otherwise provided in this Agreement, the Members shall meet and confer for a
period of at least fifteen (15) days in an attempt to resolve such disagreement.
If after such 30-day period, the Members have still not come to an agreement on
the item in question, they shall enter into non-binding mediation for a period
not to exceed thirty (30) days (commencing from the expiration of such previous
15-day period) in an attempt to resolve the disagreement. If after such process,
the Members are still in disagreement, then either Member may invoke the
provisions of Section 12. During such periods of negotiation and mediation, the
Members shall continue to comply with their respective obligations.

      14.11 EXHIBITS. All Exhibits attached to this Agreement are incorporated
and shall be treated as if set forth herein.

      14.12 SEVERABILITY. If any provision of this Agreement or the application
of such provision to any person or circumstance shall be held invalid, the
remainder of this Agreement or the application of such provision to persons or
circumstances other than those to which it is held invalid shall not be affected
thereby.

      14.13 ADDITIONAL DOCUMENTS AND ACTS. Each Member agrees to execute and
deliver such additional documents and instruments and to perform such additional
acts as may be necessary or appropriate to effectuate, carry out and perform all
of the terms, provisions, and conditions of this Agreement and the transactions
contemplated hereby.

                                       33
<PAGE>

      14.14 NO INTEREST IN COMPANY PROPERTY; WAIVER OF ACTION FOR PARTITION. No
Member has any interest in specific property of the Company. Without limiting
the foregoing, each Member irrevocably waives during the term of the Company any
right that it may have to maintain any action for partition with respect to the
property of the Company. This section is not intended, nor shall it serve, to
limit the Day-to-Day Manager's right to the Manager Fee.

      14.15 MULTIPLE COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same instrument.

      14.16 TIME IS OF THE ESSENCE. All dates and times in this Agreement are of
the essence.

      14.17 REMEDIES CUMULATIVE; WAIVER OF RIGHT TO JURY TRIAL. The remedies
under this Agreement are cumulative and shall not exclude any other remedies to
which any Person may be lawfully entitled. To the greatest extent allowed by
applicable law, each Member hereby knowingly, irrevocably and voluntarily waives
any right any such Member may have to the right to a jury trial under any
applicable law. The waiver was specifically bargained for and agreed to as part
of the basis of the transaction herein contemplated.

      14.18 COMPANY INDEMNIFICATION. The Company shall (to the extent of the
Company's assets only) indemnify, defend and protect each Member and each
Member's respective partners, members, shareholders, officers, directors,
employees and agents from any losses, liabilities, damages, costs and expenses
(including, without limitation, reasonable attorney's fees and disbursements)
incurred by a Member or its respective officers, directors, employees and agents
by reason of its acts or omissions which are for or on behalf of the Company,
except for the failure of such Member or its respective partners, shareholders,
officers, directors, employees and agents to act in accordance with the terms of
this Agreement, or fraud, willful misconduct, gross negligence or any breach of
a fiduciary duty by such Member or its respective partners, shareholders,
officers, directors, employees and agents.

      15. MEMBER'S RIGHT TO PURCHASE FINISHED LOTS. In the event either Member
desires to sell or transfer any Finished Lot distributed to it hereunder prior
to its construction of a residence thereon (a "Transferring Member"), and the
other Member is not in default hereunder beyond any applicable notice and cure
periods, then the other Member shall have a right to purchase such Finished Lot
from the transferring Member as set forth below. Transferring Member shall give
the other Member written notice of its intention to sell any Finished Lots to a
third party, together with a copy of Transferring Member's agreement to sell
such Finished Lots ("Sale Agreement"), and the other Member shall have twenty
(20) days to elect by written notification to Transferring Member whether to
purchase the Finished Lot(s) at the lower of the value of the Finished Lot(s)
when distributed to the Transferring Member or the purchase price set forth in
the Sale Agreement The "value of the Finished Lot" as used in the preceding
sentence shall mean the Capital Contributions of the Transferring Member divided
by the total number of Finished Lots allocated to the Transferring Member. The
other Member shall so notify the Transferring Member in writing within such
20-day period of its election to

                                       34
<PAGE>

purchase such Finished Lots at the selected price as set forth herein or be
deemed to have waived its right only as to such Finished Lot(s) specified in the
notice. If the other Member so exercises its purchase right, then such Member
shall specify in its notice a closing date within thirty (30) days of the date
of its notice. The purchase price shall be payable in cash at time of closing.
The Transferring Member shall pay the costs of title insurance and documentary
transfer taxes on the special warranty deed and the cost for recording the deed.
All other closing costs shall be equally divided and all other customary closing
procedures shall occur at such closing. Any violation of this paragraph shall
constitute a default of the Transferring Member's obligations under this
Agreement. The purchasing Member's obligations under this paragraph shall
survive each and every transfer of a Finished Lot and the recordation of any
deeds and the termination of this Agreement for any reason, and may be recorded
as a restrictive covenant running with the land upon distribution of each
Finished Lot. Notwithstanding anything in this Agreement to the contrary,
neither Member shall be restricted in the event that the Members desire to
assign amongst each other their right to any Finished Lots within the Project by
separate written agreement.

      16. VERIFICATION OF NET WORTH. Ashton represents and warrants to M/I that
its current net worth is not less than $6,000,000.00 (such net worth to be
calculated to exclude intercompany accounts other than demand obligations) and
that it shall maintain a net worth of not less than 90% of such net worth, which
obligation shall also apply to any Affiliate of Ashton that becomes a Member or
the Day to Day Manager. Upon reasonable request, Ashton shall provide an annual
certificate to M/I verifying its satisfaction of such covenant. M/I hereby
represents and warrants that its current net worth is not less than
$10,000,000.00 (such net worth to be calculated to exclude intercompany accounts
other than demand obligations) and that it shall maintain a net worth of not
less than 90% of such net worth. Upon reasonable request, M/I shall provide an
annual certificate to Ashton verifying its satisfaction of such covenant.

                                       35
<PAGE>

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

                                        M/I HOMES OF TAMPA LLC,
                                        a Florida limited liability company
/s/ Stephen M. Bennett
-------------------------------
Print Name:  STEPHEN M. BENNETT

/s/ Colleen Minek                       By: /s/ Fred Sikopski
------------------------------              ----------------------------
Print Name: COLLEEN MINEK               Name: FRED SIKOPSKI
                                        Its: AREA PRESIDENT

                                        AND

/s/ Timothy C.[ILLEGIBLE]
------------------------------
Print Name: TIMOTHY C.[ILLEGIBLE]

/s/ Barbara A. Lang                     By. /s/ Robert H. Schottenstein
--------------------------                  -----------------------------
Print Name: BARBARA A. LANG             Name: ROBERT H. SCHOTTENSTEIN
                                        Its: CEO & PRESIDENT

                                        ASHTON TAMPA RESIDENTIAL, LLC,
                                        a Nevada limited liability company

-----------------------------------
Print Name:
           ------------------------

                                        By:
                                           ------------------------------
-----------------------------------
Print Name:                             James D. Bowen, Division President
           ------------------------
                                       36
<PAGE>

Print Name:                             Name:
            ------------------------         ----------------------------------
                                        Its:
                                             ----------------------------------

                                        ASHTON TAMPA RESIDENTIAL, LLC,
                                        a Nevada limited liability company

/s/ [ILLEGIBLE]
------------------------------------
Print Name: [ILLEGIBLE]
            ------------------------

                                        BY: /s/ James D. Bowen
                                            -----------------------------------
------------------------------------    James D. Bowen, Division President
Print Name:
            ------------------------

/s/ Dovg Draper                         /s/ Dovg Draper
------------------------------------    ------------------------------------
DOVG DRAPER                             DOVG DRAPER

/s/ Thomas J. Collins                   /s/ Thomas J. Collins
------------------------------------    ------------------------------------
Thomas J. Collins                       Thomas J. Collins

                                       36
<PAGE>

                          EXHIBIT "A" - PULTE CONTRACT

                                       37
<PAGE>

                           AGREEMENT FOR SALE OF LAND

      THIS AGREEMENT FOR SALE OF LAND ("AGREEMENT") is made and entered into to
be effective as of the Effective Date referenced in Section 22 hereof by and
between PULTE HOME CORPORATION, a Michigan corporation ("SELLER"), and ASHTON
TAMPA RESIDENTIAL, LLC, a Nevada limited liability company ("BUYER").

