Document:

EXHIBIT 10.14

                      LNR PROPERTY CORPORATION SAVINGS PLAN

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                                TABLE OF CONTENTS

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<S>      <C>      <C>                                                                                            <C>
SECTION 1.........................................................................................................2
         1.1      Accounts........................................................................................2
         1.2      Acquired Company................................................................................3
         1.3      Actual Contribution Percentage..................................................................3
         1.4      Actual Deferral Percentage......................................................................3
         1.5      Anniversary Date................................................................................3
         1.6      Board...........................................................................................3
         1.7      Capital Accumulation Contribution...............................................................3
         1.7      Code............................................................................................3
         1.8      Company.........................................................................................3
         1.9      Company Stock...................................................................................4
         1.10     Compensation....................................................................................4
         1.11     Deferred Retirement Date........................................................................4
         1.12     Disability......................................................................................4
         1.13     Early Retirement Date...........................................................................4
         1.14     Effective Date..................................................................................4
         1.15     Eligible Employee...............................................................................4
         1.16     Employee........................................................................................5
         1.17     Employer........................................................................................5
         1.18     Enrollment Date.................................................................................5
         1.19     ERISA...........................................................................................5
         1.20     Financial Hardship..............................................................................5
         1.21     Highly Compensated Employee.....................................................................5
         1.22     415 Compensation................................................................................6
         1.23     Hour of Service.................................................................................7
         1.24     Independent Advisor.............................................................................7
         1.25     Investment Manager..............................................................................8
         1.26     Matching Contribution...........................................................................8
         1.27     Nonvested.......................................................................................8
         1.28     Non-Highly Compensated Employee.................................................................8
         1.29     Normal Retirement Age...........................................................................8
         1.30     Normal Retirement Date..........................................................................8
         1.31     One-Year Break-In-Service.......................................................................8
         1.32     Participant.....................................................................................9
         1.33     Plan............................................................................................9
         1.34     Plan Year.......................................................................................9
         1.35     Predecessor Plan...............................................................................10
         1.37     Salary Deferral Agreement......................................................................10
         1.38     Salary Deferral Contribution...................................................................10
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<S>      <C>      <C>                                                                                            <C>
         1.39     Termination of Employment......................................................................10
         1.40     Trust..........................................................................................10
         1.41     Trustees.......................................................................................10
         1.42     Valuation Date.................................................................................11
         1.43     Year-of-Service................................................................................11

SECTION 2........................................................................................................12
         2.1      Commencement of Participation..................................................................12
         2.2      Obligation of Participant......................................................................12
         2.3      Termination of Participation...................................................................12

SECTION 3........................................................................................................14
         3.1      Salary Deferral................................................................................14
         3.2      Matching and Voluntary Contributions...........................................................16
         3.3      Profit Sharing Contribution....................................................................18
         3.4      Rollover Contribution..........................................................................19
         3.5      Annual Limitation on Contributions.............................................................19

SECTION 4........................................................................................................21
         4.1      Matching and Profit Sharing Accounts...........................................................21
         4.2      Salary Deferral, Voluntary Contribution and Rollover Accounts..................................22

SECTION 5........................................................................................................23
         5.1      Forfeitures....................................................................................23
         5.2      Allocation.....................................................................................23
         5.3      Restoration of Benefits........................................................................23

SECTION 6........................................................................................................24
         6.1      Investment Funds...............................................................................24
         6.2      Investment Performance.........................................................................25
         6.3      Independent Appraiser..........................................................................25

SECTION 7........................................................................................................26
         7.1      Distributions During Employment................................................................26
         7.2      Distributions Upon Separation from Service.....................................................29
         7.3      Distributees Right to Demand Company Stock.....................................................35
         7.4      Incompetence of Distributee....................................................................35
         7.5      Location of Participant or Beneficiary Unknown.................................................35
         7.6      Put Option.....................................................................................36
         7.7      Restrictions...................................................................................36

SECTION 8........................................................................................................37
         8.1      Amendment......................................................................................37
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<S>      <C>      <C>                                                                                            <C>
         8.2      Termination, Partial Termination, or Complete Discontinuance of Contributions..................37
         8.3      Permissible Reversions.........................................................................38

SECTION 9........................................................................................................39

SECTION 10.......................................................................................................41
         10.1     Application of Top-Heavy Provisions............................................................41
         10.2     Key Employees..................................................................................44
         10.3     Non-Key Employee...............................................................................45
         10.4     Additional Rules...............................................................................45
         10.5     Vesting Requirements...........................................................................45
         10.6     Minimum Benefit................................................................................46
         10.7     Ceiling on Includible Compensation.............................................................46

SECTION 11.......................................................................................................47
         11.1     Limitation of Rights; Employment Relationship..................................................47
         11.2     Merger; Transfer of Assets.....................................................................47
         11.3     Prohibition Against Assignment.................................................................47
         11.4     Applicable Law; Severability...................................................................48
         11.5     Reliance Upon Copy of Plan.....................................................................48
         11.6     Gender and Number; Captions or Headings........................................................48

SECTION 12.......................................................................................................50
         12.1     Appointment of Committee.......................................................................50
         12.2     Committee Organization.........................................................................50
         12.3     Committee Meetings.............................................................................50
         12.4     Committee Functions and Powers.................................................................52
         12.5     Committee Actions Conclusive...................................................................51
         12.6     Committee Appointment of Agents................................................................52
         12.7     Reliance on Opinions, Etc......................................................................52
         12.8     Records and Accounts...........................................................................52
         12.9     Payment of Expense.............................................................................52
         12.10    Liability of the Administrative Committee......................................................53

SECTION 13.......................................................................................................54
         13.1     The Trust Agreement............................................................................54
         13.2     No Diversion of Corpus or Income...............................................................54
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                                    PREAMBLE

         The following are the provisions of the LNR PROPERTY SAVINGS PLAN (the
"Plan") as it is hereinafter set forth, and as it may hereinafter from time to
time be amended by the LNR PROPERTY CORPORATION, a corporation formed under the
laws of Delaware (the "Employer").

         Employer was established in 1997, as a result of a reorganization of
Lennar Corporation. Pursuant to the reorganization, Employer was created and its
stock distributed to Lennar Corporation shareholders.

