Document:

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                                                                    EXHIBIT 10.7

                      WHITEHALL HOMES AT GRAND HAVEN, LTD.
                          LIMITED PARTNERSHIP AGREEMENT

      This Agreement of Limited Partnership ("Agreement") dated January 7th
2004, by and among WHITEHALL HOMES AT GRAND HAVEN, INC., a Florida corporation
("General Partner"), a corporation organized and existing under the laws of
Florida with offices at 290 Cocoanut Avenue, Sarasota, Florida 34236; and GRAND
HAVEN INVESTMENT GROUP ONE, LLC, a Florida limited liability company ("Limited
Partner"), a limited liability company organized and existing under the laws of
Florida with offices at 1717 2nd Street, Suite A, Sarasota, Florida 34236.
Hereinafter, the Limited Partner, together with any persons hereafter becoming
limited partners hereof and excluding any persons hereafter withdrawing from the
limited partnership as Limited Partner, shall be referred to collectively as the
Limited Partner, and, together with the General Partner shall be referred to
collectively as the "Partners".

                                     RECITAL

      WHEREAS, the General Partner and the Limited Partner are desirous for
forming a limited partnership ("Partnership") pursuant to the Revised Uniform
Limited Partnership Act of Florida ("Act");

      NOW, THEREFORE, the parties hereto intending to be legally bound, hereby
state, agree as follows:

                                    Article I
                                      NAME

      1.1. NAME. The name of the Partnership is WHITEHALL HOMES AT GRAND HAVEN,
LTD., a Florida limited partnership.

                                   Article II
                          OFFICE AND AGENT FOR SERVICE

      2.1. PLACE OF BUSINESS. The principal office of the Partnership shall be
located at 290 Cocoanut Avenue, Sarasota, Florida 34236 or such other location
as may hereafter be determined by the General Partner. The General Partner shall
notify the Limited Partner of any change in the principal office of the
Partnership.

      2.2 AGENT FOR SERVICE OF PROCESS. The agent for service of process for the
Partnership shall be Ronald Mustari, an individual having a business address at
290 Cocoanut Avenue, Sarasota, Florida 34236 and a residence address at 467
Walls Way, Sarasota, Florida.

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                                   Article III
                                    PURPOSES

      3.1. PURPOSES. The purposes of the Partnership shall be to acquire
approximately 7.5 acres of land in Village E-2 located in the River Club at
Grand Haven Community located in the City of Palm Coast, Florida (the
"Property") and develop this land into approximately 96 residential units for
sale to individual unit purchasers (the "Project"), to be developed on the real
property described on Exhibit "A" attached to this Agreement. The Project shall
proceed pursuant to the development plan completed by the General Partner and
reviewed and approved by the Partnership (the "Development Plan"). A copy of the
Development Plan is attached to this Agreement as Exhibit "B". The General
Partner shall acquire ownership of the Property in the name of the Partnership.

      3.2. POWERS TO CARRY OUT PURPOSES. In order to carry out its purpose, the
General Partner is empowered and authorized on behalf of the Partnership as
further set forth hereinbelow, and subject to the limitations as set forth
herein, to do any and all acts necessary, appropriate, proper, advisable,
incidental to or convenient for the furtherance and accomplishment of its
purposes, and for the protection and benefit of the Partnership including,
without limitation, the acquisition and ownership of the Property by the
Partnership pursuant to that certain "Contract for Sale and Purchase of Real
Estate" by and between Grand Haven Developers, LLC, a Delaware limited liability
company as Seller and Whitehall Quality Homes, Inc, a Florida corporation, as
Purchaser ("Purchase Agreement"), dated as of March 26, 2003, as same may be
amended; and thereafter, the physical development of the property acquired and
the marketing, sale and disposition of individual residential units constructed
thereon.

                                   Article IV
                                      TERM

      4.1. TERM. The Partnership shall continue until terminated as provided in
Article 10 hereof.

                                    Article V
                              CAPITAL CONTRIBUTIONS

      5.1. CONTRIBUTION BY THE GENERAL PARTNER. The General Partner shall
initially contribute ONE DOLLAR ($1.00) to the capital of the Partnership.
Thereafter, the General Partner shall not be required to contribute monetary
funds to the capital of the Partnership. The General Partner shall be required
to provide and to render all required management and development services to the
Partnership for the Property and the Project, inclusive, as well as to obtain
all necessary acquisition, development and construction funding for the
acquisition of the Property and the development of the Project and shall be
subject to all of the liabilities of the Partnership except as otherwise agreed
between the General Partner and the Partnership and the General Partner and its
creditors.

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      5.2. CONTRIBUTIONS BY THE LIMITED PARTNER. The Limited Partner shall
contribute ONE MILLION ONE HUNDRED THOUSAND DOLLARS ($1,100,000.00) to the
Partnership. All payments made by the Limited Partner shall be made to the
Partnership in cash or by check upon execution of this Agreement. The conditions
precedent to the obligations of the Limited Partner to complete its capital
contribution are set forth in Exhibit "C".

      Upon payment of the total capital contribution by the Limited Partner to
the Partnership, the General Partner and the Limited Partner shall each be
deemed to have interests in the Partnership in proportion to their respective
Percentage of Interest in the Partnership. The term Percentage of Interest in
the Partnership shall mean the percentage of interest in the Partnership as set
forth in this Agreement, and neither the General Partner nor the Limited Partner
may transfer their interest in the Partnership without the consent of all
parties hereto and any such transfer shall be in compliance with applicable
security laws, if any. The interests of the General Partner and the Limited
Partner may not be changed or modified except as expressly provided for in this
Agreement or by written Agreement by both the General Partner and the Limited
Partner. No additional capital contributions shall be required of the Limited
Partner and its interest in this Partnership cannot be modified except as
provided in this Agreement.

      5.3. INITIAL CAPITAL ACCOUNTS AND PERCENTAGE OF INTEREST. The initial
capital accounts of the General and the Limited Partner and their respective
percentage of interest shall be as follows, after the contribution of the
capital contributions referred to above:

<TABLE>
<CAPTION>
                         Capital             Percentage of Interest
                         -------             ----------------------
<S>                   <C>                    <C>
General Partner:      $        1.00                   25%
Limited Partner:      $1,100,000.00                   75%
</TABLE>

      5.4. LIABILITY OF LIMITED PARTNER(s). A limited partner is not liable for
the obligations of this Partnership.

      5.5. CAPITAL ACCOUNTS. The Partnership shall establish for each Partner an
initial capital account as provided above. Each Partner's capital account shall
be increased by the net profits from operations allocated to each Partner
pursuant to Section 8 below which Section specifically provides for a preferred
distribution and cash flow return to be paid to the Limited Partner from the
gross proceeds of individual unit sales, all as provided hereinbelow.

      Except as otherwise provided in this Agreement, whenever it is necessary
to determine the capital account of any Partner for purposes of Section 8 or 9,
the capital account of such Partner shall be determined after giving effect to
the allocation for the Partnership's current year of net profits and net losses
from operations under Section 8.1., and all distributions for such year under
Section 9.2. Loans made by the limited partner to the Partnership shall not be
considered contributions to the capital of the Partnership. A Partner shall not
be entitled to withdraw any part of such Partner's capital account or to receive
any distribution from the Partnership, except as specifically provided in this
Agreement. Any Partner, including any substituted Partner, who shall receive an
Interest

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in the Partnership or whose Interest in the Partnership shall be increased by
means of a transfer to such Partner of all or part of the interest of another
Partner, shall have a capital account which reflects such transfer.

      The foregoing provisions and the other provisions of this Agreement
relating to the maintenance of Capital Accounts are intended to comply with
Treasury Regulation Section 1.704-1 (b), and shall be interpreted and applied in
a manner consistent with such Section throughout the term of this Agreement. If
the General Partner shall determine that it is necessary to modify the manner in
which the Capital Accounts, or other debits or credits thereto, are computed or
maintained in order to comply with such Regulations then upon the mutual consent
of the General Partner and the Limited Partner, the General Partner is
authorized to make such modification.

      5.6. NEGATIVE CAPITAL ACCOUNT. Except as otherwise provided in this
Agreement, no Partner shall at any time have any liability to the Partnership or
any Partner, or be obligated to restore, or otherwise be responsible for, any
negative Capital Account of such Partner in the Partnership.

      5.7. DISALLOWANCE OF DEDUCTIONS. Notwithstanding any other provisions of
this Agreement, in the event that any amounts paid to the General Partner or its
affiliates pursuant to this Agreement on any Exhibit hereto, and deducted by the
Partnership in reliance on Section 707(a) and/or 707(c) of the Internal Revenue
Code of 1986, as amended ("Internal Revenue Code") are disallowed as deductions
to the Partnership on its federal income tax return and treated as Partnership
distributions, the General Partner shall be allocated items of Partnership
income, if any, in the year such fees were paid, equal to the amount of such
amounts for which deductions were disallowed. In such event, the amounts paid to
the General Partner shall be deemed to be partnership distributions and not fee
payments.

                                   Article VI.
                            LOANS TO THE PARTNERSHIP

      6.1. LOANS TO THE PARTNERSHIP. If the General Partner or the Limited
Partner shall make any loan or loans to the Partnership or advance money on its
behalf (other than as expressly required herein), the amount of any such loan or
advance shall not be deemed an increase in or contribution to the capital
account of the lending Partner or entitle such lending Partner to any increase
in its share of the distributions of the Partnership, or entitle or subject such
lending Partner to any greater proportion of the profits, gains, or losses which
the Partnership may sustain. Except as provided herein: (i) the General Partner
or any affiliate of the General Partner, with written consent of the Limited
Partner, may, but is not obligated to, loan or cause to be loaned to the
Partnership such additional sums as the General Partner deems appropriate and
necessary for the conduct of the Partnership's business (ii) loans made by a
General Partner, or any Affiliate of the General Partner, shall be upon such
terms and for such maturities as the General Partner deems reasonable; (iii) if:
(a) the General Partner or any Affiliate of a General Partner borrows money and
reloans the money to the Partnership, such General Partner or its Affiliate
shall be reimbursed for

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the actual interest paid by such party on such original loan, and other
borrowing costs incurred; (b) the General Partner or any Affiliate of the
General Partner loans its own money to the Partnership, the Partnership shall
pay interest to the General Partner or its Affiliate at a rate of interest equal
to the rate of interest earned by any Lender to the Partnership with respect to
the acquisition, development or construction of the Property and/or Project; and
(iv) any such loans referred to in this Paragraph 6.2. and the interest earned
thereon (but in no event at a rate greater than the maximum rate allowed by the
appropriate usury law) may be payable from borrowings, cash flow and reserves,
to the extent such reserves are not committed to repairs, and shall immediately
become due and payable upon the sale, exchange or other disposition of all or
substantially all of the Partnership's property or prior to any distributions of
capital or interim capital items to the Partners. Provided however that any
repayment of interest or principal on such Loans shall be subject, inferior and
subordinate in all respects to the right of the Limited Partner to the priority
of distributions as required to be made to it by Article IX below.