      1. SALE AND PURCHASE. Seller hereby agrees to sell and convey to Buyer and
Buyer hereby agrees to purchase from Seller, subject to the terms and conditions
hereinafter set forth, all that certain parcel of land located in Pasco County,
Florida (the "COUNTY"), known as "PALM COVE PHASE II" and more particularly
described on EXHIBIT A attached hereto and incorporated herein, together with
the following:

            (a)   All and singular the rights and appurtenances pertaining
                  thereto, including any right, title and interest of Seller in
                  and to adjacent streets, roads, alleys and rights-of-way; and

            (b)   Such other rights, interests and properties as may be
                  specified in this Agreement to be sold, transferred, assigned,
                  or conveyed by Seller to Buyer.

The land described on EXHIBIT A and the rights, interests and other properties
described above, are collectively called the "PROPERTY." At Buyer's option,
title shall be conveyed by use of the metes and bounds description to be
obtained as a result of the survey provided for below.

      2. PURCHASE PRICE. The purchase price ("PURCHASE PRICE") to be paid for
the Property shall be Eleven Million Eight Hundred Thirty Thousand and no/100ths
Dollars ($11,830,000.00). The Purchase Price shall be paid by Buyer to Seller as
follows:

$99,500.00              Ninety-Nine Thousand Five Hundred and no/100ths Dollars
                        earnest money deposit (the "NON-REFUNDABLE DEPOSIT") to
                        be delivered to and held by Hill, Ward & Henderson,
                        P.A., Bank of America Plaza, 101 East Kennedy Boulevard,
                        Suite 3700, Tampa, Florida 33602 ("ESCROW AGENT" or
                        "TITLE AGENT," as applicable), within two (2) business
                        days after the Effective Date. Notwithstanding any
                        provision of this Agreement to the contrary, the
                        Non-Refundable Deposit shall be non-refundable to Buyer
                        except in the event of the Seller's default as provided
                        in Section 10 below.

$500.00                 Five Hundred and no/100ths Dollars earnest money deposit
                        (the "DEPOSIT") to be delivered to Escrow Agent within
                        two (2) business days after the Effective Date. At
                        Buyer's option, this deposit may be made in the form of
                        a Letter of Credit as referenced in Section 5 hereof.

<PAGE>

$11,730,000.00          Eleven Million Seven Hundred Thirty Thousand and
                        no/100ths Dollars cash payable at Closing by wired
                        federal funds for immediately available credit, plus or
                        minus prorations and Closing costs as set forth
                        hereinafter.

$11,830,000.00          Total Purchase Price

      In addition to the Purchase Price, Buyer shall pay Seller, so long as
Seller has transportation impact fee credits available for transfer and as a
condition precedent to the platting of lots on the Property, an amount equal to
the product of the number of lots to be platted and the single family
transportation impact fee otherwise payable to the County. Simultaneously with
such payment, Seller shall assign to Buyer the transportation impact fee credits
paid for by Buyer. Payment shall be made in the form of cash or wired federal
funds for immediately available credit. This obligation to purchase impact fees
shall be made a matter of public record by the recording of a memorandum thereof
at Closing. The memorandum shall be released as to the lots to be platted upon
receipt by Seller of payment for the transportation impact fee credits for the
lots submitted to plat. Notwithstanding the foregoing requirement that Buyer
purchase transportation impact fee credits from Seller, it is expressly
understood that, to the extent Buyer receives transportation impact fee credits
for that portion of Overpass Road which Buyer constructs, Buyer may first use
the transportation impact fee credits which it receives and that are directly
associated with its construction of Overpass Road before it is required to
purchase transportation impact fee credits from Seller.

      3. CLOSING DATE. The consummation of the transaction contemplated by this
Agreement ("CLOSING") shall take place at 10:00 a.m. local time on December 22,
2004, or such earlier date as Buyer may select upon ten (10) days' written
notice to Seller. It is expressly acknowledged by Buyer that December 22, 2004,
is the absolute outside date by which the transaction contemplated by this
Agreement may close and that, if for any reason, the Closing fails to occur by
December 22, 2004, Buyer shall no longer have any contractual right to acquire
the Property unless such failure to close is a result of an event of default by
Seller.

      4. PLACE OF CLOSING. The Closing shall take place at a location designated
by Seller in Hillsborough County, Florida.

      5. DEPOSIT. All cash funds held in escrow shall be placed in an
interest-bearing account at Bank of America, N.A., in Tampa, Florida, and all
interest earned thereon shall be deemed to be a part of the Deposit. At Closing,
the Deposit shall be paid to Seller and shall be applied to the Purchase Price.
The Deposit shall constitute the earnest money securing Buyer's performance of
this Agreement and shall be non-refundable upon expiration of the Inspection
Period, unless Buyer earlier terminates this Agreement during the Inspection
Period or is otherwise entitled to a return of the Deposit pursuant to the terms
of this Agreement.

      Seller and Buyer acknowledge and are aware that the Federal Deposit
Insurance Corporation ("FDIC") insurance coverage for deposited funds applies
only to a maximum amount for each individual depositor. Seller and Buyer further
acknowledge and agree that Escrow Agent assumes no responsibility or liability
whatsoever for, nor will they hold Escrow Agent responsible or liable for, any
loss which arises from the fact that the amount of the Deposit

                                      -2-
<PAGE>

Funds in the special-interest bearing escrow account established by Escrow Agent
will exceed $100,000.00 and that such excess amount in the account will not be
insured by the FDIC.

      In lieu of the Deposit being paid in cash, Buyer may deliver to Escrow
Agent an irrevocable, unconditional letter of credit in order to secure Buyer's
performance under this Agreement (the "LETTER OF CREDIT"). The Letter of Credit
shall: (i) be issued by a financial institution acceptable to Seller, (ii)
include an automatic pay provision in favor of Escrow Agent upon presentation of
the Letter of Credit (which presentation need not be in person but may be
delivered to the issuer by mail or other means of non-personal delivery from
Escrow Agent), (iii) be for an initial term extending at least through January
31, 2005, and (iv) be in a form and substance acceptable to Seller. In the event
Buyer fails to extend and/or replace the Letter of Credit at least thirty (30)
days prior to the expiration thereof, Buyer shall be deemed in default of this
Agreement and shall not have the benefit of any grace or curative periods that
may otherwise be afforded hereunder.

      At the end of the Inspection Period, provided that Buyer has not otherwise
terminated this Agreement within the Inspection Period pursuant to the
provisions of paragraph 8, the Deposit shall be non-refundable to Buyer except
as may be otherwise expressly provided to the contrary by the terms of this
Agreement, and Escrow Agent shall continue to hold the Deposit until Closing,
at which time the Deposit shall be applied to the Purchase Price. In the event
the Closing does not occur, the Deposit shall be held and distributed in
accordance with the terms of this Agreement.