         The Plan is based upon the LENNAR CORPORATION EMPLOYEE STOCK OWNERSHIP
PLAN (the "Predecessor Plan") which was originally adopted effective November 1,
1983 and subsequently amended and restated effective December 1, 1989 and again
on December 31, 1994. Assets and liabilities shall be transferred from the
Predecessor Plan to the Plan for all Participants in the Plan who have account
balances in the Predecessor Plan. Any Participant in this Plan on the Effective
Date, who was a participant in the Predecessor Plan as of the date immediately
preceding the Effective Date, shall be immediately eligible to participate in
the Plan and shall be credited with all Years of Service and all 1997 Hours of
Service earned at Lennar Corporation.

         The Employer adopted the Plan, effective November 1, 1997, in
connection with the reorganization of Lennar Corporation and the Employer.

         The Employer now desires to amend the Plan to terminate the ESOP
component of the Plan, change the vesting schedule and permit employees to
immediately access employer contributions upon termination of employment. In
order to accomplish this result, the Employer does hereby adopt the restated LNR
PROPERTY CORPORATION SAVINGS PLAN, effective January 1, 1999.

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                                   SECTION 1.

                                   DEFINITIONS

1.1      ACCOUNTS

         (a)      MATCHING ACCOUNT

                  The account of a Participant which is credited with matching
                  contributions made pursuant to Section 3.2(a).

         (b)      CAPITAL ACCUMULATION ACCOUNT

                  The account of a Participant which is credited with Capital
                  Accumulation Contributions made pursuant to Section 3.3.
                  Effective as of April 1, 1999, the Capital Accumulation
                  Account of a Participant also contains amounts transferred
                  from a Participant's ESOP Account.

         (c)      ROLLOVER ACCOUNT

                  The account of a Participant which is credited with rollover
                  deposits made pursuant to Section 3.4.

         (d)      SALARY DEFERRAL ACCOUNT

                  The account of a Participant which is credited with Salary
                  Deferral Contributions made pursuant to Section 3.1(a).

         (e)      VOLUNTARY CONTRIBUTION ACCOUNT

                  The account of a Participant which is credited with Voluntary
                  Contributions made pursuant to Section 3.2(b).

         (f)      ESOP ACCOUNT

                  The account of a Participant credited with ESOP contributions.
                  Effective as of April 1, 1999, all amounts in a Participant's
                  ESOP Account shall be transferred to the Participant's Capital
                  Accumulation Account.

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1.2      ACQUIRED COMPANY

         A business the Company acquires through the purchase and/or exchange of
         assets, equity or a combination of both.

1.3      ACTUAL CONTRIBUTION PERCENTAGE

         The ratio of:

         (a)      the sum of Matching Contributions and Voluntary Contributions;
                  to

         (b)      Compensation for the Plan Year, for each Eligible Employee.

1.4      ACTUAL DEFERRAL PERCENTAGE

         The ratio of:

         (a)      Salary Deferral Contributions; to

         (b)      Compensation for the Plan Year, for each Eligible Employee.

1.5      ANNIVERSARY DATE

         The last day of each Plan Year.

1.6      BOARD

         The Board of Directors of the Company.

1.7      CAPITAL ACCUMULATION CONTRIBUTION

         The contribution described in Section 3.3.

1.8      CODE

         The Internal Revenue Code of 1986, as amended.

1.9      COMPANY

         LNR Property Corporation, a Delaware corporation, or any successor to
         it in ownership of all or substantially all of its operating assets
         which adopts and continues the Plan by operation of law or with the
         approval of the Board.

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1.10     COMPANY STOCK

         Common stock of the Company.

1.11     COMPENSATION

         The total wages or salary paid within the Plan Year by the Employer to
         a Participant as reported to the Internal Revenue Service on Form W-2
         plus any contributions elected pursuant to Section 3.1. Compensation
         may not exceed $150,000 per year, or such higher amount to which such
         amount shall be adjusted annually in accordance with regulations
         prescribed by the Secretary of the Treasury pursuant to Code Section
         415(d) to reflect increases in the cost-of-living.

1.12     DEFERRED RETIREMENT DATE

         The actual retirement date of a Participant who has already attained
         his Normal Retirement Age.

1.13     DISABILITY

         A mental or physical condition which is total and permanent and
         prevents a Participant from performing the Participants usual duties as
         an Employee. The Administrative Committee, based on medical evidence
         deemed by it to be competent, shall be the sole judge of the Disability
         of a Participant, and its determinations shall be final and conclusive.

1.14     EARLY RETIREMENT DATE

         Any date on which the Participant retires prior to the date such
         Participant attains age sixty-five (65) which is on or after the later
         of:

         (a)      the day the Participant attains age sixty (60), or

         (b)      the day the Participant completes twenty-five (25)
                  Years-of-Service.

1.15     EFFECTIVE DATE

         November 1, 1997.

1.16     ELIGIBLE EMPLOYEE

         An Employee who may participate in the Plan because he has attained the
         age of 21.

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1.17     EMPLOYEE

         Any individual, including any officer, employed by the Employer,
         whether paid a regular weekly, bi-weekly, semimonthly, monthly, or
         annual rate of salary, or paid on an hourly basis only for performance
         as a managerial, administrative, technical, professional or clerical
         employee, or paid in whole or in part on a commission basis (but not
         including any other individual employed on an hourly or piecework
         basis), and who is employed in the United States, or if employed
         abroad, is a citizen of the United States and is covered under an
         agreement entered into by the Employer under Section 3121(l) of the
         Code. The term Employee shall not include a member of the Board who is
         active only in that capacity, or any individual covered by a collective
         bargaining agreement between the Employer and a union (except as may be
         provided in such collective bargaining agreement), or any individual
         who is an independent contractor or a leased employee under Section
         414(n) of the Code.

1.18     EMPLOYER

         The Company and all other entities which are part of a controlled
         group, as defined at Code Sections 414(b) and 414(c), of which the
         Company is part.

1.19     ENROLLMENT DATE

         Enrollment Date means January 1 or July l of each Plan Year.

1.20     ERISA

         The Employee Retirement Income Security Act of 1974, as amended.

1.21     FINANCIAL HARDSHIP

         An immediate and heavy financial need of a Participant as described in
         Treasury Regulation 1.404(k)-l(d)(2).

1.22     HIGHLY COMPENSATED EMPLOYEE

         Any Eligible Employee who:

         (a)      Performs service for the Employer during the Plan Year and
                  who, during the prior Plan Year received Compensation from the
                  Employer in excess of $80,000 (as adjusted pursuant to Code
                  Section 415(d));

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         (b)      Is a 5% owner at any time during the prior Plan Year or Plan
                  Year; or

         (c)      Separated from service (or was deemed to have separated) prior
                  to the Plan Year, performs no service for the Employer during
                  the Plan Year, and was a Highly Compensated Employee for
                  either the Plan Year he terminated employment or any Plan Year
                  ending on or after his 55th Birthday.