                                  Article VII.
                             MANAGEMENT AND CONTROL

      7.1. OVERALL MANAGEMENT AND CONTROL. The General Partner shall have full,
exclusive and complete discretion in the management and control of the
Partnership for the purposes set forth in Article 3. Such discretion shall
include, without limitation, the right to cause the Partnership to do the
following and to perform any of the following on behalf of the Partnership:

            a. Acquire ownership to the Property in the name of the Partnership
pursuant to the terms of the Purchase Agreement.

            b. Perform any and all acts necessary to carry out any and all
agreements entered into or required in connection with the Purchase Agreement
and to pay all sums due pursuant thereto

            c. Expend funds, including profits, in furtherance of the
Partnership's business and the development of the Project.

            d. Employ, on behalf of the Partnership and in connection with the
Project, individuals, firms and corporations, and professionals on such terms
and for such compensation as the General Partner shall, in its reasonable
discretion, determine.

            e. Do all acts and things which, in the General Partner's judgment,
are necessary or desirable for the proper management of the Partnership, the
Property, the Project and/or its other assets.

            f. Compromise, mediate, submit to arbitration, sue or defend any and
all claims for or against the Partnership.

            g. Make or revoke any election permitted the Partnership by any
taxing

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authority. The General Partner is hereby specifically authorized to act as the
"Tax Matters Partner" under the Internal Revenue Code and in any similar
capacity under state and/or local law.

            h. In the ordinary course of the Partnership business, buy, sell,
transfer, assign, convey, lease or sublet portions of the Property or assets on
behalf of the Partnership, upon such terms and conditions and for such
consideration as the General Partner may determine; however, such authority
shall not include a sale of all of the Property or substantially all of the
assets or the Project, and such authority is subject to the limitations set
forth in Section 7.2.

            i. Obtain a written lending commitment and to borrow funds for the
Partnership purposes for acquisition of the Property and development and
construction of the Project and subsequent thereto refinance any such loans or
mortgages on behalf of the General Partner and/or the Partnership upon terms and
upon such security as the General Partner shall determine.

            j. Disseminate financial and other reports to the Limited Partner on
a quarter annual basis.

            k. Maintain or cause to be maintained proper books and records of
the Partnership.

            l. Assist the accountants for the Partnership in the preparation of
financial statements and tax returns.

            m. Execute and file necessary certificates and other Partnership
documents including any amendment thereto.

            n. To invest funds of the Partnership, including funds held as
reserves, in certificates of deposit, interest-bearing, time deposits in state
or national banks; in United States Government securities; in bank repurchase
agreements, bankers' acceptances or money market funds, as the General Partner
may, from time to time, deem to be in the best interests of the Partnership.

            o. To acquire, enter into and pay for any contract of insurance
which the General Partner reasonably deems necessary and proper for the
protection of the Partnership, for the conservation of the assets of the
Partnership, or for any purpose beneficial to the Partnership.

            p. To employ attorneys, brokers, consultants, managers and
accountants on behalf of the Partnership, including affiliates of the General
Partner.

            q. To establish reasonable reserve funds from income derived from
the Partnership's operations or from capital transactions to provide for future
requirements of the Partnership.

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            r. To perform or cause to be performed all of the Partnership's
obligations under any agreement to which the Partnership is a party.

            s. To make, execute and deliver any and all documents of transfer
and conveyance and any and all other instruments and agreements, including
agreements with regulatory agencies, that may be necessary or appropriate to
carry out the powers herein granted.

            t. Perform any and all acts and execute any and all documents as the
General Partner, shall deem necessary or appropriate to carry out the purposes
of the Partnership.

            u. Borrow funds in the name of the Partnership from the General
Partner, or from affiliates of the General Partner, provided however, that all
repayments of principal and interest on such loans shall be subordinate to all
the provisions of this Agreement relating to the preferred return to be paid to
the Limited Partner.

            v. Subject to the requirements and restrictions of this Agreement,
borrow funds in the name of the Partnership from institutional or private
lenders on such terms and conditions as are common in the market place, and give
such security as is necessary to effectuate such loans, provided that the rights
to distributions of the Limited Partner provided for in Article IX are not
adversely affected or modified.

      The General Partner agrees to manage and control the affairs of the
Partnership to the best of its ability, and to conduct the operations
contemplated under this Agreement in a careful and prudent manner and in
accordance with good industry practice. Except as otherwise provided herein, all
Partnership decisions shall be made by the General Partner. The General Partner
shall devote such time as, in its discretion, may be necessary for the proper
performance of its duties hereunder, and may subcontract to others any portion
of its management duties hereunder, but such subcontracting shall not relieve
the General Partner from its supervisory obligations and responsibilities set
forth herein.

      7.2. LIMITATION ON MANAGEMENT RIGHTS. Notwithstanding any other provision
to the contrary in this Partnership Agreement, the General Partner is not be
empowered (without the prior written consent of the Limited Partner) to:

            a. Do any act in contravention of this Agreement;

            b. Possess the Property or other Partnership property including,
without limitation the Property or assign any rights in specific Partnership
property for other than a Partnership purpose;'

            c. Admit a person as a substitute General or Limited Partner, except
as otherwise permitted in this Agreement;

            d. Change or reorganize the Partnership into any other legal form;

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            e. Require any Limited Partner to make any contribution to the
capital of the Partnership not provided for herein; or

            f. Amend this Agreement, if any such amendment would materially
change the rights, duties and obligations of the parties to this Agreement.

            g. Reinvest the proceeds of any loan secured by the Partnership
Property received by the Partnership in any manner for other than the benefit of
the Partnership or in any manner inconsistent with the Development Plan or the
Partnership's objectives.

            h. Construct improvements to the Property or Project not
contemplated by the Development Plan.

            i. Borrow money in the name of the Partnership or utilize property
owned by the Partnership as collateral security for loans other than the
development and acquisition loan referenced in the Development Plan, and other
financing of the Partnership property (i.e. furniture and decoration of models),
provided however, that this limitation shall not apply to borrowing in the name
of the Partnership from the General Partner, or affiliates of the General
Partner, subject to the terms and conditions of this Partnership Agreement,
including the requirement that all repayments of principal and interest shall be
subordinate to the priority distribution to be paid to the Limited Partner as
required by this Partnership Agreement.

            j. Sell or contract to sell units other than in accordance with the
schedule of minimum prices approved and agreed upon by the Partners, which is
attached hereto as Exhibit "D" (the "Schedule of Minimum Prices"), provided
however, that if units are sold at prices different than the agreed Schedule of
Minimum Prices, the scheduled payments due the Limited Partner as provided
herein shall be based on the greater of the Schedule of Minimum Prices or the
actual sales price.

            k. Make any change in the Development Plan which would have, the
effect of lowering the total Project, budgeted sell out by more than 20%.

            l. Make any change in the budget for the completion of the Project
and implementation of the Development Plan as approved by the Partners (the
"Budget"), which change would increase any category by more than 10 % over the
approved amount, unless there are other changes in other categories which will
reasonably lower the proposed change to not more than 10 % over the approved
amount. A copy of the Budget is attached to this Agreement as Exhibit "E".

            m. Make any expenditure, or incur any obligation by or on behalf of
the Partnership involving a sum in excess of one hundred and ten percent (110 %)
of the amount budgeted in the Development Plan or the approved Budget.

            n. General Partner may make a change in excess of such allowed
amounts

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if General Partner shall fund the excess change from other than Partnership
funds, or loan proceeds otherwise available to the Partnership from Partnership
borrowings (other than loans from the General Partner or an affiliate of the
General Partner).

            o. Sell or contract to sell the Property or Project in a bulk sale
except to a bonafide third party purchaser in an arms length transaction.

      7.3. RIGHT TO EXAMINE PARTNERSHIP RECORDS, ETC. The Limited Partner shall
have the right to examine the books and records of the Partnership at its
principal place of business during regular business hours and to make reasonable
inquiry as to Partnership affairs.

      7.4. RIGHT TO REMOVE GENERAL PARTNER. The General Partner may not
voluntarily withdraw from the Partnership. The Limited Partner shall have the
right to remove the General Partner for cause as set forth below. If there would
be no remaining General Partner after the removal of the General Partner, a new
General Partner shall be simultaneously selected by the Limited Partner. The new
General Partner shall succeed to the interest of the General Partner and be
entitled to all distributions to the General Partner under Article VIII and
Article IX and as elsewhere provided in this Agreement. If a new General Partner
is not simultaneously elected, the Partnership shall thereupon terminate in
accordance with Section 10. hereof unless continued as set forth therein. Upon a
General Partner's removal, the interest of such General Partner in the
Partnership shall be forfeited provided that such General Partner shall still be
entitled to receive any and all distributions as set forth in this Agreement up
and until the time of such removal, in accordance with and subject to the terms
and conditions set forth in Section 10.2. If the General Partner purports to
resign or withdraw from Partnership in violation hereof, such Partner shall
remain liable for the debts, obligations and liabilities of the Partnership to
the same extent as if such Partner had not purported to resign or withdraw and,
in addition, shall be liable to the Partnership and the Partners for any damages
sustained by reason of such purported resignation or withdrawal.

      For all purposes of this Section 7.4., the right of the Limited Partner to
remove the General Partner for cause shall be limited, specifically, to a
finding, of the following cause for such removal having occurred and having, not
been remedied by such General Partner for a period of thirty days after written
notice thereof from the Limited Partner.

            a. The default by the General Partner in its obligations under the
terms and provisions of the Purchase Agreement and the failure to cure such
default within any curative period as provided under such Purchase Agreement; or

            b. An event of default under the terms and provisions of any
acquisition, development and construction loan financing loan obtained by the
Partnership with respect to acquisition of the Property and the development and
construction of the Project thereon, or the failure to cure such event of
default within any curative period as provided thereunder; or

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            c. The failure and/or default by the General Partner in satisfying
and discharging, all obligations and requirements of this Agreement, including,
but not limited to the provisions hereof related to Affirmative Obligations of
the General Partner set forth in Section 7.11.

      7.5. NO MANAGEMENT BY LIMITED PARTNER. The Limited Partner shall take no
part in the management of or transact any business for or on behalf of the
Partnership and shall not have any right or authority to act for or bind the
Partnership. The exercise of the rights and powers of a Limited Partner under
Sections 7.2. and 7.4. hereof shall not be deemed taking part in the day-to-day
affairs of the Partnership or the exercise of control over Partnership affairs.

      7.6. CONFLICTS OF INTEREST. Any Partner may engage in or possess an
interest in other business ventures of any nature or description independently
or with others, including but not limited to, the real estate business in all
phases which shall include, without limitation, ownership, operation,
management, syndication and development of real property, and neither the
Partnership nor any Partner shall have any rights in or to such independent
ventures or the income or profits derived therefrom and which may compete with
the Partnership.

      7.7. LIMITATIONS ON GENERAL PARTNER'S LIABILITY. The General Partner shall
not be liable, responsible or accountable in damages or otherwise to any other
Partner or the Partnership for any acts performed by it in good faith and within
the scope of this Agreement. The General Partner shall, however, be liable for
such actions to the extent they are attributable to gross negligence, fraud, or
intentional violation of the provisions of this Agreement. The General Partner
shall not be liable to any other Partner or the Partnership in the event that
any taxing authority disallows or adjusts any income, deductions or credits in
the Partnership's tax returns.

      7.8. LIMITATION ON LIABILITY OF THE GENERAL PARTNER FOR RETURN OF LIMITED
PARTNER'S CAPITAL. Subject to the General Partner's liabilities to the Limited
Partner as provided for in Section 7.7, the General Partner shall not be liable
for the return of the Capital Contributions of the Limited Partner, or any
portion thereof, except as provided herein relating to the obligation to make
distributions as provided for herein, and as provided in Section 7.11j.

      7.9. INDEMNIFICATION. The Partnership, but not the Limited Partner, shall
indemnify and hold harmless the General Partner and its shareholders,
successors, assigns, officers and directors, for any claim, loss, damage,
liability, action, cost or expense (including reasonable attorney fees) arising
out of any act or failure to act by them (including any act or failure to act as
"Tax Matters Partner") if such act or failure to act is in good faith, within
the scope of this Agreement and is not attributable to gross negligence, fraud,
or intentional violation of the provisions of this Agreement. The Partnership
and the General Partner shall indemnify and hold harmless the Limited Partner
from and against all liabilities, damages, and actions (including attorneys'
fees) which may arise from this Agreement and/or the

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development and sale of the Project, including any actions or claims of Unit
owners or Homeowner Associations and excepting, specifically, any actions,
damages or liabilities resulting from the breach of this Agreement by the
Limited Partner or resulting or arising from or attributable to gross negligence
or fraud of the Limited Partner, its agents or employees.

      7.10. RELATED PERSONS. The fact that a partner or any "Related Person" (as
hereinafter defined) is employed by the Partnership, or is directly or
indirectly interested in or connected with any person, firm, or corporation
employed by the Partnership to render or perform a service, or from which or
whom the Partnership may purchase any property, shall not prohibit the General
Partner from employing such person, firm or corporation or from otherwise
dealing with him or it, and neither the Partnership nor the Partners thereof
shall have any rights in or to any income derived therefrom, provided that any
such transaction is done in good faith and on not materially less favorable
terms than would be obtainable from an unrelated party. Neither the Partnership
nor any of the Partners shall, as a consequence of the Partnership relationship
created herein, have any rights in or to any income or profits derived
therefrom. A "Related Person" shall include any person, firm or corporation
affiliated with a Partner; and any partner, venturer, employee, officer,
director, or shareholder thereof; or any member of the family of any of the
foregoing.