      In the event Buyer and Seller are in agreement that Seller is entitled to
the Deposit, Buyer shall first have a period of five (5) days in which to
deliver the cash-equivalent to Seller, and Escrow Agent, upon being notified by
Seller that it has received the cash-equivalent Deposit, shall return the Letter
of Credit to Buyer. Otherwise, in the event there is a dispute as to who is
entitled to the Deposit and/or in the event the Letter of Credit has not been
renewed or replaced at least thirty (30) days prior to its expiration with a
renewal replacement Letter of Credit (or appropriate endorsement acceptable to
Seller), Escrow Agent, upon written demand by Seller and with simultaneous
written notice to Buyer, shall present the Letter of Credit for payment in which
event the Deposit shall revert to a cash Deposit and the same shall be held by
Escrow Agent pursuant to me terms and conditions of this Agreement Furthermore,
in the event Escrow Agent places the Deposit with the appropriate court pursuant
to the provisions to Section 35 hereof, the Letter of Credit shall be presented
for payment without the need for direction or approval of either Seller or Buyer
in which event the Deposit shall revert to a cash Deposit.

      6. TITLE COMMITMENT AND POLICIES; SURVEY.

      6.1. Title Commitment. Within seven (7) business days after the Effective
Date of this Agreement, but in no event later than December 10, 2004, Seller
shall, at Seller's expense, deliver to Buyer a title commitment for title
insurance (ALTA Owner's Policy Form 1992) through Chicago Title Insurance
Company ("TITLE COMPANY") covering the Property, issued by Title Agent, together
with legible copies of all recorded documents referenced therein and a special
tax search (the "COMMITMENT"), by which Commitment the title agent shall agree
to issue to Buyer, upon recording the special warranty deed, a standard owner's
ALTA policy in the amount of the full Purchase Price, without exception for any
matters other than (i) current taxes;

                                      -3-
<PAGE>

(ii) applicable zoning and governmental regulations; (iii) easements and
restrictions of record contemplated by the provisions of this Agreement or
otherwise expressly approved by Buyer as a "PERMITTED EXCEPTION" hereunder, if
any, and (iv) the standard survey exception unless Buyer provides a survey of
the Property acceptable to the Title Company. Buyer shall have five (5) days
after the date of actual receipt of the Commitment by Buyer and Buyer's attorney
in which to examine the Commitment and to give written notice to Seller, or
Seller's attorney, of its approval or disapproval in Buyer's sole discretion of
any matter contained therein. If Buyer fails to give such notice, Buyer shall be
deemed to have accepted the condition of title. Seller shall have five (5) days
from the actual receipt of such notice of disapproval to cure the objections or
defects so specified. If Seller is unable to correct such objections or defects
to the Buyer's satisfaction, in Buyer's sole discretion, within said period of
time, or if Seller elects not to correct such objections or defects and notifies
Buyer of its election within five (5) days of Buyer's notice, then Buyer shall
have the right within five (5) days after the end of either such said period, as
applicable, to give notice terminating this Agreement and to receive the return
of the Deposit, or to waive such objections or defects in writing. A failure to
provide such notice shall be deemed to be an election by Buyer that it has
waived any such objections or defects. Any such defect or objection waived as
aforesaid shall become a "PERMITTED EXCEPTION" to title. The Commitment shall be
updated by the Title Company at Seller's expense, prior to the Closing Date. Any
title exception, other than a prior Permitted Exception hereunder, shall be
treated as a title defect hereunder.

            6.2. Current Survey. Within two (2) business days after the date
hereof, Seller shall provide Buyer with the most recent survey of the Property
in Seller's possession, custody, or control. Within fifteen (15) days after the
date hereof, Buyer, at Buyer's expense, may obtain a current survey of the
Property prepared by a duly licensed land surveyor ("SURVEY"). The Survey shall
be certified to Title Company, Buyer, Buyer's attorneys, Seller, Seller's
attorneys, and any lender. In the event the Survey, or any recertification
thereof, shows any encroachments of any improvements upon, from, or onto the
Property, any building set-back line or easement, or shows any evidence of use
which indicates that an unrecorded easement may exist, except as may be
acceptable to Buyer, in Buyer's reasonable judgment, the matter shall be treated
in the same manner as a title defect under the procedure set forth above, and
Buyer shall notify Seller of any such matters prior to the end of the Inspection
Period. In the event Buyer elects not to obtain a Survey, it is expressly
acknowledged that the Title Company will not remove the "standard" survey
exceptions from the Commitment at Closing.

            6.3. Permitted Exceptions. The Property shall be conveyed to Buyer
subject to no liens, charges, encumbrances, exceptions or reservations of any
kind or character other than those acceptable to Buyer under paragraph 6.1
hereof ("PERMITTED EXCEPTIONS"). The items set forth in EXHIBIT B attached
hereto and incorporated herein are acknowledged by Buyer to be Permitted
Exceptions.

            6.4. No Extension of Closing. Notwithstanding anything in this
Section 6 to the contrary, it is expressly acknowledged that any and all
curative opportunities provided herein shall in no event cause the Closing to be
extended beyond December 22, 2004, and that, if a curative period set forth in
this Section 6 would otherwise cause such extension, the curative and/or notice
period afforded by this Section shall be reduced accordingly.

                                      -4-
<PAGE>

7. CLOSING PROCEDURES.

      7.1. Seller's Obligations at Closing. At Closing, Seller shall do the
      following:

            (a)   Execute, acknowledge and deliver to Buyer a special warranty
                  deed conveying the Property to Buyer subject to all matters of
                  record, including the Permitted Exceptions, which deed shall
                  be in form for recording with all required documentary stamps
                  in the proper amount affixed thereto, or provided for by
                  Seller at Seller's expense. The legal description of the
                  Property contained in the deed shall be identical to the legal
                  description of the Property contained in the Survey and the
                  Title Commitment.

            (b)   Deliver to Title Company and Buyer a certificate evidencing
                  Seller's good standing in both Michigan and Florida.

            (c)   Deliver to Title Company and Buyer evidence satisfactory to it
                  of Seller's authority to execute and deliver the documents
                  necessary or advisable to consummate the transaction
                  contemplated hereby.

            (d)   Execute and deliver to Title Company and Buyer duplicate
                  original copies of an affidavit of no liens satisfactory to
                  Title Company so as to cause Title Company to remove the
                  "gap," construction lien, parties in possession and unrecorded
                  easements standard exceptions from the Title Commitment.

            (e)   Execute and deliver to Title Company and Buyer a "non-foreign
                  person" affidavit in compliance with regulations issued by the
                  Internal Revenue Service.

            (f)   Execute and deliver to Title Company a memorandum in
                  recordable form evidencing the parties' agreement regarding
                  the purchase of transportation impact fee credits.

            (g)   Execute and deliver to Buyer a closing statement.

            (h)   Execute and deliver to Buyer a counterpart of the Developer's
                  Agreement referenced in Section 8 hereof.

                                      -5-
<PAGE>

            7.2. Buyer's Obligations at Closing. Subject to the terms,
conditions and provisions hereof and contemporaneously with the performance by
Seller of its obligations set forth in paragraph 7.1 above, Buyer shall deliver
to Seller:

                  (a)   The Purchase Price to be paid at Closing, plus or minus
                        prorations and Closing costs as set forth herein.

                  (b)   Execute and deliver to Title Company a memorandum in
                        recordable form evidencing the parties' agreement
                        regarding the purchase of transportation impact fee
                        credits.

                  (c)   An executed closing statement.

                  (d)   Execute and deliver to Seller a counterpart of the
                        Developer's Agreement referenced in Section 8 hereof.

            7.3. Closing Costs.

                  (a)   Seller shall pay the following costs and expenses in
                        connection with the Closing:

                        (i)   The escrow fees of the Escrow Agent, if any, and
                              the cost of the preparation of the closing
                              documents;

                        (ii)  All documentary stamps which are required to be
                              affixed to the special warranty deed; and

                        (iii) The premium payable for the Title Commitment and
                              Title Policy issued pursuant thereto.

                  (b)   Buyer shall pay the cost of recording the special
                        warranty deed and the agreement regarding the purchase
                        of transportation impact fee credits.