         The determination of Highly Compensated Employees may be made by the
         Committee on the basis of the "top-paid group" election in accordance
         with such regulations, notices or other guidance issued under Section
         414(q) of the Code.

1.23     415 COMPENSATION

         A Participants wages, salaries, fees for professional service and other
         amounts of personal services actually rendered in the course of
         employment with an Employer maintaining the Plan (including, but not
         limited to, commissions paid salesmen, compensation for services on the
         basis of a percentage of profits, commissions on insurance premiums,
         tips and bonuses and in the case of a Participant who is an Employee
         within the meaning of Code Section 401(c)(1) and the regulations
         thereunder, the Participant's earned income (as described in Code
         Section 401(c)(2) and the regulations thereunder) paid or accrued
         during the "limitation year" it shall exclude:

         (a)      Contributions made by the Employer to a plan of deferred
                  compensation to the extent that, before the application of the
                  Code Section 415 limitations to the Plan, the contributions
                  are not includible in the gross income of the Employee for the
                  taxable year in which contributed,

         (b)      Employer contributions made on behalf of an Employee to a
                  simplified employee pension plan described in Code Section
                  408(k) to the extent such contributions are deductible by the
                  Employee under Code Section 219(a);

         (c)      Any distributions from a plan of deferred compensation
                  regardless of whether such amounts are includible in the gross
                  income of the Employee when distributed except any amounts
                  received by an Employee pursuant to an unfunded nonqualified
                  plan of the Employees Employer to the extent such amounts are
                  includible in the gross income of the Employee;

         (d)      Amounts realized from the exercise of a nonqualified stock
                  option or when restricted stock (or property) held by an
                  Employee either becomes freely transferable or is no longer
                  subject to a substantial risk of forfeiture;

         (e)      Amounts realized from the sale, exchange or other dispositions
                  of stock required

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                  under a qualified stock option;

         (f)      Other amounts which receive special tax benefits, such as
                  premiums for group term life insurance (but only to the extent
                  that the premiums are not includible in the gross income of
                  the Employee).

         However, notwithstanding the foregoing, for Plan Years beginning after
         December 31, 1997, the term "415 Compensation" shall include any
         elective deferral as defined in Section 402(g)(3) of the Code, and any
         amount which is contributed or deferred by the Company at the election
         of the Participant and is not includible in the gross income of the
         Participant by reason of Section 125 of the Code.

1.24     HOUR OF SERVICE

         "Hour of Service" means:

         (a)      Each hour for which an Employee is paid or entitled to payment
                  by the Company for the performance of duties;

         (b)      Each hour for which an Employee is paid or entitled to payment
                  by the Company for reasons such as vacation, sickness or
                  disability, other than for the performance of duties. These
                  hours shall be credited to the Employee for the computation
                  period or periods in which payment is actually made for
                  amounts payable to the Employee; and

         (c)      Each hour for which back pay (irrespective of mitigation of
                  damages) has been either awarded or agreed to by the Company.
                  These hours shall be credited to the Employee for the
                  computation period or periods to which the award or agreement
                  pertains, rather than the computation period in which the
                  award, agreement or payment is made.

         In applying this definition, any ambiguity shall be resolved consistent
         with the rules set out at Department of Labor Reg. ss.ss. 2530.200b-2
         (b) and (c).

1.25     INDEPENDENT ADVISOR

         Any person, firm or corporation which has been appointed by the
         Administrative Committee pursuant to Section 12.4(k) to provide advice
         with respect to investment of the funds in any or in all of the
         Investment Funds described in Section 6.1.

         An independent advisor must be one of the following:

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         (a)      Registered as an investment advisor under the Investment
                  Advisors Act of 1940;

         (b)      A bank, defined under ERISA, or

         (c)      An insurance company qualified under the laws of more than one
                  state to manage, acquire or dispose of any asset of a Plan.

1.26     INVESTMENT MANAGER

         Any person, firm or corporation which satisfies the requirements of
         Section 3(38) of ERISA.

1.27     MATCHING CONTRIBUTION

         The contribution described in Section 3.2(a).

1.28     NONVESTED

         When a Participant is not vested in any portion of the Matching
         Contributions and/or Capital Accumulation Contributions allocated to
         his Accounts.

1.29     NON-HIGHLY COMPENSATED EMPLOYEE

         Any Eligible Employee who is not a Highly Compensated Employee under
         Plan Section 1.25.

1.30     NORMAL RETIREMENT AGE

         For all Participants who were participants in the Predecessor Plan on
         November 30, 1989, a Participants 65th birthday. For all other
         Participants, the later of (a) age sixty-five (65), or (b) the fifth
         (5th) anniversary of the date on which a Participant commenced
         participation.

1.31     NORMAL RETIREMENT DATE

         The first day of the calendar month in which a Participant attains
         Normal Retirement Age and retires.

1.32     ONE-YEAR BREAK-IN-SERVICE

         The twelve month period following an Anniversary Date in which the
         Participant does not complete more than five hundred (500) Hours of
         Service. Notwithstanding the foregoing, solely for the purpose of
         determining whether a Participant has incurred a One-Year
         Break-

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         In-Service, Hours of Service shall be recognized for "a maternity leave
         of absence."

         A "maternity leave of absence" shall mean an absence from work for any
         period by reason of the Employee's pregnancy, birth of the Employee's
         child, placement of a child with the Employee in connection with the
         adoption of such child, or any absence for the purpose of caring for
         such child for a period immediately following such birth or placement.
         For this purpose, Hours of Service shall be credited for the
         computation period in which absence from work begins, only if credit
         therefore is necessary to prevent the Employee from incurring a
         One-Year Break-in-Service, or, in any other case, in the immediately
         following computation period. The Hours of Service credited for a
         maternity leave of absence shall be those that normally would have been
         credited but for such absence, or, in any case in which the
         Administrative Committee is unable to determine such hours normally
         credited, eight (8) Hours of Service per day. The total Hours of
         Service required to be credited for any single maternity or leave of
         absence shall not exceed 501.

1.33     PARTICIPANT

         Any Eligible Employee who has commenced participation in the Plan in
         accordance with the provisions of Section 2 of the Plan.

1.34     PLAN

         LNR Property Corporation Savings Plan.

1.35     PLAN YEAR

         Plan Year means a twelve (12) month period commencing each January 1.

         In 1997, the Plan will have a short plan year from the Effective Date
         through December 31, 1997.