      7.11. AFFIRMATIVE OBLIGATIONS OF GENERAL PARTNER. The General Partner
shall have the following affirmative obligations as a part of the Development
Plan approved by the Partners;

            a. To build, develop, supervise, and contract for the construction
of residential units and common elements and amenities of the community and, as
necessary, supervise and engage in financing activities on behalf of the
Partnership as set forth in the Development Plan and supervise and engage in
sales of the individual units, which obligation shall include, but shall not be
limited to the affirmative obligations to cause the substantial completion of
the items as set forth in Exhibit "F" attached hereto ("Substantial Completion
Obligations of the General Partner").

            b. To supervise all necessary staff and to attend to the hiring of
staff as required from time to time.

            c. To review and set all prices, fees and rates for the Development
Plan and the sale of the individual residential units.

            d. To maintain all licenses and permits required to accomplish the
Development Plan and the sale of the individual residential units.

            e. To maintain suitable internal accounting and internal auditing
systems

            f. To maintain such inventories, provisions, supplies, and equipment
as may be required in order to develop and construct the improvements
contemplated by the Development Plan and to engage in the sale of the individual
residential units.

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            g. To plan, prepare and contract for ongoing advertising and
promotional programs reasonably required to sell the individual residential
units.

            h. To maintain full, true and accurate records and accounts of the
business transactions of the Partnership.

            i. To provide the Limited Partner with a quarterly operating
statement within 45 days after the last day of each calendar quarter, and to
provide an annual operating statement within 90 days after the last day of each
fiscal year.

            j. To comply with all of the terms and conditions of the Purchase
Agreement, and without limiting the generality of the foregoing, specifically to
take such actions and arrange such funding under the loans obtained by the
Partnership to acquire Phases II and III of the Property as provided for under
the Purchase Agreement, on or before the required acquisition date specified
therefor in the Purchase Agreement. In addition to all of the rights of the
Limited Partner under this Agreement it is specifically provided that if the
Partnership does not acquire the Phase II and Phase II portions of the Property
under the Purchase Agreement, this is a material default by the General Partner,
and upon such default the General Partner shall not be entitled to any
distributions from the Partnership until there has been distributed to the
Limited Partner the return of its entire capital contribution of $1,100,000.00.
All proceeds available from any source to the Partnership shall be distributed
to the Limited Partner until such amount has been distributed the Limited
Partner.

                                  Article VIII
                       ALLOCATIONS OF PROFITS AND LOSSES

      8.1. ALLOCATION OF PROFITS.

            a. The profits and gains of the Partnership shall be allocated
twenty-five percent (25%) to the Limited Partner and seventy-five percent (75%)
to the General Partner. The allocations hereunder shall comply with Section
704(b) of the Internal Revenue Code;

            b. The allocation method set forth in this Article is intended to
allocate net profits and net losses to the Partners for Federal Income tax
purposes in accordance with their economic interests in the Partnership while
complying with the requirements of Internal Revenue Code Section 704(b) and the
Regulations promulgated thereunder. If, in the opinion of the General Partner,
such allocations shall not (i) satisfy the requirements of Internal Revenue Code
Section 704(b)or the Regulations thereunder, (ii) comply with any other
provisions of the Internal Revenue Code or Regulations, or (iii) properly take
into account any expenditure made by the Partnership, then upon the mutual
consent of the General Partner and the Limited Partner, net profits and net
losses shall be allocated in such manner as the General Partner shall determine
to be required to reflect properly (i), (ii), or (iii), as applicable, and upon
the mutual consent of the General Partner and the Limited Partner, the General
Partner shall have the right to reflect any such change in the method of
allocating net profits and net losses; provided, however, that any change in the
method of allocating net profits and net losses shall not materially alter the
economic agreement among the Partners.

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            c. Notwithstanding anything herein to the contrary, the Limited
Partner shall in no event be allocated net profits and net gains in excess of
$2,200,000 plus any additional amount not to exceed $220,000 to the extent the
Limited Partner has received distributions in excess of $2,200,000 as provided
in Sections 9.1 through 9.3 hereunder. For purposes hereunder, the term net
profits or net gains shall mean the profits and gains as allocated in Section
8.1 less any losses allocated in Section 8.2 hereunder.

      8.2. ALLOCATION OF INCOME TO THE GENERAL PARTNER. The balance of all
taxable income for each taxable year not allocated to the Limited Partner shall
be allocated to the General Partner.

      8.3. ALLOCATION OF LOSSES. The Limited Partner shall be allocated all of
the tax losses of the Partnership until such time as the Capital Accounts of the
Limited Partner and General Partner are equal. The Limited Partner shall not be
allocated losses to the extent such allocation would cause Limited Partner to
have a negative capital account. To the extent that the General Partner's basis
shall under the federal tax laws require the suspension of tax losses otherwise
allocable to the General Partner, such losses shall be allocated to the Limited
Partner.

      8.4. INTERIM CAPITAL TRANSACTIONS. Intentionally omitted.

      8.5. NET GAIN FROM DISSOLUTION AND TERMINATION. Except for any
depreciation recapture all net gains and net losses of the Partnership in
connection with a sale of substantially all of its assets or dissolution and
termination of the Partnership, as determined for federal income tax purposes,
will be allocated in the following order of priority, to the extent applicable:

            a. First, any such gain in an amount equal to the "minimum gain" (as
defined in Treasury Regulation Section 1.704-1(b)(4)(iv)(c)) attributable to
the property which is the subject of the capital transaction giving rise to such
gain (whether or not such gain has been recognized for federal income tax
purposes) will be allocated to all Partners with an Adjusted Capital Account
Deficit in the amount and in the proportions necessary to eliminate such
Adjusted Capital Account Deficit as quickly as possible;

            b. Then, an amount equal to the deficit in the capital account of
each Partner shall be allocated to each Partner with a deficit remaining in his
capital account. (In the event that, such net gains are less than the aggregate
of the deficits in the capital accounts of each such Partner, such gains shall
be allocated among such Partners in the same ratio that the deficit in the
capital accounts of each such Partner bears to the aggregate of all such
Partners' deficits);

            c. Then, to the Partners in amounts equal to the amounts distributed
pursuant to Section 9.2 hereof and in the same order of priority.

      8.6. NET LOSSES FROM DISSOLUTION AND TERMINATION. The net losses upon
dissolution or termination of the Partnership shall be allocated as provided in
Article 8.3.

                                       13

<PAGE>

      8.7. DEPRECIATION RECAPTURE. Notwithstanding the foregoing, if the taxable
gain to be allocated pursuant to Section 8.2 or 8.3 above includes income
treated as ordinary income for federal income tax purposes because it is
attributable to the recapture of depreciation, such gain so treated as ordinary
income shall be allocated to and reported by the Partners in proportion to their
accumulated depreciation allocations, and the Partnership shall keep records of
such allocations.

      8.8. SPECIAL ALLOCATIONS. In the event any Partner unexpectedly receive
any adjustments, allocations, or distributions described in Treasury Regulation
Sections 1.7041(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5), or
1.704-1(b)(2)(ii)(d)(6), items of Partnership income and gain shall be specially
allocated to such Partner in accordance with Regulation Section
1.7041(b)(4)(iv)(d) in an amount and manner sufficient to allocate the deficit
balances as quickly as possible. Any special allocations of items of income or
gain pursuant to this Section shall be taken into account in computing
subsequent allocations of Profits pursuant to this Section, so that the net
amount of any items so allocated and the Profits, Losses and all other items
allocated to each Partner pursuant to this Section, to the extent possible, be
equal to the net amount that would have been allocated to each such Partner
pursuant to the provisions of this Section if such unexpected adjustments,
allocations or distributions had not occurred.

      8.9. CHANGE IN ALLOCATIONS. It is the intent of the Partners that each
Partner's distributive share of income, gain, loss, deduction, or credit (or
item thereof) shall be allocated in accordance with this Section 8 to the
fullest extent permitted by Section 704(b) of the Internal Revenue Code and
Regulations. In order to preserve and protect the allocations provided for in
this Section 8 the General Partner is authorized and directed to allocate
income, gain, loss, deduction or credit (or item thereof) arising in any year
differently than otherwise provided for in this Section 8 if, and to the extent
that, the allocations under this Section 8 would cause the allocations to
violate Section 704(b) of the Internal Revenue Code or its Regulations
thereunder. Any allocation made pursuant to this Section 8.9 shall be deemed to
be a complete substitute for any allocation otherwise provided for in this
Section 8 and no amendment of this Agreement or approval of any Partner shall be
required.

      Notwithstanding, any provision in this Article VIII, it is the agreement
of the Partners that the Limited Partner shall be allocated ordinary taxable
income of no more than the lesser of actual distributions to the Limited Partner
that are in excess of its initial capital contribution of $1,100,000.00 plus
any losses allocated to the Limited Partner, and in the event that the Limited
Partner shall receive less than its initial capital contribution in total
distributions from this Partnership, it shall be allocated a loss in the amount
of such deficiency.

      8.10. TAX ALLOCATIONS. Notwithstanding the provisions of paragraph 8.3
hereof and in accordance with Internal Revenue Code Section 704(c) and the
Regulations promulgated thereunder, income, a loss and deduction with respect to
any property contributed to the capital of the Partnership shall solely, for tax
purposes, be allocated as quickly as possible among the Partners so as to take
into account any variations between the adjusted basis

                                       14

<PAGE>

of such property to the Partnership for federal income tax purposes and the
fair-market value of such property as of the date such property was contributed
to the capital of the Partnership.

                                   Article IX
                           DISTRIBUTIONS TO PARTNERS

      9.1. DISTRIBUTIONS TO THE LIMITED PARTNER. The Limited Partner shall be
entitled to a priority distribution of revenues resulting from sales of
residential units in the Project until the aggregate distributions to the
Limited Partner total Two Million Two Hundred Thousand Dollars ($2,200,000.00),
which is 200% of the Limited Partner Capital Contribution as reflected in
Section 5.2 of this Agreement. In addition, after payment of the said priority
distribution, the Limited Partner shall be entitled to receive additional
distributions of an amount equal to one percent of the Gross Sales Price of each
residential unit sold in the Project, such additional distribution not to exceed
a total of $220,000.00.

      9.2. DISTRIBUTIONS TO LIMITED PARTNER FROM SALES OF UNITS. The General
Partner shall direct each closing agent engaged by the Partnership with respect
to the closing of the sale of residential units in the Project to make to the
Limited Partner at the time of each such closing the following preferred
distributions: (i) distributions in an amount equal to 6% of the gross sales
price for each of the first twenty-four individual residential units sold by the
Partnership in the Project, (ii) distributions in an amount equal to 7% of the
gross sales price for each of the next twenty-four individual residential units
sold by the Partnership in the Project and (iii) distributions in an amount
equal to 8% of the gross sales price for each of the remaining individual
residential units in the Project until the Limited Partner has received the a
total priority distribution of $2,200,000.00. Thereafter an amount equal to 2%
of the gross sales price of the remainder of the individual residential units
shall be paid to the Limited Partner, such additional distributions not to
exceed a total of $220,000.00 until all of the residential units to be developed
and sold by the Partnership have been sold to bonafide third party purchasers.
It is further agreed that if units are sold at prices different than the agreed
Schedule of Minimum Prices, the scheduled payment due the Limited Partner as
provided herein shall be based on the greater of the Schedule of Minimum Prices
or the actual sales price. Such preferred distributions shall continue by the
closing agent(s) until such time as the General Partner has confirmed that the
Limited Partner has received the preferred distributions provided for
hereinabove. The percentages of each unit gross sales price required to be paid
above are based upon the projected sales prices for individual residential units
in the Project as previously determined by the General Partner and shall be set
forth as an exhibit to this Partnership Agreement and shall govern the
distributions for all purposes. Any adjustment in such percentages shall be
agreed, in writing, by all of the Partners. The amount of the preferred
distribution shall be the stated percentage of the greater of the minimum
approved sales price or the actual sales price. "Sales Price" as used in this
section shall include charges to buyer of the unit for the options and upgrades.

      Notwithstanding anything herein to the contrary, in the event that the
distributions to the Limited Partner hereunder are less than 35% of the taxable
income allocated to the

                                       15

<PAGE>

Limited Partner, then in that event, prior to any distributions to the General
Partner, the Limited Partner shall receive an amount equal to the greater of 35%
of the taxable income allocated to the Limited Partner for the tax year of the
distribution and prior tax years, or the actual amount of the aggregate tax paid
by the Limited Partner for the tax year of the distribution and prior tax years,
which amounts shall be credited against the total amounts due the Limited
Partner hereunder."