            7.4. Proration of Taxes, Rents etc. Taxes for the year of Closing
shall be prorated to the date of Closing. If the Closing shall occur before the
tax rate is fixed for the then current year, the apportionment of taxes shall be
upon the basis of the tax rate of the preceding year applied to the latest
assessed valuation, and the parties agree to reprorate taxes for the year of
Closing once such taxes become known. The provisions of this subparagraph shall
survive the Closing.

      8. FEASIBILITY STUDIES AND LICENSE TO ENTER. Buyer or Buyer's agents, at
Buyer's expense, shall have the right to inspect the Property to determine
whether, in Buyer's sole discretion, the Property is suitable for Buyer's
intended use thereof. Such inspection may include, but shall not be limited to,
engineering, environmental, and feasibility studies. If the Property is
determined to be unsuitable, Buyer may terminate this Agreement by giving
written

                                      -6-
<PAGE>

notice to Seller of such termination no later than 5:00 PM E.S.T. on December
15, 2004 ("INSPECTION PERIOD"), upon receipt of which Escrow Agent shall return
to Buyer the Deposit and the parties hereto shall be relieved of all further
obligations hereunder, except as provided in this paragraph. If Seller has not
received such notice of termination within said time period, the Property shall
be deemed suitable for Buyer's intended use thereof. Buyer shall cause all
persons or entities furnishing materials or services in connection with the
inspection rights granted hereunder to be paid promptly and Buyer shall not
allow the filing of any construction liens against the Property in connection
with the inspection permitted hereunder. Buyer hereby holds Seller harmless from
any damages or liabilities arising from the acts or omissions of Buyer or its
agents in pursuing the activities permitted under this paragraph. Buyer shall
restore any damage to the Property caused by Buyer's inspection. The provisions
of this paragraph 8 shall survive Closing and any termination of this Agreement.
If Buyer terminates this Agreement, Buyer shall furnish Seller with copies of
all third-party non-proprietary reports, studies, analyses, surveys and other
documentation prepared by or for Buyer with respect to the Property.

      From and after the Effective Date, Seller shall make available to Buyer
true and complete copies of the documents described on EXHIBIT "B" and all title
insurance policies; appraisals; environmental, soil, engineering, subsurface and
similar analyses; and other such third party studies and reports with respect to
the Property that are in Seller's possession or control, including, without
limitation, those received by Seller from Lennar Homes, Inc.

      During the Inspection Period, Buyer and Seller agree to negotiate with
each other in good faith with respect to a "DEVELOPER'S AGREEMENT" pursuant to
which Seller will assign to Buyer at Closing certain rights and privileges under
the homeowner's association documents and the Declaration of Covenants,
Conditions and Restrictions, which are referenced in Section 36.1 hereof, and,
pursuant to which, Buyer will assume certain responsibilities and obligations as
they relate to the Property. The Developer's Agreement shall include Seller's
assignment to Buyer of (i) all permits, authorizations, approvals, entitlements,
impact fee credits and capacity reservations with respect to the Property,
including density entitlements sufficient to allow Buyer to develop the Property
in accordance with the Construction Drawings referenced in Section 24, but
excluding the transportation impact fee credits referenced in Paragraph 2, and
(ii) Seller's right, title and interest in the Construction Drawings. A copy of
the proposed Developer's Agreement shall be delivered by Seller to Buyer within
five (5) days after the Effective Date of this Agreement. In the event Seller
and Buyer cannot agree upon the Developer's Agreement during the Inspection
Period, either party may elect to terminate this Agreement in which event Escrow
Agent shall return the Deposit to Buyer and the parties hereto shall be relieved
of all further obligations hereunder except as otherwise provided in this
Section 8.

      9. BUYER'S DEFAULT. Except as to a wrongful failure timely to close on the
acquisition of the Property, Buyer shall not be in breach or default hereunder
unless Seller is not in default hereunder, and within ten (10) business days
after the Buyer's receipt of notice of default. (i) Buyer fails to cure any
material breach of any obligation of Buyer under this Agreement which is set
forth in such notice or (ii) Buyer fails to complete its purchase of the
Property. If any such failure continues beyond such cure period, the sole and
exclusive remedy of Seller shall be to extinguish Buyer's right to purchase the
Property and Seller shall be entitled to retain the Deposit as the agreed upon
liquidated damages for Buyer's failure to perform. Seller

                                      -7-
<PAGE>

expressly waives any other remedy, at law or in equity, against Buyer. The
parties agree and stipulate that as of the Effective Date, the exact amount of
damages would be extremely difficult to ascertain and that the Deposit
constitutes a reasonable and fair approximation of such damages and is not a
penalty. Notwithstanding the foregoing, it is expressly acknowledged that the
10-day curative opportunity provided to Buyer shall in no event cause the
Closing to be extended beyond December 22, 2004, and that, if a 10-day curative
period would otherwise cause such extension, the curative period afforded to
Buyer by this Section shall be reduced accordingly.

      With respect to any defaults which occur subsequent to Closing by Buyer
relating to matters which, by their nature, must be completed or arise
subsequent to Closing Seller shall have all rights and remedies afforded to it
by Florida law, whether in law or in equity, except to the extent specific
remedies may be set forth in an agreement which survives Closing, in which case
the remedies set forth in such agreement shall be binding upon the parties, and
the limitations with respect to remedies heretofore set forth in this paragraph
9 shall no longer be applicable.

      10. SELLER'S DEFAULT.

            10.1. Default by Seller. Except as to a wrongful failure timely to
close on the sale of the Property, Seller shall not be in default hereunder
unless within ten (10) business days after receipt of written notice from Buyer,
Seller fails to cure any of the following: (i) an any representation or warranty
made by Seller herein is or becomes false in any material respect; (ii) any
covenant or obligation made or undertaken by Seller hereunder is not
substantially performed in the time specified for such performance; (iii) there
is a failure of title not cured by Seller or waived by Buyer after the Title
Commitment is reviewed and Permitted Exceptions are established, except for any
subsequent matters authorized by paragraph 6.1 above; or (iv) Seller fails to
convey title to the Property in accordance herewith or otherwise breaches any
other provision of this Agreement when the Buyer is not in default hereunder.
This ten (10) business day notice provision shall not apply to any title or
survey matter as to which the notice and/or cure period already has expired
hereunder. Buyer's sole and exclusive remedies hereunder shall be (i) specific
performance, without any claim for delay damages or (ii) return of the Deposit
Notwithstanding the foregoing it is expressly acknowledged that the 10-day
curative opportunity provided to Seller shall in no event cause the Closing to
be extended beyond December 22, 2004, and that, if a 10-day curative period
would otherwise cause such extension, the curative period afforded to Seller by
this Section shall be reduced accordingly.

      With respect to any defaults which occur subsequent to Closing by Seller
relating to matters which, by their nature, must be completed or arise
subsequent to Closing, Buyer shall have all rights and remedies afforded to it
by Florida law, whether in law or in equity, except to the extent specific
remedies may be set forth in an agreement which survives Closing, in which case
the remedies set forth in such agreement shall be binding upon the parties, and
the limitations with respect to remedies heretofore set forth in this paragraph
10 shall no longer be applicable.

                                      -8-
<PAGE>

      11. REPRESENTATIONS AND WARRANTIES OF BUYER.

            11.1 Buyer's Organization. Buyer is duly organized, existing and in
good standing under the laws of the State of Nevada, is authorized to transact
business in the State of Florida, and has not filed, voluntarily or
involuntarily, for bankruptcy relief within the last six months under the laws
of the United States Bankruptcy Code, nor has any petition for bankruptcy or
receivership been filed against Buyer within the last six months.

            11.2 Buyer's Capacity. Buyer represents that it has capacity to
enter into this Agreement and that the person signing below on behalf of Buyer
represents that he or she is duly authorized to execute this Agreement and to
bind the party for which he or she is signing.