         The short plan year

         (a)      is an additional computation period in computing Employees
                  eligibility,

         (b)      is an additional computation period in computing
                  Year-of-Service,

         (c)      is an additional year of participation in computing Normal
                  Retirement Age.

         The percentage of Compensation for the short plan year ended December
         31, 1997 will be the same for each Participant. The Contribution made
         hereunder shall be made as of the last day of December, 1997 and shall
         be made only for those Participants who are Employees as

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         of such date.

1.36     PREDECESSOR PLAN

         The Plan maintained by Lennar Corporation as of the effective date of
         the Plan.

1.37     SALARY DEFERRAL AGREEMENT

         A written agreement between a Participant and the Company which
         provides that the Participant's Compensation will be reduced by a whole
         percentage amount of such Compensation, not less than 1% nor more than
         15%, and the Company will contribute an equivalent amount not less
         frequently than monthly to the Participant's Salary Deferral Account. A
         Participant may elect at any time to increase or decrease the amount by
         which his Compensation is to be reduced. He may also revoke his current
         Salary Deferral Agreement or, if he has already revoked such an
         agreement, enter into a new Salary Deferral Agreement at any time. The
         elections described above must be made on a written form prescribed or
         approved by the Administrative Committee and will be effective as of
         first payroll period of the calendar month following the calendar month
         in which the election is submitted.

1.38     SALARY DEFERRAL CONTRIBUTION

         The contribution described in Section 3.1(a).

1.39     TERMINATION OF EMPLOYMENT

         (a)      The discharge of an Employee by his Employer, whether or not
                  for cause and whether or not justified,

         (b)      a statement made by an Employee to the Employer that he is
                  quitting followed by the Employee's failure to report to work,
                  or

         (c)      the unexplained failure of an Employee to report to work when
                  expected to report.

1.40     TRUST

         LNR Property Corporation Savings Plan Trust, created by the Trust
         Agreement entered into pursuant to Section 13 between the Company and
         the Trustees.

1.41     TRUSTEES

         The persons and/or bank or trust company which are named as Trustees in
         the Trust

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         Agreement.

1.42     VALUATION DATE

         The date the Trustee values the assets held in the Funds described in
         Section 6.1. Such dates shall be any day on which the New York Stock
         Exchange or any successor to its business is open for trading, or any
         such other date as may be designated by the Administrative Committee.

1.43     YEAR-OF-SERVICE

         A computation period during which an Employee has completed at least
         1000 Hours of Service. For vesting purposes, the computation period
         shall be a Plan Year.

         In determining Years-of-Service for any participant in the Predecessor
         Plan, see the Preamble to the Plan. In determining Years-of-Service in
         Section 1.13(b), 4.1 and accumulated hours of service in Section 1.15,
         service performed for an Acquired Company prior to its acquisition may,
         at the Board's sole discretion, be counted as service performed for the
         Company. In no case shall the Board exercise its discretion to
         discriminate in favor highly compensated employees, as defined in Code
         Section 414(q), of the Acquired Company.

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                                    SECTION 2

                                  PARTICIPATION

2.1      COMMENCEMENT OF PARTICIPATION

         An Employee shall become a Participant in the Plan on the next January
         1 or July 1 after he first becomes an Eligible Employee.

2.2      OBLIGATION OF PARTICIPANT

         When an Employee becomes eligible to participate, and thereafter from
         time to time, the Administrative Committee may require the Employee to
         furnish such information and fill out, sign and file such forms and
         documents as may be reasonably required for the administration of the
         Plan, including beneficiary designation forms, evidence of age and
         marital status, Salary Deferral Agreements, etc. If a Participant does
         not comply with any such reasonable requirements and if such
         non-compliance makes it impossible or unreasonably burdensome with
         respect to such Participant to administer the Plan, neither the
         Administrative Committee, the Employer, the Trustees, nor any other
         person, shall be obligated to administer the Plan for such Participant
         until such information is properly furnished, and no such person shall
         incur liability to such Participant or his beneficiary to the extent
         that any intended Plan benefit has not been obtained or is not
         available because of the Participant's or beneficiary's failure to
         furnish such information and fill out, sign and file such documents.

2.3      TERMINATION OF PARTICIPATION

         (a)      Participation in the Plan continues until a Participant's
                  Normal, Early or Deferred Retirement Date, death, Disability,
                  or a One-Year-Break-In-Service following Termination of
                  Employment.

         (b)      REEMPLOYMENT

                  (I)      VESTED EMPLOYEE

                           If a re-employed Employee had a non-forfeitable right
                           to a portion of his accrued benefit at the time he
                           terminated employment, then such Employee shall
                           commence participation in the Plan immediately upon
                           re-employment.

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                  (II)     NONVESTED EMPLOYEE

                           If a re-employed Employee had only a forfeitable
                           right to his accrued benefit at the time he
                           terminated employment, then only if his number of
                           consecutive One-Year-Breaks-In-Service is less than
                           five (5) will he be allowed to commence participation
                           in the Plan immediately upon reemployment. Otherwise
                           he shall be treated as a new Employee for purposes of
                           eligibility to participate.

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                                   SECTION 3.

                                  CONTRIBUTIONS

3.1      SALARY DEFERRAL

         (a)      CONTRIBUTION:

                  The Company will contribute to a Participant's Salary Deferral
                  Account the amount by which his Compensation was reduced
                  pursuant to his Salary Deferral Agreement with the Company.
                  Such contribution shall be made no later than the fifteenth
                  business day of the month following the month in which such
                  amounts would otherwise have been payable to the Participant
                  in cash. Such contribution for any Participant shall be
                  limited under Code Section 402(g) for the Participant's
                  taxable year.

(b)      LIMITATION:

                  (I)      Salary Deferral contributions for any Plan Year must
                           satisfy at least one of the following tests found in
                           Code Section 401(k)(3):

                           (A)      The average of the Actual Deferral
                                    Percentages for all Highly Compensated
                                    Employees does not exceed the product of
                                    1.25 and the average of the Actual Deferral
                                    Percentages of all Non-Highly Compensated
                                    Employees for the preceding Plan Year; or

                           (B)      The excess of the average of the Actual
                                    Deferral Percentages for Highly Compensated
                                    Employees over the average of the Actual
                                    Deferral Percentages for Non-Highly
                                    Compensated Employees for the preceding Plan
                                    Year is not more than 2 percentage points,
                                    and the average of the Actual Deferral
                                    Percentages for the Highly Compensated
                                    Employees does not exceed twice the average
                                    of the Actual Deferral Percentages for the
                                    Non-Highly Compensated Employees for the
                                    preceding Plan Year.