      9.3. DISTRIBUTIONS TO LIMITED PARTNER OTHER THAN FROM SALES OF UNITS. The
General Partner shall direct each closing agent of a sale of Partnership
property other than units, and of a re-finance of Partnership property with
respect to the closing, of the sale or refinance to make to the Limited Partner
at the time of each such closing a preferred distribution in an amount equal to
the proceeds of such sale or refinance available to the Partnership after the
satisfaction of loans to the partnership approved by the Limited Partner. Such
preferred distributions shall continue by such closing agent(s) until such time
as the General Partner has confirmed that the Limited Partner has received an
amount from distributions under this section and the preceding section totaling,
in the aggregate the preferred distributions required by Section 9.2 above.

      9.4. DISTRIBUTIONS TO THE GENERAL PARTNER. The General Partner shall be
entitled to receive distributions from the Partnership only in accordance with
the following:

            a. Distributions to the General Partner shall be from net closing
proceeds from each closing in excess of costs of closing as disclosed on the
closing statement, after required loan paydown, and only after the amounts have
been disbursed to the Limited Partner as priority distributions as detailed
above, in accordance with this Article.

            b. The General Partner shall receive the reimbursement of sums equal
to the allocated general overhead costs of 4% of the gross sales price of the
individual units in the Project paid at each closing which have been expended by
the General Partner as disclosed on the approved budgets.

            c. the General Partner shall be entitled to receive such amounts as
are required to pay federal income taxes on profits allocated to the General
Partner, provided such distributions shall not under any circumstances exceed
35% of such profits so allocated to the General Partner from the Partnership in
the current and prior tax years (other than distributions of the allocated
general overhead cost reimbursement as in b. above).

            d. If the General Partner chooses to receive any additional
distributions from the remaining net closing proceeds after the distributions
above permitted, the Limited Partner shall receive as distributions amounts
equal to the sums distributed to the General Partner. Distributions to the
Limited Partner under this subsection shall be counted in satisfaction of the
distributions to which the Limited Partner is entitled under Section 9.1 of this
Agreement.

            e. After the Limited Partner has received distributions which in the
aggregate

                                       16
<PAGE>

total $ 2,200,000.00 pursuant to Article 9.2, the Limited Partner shall receive
at each closing of a residential unit an amount equal to one percent of the
gross sale price of the unit, until the Limited Partner has received an
additional distribution of $220,000.00, and the General Partner shall receive
the remainder of the proceeds then available for distribution."

      9.5. CASH DISTRIBUTIONS. All cash distributions to the Limited Partner
shall be made to the Limited Partner at the addresses specified in this
Agreement, or such other address of which a Limited Partner shall notify the
Partnership in writing.

      9.6 DISTRIBUTIONS IN KIND. If any assets of the Partnership shall be
distributed in kind, such assets shall be distributed to the Partners entitled
thereto as tenants-in-common in the same proportions in which such Partners
would have been entitled to cash distributions.

      9.7. ONLY CASH IN RETURN OF CAPITAL. No Partner shall be entitled to
demand and receive property other than cash in return for such Partner's Capital
Contributions to the Partnership, and no Partner shall have the right to sue for
a partition of Partnership property.

      9.8. STANDARDS FOR DISTRIBUTIONS AND ALLOCATIONS. The methods hereinabove
set forth by which distributions and allocations are made are hereby expressly
consented to by each Partner as an express condition to becoming a Partner.

      9.9. TERMINATION OF LIMITED PARTNER. At such time as the Limited Partner
shall have received all of the distributions as provided in Sections 9.1 through
9.3, then upon written notice to the General Partner, the Limited Partner may
withdraw from the Partnership.

                                    Article X
                           DISSOLUTION AND LIQUIDATION

      10.1. DISSOLUTION. The Partnership shall be dissolved, and its business
wound up, upon the earliest to occur of:

            a. The Project has been completed and all of the individual
residential units in such Project of the Property has been sold and/or conveyed;

            b. The General Partner's determination, with the consent of the
holders of at least One Hundred percent (100 %) of the outstanding Limited
Partnership Interest, that the Partnership should be dissolved;

            c. The death, incompetency, insolvency, bankruptcy or removal of the
General Partner, unless the Limited Partner consents in writing within 30 days
of such event to continue the Partnership, and a successor General Partner is
elected by the Limited Partner within such thirty-day period; or/

            d. The sale of all, or substantially all of the Partnership's
assets.

                                       17
<PAGE>

      For the purposes of this Agreement, the bankruptcy of the General Partner
shall be deemed to occur when such General Partner files a petition in
bankruptcy or voluntarily takes advantage of any bankruptcy or insolvency law,
or is adjudicated a bankrupt, or when a petition or answer is filed proposing
the adjudication of such General Partner as a bankrupt and such General Partner
either consents to the filing, thereof, or such petition or answer is not
discharged or denied prior to the expiration of 120 days from the date of such
filing. The insolvency of a General Partner shall be deemed to occur when such
General Partner's assets are insufficient to pay such General Partner's
liabilities.

      10.2. CONTINUATION OF PARTNERSHIP. In the event the Partnership is
continued upon the death, incompetency, insolvency, bankruptcy or removal of a
General Partner, the Partnership Interest of such General Partner shall be
forfeited provided that the General Partner shall be only entitled to receive
the distributions, if any, as set forth in Section 7.4 and none other. As set
for the Section 7.4, the New General Partner shall succeed to the interest of
the General Partner and be entitled to all distributions to the General Partner
under Article VIII and Article IX and as elsewhere provided in this Agreement.
It is the intent hereof that the General Partner that is so removed or
terminated shall have no continuing interest in the profits or avails of this
Partnership. Provided, that such interest at all times is subordinate and
inferior to payment of the priority distributions to the Limited Partner. Such
Limited Partnership Interest, including all of the rights and obligations of a
Limited Partner under this Agreement, shall descend and vest in such General
Partner or his or its, successors, heirs, legatees or legal representatives.
Such General Partner, or such successors, heirs, legatees or legal
representatives may be admitted as a Limited Partner in accordance with the
provisions of Section 11.3.

      Notwithstanding anything to the contrary in this Agreement, it is
expressly agreed and understood that a deceased, incompetent, insolvent,
bankrupt or removed General Partner and his or its heirs, legatees, successors
or legal representatives shall remain fully liable for all Partnership
liabilities and obligations arising, prior to the date of any such events,
whether such liabilities and obligations are fixed or contingent as of such
date. The liability of the deceased, incompetent, insolvent, bankrupt or removed
General Partner shall continue with respect to such liabilities as if the
deceased, incompetent, insolvent, bankrupt or removed General Partner has
remained and continued as a General Partner of the Partnership.

      10.3. EARLY TERMINATION OF THE PARTNERSHIP. In the event the Partnership
terminates prior to the Closing on the Property, or prior to the commencement of
the development of the Property into residential units, or in the event that the
Partnership sells the Property at a bulk sale, then prior to any other
distributions, the General Partner shall proceed as quickly as possible in
winding up the affairs of the Partnership and shall liquidate the assets and
distribute the proceeds of the Partnership as follows:

            a. First to repay any loans made to the Partnership by the Limited
Partner, with interest as provided in such loan documents;

            b. Next, to the Limited Partner in accordance with its then positive
capital

                                       18
<PAGE>

account until the Limited Partner has received distributions which in the
aggregate total One Million One Hundred Thousand Dollars ($1,100,000.00) plus
any additional capital contributions made by the Limited Partner; and

            c. Thereafter, to the Limited Partner in an amount equal to the
greater of 15% of the actual capital contributions made by the Limited Partner
prior to such sale, or termination or 50% of the remaining proceeds.

            d. The remaining proceeds shall be distributed to the General
Partner.

            e. All sums due under this section shall be paid within 10 days of
the sale or termination.

      10.4 TERMINATION OF PARTNERSHIP SUBSEQUENT TO COMMENCEMENT OF DEVELOPMENT.
In the event the Partnership terminates subsequent to the commencement of
development of the Property into residential units, then in that event, the
General Partner shall proceed as quickly as possible in winding up the affairs
of the Partnership and shall distribute the proceeds as provided in Article 9 of
this Agreement.

                                   Article XI
                       ASSIGNMENT OF INTEREST OF PARTNERS

      11.1. ASSIGNMENT OF INTEREST OF PARTNERS. The Partnership Interest of any
Partner may be assigned only as permitted by the provisions of this Article XI.
Neither the Partnership nor the Partners shall be bound by any such assignment
until a counterpart of the instrument of assignment, executed and acknowledged
by the parties thereto, is delivered to the Partnership, and such assignment
shall be effective as of the date specified therein, subject to compliance as
hereinafter set forth, with applicable federal and state securities laws. The
Limited Partner shall be entitled to pledge, mortgage, or hypothecate its
Limited Partner's Interest.

      11.2. RESTRICTIONS ON ASSIGNMENT OF INTEREST. Except as may be provided in
Sections 7.4, 10 or 12. 1, and 11. I above, no Partner shall transfer, sell,
assign, give or otherwise dispose of his or her Partnership Interest or a part
thereof, whether voluntarily or by operation of law, or at judicial sale or
otherwise.

      11.3. SUBSTITUTE PARTNER. No Assignee or transferee of all or part of the
Partnership Interest of any Partner shall have the right to become a substitute
Partner, unless:

            a. His assignee has stated such intention in the instrument of
assignment;

            b. The assignee has executed an instrument reasonably satisfactory
to both the General and Limited Partner accepting and adopting the terms and
provisions of this Agreement; and

            c. The assign or or assignee has paid any reasonable expense of the

                                       19
<PAGE>

Partnership in connection with the admission of the assignee as a Partner.

      11.4. TRANSFEROR - TRANSFEREE ALLOCATIONS. As between a Limited Partner
and his transferee, profits and losses for any month shall be apportioned to the
person who is the holder of that Limited Partnership Interest transferred on the
last day of such month, without regard to the results of the Partnership's
operations during the period before and after such transfer. A transferee of, or
substitute Limited Partner for, a Limited Partners Limited Partnership Interest
shall be entitled to receive distributions from the Partnership with respect to
such Limited Partnership Interest only after the effective date of such
assignment.

      11.5. LIMITED PARTNERSHIP INTEREST TRANSFERRED TO THE GENERAL PARTNER. If
a General Partner should acquire an Interest as a Limited Partner, such General
Partner shall with respect to such Interest, enjoy all of the rights and be
subject to all of the obligations and duties of a Limited Partner to the extent
of such Interest.

      11.6. SECTION 754 ELECTION. In the event of a transfer of all or part of
the Interest of a Partner in the Partnership, by sale or exchange or on the
death of a Partner, at the request of the Partner or the executor, administrator
or other legal representative of a deceased Partner, the General Partner may, in
its sole discretion, cause the Partnership to elect, pursuant to Section 754 of
the Internal Revenue Code, or the corresponding provisions of subsequent law, to
adjust the basis of Partnership property as provided in Sections 734 and 743 of
the Internal Revenue Code.

                                   Article XII
        DEATH, BANKRUPTCY, INSANITY OR INCOMPETENCY OF A LIMITED PARTNER

      12.1. DEATH, BANKRUPTCY, INSANITY OR INCOMPETENCY OF A LIMITED PARTNER.
The death, adjudication of insanity, legal incompetency, general assignment for
the benefit of creditors, or adjudication of bankruptcy of a Limited Partner
shall not dissolve the Partnership. In any of such events, the Interest of such
Limited Partner and all rights and obligations under this Agreement shall
descend to and vest in the heirs, legatees or legal representatives of such
Limited Partner. Such heirs, legatees or legal representatives may be admitted
as substitute Limited Partner in accordance with the provisions of Section 11.3.

                                  Article XIII
                                  ARBITRATION

      13.1. APPLICATION; LOCATION. Whenever (a) there exists a dispute whether a
Partner is in default under the terms of this Agreement, (b) the Partners
disagree and such disagreement materially impairs the ability of the Partnership
to develop the Project or otherwise pursue the Partnership's objectives, or (c)
the Partners mutually agree to submit any other question, matter, or dispute to
arbitration, the provisions of this Article shall apply, provided however that
this provision shall not apply to the obligation to contribute to the capital of
this Partnership. The location of the arbitration shall be in Sarasota County,
Florida.