      12. REPRESENTATIONS, WARRANTIES, AND COVENANTS OF SELLER WITH RESPECT TO
THE PROPERTY.

            12.1 Seller's Representations, Etc. Seller expressly covenants,
warrants and represents to Buyer the following matters:

                  (a)   In addition to the obligations required to be performed
                        hereunder by Seller at the Closing, Seller shall perform
                        such other acts, and shall execute, acknowledge and
                        deliver subsequent to Closing such other instruments,
                        documents and other materials as the other may
                        reasonably request in order to effectuate the
                        consummation of the transaction contemplated herein and
                        to vest title to the Property in Buyer.

                  (b)   Seller has received no written notice of any change
                        contemplated in any applicable laws, ordinances, or
                        restrictions, or of any judicial or administrative
                        action or of any action by adjacent landowners, which
                        would prevent or adversely affect Buyer's intended use
                        of the Property for single-family residential
                        development.

                  (c)   Seller has received no written notice of any violation
                        of any applicable laws, ordinances, regulations,
                        statutes, rules and restrictions pertaining to and
                        affecting the Property.

                  (d)   No other person, firm, corporation or other entity has
                        any right or option to acquire the Property or any
                        portion thereof.

                  (e)   To Seller's knowledge, there are no parties in
                        possession of any portion of the Property, whether as
                        lessees, tenants at sufferance, trespassers or
                        otherwise.

                  (f)   During the period between the date hereof and the
                        Closing, Seller agrees that it shall:

                                      -9-
<PAGE>

                        (i)   Comply with the requirements of all state and
                              municipal laws, ordinances, regulations and orders
                              relating to the Property;

                        (ii)  Comply with all the terms, conditions and
                              provisions of all contractual arrangements
                              relating to the Property, if any, and make all
                              payments due thereunder, and

                        (iii) Neither negotiate nor enter into any contract
                              affecting the use or operation of the Property
                              which cannot be terminated without charge, cost,
                              penalty or premium on or before Closing.

                  (g)   Except as may be otherwise referenced in this Agreement,
                        including, by way of example but not limitation, the
                        agreements referenced in Sections 8 and 36 hereof, there
                        will be no contracts, leases, service contracts,
                        maintenance contracts, operating agreements or other
                        contracts or agreements of any kind in existence with
                        respect to the Property which would be binding on Buyer
                        subsequent to Closing.

                  (h)   To Seller's knowledge, no portion of the Property has
                        ever been used as a sanitary landfill or as a garbage
                        dump.

                  (i)   Without investigation, Seller has no knowledge of any
                        toxic substances, hazardous wastes, hazardous
                        substances, or any other pollutants or dangerous
                        substances regulated pursuant to any applicable
                        environmental laws including, without limitation,
                        polychlorinated biphenyls (PCB's), oil, petroleum
                        products and fractions, vinyl chloride, asbestos, heavy
                        metals, radon, underground storage tanks (whether empty,
                        filled or partially filled with any substance, regulated
                        or otherwise), any substance or materials the presence
                        of which on the Property is prohibited by any
                        environmental laws or any other substance or material
                        which requires special handling or notification of any
                        federal, state or local governmental entity regarding
                        collection, storage, treatment or disposal being present
                        on the Property. Seller further represents that, to
                        Seller's knowledge, without investigation, no person has
                        used, generated, manufactured, stored or disposed of on,
                        under or about the Property or transported to or from
                        the Property any of the aforementioned materials (the
                        "HAZARDOUS MATERIALS"). For the purpose of this
                        Paragraph 4.1(i), Hazardous Materials shall also include
                        but not be limited to substances defined as "hazardous
                        substances," "hazardous materials," or '"toxic
                        substances" in the Comprehensive Environmental Response,
                        Compensation and Liability Act of 1980, as amended, 42
                        U.S.C. Sec. 9601, et seq.;

                                      -10-
<PAGE>

                        the Hazardous Materials Transportation Act, 49 U.S.C.
                        Section 1801, et seq.; the Resource Conservation and
                        Recovery Act, 42 U.S.C. Section 6901 et seq.; and in the
                        regulations adopted and publications promulgated
                        pursuant to said laws.

                  (j)   Seller will not make any application to change the
                        zoning classification of the Property in a manner which
                        will prevent Buyer from developing the Property for
                        single-family lots and attendant single-family
                        residential units.

                  (k)   To Seller's knowledge, there are no legal actions, suits
                        or other legal or administrative proceedings, including
                        zoning, land use, condemnation or similar cases or
                        proceedings, presently existing against the Property or
                        against Seller's interest therein or against any third
                        party known to Seller affecting the Property.

                  (l)   To Seller's knowledge, there are no uncured violations
                        of Federal, state or municipal laws, ordinances, orders,
                        regulations or requirements affecting the Property.

                  (m)   Seller has full authority to execute this Agreement, to
                        comply with its terms and to consummate the transaction
                        contemplated herein. The person signing below on behalf
                        of Seller represents that he or she is duly authorized
                        to execute this Agreement and to bind Seller. The
                        execution by Seller of this Agreement and the
                        consummation by Seller of the transaction contemplated
                        hereby do not, and will not, constitute a violation of
                        any order, rule or regulation of any court or any
                        federal, state or municipal regulatory body or
                        administrative agency or any other governmental body
                        having jurisdiction over Seller or any portion of the
                        Property.

            12.2 No Other Representations. No representation or inducement,
whether oral or written, made prior hereto which is not included in this
Agreement shall have any force or effect.

            12.3 Representations and Warranties as Condition Precedent. As a
condition precedent to Buyer's obligation to purchase the Property, the
covenants, representations and warranties set forth in this Paragraph and
elsewhere in this Agreement must be true and correct at the time of Closing,
and, unless Seller shall have otherwise expressly notified Buyer in writing to
the contrary, all representations, covenants and warranties of Seller contained
herein shall be deemed to have been affirmed in their entirety as of the time of
Closing.

            12.4 Knowledge. As used in this paragraph 12, the term "knowledge"
means the actual present knowledge of Matt O'Brien, the Vice President of Land
Development of Seller, without independent investigation or review of files.

                                      -11-
<PAGE>

            12.5 Survival. Seller hereby agrees to defend, indemnify, save and
hold Buyer, its successors and assigns, harmless from and against any and all
losses, claims, damages, liabilities, costs and expenses, including, without
limitation, attorneys' fees and costs, related to, growing out of, or arising
from any intentional breach of any representation or warranty of Seller set
forth above. The foregoing indemnification shall survive the Closing for a
period of one (1) year.

      13. PATRIOT ACT REPRESENTATION. Seller and Buyer represent and warrant to
each other that it is not acting, directly or indirectly, for or on behalf of
any person, group, entity or nation named by the United States Treasury
Department as a Specially Designated National and Blocked Person, or for or on
behalf of any person, group, entity or nation designated in Presidential
Executive Order 13224 as a person who commits, threatens to commit, or supports
terrorism; and that they are not engaged in this transaction directly or
indirectly on behalf of, or facilitating this transaction directly or indirectly
on behalf of, any such person, group, entity or nation.

      14. CAPTIONS. Descriptive headings are for convenience only and shall not
control or affect the meaning or construction of any provision of this Agreement

      15. ENTIRE AGREEMENT. This Agreement embodies and constitutes the entire
understanding between the parties with respect to the transaction contemplated
herein. All prior or contemporaneous agreements, understandings, representations
and statements, oral or written, are merged into this Agreement. Neither this
Agreement nor any provision hereof may be waived, modified, amended, discharged,
or terminated except by an instrument in writing signed by the party against
which the enforcement of such waiver, modification, amendment, discharge or
termination is sought, and then only to the extent set forth in such instrument.