                  Notwithstanding the foregoing, the Committee may elect to
                  determine the permissible Actual Deferral Percentage for
                  Highly Compensated Employees for any plan year beginning on or
                  after January 1, 1997 on the basis of the Actual Deferral
                  Percentage of the group of Non-Highly Compensated Employees
                  for the current Plan Year rather than the preceding Plan Year,
                  in accordance with such regulations,

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                  notices or other guidance issued under Section 401(k) of the
                  Code.

                  For purposes of determining the Actual Deferral Percentage,
                  any plans which are treated as one plan for purposes of
                  section 410(b) shall be treated as one plan. If a Highly
                  Compensated Employee participates in two or more plans of an
                  Employer, all deferrals under those plans shall be aggregated
                  for purposes of determining the Actual Deferral Percentage of
                  such Highly Compensated Employee.

         (c)      DISTRIBUTION OF EXCESS SALARY DEFERRAL CONTRIBUTIONS:

                  (I)      REDUCING THE EXCESS.

                           If the average of the Actual Deferral Percentage for
                           the Highly-Compensated Employees exceeds the Section
                           3.1(b) limits, then the Actual Deferral Percentage of
                           the Highly Compensated Employee with the highest
                           Actual Deferral Percentage is reduced to the extent
                           required to:

                           (A)      Enable the arrangement to satisfy the
                                    Section 3.1(b) limit; or

                           (B)      Cause such member's Actual Deferral
                                    Percentage to equal the Percentage of the
                                    member with the next highest Actual Deferral
                                    Percentage.

                           This process must be repeated until one of the
                           Section 3.1(b) limits is satisfied.

                  (II)     AMOUNT TO DISTRIBUTE

                           Once the process described above is completed, the
                           total dollar amount of excess deferrals shall be
                           determined. This amount shall be distributed in
                           accordance with a leveling procedure under which the
                           dollar amount of Salary Deferrals of the Highly
                           Compensated Employee with the highest dollar amount
                           of Salary Deferrals shall be reduced to the extent
                           required to distribute the total amount of excess
                           deferrals or, if it results in a lower reduction, to
                           the extent required to cause such Highly Compensated
                           Employee's dollar amount of Salary Deferrals to equal
                           the dollar amount of Salary Deferrals of the Highly
                           Compensated Employee with the next highest dollar
                           amount of Salary Deferrals. This distribution
                           procedure shall be repeated until all excess
                           deferrals have been distributed.

                                       15
<PAGE>

                  (III)    DISTRIBUTION

                           The amount determined in 3.1(c)(I) and (II) above
                           shall be distributed to the Participant within two
                           and one-half months after the close of the Plan Year,
                           but in no case shall any distributions occur more
                           than twelve months after the close of the Plan Year.

3.2      MATCHING AND VOLUNTARY CONTRIBUTIONS

         (a)      MATCHING CONTRIBUTIONS

                  The Company at its sole discretion may, but shall not be
                  obligated to, contribute to the Participant's Matching
                  Accounts. The Company may advise the Participants at the
                  beginning of each Plan Year, within a range of amounts, the
                  contribution it intends to make to the Plan for the year. The
                  actual amount of the contribution, if any, shall be determined
                  by the Board after the end of the Plan Year, which shall be
                  made without regard to the range of the intended contribution
                  established at the beginning of the Plan Year. Such
                  contribution shall be contingent upon the Participant having
                  made a contribution during the Plan Year to his Salary
                  Deferral Account. The amount of the Matching Contribution will
                  be a percentage of the Participant's Salary Deferral
                  Contribution. The same percentage will be used for each
                  Participant who qualifies to receive a Matching Contribution
                  for that Plan Year.

         (b)      VOLUNTARY CONTRIBUTIONS

                  A Participant may, in addition to amounts elected pursuant to
                  Section 3.1(a), designate that a percentage of his
                  Compensation for the Plan Year be credited to his Voluntary
                  Contribution Account as non-deductible contributions.

         (c)      ANNUAL LIMIT ON THE AGGREGATION OF MATCHING AND VOLUNTARY
                  CONTRIBUTIONS

                  Pursuant to Code Section 401 (m)(2), the average of the Actual
                  Contribution Percentages for the Highly Compensated Employees
                  shall not exceed the greater of (I) or (II) as follows:

                  (I)      The average of the Actual Contribution Percentages
                           for the Non-Highly Compensated Employees for the
                           preceding Plan Year multiplied by one and one-quarter
                           (1.25); or

                  (II)     The average of the Actual Contribution Percentages
                           for the Non-Highly Compensated Employees for the
                           preceding Plan Year multiplied by two (2);

                                       16
<PAGE>

                           subject, however, to the additional limitation that
                           the average of the Actual Contribution Percentages
                           for the Highly Compensated Employees may not exceed
                           the average of the Actual Contribution Percentages
                           for the Non-Highly Compensated Employees for the
                           preceding Plan Year by more than two (2) percentage
                           points.

                  The limitation of this Section 3.2(c) shall be applied for
                  each Plan Year. The limit in Section 3.2(c)(II) shall be
                  adjusted in accordance with Treasury Regulation ss. 1.401(m)-2
                  to avoid duplicate use of the limit for any Highly Compensated
                  Employee in violation of Code Section 401(m)(9).

                  Notwithstanding the foregoing, the Committee may elect to
                  determine the permissible Actual Contribution Percentage for
                  Highly Compensated Employees for any Plan Year beginning on or
                  after January 1, 1997 on the basis of the Actual Contribution
                  Percentage of the group of Non-Highly Compensated Employees
                  for the current Plan Year rather than the preceding Plan Year,
                  in accordance with such regulations, notices or other guidance
                  issued under Section 401(m) of the Code.

         (d)      REALLOCATING CONTRIBUTIONS OVER THE ANNUAL LIMIT:

                  (I)      METHOD OF REALLOCATION

                           Pursuant to Treasury Regulation Section
                           1.401(m)-l(e)(2), if the average of the Actual
                           Contribution Percentages for the Highly Compensated
                           Employees exceeds the Section 3.2(c) limit, then the
                           Actual Contribution Percentage of the Highly
                           Compensated Employee with the highest Actual
                           Contribution Percentage is reduced to the extent
                           required to:

                           (A)      Enable the arrangement to satisfy the
                                    Section 3.2(c) limit; or

                           (B)      Cause such Employee's Actual Contribution
                                    Percentage to equal the Percentage of the
                                    Highly Compensated Employee with the next
                                    highest Actual Contribution Percentage.