      13.2. INITIATING ARBITRATION; SELECTION OF ARBITRATORS. Arbitration shall
be instituted

                                       20
<PAGE>

by a Partner delivering notice to the other Partner of its intention to
arbitrate specifying the matters to be arbitrated. The arbitration shall be
conducted by three arbitrators. The arbitrators shall be impartial and shall not
be related, directly or indirectly, so far as employment of services is
concerned, to any Partner or to any Affiliate thereof. In an arbitration
proceeding involving any specialized area of the management and operation of the
Project, the arbitrators shall have substantial knowledge and experience in such
a specialized area. For example, in any dispute involving accounting procedures,
the arbitrators shall be independent certified public accountants.

      13.3. PROCEDURES. The arbitrators shall be chosen, and the arbitration
shall be conducted, in accordance with the Commercial Arbitration Rules of the
American Arbitration Association. The three arbitrators shall investigate the
facts and shall hold hearings at which the Partners may present evidence and
arguments, be represented by counsel and conduct cross examination. The three
arbitrators shall render a written decision upon the matter presented to them by
a majority vote within 30 days after the date upon which the last arbitrator is
appointed, and that decision shall be final and binding on the Partners.
Judgment upon the decision rendered in such arbitration may be entered by any
court having jurisdiction thereof. No Partner shall be considered in default
hereunder during the pendency of arbitration proceedings relating to a disputed
default, provided however, that if the matter being arbitrated involves the
obligation for the payment of money, interest due shall be computed from the
date such payment or expenditure should have been made. If the three arbitrators
shall fail to render a decision within such 30-day period, then any Partner
shall have the right to seek judicial determination of the issues.

      13.4 LIMITATIONS ON AUTHORITY. In determining, any question, matter, or
dispute before them, the arbitrators shall apply the provisions of this
Agreement, without varying therefrom in any respect. They shall not have the
power to add to, modify, or change any of the provisions of this Agreement.

      13.5 ATTORNEYS' FEES; SPECIFIC PERFORMANCE. The costs of any arbitration
proceeding shall be shared equally by the Partners. The prevailing party in any
such arbitration proceeding, as determined by the arbitrators, shall be entitled
to reimbursement of reasonable attorneys' fees incurred in such proceeding. The
prevailing party shall be entitled to an order by a Court of competent
jurisdiction for specific performance of the arbitrator's final decision and
any party hereunder may seek specific performance of the obligation to
arbitrate as required hereunder.

                                   Article XIV
                            MISCELLANEOUS PROVISIONS

      14.1. FISCAL YEAR. The General Partner may select the fiscal year of the
Partnership subject to the requirements of the Internal Revenue Code.

      14.2. RECORDS. The General Partner shall keep, or cause to be kept, full
and accurate records of all transactions of the Partnership in accordance with
principles and

                                       21
<PAGE>

practices generally accepted for such methods of accounting and depreciation as
shall, in the opinion of the General Partner, be in the best interest of the
Limited Partner.

      14.3. AVAILABILITY FOR INSPECTION.

            a. All of such books of account shall, at all times, be maintained
at the office of the Partnership at 290 Cocoanut Avenue, Sarasota, Florida
34236, and shall be open during reasonable business hours for the reasonable
inspection and examination by the Limited Partner or their authorized
representatives.

            b. The General Partner shall as a minimum maintain the following
records at the aforesaid office of the Partnership: (i) a current list of the
full name and last known business address of each Partner set forth in
alphabetical order; (ii) a copy of the Agreement and Certificate of Limited
Partnership and all certificates of amendment thereto, together with executed
copies of any power of attorney pursuant to which any certificate has been
executed; (iii) copies of the Partnership's federal, state and local income tax
returns and reports, if any, for the three most recent years for which they have
been prepared; and (iv) copies of any then effective written Partnership
Agreement and of any financial statements of the Partnership for the three most
recent years for which they have been prepared.

            c. The General Partner shall not be obligated to deliver or mail
copies of the Agreement and Certificate of Limited Partnership or amendments
thereto to Limited Partner. However, upon the written request of any Limited
Partner, the General Partner shall mail a copy of such requested documents to
such Limited Partner.

      14.4. TAX RETURNS. The General Partner shall prepare, or cause to be
prepared (by April 1st of the year after the fiscal year to which such tax
return relates), a federal income tax return and such state tax returns as are
required for the Partnership.

      14.5. CASH FLOW STATEMENTS. Within 90 days after the end of each fiscal
year of the Partnership, the General Partner shall use its best efforts to cause
to be delivered to the Limited Partner an annual cash flow report for the
Partnership for such fiscal year. This report shall be mailed to the Limited
Partner together with any amounts distributable to the Limited Partner pursuant
to Section 9.

      14.6. TAX INFORMATION. Within 90 days after the end of each fiscal year of
the Partnership, the General Partner shall use its best efforts to cause to be
delivered to the Limited Partner such information as shall be necessary
(including a statement for that year of each Limited Partner's share of net
profits, net gains and losses, and other items of the Partnership) for the
preparation by the Limited Partner of their federal and state income and other
tax returns.

      14.7. FINANCIAL STATEMENTS. The General Partner shall use its best efforts
to cause to be delivered to the Limited Partner, within 90 days after the end of
each fiscal year of the Partnership, financial statements of the Partnership
from such fiscal year.

                                       22
<PAGE>

      14.8. PARTNERSHIP TAX RETURN. In lieu of the reports required by this
Agreement, the General Partner may, in its discretion, cause to be delivered to
the Limited Partner a copy of the federal Partnership return for each year,
within thirty (30) days after such return has been filed.

      14.9. BANK ACCOUNTS. The General Partner may elect to maintain a special
bank account or accounts in which shall be deposited all funds of the
Partnership. Withdrawals from such account or accounts shall be made upon the
signature of the General Partner.

      14.10. NOTICES. Whenever any notice is required or permitted to be given
under any provisions of this Agreement, such notice shall be in writing, signed
by or on behalf of the person giving the notice, and shall be deemed to have
been given when delivered by personal delivery or mailed by certified mail,
postage prepaid, return receipt requested, addressed to the person or persons to
whom such notice is to be given as follows (or at such other address as shall be
stated on a notice similarly given):

            a. If to the General Partner, at 290 Cocoanut Avenue, Sarasota,
Florida 34236.

            b. If to the Limited Partner, such notice shall be given to the
Limited Partner at its address indicated herein, or at such other address as may
be furnished to the General Partner in writing.'

      14.11. BINDING EFFECT. Except as herein otherwise provided to the
contrary, this Agreement shall be binding upon and inure to the benefit of the
parties hereto, their personal representatives, heirs, successors and permitted
assigns.

      14.12. NO ORAL MODIFICATION. No modification or waiver of this Agreement
or any part hereof shall be valid or effective unless in writing and signed by
the party or parties sought to be charged therewith; and no waiver of any breach
or condition of this Agreement shall be deemed to be a waiver of any other
subsequent breach or condition, whether of like or different nature.

      14.13. APPLICABLE LAWS. This Agreement shall be governed by and construed
in accordance with the laws of Florida. The venue for any proceeding brought to
enforce the terms and provisions of this Agreement shall be agreed to be in
Sarasota County, Florida, or in the United States District Court, Middle
District of Florida, Tampa Division.

      14.14. COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which shall be deemed an original, and said counterparts
shall constitute but one and the same instrument which may be sufficiently
evidence by one counterpart.

      IN WITNESS WHEREOF, the parties hereto have executed and certified this

                                       23
<PAGE>

Agreement of Limited Partnership as of the day and year first above written.

                                       General Partner:

                                       WHITEHALL HOMES AT GRAND HAVEN, INC.,
                                       a Florida corporation

                                       By: /s/ Ronald Mustari
                                           ----------------------------------
                                           Ronald Mustari, Its President

                                       Address of General Partner:

                                       290 Cocoanut Avenue
                                       Sarasota, Florida 34236

                                       Limited Partner:

                                       GRAND HAVEN INVESTMENT GROUP ONE,
                                       LLC, a Florida limited liability company

                                       By its Manager:

                                       NEILRON CORP., a Florida corporation

                                       By: /s/ Ronald R. Shenkin
                                           ----------------------------------
                                           Ronald R. Shenkin - Vice President

                                       Address of Limited Partner:

                                       1717 Second Street, Suite A
                                       Sarasota, Florida 34236

                                       24<PAGE>
                                                                    Exhibit 10.4

                              EMPLOYMENT AGREEMENT

            THIS AGREEMENT made as of this 11th day of March, 2004,

B E T W E E N:

                        COTT CORPORATION, a corporation incorporated under the
                        laws of Canada

                        (hereinafter referred to as the "Corporation")

                                                               OF THE FIRST PART

                        - and -

                        JOHN K. SHEPPARD, of the City of Tampa, in the State of
                        Florida

                        (hereinafter referred to as the "Executive")

                                                              OF THE SECOND PART

      WHEREAS the Executive commenced employment with the Corporation in January
2002 as Executive Vice-President of the Corporation and President of the
Corporation's U.S. division;

      AND WHEREAS the Executive became the President and Chief Operating Officer
of the Corporation in July 2003;

      AND WHEREAS the Corporation has determined to appoint the Executive as
Chief Executive Officer of the Corporation effective as of September 1, 2004;

      AND WHEREAS the Corporation and the Executive have agreed to enter into
this Employment Agreement to formalize in writing the terms and conditions
reached between them governing the Executive's employment;

      NOW THEREFORE in consideration of the covenants and agreements herein
contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by the parties, the parties hereto
agree as follows:

ARTICLE 1 - COMMENCEMENT AND TERM

1.1   TERM. Subject to earlier termination in accordance with this Section 1.1
or Article 5 hereof, the term of the Executive's employment under this Agreement
commences on September 1, 2004 and shall continue for an indefinite term (the
"Term") until one party gives no less than thirty (30) days notice to the other
that he or it wishes to terminate the Executive's employment
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                                      -2-

(a "Notice of Termination"). In the event that a Notice of Termination is
delivered, the employment of the Executive shall end at the date specified in
the Notice of Termination.

1.2   EFFECT. Notwithstanding the date on which this agreement is entered into,
the terms of this Agreement shall not take effect until September 1, 2004,
except that the (i) provisions of Section 3.2(a) shall have effect from January
1, 2004, and (ii) the provisions of Section 1.1 and Article 5 (and those
Sections necessary to the enforcement thereof) shall have immediate effect,
including any references therein to the retiree medical benefits provided under
Section 3.3(e). Notwithstanding the foregoing, if, prior to or on September 1,
2004, the Corporation determines to appoint another person to the office of
Chief Executive Officer of the Corporation or fails to appoint the Executive to
the office of Chief Executive Officer of the Corporation, the Corporation shall
be deemed to have terminated the Executive for a reason other than for Just
Cause, Disability, or death of the Executive for the purposes of Section 5.2
hereof and the Executive will be entitled to receive the payments and benefits
contemplated by Section 5.2, provided that the Corporation may re-appoint its
current Chief Executive Officer to serve as Chief Executive Officer of the
Corporation until September 1, 2004.

ARTICLE 2 - EMPLOYMENT

2.1   POSITION. Subject to the terms and conditions hereof, the Executive shall
be employed by the Corporation in the office of President and Chief Executive
Officer of the Corporation effective as of September 1, 2004 and shall perform
such duties and exercise such powers and responsibilities of such office as are
set forth in the Statement of Responsibilities - Chief Executive Officer
attached hereto which has been approved by the board of directors, as are
contained in the by-laws of the Corporation and as are otherwise prescribed or
specified from time to time by the board of directors of the Corporation. The
Corporation agrees to submit the Executive's name for election to the board of
directors of the Corporation at each annual meeting of the Corporation
throughout the Term.

2.2   RESPONSIBILITIES. The Executive agrees to devote substantially all of his
business time and attention to the business and affairs of the Corporation, to
discharge the responsibilities assigned to the Executive, and to use the
Executive's best efforts to perform faithfully and efficiently such
responsibilities. The Executive shall be entitled to serve as a director on
external boards of directors only upon the prior written approval of the
Corporation. Anything herein to the contrary notwithstanding, nothing shall
preclude the Executive from (i) serving on the boards of directors of a
reasonable number of trade associations and/or charitable organizations, (ii)
engaging in charitable activities and community affairs, and (iii) managing his
personal investments and affairs, provided that any or all of the foregoing
activities do not materially interfere with the proper performance of his duties
and responsibilities as the Corporation's President and Chief Executive Officer.