      16. ASSIGNMENT. Neither party hereto shall have the right to assign this
Agreement or any of its rights or obligations hereunder to any person,
corporation or other entity without the prior written approval of the other
party, which approval shall not be unreasonably withheld or delayed.
Notwithstanding the foregoing, Buyer shall have the right to assign this
Agreement to an entity that is controlled by, controls, or is under common
control with, Buyer.

      17. PARTIES BOUND. This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto and their successors and assigns, provided
that no assignment shall be made except in accordance with the provisions of
paragraph 16 hereof.

      18. APPLICABLE LAW. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Florida.

      19. PARTIAL INAVALIDITY. In case any one or more of the provisions hereof
shall for any reason be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other provision hereof, and this Agreement shall be construed as if such
invalid, illegal or unenforceable provision had never been contained herein.

                                      -12-
<PAGE>

      20. CONSTRUCTION OF AGREEMENT. The parties acknowledge that each has
played an equal part in the negotiation and drafting of this Agreement, and in
the event any ambiguities should be realized in the construction or
interpretation of this Agreement, such ambiguities shall not be construed
against either party solely on account of authorship.

      21. COUNTERPARTS. This Agreement may be executed in several counterparts,
each constituting a duplicate original, but all such counterparts constituting
one and the same Agreement.

      22. EFFECTIVE DATE. For the purpose of determining "the date hereof" or
the Effective Date, as used in this Agreement, such date shall be the last date
the Seller or Buyer executes this Agreement.

      23. PARTIES. Whenever the context hereof shall so require, the singular
shall include the plural, the male gender shall include the female gender and
the neuter, and vice versa, and the use of the terms "include," "includes" and
"including" shall be without limitation to the items which follow.

      24. CONDITIONS PRECEDENT.

            24.1. Conditions to Buyer's Obligations. The obligation of Buyer to
consummate the Closing is subject to the satisfaction, as of Closing, of each of
the following conditions (any of which may be waived in whole or in part in
writing by Buyer at or prior to Closing):

                  (a)   Buyer shall have been furnished with the Title
                        Commitment as required by paragraph 6.1 hereof, and such
                        commitment shall be (i) updated at Seller's expense at
                        Closing with such update showing no change in the status
                        of title as previously approved by Buyer, and (ii)
                        modified at Closing to delete the standard exceptions,
                        including those for taxes and assessments (other than
                        those that are not yet due and payable), matters of
                        survey (provided Buyer delivers to the Title Company a
                        current survey of the Properly that satisfies the
                        requirements of the Title Company), parties in
                        possession, construction liens, and matters appearing in
                        the "gap."

                  (b)   Seller shall furnish to Buyer, at least three (3)
                        business days prior to Closing, copies of all deeds,
                        affidavits or other documents which will be executed and
                        delivered by Seller at Closing, which documents shall be
                        subject to the reasonable approval of Buyer's attorney.

                  (c)   Seller shall have (i) obtained the approval of the
                        construction drawings relating to the Property and
                        prepared by Heidt & Associates, Inc. from Pasco County,
                        Florida (the "CONSTRUCTION DRAWINGS"), (ii) obtained
                        from SWFWMD the Status of Permit

                                      -13-
<PAGE>

                        Application "completeness" letter for the Property and
                        (iii) completed the mass grading of the individual lots
                        as depicted on the Construction Drawings.

                  (d)   Any environmental assessment of the Property obtained by
                        Buyer prior to the Closing shall not (i) disclose that
                        the Property contains any Hazardous Materials, or (ii)
                        recommend a Phase II assessment.

                  (e)   There shall exist no governmental moratorium, delay or
                        hindrance that would impair Buyer's ability to timely
                        obtain the approved Construction Drawings or building
                        permits with respect to the Property.

      With respect to subsection (c) above, Buyer acknowledges and agrees that
it will be responsible for obtaining the required Construction Drawings once
they are approved by Pasco County and Buyer is prepared to commence its
development of the Property with the understanding that any and all fees
necessary to be paid as a prerequisite for Pasco County to release the subject
plans will be paid by Buyer including, by way of example but not limitation, any
and all prepayments of water and sewer impact fees that may be charged by Pasco
County.

      25. TIME. The parties acknowledge that time is of the essence for each
time and date specifically set forth in this Agreement. Without limiting the
generality of the foregoing, it is expressly understood that Seller shall have
no obligation to close the transaction contemplated by this Agreement and Buyer
shall have no right to acquire the Property subsequent to December 22, 2004.

      26. NOTICES. All notices which are required or permitted hereunder must be
in writing and shall be deemed to have been given, delivered or made, as the
case may be (notwithstanding lack of actual receipt by the addressee) (i) upon
hand delivery, (ii) three (3) business days after having been deposited in the
United States mail, certified or registered, return receipt requested,
sufficient postage affixed and prepaid, (iii) one (1) business day after having
been deposited with an expedited, overnight courier service (such as by way of
example but not limitation, U.S. Express Mail, Federal Express or Airborne), or
(iv) upon delivery of a facsimile transmission which is confirmed on the
sender's facsimile machine as having been sent to the recipient at the proper
telecopy number, addressed to the party to whom notice is intended to be given
at the address set forth below:

                Seller:              Pulte Home Corporation
                                     Northdale Executive Center
                                     3810 Northdale Boulevard
                                     Suite 100
                                     Tampa, Florida 33624
                                     Attn: Mr. Matt O'Brien
                                     Telephone No. (813)265-3343
                                     Facsimile No. (813) 265-3367

                                     -14-
<PAGE>

               with a courtesy       Hill, Ward & Henderson, P.A.
               copy to:              Bank of America Plaza, Suite 3700
                                     101 East Kennedy Boulevard
                                     Tampa, Florida 33602
                                     Attn: Thomas N. Henderson, III, Esq.
                                     Telephone No. (813) 221-3900
                                     Facsimile No. (813) 221-2900

               Buyer:                Ashton Tampa Residential, LLC
                                     500 N. Westshore Drive, Suite 1020
                                     Tampa, Florida 33609
                                     Attn: Mr. James D.Bowen
                                     Telephone No. (813) 281-0232
                                     Facsimile No. (813) 281-0242

                                     and

                                     Ashton Woods Homes
                                     1080 Holcomb Bridge, Building 200
                                     Suite 350
                                     Roswell, Georgia 30076
                                     Attn. Mr. Thomas Krobot
                                     Telephone No. (770) 998-9663
                                     Facsimile No. [ILLEGIBLE]

               with a courtesy       Ward Rovell, Professional Association
               copy to:              Bank of America Plaza, Suite 4100
                                     101 East Kennedy Boulevard
                                     Tampa, Florida 33602
                                     Attn: Charles H. Carver, Esq.
                                     Telephone No. (813) 222-8700
                                     Facsimile No. (813)222-8701

               Escrow Agent:         Hill, Ward & Henderson, P.A.
                                     Bank of America Plaza, Suite 3700
                                     101 East Kennedy Boulevard
                                     Tampa, Florida 33602
                                     Attn: Thomas N. Henderson, III, Esq.
                                     Telephone No. (813)221-3900
                                     Facsimile No. (813) 221-2900

      The failure by any party to deliver a courtesy copy as referenced above
shall not constitute a default under the terms of this Agreement nor shall it
create a defect in any notice which is otherwise properly given. Furthermore, it
is agreed that, if any party hereto is

                                      -15-
<PAGE>

represented by legal counsel, such legal counsel is authorized to deliver
written notice directly to the other party on behalf of his or her client, and
the same shall be deemed proper notice hereunder if delivered in the manner
hereinabove specified.

Any party hereto may, at any time by giving ten (10) days written notice to the
other party hereto, designate any other address in substitution of the foregoing
address to which such notice shall be given and other parties to whom copies of
all notices hereunder shall be sent.