                           This process must be repeated until the Section
                           3.2(c) limit is satisfied.

                  (II)     AMOUNT TO REALLOCATE

                           Once the leveling procedure has been completed, the
                           total dollar amount of excess aggregate contributions
                           shall be determined. This amount shall be distributed
                           in accordance with a leveling procedure under which
                           the dollar amount of an Employee's Matching and
                           Voluntary Contributions of the

                                       17
<PAGE>

                           Highly Compensated Employee with the highest dollar
                           amount of Matching and Voluntary Contributions shall
                           be reduced to the extent required to distribute the
                           total amount of excess aggregate contributions or, if
                           it results in a lower reduction, to the extent
                           required to cause such Highly Compensated Employee's
                           dollar amount of Matching and Voluntary Contributions
                           to equal the dollar amount of Matching and Voluntary
                           Contributions of the Highly Compensated Employee with
                           the next highest dollar amount of Matching and
                           Voluntary Contributions. This distribution procedure
                           shall be repeated until all excess aggregate
                           contributions have been distributed. In no case shall
                           the amount of excess aggregate contributions with
                           respect to any Highly Compensated Employee exceed the
                           Matching and Voluntary Contributions made on behalf
                           of such Employee in any Plan Year.

         (e)      REALLOCATION OF EXCESS OVER ANNUAL LIMIT

                  The Trustees shall reduce the Employee's Voluntary and
                  Matching Contributions for the Plan Year in the following
                  order until the amount to be reallocated, determined in
                  Section 3.2(d)(II) above, is satisfied.

                  (I)      The Trustees shall refund the sum of the
                           contributions made by the Participant to his
                           Voluntary Contribution Account during the Plan Year
                           under Section 3.2(b) above and any earnings thereon.

                  (II)     The Participant shall forfeit any Matching
                           Contributions made by the Company under Section
                           3.2(a) during the Plan Year and any earnings thereon.
                           Such forfeiture shall be reallocated pursuant to
                           Section 5.2 and such reallocation shall take place by
                           the end of the Plan Year immediately following the
                           Plan Year in which the excess Matching Contributions
                           were made.

3.3      CAPITAL ACCUMULATION CONTRIBUTION

         Following the end of each Plan Year, and within the period of time for
         filing the federal income tax return for the fiscal year of the Company
         ending with or within such Plan Year, the Company, at its sole
         discretion may, but shall not be obligated to, contribute to the
         Capital Accumulation Account of each Participant employed by the
         Company as of the last day of the Plan Year. Such Capital Accumulation
         Contribution made by the Company shall be allocated to the Capital
         Accumulation Account of each Participant employed by the Company as of
         the last day of the Plan Year in the same proportion that each such
         Participant's Compensation for the Plan Year bears to the Compensation
         of all such Participants for the Plan Year.

                                       18
<PAGE>

3.4      ROLLOVER CONTRIBUTION

         A Participant, or an Employee who the Administrative Committee
         reasonably believes will become a Participant, may elect to deposit, or
         have deposited on his behalf, the lump sum distribution received from:

         (a)      the trust of a qualified plan under Code Section 401(a); or

         (b)      an Individual Retirement Account described in Code Section
                  408(d)(3)(A)(ii), but only if the lump sum distribution
                  received represents the entire amount in the Individual
                  Retirement Account.

         Such deposits shall be maintained in the Participant's Rollover Account
         and shall be subject to the other provisions of this Plan.

3.5      ANNUAL LIMITATION ON CONTRIBUTIONS

         (a)      LIMIT

                  In no event shall the aggregate of a Participant's Salary
                  Deferral, Matching, Capital Accumulation and Voluntary
                  Contributions and any Forfeitures allocated to him under Plan
                  Section 5.2(b) for any Plan Year exceed the lesser of:

                  (I)      $30,000, as adjusted under Code Section 415(c)(1)(A),
                           or

                  (II)     25% of the Participant's 415 Compensation.

         (b)      REALLOCATING EXCESS CONTRIBUTIONS

                  If the limitation in Section 3.5(a) is exceeded, the excess
                  contribution for the Plan Year shall be reallocated from the
                  following accounts, in the following order until the limit is
                  met.

                  (I)      The sum of the contributions made by the Participant
                           to his Voluntary Contribution Account during the Plan
                           Year under Section 3.2(b) above and any earnings
                           thereon shall be distributed to the Participant
                           within two and one-half months after the close of the
                           Plan Year, but in no case shall any distributions
                           occur more than twelve months after the close of the
                           Plan Year.

                  (II)     The amount contributed to the Participant's Salary
                           Deferral Account during

                                       19
<PAGE>

                           the Plan Year plus any earnings thereon shall be
                           distributed to the Participant within two and
                           one-half months after the close of the Plan Year, but
                           in no case shall any distributions occur more than
                           twelve months after the close of the Plan Year.

                                       20
<PAGE>

                                   SECTION 4.

                                     VESTING

4.1      MATCHING AND CAPITAL ACCUMULATION ACCOUNTS

         (a)      VESTING SCHEDULE

                  Effective for Participants employed by an Employer maintaining
                  the Plan or and after January 1, 1999, a Participant's
                  Matching Account and Capital Accumulation Account shall vest
                  in accordance with the following schedule.

                  YEARS OF SERVICE                       THE NONFORFEITABLE
                                                         PERCENTAGE IS

                     Less than 1                                 -0-
                          1                                       20
                          2                                       40
                          3                                       60
                          4                                       80
                      5 or more                                  100

                  Each non-vested Participant shall lose Years-of-Service
                  credited to him if his consecutive One-Year-Breaks-in-Service
                  following his Termination of Employment equal or exceed five.

                  Notwithstanding the foregoing, Participants employed on
                  December 31, 1998 by an Employer maintaining the Plan shall be
                  fully vested in all amounts allocated to their Capital
                  Accumulation Account as of January 1, 1999 and in all amounts
                  allocated to their ESOP Account.

         (b)      EXCEPTIONS

                  A Participant's rights in his Matching Account and Capital
                  Accumulation Account will Fully Vest upon the earlier of:

                  (I)      Normal Retirement Age;

                  (II)     Early Retirement Date;

                  (III)    Death; and

                                       21
<PAGE>

                  (IV)     Disability.

                  His rights will also Fully Vest if the Plan were to be
                  terminated or all Employer contributions were permanently
                  discontinued.