ARTICLE 3 - REMUNERATION

3.1   SALARY. During the Term, the Corporation shall pay the Executive a base
salary (the "Base Salary") to be fixed by the board of directors of the
Corporation from time to time, payable monthly in arrears. The Base Salary shall
not be less than $550,000 per annum and shall be reviewed no less frequently
than annually for increase in the discretion of the board of directors.
<PAGE>
                                      -3-

3.2   INCENTIVES.

      (a)   ANNUAL BONUSES. The Executive shall be entitled to an annual
performance-based bonus (the "Bonus") of an amount equal to up to one hundred
percent (100%) of a bonus target of $600,000, such Bonus to be based on the
achievement of specific objectives to be established and mutually agreed upon on
an annual basis. Bonuses shall be earned and payable only upon completion of the
relevant fiscal year and provided the Executive shall continue to be actively
and continuously employed for the full duration thereof, unless otherwise
provided in Article 5.

      (b)   EXECUTIVE INCENTIVE PLAN. The Executive shall be entitled to
participate each year in the Corporation's Executive Incentive Share
Compensation Plan under terms substantially the same as those applicable under
the Executive Share Compensation Plan in effect on January 4, 2004 or any
successor plan thereto (all such plans referred to in the aggregate as the
"EISCP") to the extent that the Executive's performance exceeds 100% of the
annual performance objectives established for him.

      (c)   LONG-TERM INCENTIVES. The Executive shall be entitled to participate
in the long-term incentive plans and programs of the Corporation as made
available from time to time to the executive officers of the Corporation.

3.3   BENEFITS AND PERQUISITES.

      (a)   The Executive shall be entitled to participate in all of the
Corporation's group insurance benefit plans, currently including basic medical,
extended health, dental, long term disability, travel and accident insurance.
All plans are governed by their terms.

      (b)   The Corporation shall provide the Executive with supplemental
disability benefits which would pay the Executive, in the event of termination
of his employment for Disability (as defined in Section 5.1(b)), an amount equal
to the sum of 60% of his Base Salary less the amount of any disability benefits
provided under the Corporation's long-term disability plans. In the event that
the Executive is totally or partially disabled and his employment is not
terminated for Disability, the Corporation shall ensure that he continue to
receive all remuneration provided for under this Article 3.

      (c)   The Executive shall have the use of a leased automobile or an
automobile allowance, provided the cost to the Corporation shall not exceed a
monthly amount to be mutually agreed upon on an annual basis.

      (d)   The Executive is not entitled to any other benefit or perquisite
other than as specifically set out in this Agreement or agreed to in writing by
the Corporation.

      (e)   If the Executive's employment is terminated for any cause (other
than for Just Cause or voluntary resignation other than for Good Reason prior to
the Executive's 55th birthday), in addition to the other benefits the Executive
shall receive upon such a termination, commencing on the later of the date of
such termination or the date the Executive attains 55 years of age, the
Executive and his spouse shall, as long as either of them shall live, and the
Executive's daughter shall, until her 21st birthday, be entitled to health
insurance benefits (medical, dental, and vision care, including prescriptions)
("Health Insurance Benefits") equal to
<PAGE>
                                      -4-

the greater of (i) all Health Insurance Benefits provided from time to time to
the Chief Executive Officer of the Corporation or any successor corporation or,
in the absence of such Chief Executive Officer, the highest paid officer of the
Corporation or any successor corporation and (ii) the Health Insurance Benefits
provided to the Executive immediately prior to the termination of his
employment. Health Insurance Benefits shall include the benefits provided to the
Executive as well as terms relating to the provision of such benefits. In the
event the Corporation or successor corporation does not provide such Health
Insurance Benefits, the Corporation shall reimburse the Executive for any
expenses the Executive incurs to replace such Health Insurance Benefits. The
benefits provided by this paragraph shall, as to any one or more of the
Executive, his spouse, and his daughter (each, a "Beneficiary"), be suspended
during any period such Beneficiary is eligible for substantially comparable
benefits in connection with alternate employment.

      The Executive understands and acknowledges that the perquisites
contemplated by this Section 3.3 shall be recorded as taxable benefits within
the meaning of the Income Tax Act (Canada) and may have comparable treatment
under the United States Internal Revenue Code.

3.4   VACATION. The Executive shall be entitled to five weeks' vacation with pay
annually. Such vacation shall be taken at a time or times acceptable to the
Corporation having regard to its operations. Accumulated vacation may be not
carried except with the written approval of the Corporation.

3.5   EXPENSES.

      (a)   Consistent with its corporate policies as established from
time-to-time, the Corporation agrees to reimburse the Executive for all expenses
reasonably incurred in connection with the performance of his duties upon being
provided with proper vouchers or receipts.

      (b)   The Corporation agrees to reimburse to the Executive for all
reasonable legal and accounting expenses incurred in the negotiation and
documentation of this Agreement in an amount up to $10,000.

      (c)   The Executive shall be under no obligation to relocate his personal
residence to the Toronto area. The Corporation shall provide and maintain for
the Executive suitable rental accommodations in the Toronto area mutually
acceptable to the Corporation and the Executive, acting reasonably, and pay any
costs associated with the Executive's travel between Toronto and Tampa, Florida.
In addition, the Executive's spouse shall be entitled to make a reasonable
number of trips per year from her residence in Tampa to Toronto and the
Corporation shall reimburse the Executive for the incurred cost of such travel
upon presentation of proper receipts.

3.6   SHARE OPTIONS.

      (a)   The Corporation shall, at the next grant of options, but no later
than September 1, 2004, grant the Executive an irrevocable option (the "Option")
to purchase 400,000 common shares in the capital of the Corporation (the
"Optioned Shares") at a price equal to the closing share price on The Toronto
Stock Exchange on the date prior to the date of the grant of such Option. The
Option shall become exercisable on a cumulative basis in respect of 30% of the
total Optioned Shares commencing on the first anniversary of the date of grant,
30% of the total Optioned Shares commencing on the second anniversary of the
date of grant, and 40% of the
<PAGE>
                                      -5-

total Optioned unvested Option Shares commencing on the third anniversary of the
date of grant. The Option shall expire in respect of Optioned Shares not
theretofore acquired thereunder or in respect of which rights shall not
otherwise have terminated on the seventh annual anniversary of the date of
grant. The Executive acknowledges and agrees that no further options shall be
granted to him until after January 2006.

      (b)   The Executive agrees to acquire by no later than the third
anniversary of the date of his appointment as Chief Executive Officer, and to
thereafter maintain for the duration of his employment with the Corporation, not
less than that number of common shares in the Corporation as is equal in value
to his Base Salary multiplied by five and shall provide evidence of the shares
held by him as may be required by the Corporation from time to time. Shares
acquired on behalf of the Executive pursuant to the EISCP, whether or not vested
(Executive's "EISCP Shares"), shall be counted toward this requirement unless
and until the Executive shall have disposed of such shares.

      (c)   The Executive will comply with all applicable securities laws and
the Corporation's Insider Trading Policy and Insider Reporting Procedures
(copies of which have been provided to the Executive) in respect of the Optioned
Shares issued to the Executive and other shares of the Corporation acquired by
the Executive.

      (d)   All of the Executive's rights in respect of the Option in the
Optioned Shares shall be governed by the terms and conditions set out in the
Restated 1986 Common Share Option Plan (the "Option Plan") of the Corporation as
amended, as it may be amended from time to time, a copy of which has been
provided to the Executive, the provisions of which are incorporated into this
Agreement by reference.

ARTICLE 4 - COVENANTS OF THE PARTIES

4.1   CONFIDENTIALITY.

      (a)   The Executive acknowledges that in the course of carrying out,
performing and fulfilling his obligations to the Corporation hereunder, the
Executive will have access to and will be entrusted with information that would
reasonably be considered confidential to the Corporation or its Affiliates, the
disclosure of which to competitors of the Corporation or its Affiliates or to
the general public, will be highly detrimental to the best interests of the
Corporation or its Affiliates. Such information includes, without limitation,
trade secrets, know-how, marketing plans and techniques, cost figures, client
lists, software, and information relating to employees, suppliers, customers and
persons in contractual relationship with the Corporation. Except as may be
required in the course of carrying our his duties hereunder, the Executive
covenants and agrees that he will not disclose, for the duration of this
Agreement or at any time thereafter, any such information to any person, other
than to the directors, officers, employees or agents of the Corporation that
have a need to know such information, nor shall the Executive use or exploit,
directly or indirectly, such information for any purpose other than for the
purposes of the Corporation (subject to his rights and obligations under Section
3.6), nor will he disclose nor use for any purpose, other than for those of the
Corporation or its Affiliates or any other information which he may acquire
during his employment with respect to the business and affairs of the
Corporation or its Affiliates. Notwithstanding all of the foregoing, the
Executive shall be entitled to disclose such information if required pursuant to
a subpoena or order issued
<PAGE>
                                      -6-

by a court, arbitrator or governmental body, agency or official, provided that
the Executive shall first have:

            (i)   notified the Corporation;

            (ii)  consulted with the Corporation on the advisability of taking
                  steps to resist such requirements;

            (iii) if the disclosure is required or deemed advisable, cooperate
                  with the Corporation in an attempt to obtain an order or other
                  assurance that such information will be accorded confidential
                  treatment.

      (b)   For the purposes of this Agreement, "Affiliate" shall mean, with
respect to any person or entity (herein the "first party"), any other person or
entity that directs or indirectly controls, or is controlled by, or is under
common control with, such first party. The term "control" as used herein
(including the terms "controlled by" and "under common control with") means the
possession, directly or indirectly, of the power to: (i) vote 50% or more of the
outstanding voting securities of such person or entity, or (ii) otherwise direct
or significantly influence the management or policies of such person or entity
by contract or otherwise.

4.2   INVENTIONS. The Executive acknowledges and agrees that all right, title
and interest in and to any information, trade secrets, advances, discoveries,
improvements, research materials and data bases made or conceived by the
Executive prior to or during his employment relating to the business or affairs
of the Corporation, shall belong to the Corporation. In connection with the
foregoing, the Executive agrees to execute any assignments and/or
acknowledgements as may be requested by the board of directors from time to
time.

4.3   CORPORATE OPPORTUNITIES. Any business opportunities related to the
business of the Corporation which become known to the Executive during his
employment hereunder must be fully disclosed and made available to the
Corporation by the Executive, and the Executive agrees not to take or attempt to
take any action if the result would be to divert from the Corporation any
opportunity which is within the scope of its business.

4.4   RESTRICTIVE COVENANTS.

      (a)   The Executive will not at any time, without the prior written
consent of the Corporation, during the Term of this Agreement or for a period of
24 months after the termination of the Executive's employment (regardless of the
reason for such termination), either individually or in partnership, jointly or
in conjunction with any person or persons, firm, association, syndicate, company
or corporation, whether as agent, shareholder, employee, consultant, or in any
manner whatsoever, directly or indirectly:

            (i)   anywhere in the Territory, engage in, carry on or otherwise
                  have any interest in, advise, lend money to, guarantee the
                  debts or obligations of, permit the Executive's name to be
                  used in connection with any business which is competitive to
                  the Business or which provides the same or substantially
                  similar services as the Business;
<PAGE>
                                      -7-

            (ii)  for the purpose of competing with any business of the
                  Corporation, solicit, interfere with, accept any business from
                  or render any services to anyone who is a client or a
                  prospective client of the Corporation or any Affiliate at the
                  time the Executive ceased to be employed by the Corporation or
                  who was a client during the 12 months immediately preceding
                  such time;

            (iii) solicit or offer employment to any person employed or engaged
                  by the Corporation or any Affiliate at the time the Executive
                  ceased to be employed by the Corporation or who was an
                  employee or during the 12 month period immediately preceding
                  such time.

      (b)   For the purposes of the Agreement:

            (i)   "Territory" shall mean the countries in which the Corporation
                  and its subsidiaries conduct the Business;

            (ii)  "Business" shall mean the business of manufacturing, selling
                  and distributing non-alcoholic beverages.