      27. ATTORNEY'S FEES, ETC. Should either party employ an attorney or
attorneys to enforce any of the provisions hereof, or to protect its interest in
any matter arising hereunder, or to recover damages for the breach hereof, the
party prevailing shall be entitled to recover from the other party all
reasonable costs, charges and expenses, including attorneys' fees, the value of
time charged by paralegals and/or other staff members operating under the
supervision of an attorney, and other legal costs, expended or incurred in
connection therewith, before, during and subsequent to any litigation, including
arbitration and appellate proceedings, bankruptcy or similar debtor/creditor
proceedings, and proceedings to enforce any indemnity agreement herein
contained.

      28. [Intentionally Omitted].

      29. CONDEMNATION. If, after the date hereof and prior to Closing, all or a
part of the Property is subjected to a bona fide threat of condemnation by a
body having the power of eminent domain or is taken by eminent domain or
condemnation (or sale in lieu thereof), Buyer may, by written notice to Seller,
elect to cancel this Agreement no later than ten (10) days after notice of such
occurrence, in which event both parties shall be relieved and released of and
from any further liability hereunder, and the Deposit made by Buyer hereunder
shall forthwith be returned to Buyer, whereupon this Agreement shall become null
and void and be considered canceled. If no such election is made within said
10-day period, this Agreement shall remain in full force and effect and the
purchase contemplated herein, less any interest taken by eminent domain or
condemnation, shall be effected with no further adjustment, and upon Closing
Seller shall assign, transfer, and set over to Buyer all of the right, title and
interest of Seller in and to any awards that have been or that may thereafter be
made for such taking.

      30. WAIVER OF BREACH. The waiver of one or more defaults by any party to
this Agreement shall not be deemed a waiver of any subsequent default of the
same or any other provision of this Agreement under the same or other
circumstances.

      31. BROKERAGE COMMISSIONS. Seller and Buyer warrant each to the other that
they have not dealt with any real estate broker or salesperson with regards to
this transaction. Seller agrees to indemnify and hold Buyer harmless from any
and all commissions claimed by any broker or third party arising by virtue of
this transaction whose commissions might legally arise from acts of Seller.
Buyer agrees to hold Seller harmless from any and all commissions claimed by any
broker or third party arising by virtue of this transaction whose commissions
might legally arise from acts of Buyer.

                                      -16-
<PAGE>

      32. DISCLAIMER OF WARRANTIES. Except as specifically set forth in this
Agreement, Seller has not made and does not make any warranty or representation,
express or implied as to the merchantability, quantity, quality, physical
condition or operation of the Property, zoning, the suitability or fitness of
the Property or any improvements thereon, if any, for any specific or general
use or purpose, the availability of water, sewer or other utility service, or
any other matter affecting or relating to the Property, its development or use
including but not limited to, the Property's compliance with any environmental
laws. Neither party is relying on any statement or representations made by the
other not embodied herein. Buyer hereby expressly acknowledges that no such
warranties and representations have been made, except as expressly set forth in
the Agreement; that it shall be Buyer's obligation to obtain and pay for all
commitments for water, sewer and other utilities and to pay the commitment,
impact, tap in or other fees and charges for such utilities (no such fees have
been paid by Seller). Buyer acknowledges that the provisions of this Agreement
for inspection and investigation of the Property are adequate to enable Buyer to
make Buyer's own determination with respect to merchantability, quantity,
quality, physical condition or operation of the Property, zoning, suitability or
fitness of the Property or any improvements thereon, if any, for any specific or
general use or purpose, the availability of water, sewer or other utility
service or any other matter affecting or relating to the Property, its
development or use, including without limitation, the Property's compliance with
any environmental laws. Buyer further acknowledges it has inspected the Property
or has caused such inspection to be made and is thoroughly familiar and
satisfied therewith, and agrees to take the Property in its physical condition,
"AS IS, WHERE IS, WITH ALL FAULTS" as of the date of Closing, subject to the
express conditions of this Agreement. Seller shall not be liable or bound in any
manner by any verbal or written statement, representation or information made or
given by anyone pertaining to the Property, unless specifically set forth in
this Agreement.

      In particular, but without in any way limiting the foregoing, Buyer hereby
releases Seller from any and all responsibility, liability and claims for or
arising out of the presence on or about the Property (including in the soil,
air, structures and surface and subsurface water) of materials, wastes or
substances that are or become regulated under or that are or become classified
as toxic or hazardous, under any Environmental Law, including without
limitations, petroleum, oil, gasoline or other petroleum products, byproducts or
waste. The foregoing release shall not apply, however, if the presence on or
about the Property of such materials, wastes or substances was caused by Seller,
nor shall the foregoing release be construed as limiting Seller's
indemnification obligations in Section 12.5. As used herein, "ENVIRONMENTAL LAW"
shall mean, as amended and in effect from time to time, any federal, state or
local statute, ordinance, rule, regulation, judicial decision, or the judgment
or decree of a governmental authority, arbitrator or other private adjudicator
by which Buyer or the Property is bound, pertaining to the environment,
including, without limitation, the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, the Hazardous Materials
Transportation Act, as amended, the Resource Conservation and Recovery Act, as
amended, the Clean Air Act, as amended and in the statutes together with the
rules adopted and guidelines promulgated pursuant thereto, and all similar
statutes together with rules adopted and guidelines promulgated pursuant to the
foregoing.

                                      -17-
<PAGE>

      33. MEMORANDUM OF AGREEMENT. Neither this Agreement nor a Memorandum of
this Agreement shall be filed of record by either party.

      34. RADON GAS DISCLOSURE. The following language is required by law in any
contract involving the sale or lease of any building within the State of
Florida:

            "RADON GAS: Radon is a naturally occurring radioactive gas that,
            when it has accumulated in a building in sufficient quantities, may
            present health risks to persons who are exposed to it over time.
            Levels of radon that exceed federal and state guidelines have been
            found in buildings in floridal. Additional information regarding
            radon and radon testing may be obtained from your county public
            health unit."

      35. ESCROW AGENT.

            35.1. Duties. It is agreed that the duties of Escrow Agent are only
such as are herein specifically provided, being purely ministerial in nature,
and that Escrow Agent shall incur no liability whatever except for willful
misconduct or gross negligence so long as Escrow Agent has acted in good faith.
The Seller and Buyer release Escrow Agent from any act done or omitted to be
done by Escrow Agent in good faith in the performance of Escrow Agent's duties
hereunder.

            35.2. Responsibilities. Escrow Agent shall be under no
responsibility with respect to any Deposit placed with it other than faithfully
to follow the instructions herein contained. Escrow Agent may consult with
counsel and shall be fully protected in any actions taken in good faith, in
accordance with counsel's advice. Escrow Agent shall not be required to defend
any legal proceedings which may be instituted against. Escrow Agent in respect
to the subject matter of these instructions unless requested to do so by Seller
and Buyer and indemnified to the satisfaction of Escrow Agent against the cost
and expense of such defense. Escrow Agent shall not be required to institute
legal proceedings of any kind. Escrow Agent shall have no responsibility for the
genuineness or validity of any document or other item deposited with Escrow
Agent, and shall be fully protected in acting in accordance with any written
instructions given to Escrow Agent hereunder and believed by Escrow Agent to
have been signed by the proper parties.

            35.3. Sole Liability, Escrow Agent assumes no liability hereunder
except that of a stakeholder. If there is any dispute as to whether Escrow Agent
is obligated to deliver the Deposit, or as to whom the Deposit is to be
delivered, Escrow Agent will not be obligated to make any delivery of the
Deposit, but in such event may hold the Deposit until receipt by Escrow Agent of
an authorization in writing signed by all of the persons having an interest in
such dispute, directing the disposition of the sum, or in the absence of such
authorization, Escrow Agent may hold the Deposit until the final determination
of the rights of the parties in an appropriate proceeding. If such written
authorization is not given, or proceedings for such determination are not begun
and diligently continued, Escrow Agent may, but is not required, to bring an
appropriate action or proceeding for leave to place the Deposit with the court,
pending

                                      -18-
<PAGE>

such determination. Once Escrow Agent has tendered into the registry or custody
of any court of competent jurisdiction all money and/or property in its
possession under this Agreement, or has made delivery of the Deposit in any
other manner provided for herein, Escrow Agent shall be discharged from all
duties and shall have no further liability hereunder as Escrow Agent.