4.2      SALARY DEFERRAL, VOLUNTARY CONTRIBUTION AND ROLLOVER ACCOUNTS

         A Participant's Salary Deferral, Voluntary Contribution, and Rollover
         Accounts shall Fully Vest immediately upon contribution and shall not
         be subject to forfeiture for any reason.

                                       22
<PAGE>

                                   SECTION 5.

                                   FORFEITURES

5.1      FORFEITURES

         Following his Termination of Employment, a Participant will forfeit the
         nonvested portion of his Accounts upon the occurrence of the earlier of
         (a) five One-Year-Breaks In-Service, or (b) the distribution of his
         entire vested portion of his Accounts.

         Such distribution in (b) above shall be deemed to have occurred if the
         vested portion of the terminated Participant's Account is equal to
         zero. The Administrative Committee may in its sole discretion request
         that the Trustees sell any forfeited shares of Company Stock prior to
         the allocation of forfeiture under 5.2 below.

5.2      ALLOCATION

         (a)      For any Plan Year, amounts forfeited in Section 5.1 above,
                  including any earnings or losses incurred subsequent to the
                  date of Forfeiture, shall first be applied to reduce the
                  Company's contributions under Sections 3.1 and 3.3(a). The
                  Administrative Committee shall determine by how much each
                  Company contribution noted above will be reduced.

         (b)      Any forfeitures remaining after the application of Section
                  5.2(a) above shall be contributed to the Capital Accumulation
                  Accounts of those Participants who were Employees as of the
                  last day of the Plan Year. Such contribution shall be made in
                  the proportion that the Compensation of each such Participant
                  bears to the Compensation of all such persons for the Plan
                  Year.

5.3      RESTORATION OF BENEFITS

         The Company shall restore a re-employed Employee's benefits which were
         forfeited under Section 5.1 if the Employee incurred less than five
         consecutive One-Year-Breaks In-Service prior to re-employment.

                                       23
<PAGE>

                                    SECTION 6

                               INVESTMENT IN FUNDS

6.1      INVESTMENT FUNDS

         (a)      COMPANY COMMON STOCK FUND

                  The Company Common Stock Fund shall be invested by the
                  Trustees primarily in common stock of the Company. Such
                  investments will be made in such manner, at such prices, in
                  such amounts, and at such times as the Trustees may in their
                  sole discretion determine. Without limiting the foregoing, the
                  Trustees may purchase common stock of the Company in the open
                  market, by the exercise of any stock rights which may be
                  acquired by the Trustees based upon the open market value;
                  provided, however, that the Company may, at its option,
                  deliver shares of common unissued shares in lieu of cash
                  contributions, with such common stock being valued at its
                  closing price (as reported in the Wall Street Journal) on the
                  date of the contributions.

         (b)      PARTICIPANT DIRECTED ACCOUNTS

                  Notwithstanding any other provisions hereof the Administrative
                  Committee may at any time determine that the Plan will permit
                  each Participant (and the Beneficiary of a Participant, if
                  applicable) to invest all of the funds in his Matching, Salary
                  Deferral, Capital Accumulation, Voluntary Contribution or
                  Rollover Accounts in a range of options, including the Company
                  Common Stock Fund described above, beginning at the time
                  specified by the Administrative Committee. Provided, however,
                  that such investments shall not include "collectibles" as
                  defined in IRS Section 408(m). After the effective date of
                  such action the Participant may, from time to time, instruct
                  the Administrative Committee, or other person designated by
                  the Administrative Committee to purchase and/or sell assets of
                  the type permitted for his Accounts. Notwithstanding the
                  preceding, the Administrative Committee may establish
                  reasonable rules limiting the investment discretion and
                  investment timing of a Participant, and similar matters.
                  Neither the Employer nor the Administrative Committee will be
                  held liable for the Participant's investment choice, so long
                  as the investment is made pursuant to this Section 6.1.
                  Notwithstanding the foregoing, effective January 1, 1999, any
                  amounts in a Participant's Capital Accumulation Account
                  invested in the common stock of Lennar Corporation may remain
                  invested in such stock, however, no new amounts may be
                  allocated or transferred to investment in Lennar Corporation
                  common stock.

                                       24
<PAGE>

(c)      VOTING AND TENDER RIGHTS

                  The Trustee will vote all Company Stock held in the Accounts
                  of Participants as directed by the Participant for whom the
                  accounts are held. The Trustee will vote and/or tender all
                  stock held for the accounts of Participants from whom no
                  instructions are received and all Company Stock which is not
                  credited to Participant's Accounts, pro rata to the manner in
                  which shares for which instructions were received voted and/or
                  were tendered. Employees shall be named fiduciaries of the
                  plan to the extent that they exercise rights pursuant to this
                  section.

6.2      INVESTMENT PERFORMANCE

         (a)      EFFECT ON INVESTMENT FUNDS

                  Income or losses from the investments in each Investment Fund
                  above shall correspondingly increase or decrease the same
                  Investment Fund.

         (b)      ADJUSTMENT OF ACCOUNTS

                  The Administrative Committee shall adjust, as of each
                  Valuation Date, the balance of each Participant's Matching,
                  Salary Deferral, Capital Accumulation, Voluntary Contribution
                  and Rollover Accounts to reflect the current fair market value
                  of the assets in which such Accounts are invested. Such
                  accounts may be adjusted more frequently than each Valuation
                  Date but in no case shall be adjusted any less frequently.

6.3      INDEPENDENT APPRAISER

         In the event that the trust shall hold any securities issued by the
         employer which are not readily tradable on an established securities
         market, all valuations of such securities shall be performed by an
         independent appraiser meeting the requirements prescribed in
         regulations issued pursuant to section 170(a)(1) of the Code.

                                       25
<PAGE>

                                   SECTION 7.

                                  DISTRIBUTIONS

7.1      DISTRIBUTIONS DURING EMPLOYMENT

         (a)      WITHDRAWALS

                  (I)      ESOP ACCOUNT

                           A Participant may at any time after January 1, 1999
                           and prior to April 1, 1999 elect in the manner
                           established by the Administrative Committee to
                           withdraw from his ESOP Account any vested benefits.
                           The valuation date of the benefits attributed to the
                           contribution shall be the day preceding the date of
                           distribution.

                  (II)     VOLUNTARY CONTRIBUTIONS ACCOUNT

                           A Participant may withdraw the benefits in his
                           Voluntary Contribution Account, at any time except
                           that the withdrawal amount cannot be less than $500
                           unless the Participant withdraws his total account
                           balance. Distribution shall be made as soon as
                           practicable following receipt of the request for
                           distribution. The valuation date of the benefits to
                           be withdrawn shall be the date immediately preceding
                           the day of distribution.