      (c)   Nothing in this Agreement shall prohibit or restrict the Executive
from holding or becoming beneficially interested in up to one (1%) percent of
any class of securities in any corporation provided that such class of
securities are listed on a recognized stock exchange in Canada or the United
States.

4.5   GENERAL PROVISIONS.

      (a)   The Executive acknowledges and agrees that in the event of a breach
of the covenants, provisions and restrictions in this Article 4, the
Corporation's remedy in the form of monetary damages will be inadequate and that
the Corporation shall be and is hereby authorized and entitled, in addition to
all other rights and remedies available to it, to apply for and obtain from a
court of competent jurisdiction interim and permanent injunctive relief and an
accounting of all profits and benefits arising out of such breach.

      (b)   The parties acknowledge that the restrictions in this Article 4 are
reasonable in all of the circumstances and the Executive acknowledges that the
operation of restrictions contained in this Article 4 may seriously constrain
his freedom to seek other remunerative employment. If any of the restrictions
are determined to be unenforceable as going beyond what is reasonable in the
circumstances for the protection of the interests of the Corporation but would
be valid, for example, if the scope of their time periods or geographic areas
were limited, the parties consent to the court making such modifications as may
be required and such restrictions shall apply with such modifications as may be
necessary to make them valid and effective.

      (c)   Each and every provision of these Sections 4.1, 4.2, 4.3, 4.4 and
4.5 hereunder shall survive the termination of this Agreement or the Executive's
employment hereunder (regardless of the reason or such termination).
<PAGE>
                                      -8-

ARTICLE 5 - TERMINATION OF EMPLOYMENT

5.1   TERMINATION BY THE CORPORATION FOR JUST CAUSE, DISABILITY OR DEATH OR
      NOTICE OF TERMINATION.

      (a)   The Corporation may terminate this Agreement and the Executive's
employment hereunder without payment of any compensation either by way of
anticipated earnings or damages of any kind at any time for Just Cause,
Disability or death of the Executive, or by delivery of a Notice of Termination
by the Executive.

      (b)   "Just Cause" shall mean:

            (i)   gross misconduct or dishonesty in the discharge of his duties
                  hereunder;

            (ii)  theft, misappropriation or fraud against the Corporation or
                  its property;

            (iii) alcoholism or addiction to a substance which materially
                  impairs the Executive's ability to perform his duties
                  hereunder;

            (iv)  wilful breach of fiduciary duties;

            (v)   gross negligence in the performance of the Executive's duties;
                  or

            (vi)  the Executive commits a wilful and material breach of this
                  Agreement,

unless, in the case of an act or omission described in clause (iv) or (v) above,
the Executive remedies same, after notice from the Corporation, within a period
which is reasonable in the circumstances.

            For the purposes of his Agreement, "Disability" shall have occurred
if the Executive has been unable due to illness, disease, or mental or physical
disability (in the opinion of a qualified medical practitioner who is
satisfactory to the Executive and the Corporation acting reasonably), to fulfill
his obligations hereunder either for any consecutive six (6) month period or for
any period of 9 months (whether or not consecutive) in any consecutive 12 month
period, or the Executive has been declared by a court of competent jurisdiction
to be mentally incompetent or incapable of managing his affairs.

            If the Executive and the Corporation cannot agree on a qualified
medical practitioner, each party shall select a medical practitioner, and the
two practitioners shall select a third who shall be the approved medical
practitioner for this purpose.

            In the event of a termination of the Executive's employment on
account of death or Disability, the Executive (if living) and his spouse and
daughter shall be entitled to the retiree health benefit described in Section
3.3(e) above.

5.2   TERMINATION BY THE EMPLOYER WITHOUT CAUSE.

      (a)   If the Executive's employment is terminated by the Corporation,
including delivery by the Corporation of a Notice of Termination, for any reason
other than for Just Cause,
<PAGE>
                                      -9-

Disability, death of the Executive, then the Corporation shall pay forthwith to
the Executive or as he may direct, a lump sum amount equal to:

            (i)   24 months' of (A) Base Salary, (B) Bonus (based, for any
                  termination of employment prior to January 1, 2006, on the
                  target Bonus as described in Section 3.2(a), and for any
                  termination thereafter on the average of the Bonus paid or
                  payable to the Executive in respect of the most recent two
                  completed fiscal years),

            (ii)  a pro rated Bonus for the year in which Executive's
                  termination occurs (based on the average of the Bonuses paid
                  or payable to the Executive in respect of the most recent two
                  completed fiscal years); plus

            (iii) the amount contributed to the EISCP on the Executive's behalf
                  for the fiscal year immediately preceeding the Executive's
                  termination, such contributions for any termination of
                  employment prior to January 1, 2006, to be deemed to be
                  $600,000.

      (b)   In the event of the termination of the Executive's employment under
this Section 5.2, the Corporation shall, to the extent it may do so legally and
in compliance with the Corporation's benefit plans in existence from time to
time, continue all group insurance benefits at a level equivalent to those
provided to the Executive immediately prior to the termination for a period
until the date which is 24 months following the date of termination, provided
that, (a) the benefits contemplated by this sub-paragraph shall terminate on the
date the Executive obtains alternate employment providing comparable benefits;
and (b) if the Corporation cannot continue any particular group insurance
benefit, the Corporation shall reimburse the Executive for any expenses incurred
by the Executive to replace such group insurance benefit.

      (c)   In the event of the termination of the Executive's employment under
this Section 5.2, the Corporation shall provide Health Insurance Benefits to the
Executive, his spouse, and his daughter in accordance with Section 3.3(e).

5.3   TERMINATION BY THE EXECUTIVE FOR GOOD REASON.

      (a)   The Executive may terminate his employment at any time for Good
Reason upon the occurrence, without the express written consent of the
Executive, of any of the following:

            (i)   a reduction in the Executive's then current Base Salary or
                  target award opportunity under the Corporation's annual Bonus
                  plan;

            (ii)  the termination or material reduction of any employee benefit
                  or perquisite enjoyed by him (other than as part of an
                  across-the-board reduction applicable to all executive
                  officers of the Corporation);

            (iii) the Executive is not elected (or appointed) or reelected (or
                  reappointed) to any of the executive officer positions
                  described in Section 2.1 or is removed from any such position;
<PAGE>
                                      -10-

            (iv)   a material diminution in the Executive's duties or the
                   assignment to the Executive of duties which are materially
                   inconsistent with his duties or which materially impair the
                   Executive's ability to function as the President and Chief
                   Executive Officer of the Corporation;

            (v)    the failure to continue the Executive's participation in any
                   incentive compensation plan (including, for greater certainty
                   the EISCP) unless a plan providing a substantially similar
                   opportunity is substituted;

            (vi)   the failure of the Corporation to obtain the assumption in
                   writing of its obligation to perform this Agreement by any
                   successor to all or substantially all of the business or
                   assets of the Corporation on or before the date of such
                   succession, unless the Executive shall have personally
                   received the opinion of counsel to the Corporation that such
                   transaction does not have an adverse legal effect on the
                   rights of the Executive hereunder;

            (vii)  any relocation of the Executive's principal place of
                   employment that would require the Executive to relocate his
                   principal place of residence to any location more than thirty
                   miles from Tampa, Florida, unless the Executive consents to
                   such relocation; or

            (viii) as provided in Section 5.4(a) below;

which, in any of the foregoing events, has not been remedied or cured by the
Corporation within a reasonable period after notice from the Executive.

      (b)   In the event the Executive terminates this Agreement for Good
Reason, he shall be entitled to the same payments and benefits provided in
Section 5.2 above.

      (c)   Notwithstanding any other provision in this Section 5.3, prior to
the date the Executive becomes Chief Executive Officer, clause (iii) of Section
5.3(a) shall not apply, and clause (iv) of Section 5.3(a) shall be read to refer
to the functions of Chief Operating Officer and President. This Section 5.3(c)
shall not limit the application of Section 1.2 above.

5.4   TERMINATION UPON A CHANGE OF CONTROL.

      (a)   If, following a Change in Control, the Executive's employment is
terminated without Just Cause or the Executive terminates his employment for
Good Reason, the Executive shall be entitled to the payments and benefits
provided in this Section 5.4. Also, immediately following a Change in Control,
all amounts, entitlements or benefits in which the Executive is not vested shall
become fully vested. Following a Change of Control the Executive may terminate
his employment at any time for Good Reason by providing written notice to the
Corporation within six months of the occurrence of such Change of Control, in
which case the effective date of such termination and the termination of the
Executive's employment shall be 30 days from the date of such written notice.

      (b)   For the purposes of this Agreement, a "Change of Control" shall
mean: (i) the occurrence, at any time during the Term of any person or group of
persons acting jointly or in
<PAGE>
                                      -11-

concert acquiring more than 50% of the outstanding voting shares in the
Corporation, whether by way of takeover bid, merger, amalgamation or otherwise;
(ii) a sale by the Corporation of all or substantially all of the Corporation's
undertaking and assets; or (iii) the voluntary liquidation, dissolution or
winding-up of the Corporation, in connection with which a distribution is made
to the holders of the Corporation's common shares.

      (c)   In the event of termination of the Executive's employment pursuant
to this Section 5.4, then the following provisions shall apply:

            (i)   The Corporation shall pay forthwith to the Executive or as he
                  may direct, a lump sum amount equal to 36 months of (A) Base
                  Salary, (B) Bonus (based, for any termination of employment
                  prior to January 1, 2006, on the target Bonus as described in
                  Section 3.2(a), and for any termination thereafter on the
                  average of the Bonuses paid or payable to the Executive in
                  respect of the most recent two completed fiscal years), and
                  (C) past contributions to the EISCP on the Executive's behalf,
                  such contributions to be calculated, for any termination of
                  employment prior to January 1, 2006, as $600,000 per year and
                  for any termination thereafter as the average contributions to
                  the EISCP on the Executive's behalf for the most recent two
                  completed fiscal years;

            (ii)  The Corporation shall continue, to the extent it may do so
                  legally and in compliance with the Corporation's benefit plans
                  in existence from time to time, all group and insurance
                  benefits at a level equivalent to those provided to the
                  Executive immediately prior to the termination for a period of
                  36 months following the date of termination, provided that, if
                  the Corporation cannot continue any particular group insurance
                  benefit, the Corporation shall reimburse the Executive for any
                  expenses incurred by the Executive to replace such group
                  insurance benefit.

            (iii) The Corporation shall provide Health Insurance Benefits to the
                  Executive, his spouse, and his daughter in accordance with
                  Section 3.3(e).

            (iv)  In the event that any payment or other amount (a "Payment) is
                  determined to constitute a parachute payment, as such term is
                  defined in Section 280G(b)(2) of the United States Internal
                  Revenue Code of 1986 as amended (a "Parachute Payment"), the
                  Corporation shall pay to the Executive, prior to the time any
                  excise tax imposed by Section 4999 of the Internal Code
                  ("Excise Tax") is payable with respect to the Payment, an
                  additional amount which, after the imposition of all income
                  and excise taxes thereon, is equal to the aggregate of all
                  Excise Taxes on all Payments such that the Executive is in the
                  same position as if no Excise Taxes had been imposed with
                  respect to any Payments. The determination of whether the
                  Payment constitutes a Parachute Payment and, if so, the amount
                  to be paid to the Executive and the time of payment pursuant
                  to this 5.4(c)(iv) shall be made by an independent auditor
                  (the "Auditor") jointly selected by the Corporation and the
                  Executive and paid by the Corporation. The Auditor shall be a
                  nationally recognized United States
<PAGE>
                                      -12-

                  public accounting firm which has not, during the two years
                  preceding the date of its selection, acted in any way on
                  behalf of the Corporation or any Affiliate thereof. If the
                  Executive and the Corporation cannot agree on the firm to
                  serve as the Auditor, then the Executive and the Corporation
                  shall each select one accounting firm and those two firms
                  shall jointly select the accounting firm to serve as the
                  Auditor. Each of the Corporation and the Executive agree that
                  if the Auditor determines that the Payments constitute, or are
                  likely to constitute, a Parachute Payment, each of the
                  Corporation and the Executive will in good faith consider any
                  reasonable recommendation of the Auditor, to structure the
                  Payments such that the Payments do not constitute a Parachute
                  Payment.