      It is expressly understood that Hill, Ward & Henderson, P.A., represents
Seller in connection with this transaction. In the event of any disputes as to
which party is entitled to the Deposit or in the event any disagreement shall
arise as a result of this Agreement or the transaction contemplated hereby,
Escrow Agent shall not be excluded from representing Seller by virtue of its
serving as Escrow Agent pursuant to this Agreement. Buyer shall not object to,
or request a disqualification of, Escrow Agent, as counsel for Seller.

      36. OTHER CONTRACTUAL MATTERS.

            36.1. Homeowner's Association/Restrictive Covenants. Seller owns and
is developing contiguous real property for a residential project known as "Palm
Cove". As part of the overall Palm Cove project, which will comprise both the
Property and Seller's additional land, Seller has created or will create a
homeowner's association and has recorded a Declaration of Covenants, Conditions
and Restrictions of Palm Cove of Wesley Chapel, both of which will encumber the
Property as Permitted Exceptions and as covenants running with the land. In this
regard, pursuant to the laws of the State of Florida, the homeowner's
association/community disclosure statement required by Section 689.26, Florida
Statutes is hereby deemed to have been provided.

            36.2. Overpass Road. In conjunction with the development of the
Property, Buyer covenants and agrees that it will construct the remaining
extension to Overpass Road, which is included in the approved Construction
Drawings, as well as entry monumentation and landscaping pursuant to the
monument and landscaping conceptual plan provided by and approved by Seller.

            36.3. Development Requirements. In conjunction with the development
of the Property, Buyer covenants and agrees that it will limit its horizontal
development and construction to what is depicted on the approved Construction
Drawings for the Property and that all platting(s) of the Property shall be
restricted to only what is shown on the approved Construction Drawings. No
modification of the Construction Drawings shall be made by Buyer without the
prior written consent of Seller, which consent may be withheld by Seller in the
exercise of its sole discretion. An appropriate reference to the aforesaid
development requirements shall be incorporated into the deed referenced in
paragraph 7.1(a) of this Agreement.

            36.4. Section 1445.

                  (a) The parties shall comply with the provisions of Code
Section 1445 and applicable Treasury Regulations issued thereunder. If the
Seller is a U.S. person for Code Section 1445 purposes, then on demand of the
Buyer and prior to dosing the Seller shall provide the Buyer with a certificate
of non-foreign status in the manner provided in Treasury Regulations

                                      -19-
<PAGE>

Section 1.1445-2. If the Seller provides the Buyer with such certificate, and if
the Buyer is otherwise permitted to rely on such certificate under those
Regulations, the Buyer shall not withhold under Code Section 1445.

                  (b) If the Seller is a 'foreign person' as defined by the
Code, the Buyer generally is required to withhold 10% of the gross sales price
from the Seller at closing and to pay the withheld amount over to the Internal
Revenue Service (IRS) unless an applicable exemption from withholding or a
limitation on the amount to be withheld is available. To the extent that the
cash to be paid over to the Seller at closing is insufficient to cover the
Buyer's withholding obligation, the Seller shall provide to the Buyer at closing
cash equal to such excess for purposes of making such withholding payment. If
the Seller's federal income tax on the gain is less than the applicable
withholding amount, the Seller may make advance application to the IRS for
reduced withholding and, if granted, the Buyer shall withhold only the
authorized reduced amount. If such ruling has not been received by closing, the
parties at closing shall enter into an escrow agreement reasonably satisfactory
to the Buyer and Seller pending receipt of the ruling, provided that at closing
the Seller shall have the obligation to provide to the escrow agent from the
closing proceeds (or from the Seller's other resources if necessary) cash equal
to the maximum required withholding, with any excess withholding being
refundable to the Seller upon receipt of a favorable ruling from the IRS.

                  (c) Buyer and Seller understand that the IRS requires the
Buyer and the Seller to have a U.S. federal taxpayer identification number and
to supply that number on the foregoing forms. A foreign individual may acquire
an International Taxpayer Identification Number for this purpose. Since it may
take several weeks to receive the number after application and the IRS will not
process these forms without the actual number, a party lacking a TIN is advised
to apply immediately. The Seller's TIN is 38-154-5089. The Buyer's TIN is 90-
0193359.

      37. [Intentionally Omitted].

      38. FACSIMILE COPIES. Facsimile copies of this Agreement and the
signatures thereon shall have the same force and effect as if the same were
original documents. Facsimile signatures are acceptable and shall be deemed to
be original signatures.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.
            THE SIGNATURE PAGE FOLLOWS ON THE NEXT SUCCEEDING PAGE.]

                                      -20-
<PAGE>

                               [SIGNATURE PAGE TO
                           AGREEMENT FOR SALE OF LAND]

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the dates set forth below.

WITNESSES:                          SELLER:

                                    PULTE HOME CORPORATION, a
                                    Michigan corporation

/s/ [ILLEGIBLE]                     By: /s/[ILLEGIBLE]
-----------------                        -----------------------
Name: [ILLEGIBLE]                        Name: [ILLEGIBLE]
      (Print or Type Name)               Title: [ILLEGIBLE]

                                        Date: December 3, 2004
/s/ Roy J. McCraw III
-------------------------
Name: Roy J. McCraw III
      (Print or Type Name)

                                    BUYER:

                                    ASHTON TAMPA RESIDENTIAL, LLC,
                                    a Nevada limited liability company

___________________________         By: ____________________________
Name: _____________________             Name: ______________________
      (Print or Type Name)              Title: _____________________

___________________________             Date: December ___, 2004
Name: _____________________
      (Print or Type Name)           AND

___________________________         By: ____________________________
Name: _____________________             Name: ______________________
      (Print or Type Name)              Title: _____________________

___________________________             Date: December ___, 2004
Name: _____________________
      (Print or Type Name)

                                      -21-
<PAGE>

                               [SIGNATURE PAGE TO
                           AGREEMENT FOR SALE OF LAND]

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the dates set forth below.

WITNESSES:                          SELLER:

                                    PULTE HOME CORPORATION, a
                                    Michigan corporation

/s/ [ILLEGIBLE]                       By: _____________________________
-----------------                         Name: ______________________
Name: [ILLEGIBLE]                         Title: ______________________
      (Print or Type Name)
                                          Date: December ______, 2004
___________________________
Name: _____________________
      (Print or Type Name)

                                    BUYER:

                                    ASHTON TAMPA RESIDENTIAL, LLC,
                                    a Nevada limited liability company

/s/ Stacey M. Cook                  By: /s/ [ILLEGIBLE]
--------------------                    --------------------------
Name: Stacey M. Cook                    Name: [ILLEGIBLE]
      (Print or Type Name)              Title: [ILLEGIBLE]

                                        Date: December 3, 2004

/s/ Dawn Carey
---------------------
Name: Dawn Carey
      (Print or Type Name)          AND

/s/ [ILLEGIBLE]                     By: /s/ [ILLEGIBLE]
--------------------------              ------------------------------
Name: [ILLEGIBLE]                       Name: [ILLEGIBLE]
     (Print or Type Name)               Title: [ILLEGIBLE]

                                        Date: December 6, 2004

/s/ [ILLEGIBLE]
--------------------------
Name: [ILLEGIBLE]
      (Print or Type Name)

                                      -22-

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