            (v)   Such termination shall otherwise be treated as, or deemed to
                  be, a "retirement" under Section 16(iii) of the Option Plan
                  with respect to all Options, and such termination shall be
                  considered or deemed to be a "Normal Retirement" for purposes
                  of the EISCP.

5.5   VOLUNTARY RESIGNATION; RETIREMENT. In the event the Executive wishes to
resign his employment voluntarily, he shall provide at least one hundred and
twenty (120) days' notice in writing to the Corporation. The Corporation may
waive such notice in whole or in part by paying the Executive's Base Salary and
continuing his group benefits and perquisites to the effective date of
resignation.

5.6   SHARE OPTIONS; INCENTIVE SHARES.

      (a)   Upon any termination of the Executive's employment under this
Agreement (other than for Just Cause) and provided that the Executive is at
least 55 years of age, such termination shall otherwise be treated as, or deemed
to be, a "retirement" under Section 16(iii) of the Option Plan with respect to
all Options.

      (b)   Any termination of the Executive's employment under this Agreement
(other than for Just Cause) shall, provided that the Executive is at least 55
years of age, be considered or deemed to be a "Normal Retirement" for purposes
of the EISCP.

5.7   PAYMENT TO DATE OF TERMINATION. Regardless of the reasons for the
termination, the Corporation shall make payment to the Executive to the
effective date of termination for all Base Salary, any accrued but unpaid
vacation entitlements, any earned but unpaid Bonus and, other than in the event
of a termination for Just Cause, any other amounts earned, accrued (including
Bonus and EISCP entitlements for the year in which the termination occurs) or
owing to the Executive but not yet paid as well as other or additional benefits
in accordance with applicable plans or programs of the Corporation.

5.8   RETURN OF PROPERTY. Upon any termination of his employment, the Executive
shall forthwith deliver or cause to be delivered to the Corporation all books,
documents, computer disks, and diskettes and other electronic data, effects,
money, securities, or other property belonging to the Corporation or for which
the Corporation is liable to others, which are in the possession, charge,
control or custody of the Executive.
<PAGE>
                                      -13-

5.9   RELEASE. The Executive acknowledges and agrees that the payments pursuant
to this Article shall be in full satisfaction of all terms of termination of his
employment, including termination pay and severance pay pursuant to the
Employment Standards Act (Ontario) as amended from time to time. Except as
otherwise provided in this Article, the Executive shall not be entitled to any
further termination payments, damages or compensation whatsoever. As condition
precedent to any payment pursuant to this Article, the Executive agrees to
deliver to the Corporation prior to any such payment, a full and final release
from all actions or claims in connection therewith in favour of the Corporation,
its affiliates, subsidiaries, directors, officers, employees and agents, in the
form satisfactory to the Corporation, acting reasonably.

5.10  NO MITIGATION; SET-OFF; NATURE OF PAYMENTS. In the event of any
termination of employment under this Article 5, the Executive shall be under no
obligation to seek other employment and there shall be no offset against amounts
due to the Executive under this Agreement on account of any remuneration
attributable to any subsequent employment that he may obtain except as
specifically provided in this Agreement; provided, however, the Executive
authorizes the Corporation to deduct from any payment due to him pursuant to
this Agreement, any amounts owed by him to the Corporation by reason of
purchases, advances, loans, or other similar contractual obligations to pay
money. This provision shall be applied so as not to conflict with any applicable
legislation. Any amounts due under this Article 5 are in the nature of severance
payments considered to be reasonable by the Corporation and are not in the
nature of a penalty.

5.11  PROVINCIAL LEGISLATION. All payments made and notice given pursuant to
this Article 5 shall include notice of termination and severance pay as defined
in the Employment Standards Act (Ontario) as it may from time to time be
amended, the provisions of which are deemed to be incorporated into this
Agreement and shall prevail to the extent greater.

ARTICLE 6 - DIRECTORS AND OFFICERS

6.1   RESIGNATION. If the Executive is a director or officer at the relevant
time, the Executive agrees that after termination of his employment with the
Corporation he will tender his resignation from any position he may hold as an
officer or director of the Corporation or any of its affiliated or related
companies.

6.2   INSURANCE. The Corporation shall maintain such directors' and officers'
liability insurance for the benefit of the Executive in accordance with
corporate policies and as generally provided to the directors of the
Corporation.

6.3   INDEMNIFICATION. The Corporation agrees that, if the Executive is made a
party, or is threatened to be made a party, to any action, suit or proceeding,
whether civil, criminal, administrative or investigative (a "Proceeding"), by
reason of the fact that he is or was a director, officer or employee of the
Corporation or is or was serving at the request of the Corporation as a
director, officer, member, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, including service with
respect to employee benefit plans, whether or not the basis of such Proceeding
is the Executive's alleged action in an official capacity while serving as a
director, officer, member employee or agent, the Executive shall be indemnified
and held harmless by the Corporation to the fullest extent legally permitted or
authorized by the Corporation's certificate of incorporation or bylaws or
resolutions of the Corporation's Board of Directors or, if greater, by the laws
of the Province of Ontario, and the federal Laws of Canada
<PAGE>
                                      -14-

applicable to the Corporation, against all cost, expense, liability, and loss
(including, without limitation, attorney's fees, judgments, fines, ERISA excise
taxes or penalties and amounts paid or to be paid in settlement) reasonably
incurred or suffered by the Executive in connection therewith, and such
indemnification shall continue as to the Executive even if he has ceased to be a
director, member, employee or agent of the Corporation or other entity and shall
inure to the benefit of the Executive's heirs, executors and administrators. The
Corporation shall advance to the Executive all reasonable costs and expenses
incurred by him in connection with a Proceeding within 20 days after receipt by
the Corporation of a written request for such advance. Such request shall
include an undertaking by the Executive to repay the amount of such advance if
it shall ultimately be determined that he is not entitled to be indemnified
against such cost and expenses.

ARTICLE 7 - ARBITRATION

7.1   All matters in difference between the parties in relation to this
Agreement, shall be referred to the arbitration of a single arbitrator, if the
parties agree upon one, otherwise to three arbitrators, one to be appointed by
the Corporation and one to be appointed by the Executive and a third to be
chosen by the first two arbitrators named before they enter upon the business of
arbitration. The arbitration shall be conducted in accordance with the
Arbitrations Act (Ontario) as it may from time to time be amended. The award and
determination of the arbitrator or arbitrators or any of two of three
arbitrators shall be binding upon the parties and their respective heirs,
executors, administrators and assigns.

ARTICLE 8 - CONTRACT PROVISIONS

8.1   HEADINGS. The headings of the Articles and paragraphs herein are inserted
for convenience of reference only and shall not affect the meaning or
construction hereof.

8.2   INDEPENDENT ADVICE. The Corporation and the Executive acknowledge and
agree that they have each obtained independent legal advice in connection with
this Agreement and they further acknowledge and agree that they have read,
understand and agree with all of the terms hereof and that they are executing
this Agreement voluntarily and in good faith.

8.3   GENDER. Words denoting any gender include both genders.

8.4   GOVERNING LAW. This Agreement shall be construed and interpreted in
accordance with the laws of the Province of Ontario and the federal laws of
Canada applicable therein. Each of the parties hereby irrevocably attorns to the
jurisdiction of the court of the Province of Ontario with respect to any matters
arising out of this Agreement.

8.5   ENTIRE AGREEMENT. This Agreement, together with the plans and documents
referred to herein, constitutes and expresses the whole agreement of the parties
hereto with reference to any of the matters or things herein provided for or
herein before discussed or mentioned with reference to such employments for the
Executive and supersedes and replaces all prior agreements between the parties
hereto in respect of the matters or things herein provided for, including,
effective September 1, 2004, the employment agreement between the Executive and
the Corporation dated December 21, 2001, as amended. All promises,
representation, collateral agreements and undertakings not expressly
incorporated in this Agreement are hereby superseded by this Agreement.
<PAGE>
                                      -15-

8.6   SEVERABILITY. If any provision contained herein is determined to be void
or unenforceable in whole or in part, it shall not be deemed to affect or impair
the validity of any other provision herein and each such provision is deemed to
be separate and distinct.

8.7   NOTICE. Any notice required or permitted to be given under this Agreement
shall be in writing and shall be properly given if personally delivered,
delivered by facsimile transmission (with confirmation of receipt) or mailed by
prepaid registered mail addressed as follows:

      (a)   in the case of the Corporation:

            Cott Corporation
            207 Queen's Quay West
            Suite 340
            Toronto, Ontario
            M5J 1A7

            Facsimile:(416) 203-5609

            Attention: Chairman

            -and-

            Attention: General Counsel

      (b)   in the case of the Executive:

            to the last address of the Executive
            in the records of the Corporation
            and its subsidiaries

or to such other address as the parties may from time to time specify by notice
given in accordance herewith. Any notice so given shall be conclusively deemed
to have been given or made on the day of delivery, if personally delivered, or
if delivered by facsimile transmission or mailed as aforesaid, upon the date
shown on the facsimile confirmation of receipt or on the postal return receipt
as the date upon which the envelope containing such notice was actually received
by the addressee.

8.8   SUCCESSORS. This Agreement shall enure to the benefit of and be binding
upon the parties hereto and their respective personal or legal representatives,
heirs, executors, administrators, successors and assigns. The Executive's spouse
and daughter are intended third party beneficiaries with regard to their
benefits as described in Section 3.3(e) above.

8.9   SURVIVORSHIP. Upon the termination of Executive's employment, the
respective rights and obligations of the parties shall survive such termination
to the extent necessary to carry out the intended preservation of such rights
and obligations.

8.10  TAXES. All payments under this Agreement shall be subject to withholding
of such amounts, if any, relating to tax or other payroll deductions as the
Corporation may reasonably determine and should withhold pursuant to any
applicable law or regulation.
<PAGE>
                                      -16-

8.11  CURRENCY. All dollar amounts set forth or referred to in this Agreement
refer to U.S. currency.

8.12  COUNTERPARTS. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original but all of which together shall
constitute one and the same instrument.

      IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first above written.

                                     COTT CORPORATION

                                     Per:    /s/ Frank E. Weise
                                             -----------------------------------
                                             Frank E. Weise

                                     I have authority to bind the Corporation

                                     Per:    /s/ Serge Gouin
                                             -----------------------------------
                                             Serge Gouin

                                     I have authority to bind the Corporation

SIGNED, SEALED & DELIVERED           )
   in the presence of                )
                                     )
                                     )
/s/ Dale Wellhofer                   )       /s/ John K Sheppard             l/s
                                             -----------------------------------
                                             JOHN K. SHEPPARD
<PAGE>
                                COTT CORPORATION

                         STATEMENT OF RESPONSIBILITIES

                          - CHIEF EXECUTIVE OFFICER -

The Chief Executive Officer of Cott Corporation (the "Corporation") shall be
responsible for directing the Corporation with the objective of providing
maximum profit and return on invested capital, establishing short-term and
long-term objectives, plans, performance standards and policies subject to the
approval of the Board of Directors. To that end, the Chief Executive Officer
will be ultimately responsible for:

-     Preparing, at least annually, a statement of objectives, plans,
      performance standards and policies for the Corporation, which shall be
      reviewed by the Human Resources, Compensation and Corporate Governance
      Committee and shall be approved by the Board of Directors.

-     Ensuring that the Corporation's material operating plans, performance
      standards and policies are uniformly understood and properly interpreted
      and administered by subordinates.

-     Presenting proposed operating and capital expenditure budgets for review
      and approval by the Board of Directors.

-     Directing all investigations and negotiation pertaining to material
      acquisitions or dispositions, mergers and joint ventures.

-     Representing the Corporation as appropriate in its relationship with major
      customers, suppliers, competitors, commercial and investment bankers,
      investment analysts, the media, security holders, government agencies,
      professional associations, unions, employees and the public generally.

-     Analyzing the operating results of the Corporation and its principal
      divisions relative to established objectives and taking appropriate steps
      to correct unsatisfactory conditions.

-     Making recommendations to the Human Resources, Compensation and Corporate
      Governance Committee as regards Senior Officer succession planning and
      compensation.

-     Insuring the adequacy and soundness of the Corporation's financial
      structure and reviewing projections of working capital requirements.

-     Delegating any or all of the above-noted responsibilities and maintaining
      ultimate supervisory responsibility to ensure that they are performed.

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