                  (III)    SALARY DEFERRAL ACCOUNT

                           (A)      WITHDRAWAL

                                    A Participant may withdraw Salary Deferral
                                    Contributions or Rollover Contributions to
                                    meet the need created by a Financial
                                    Hardship. Such withdrawal shall be
                                    consistent with Treasury Regulation
                                    1.401(k)-l(d)(2) and such other regulations
                                    as the Secretary of the Treasury may
                                    prescribe.

                           (B)      DETERMINATION OF HARDSHIP

                                    (i)      The determination of whether a
                                             Financial Hardship exists shall be
                                             made by the Administrative
                                             Committee, in its absolute
                                             discretion and on a
                                             nondiscriminatory basis. The
                                             Participant shall complete and
                                             submit to the Administrative

                                       26
<PAGE>

                                             Committee a Financial Hardship
                                             withdrawal form on which he shall
                                             state the reason for the need, the
                                             amount necessary to satisfy the
                                             Financial Hardship, and that funds
                                             are not reasonably available from
                                             other sources.

                                    (ii)     Pursuant to Treasury Regulation
                                             1.401(k)-l(d)(2)(ii)(B), a
                                             Financial Hardship is deemed to
                                             occur if it cannot be relieved:

                    a)   Through reimbursement or compensation by insurance or
                         otherwise;

                                    b)       By reasonable liquidation of the
                                             Employee's assets, to the extent
                                             such liquidation would not itself
                                             cause an immediate heavy financial
                                             need;

                                    c)       By cessation of Salary Deferral
                                             Contributions under Section 3.1(a)
                                             of the Plan; or

                                    d)       By other distributions or
                                             non-taxable (at the time of the
                                             loan) loans from Plans maintained
                                             by the Employer or by any other
                                             Employer, or by borrowing from
                                             commercial sources on reasonable
                                             commercial terms.

                           (iii)    Pursuant to Treasury Regulation
                                    1.401(k)-l(d)(2)(iii)(A), a distribution
                                    will be deemed to be made on account of a
                                    Financial Hardship if it is for:

                                    a)       Medical Expenses as described in
                                             Section 213 (d) of the Code
                                             incurred by the Employee, the
                                             Employees spouse or any dependents
                                             of the Employee;

                                    b)       Purchase (excluding mortgage
                                             payments) of a principal residence
                                             of the Employee;

                                    c)       Payment of tuition for the next
                                             semester or quarter of
                                             post-secondary education for the
                                             Employee, his or her spouse,
                                             children, or dependents; or

                                    d)       The need to prevent the eviction of
                                             the Employee from his principal
                                             residence or foreclosure on the

                                       27
<PAGE>

                                             mortgage of the Employee's
                                             principal residence.

                           (C)      RESTRICTIONS ON WITHDRAWALS

                                    (i)      No investment income related to the
                                             Salary Deferral Contributions may
                                             be withdrawn.

                                    (ii)     The withdrawn amount cannot exceed
                                             the sum of the amounts credited to
                                             the Participant's Salary Deferral
                                             Account and Rollover Account.

                                    (iii)    No amount shall be withdrawn from
                                             the Participant's Salary Deferral
                                             Account while there are amounts
                                             credited to the Participant's
                                             Voluntary Contribution Account
                                             which may be distributed.

                           (D)      EFFECT OF DISTRIBUTION

                                    In the event of such a withdrawal by a
                                    Participant, the Participant will not be
                                    permitted to make Salary Deferral and
                                    Voluntary Contributions until the next
                                    Enrollment Date following the one-year
                                    anniversary of such withdrawal.

         (b)      LOANS

                  (I)      A Participant or former Participant may apply for a
                           loan from his Salary Deferral, Matching, Capital
                           Accumulation, Rollover or Voluntary Contribution
                           Accounts by making a request to the Administrative
                           Committee specifying the amount requested, the
                           proposed use of the loan proceeds, and the proposed
                           method of repayment. The Administrative Committee
                           shall determine whether the loan should be approved,
                           the amount of such loan, the repayment terms, the
                           rate of interest to be charged, and all other loan
                           terms. The minimum amount of any loan shall be
                           $1,000. The loan shall be secured by, and cannot
                           exceed, 50% of the Participants nonforfeitable
                           accrued benefit in his Salary Deferral, Matching,
                           Capital Accumulation, Rollover and Voluntary
                           Contribution Accounts at the time the loan is entered
                           into. The loans interest rate shall be in accordance
                           with rates normally charged by banks for similar
                           loans. The loan shall provide for level amortization
                           with payments to be made not less frequently than
                           quarterly over a period not to exceed five (5) years.
                           However, loans used to acquire any dwelling unit
                           which, within a reasonable time, is used (determined
                           at the time the loan is made) as a principal
                           residence of the

                                       28
<PAGE>

                           Participant shall provide for periodic repayment over
                           a reasonable period of time that may exceed five (5)
                           years.

                  (II)     LIMIT

                           Loans made pursuant to this Section 7.1(b) (when
                           added to the outstanding balance of all other loans
                           made by the Plan to the Participant) shall be limited
                           at the time the loan is entered into to the lesser
                           of:

                           (A)      $50,000 reduced by the excess (if any) of
                                    the highest outstanding balance of loans
                                    from the Plan to the Participant during the
                                    one year period ending on the day before the
                                    date on which such loan is made, over the
                                    outstanding balance of loans from the Plan
                                    to the Participant on the date on which such
                                    loan was made, or

                           (B)      one-half (1/2) of the Participant's
                                    non-forfeitable accrued benefit in his
                                    Salary Deferral, Matching, Capital
                                    Accumulation, Rollover and Voluntary
                                    Contribution Accounts.

7.2      DISTRIBUTIONS UPON SEPARATION FROM SERVICE

         (a)      RETIREMENT

                  (I)      Upon a Participant's Normal or Early Retirement Date
                           he shall receive his benefits in a lump sum no later
                           than the later of:

                           (A)      Sixty (60) days following the last day of
                                    the month in which he attains his Normal or
                                    Early Retirement Date; or

                           (B)      Sixty (60) days after the earliest date on
                                    which the amount of such benefits can be
                                    ascertained.

                           Distributions of benefits other than Company Stock
                           shall be valued as of the Valuation Date immediately
                           preceding his Normal or Early Retirement Date.

                           In no event shall such distribution commence later
                           than April 1 of the calendar year following the
                           calendar year in which the Participant attains age
                           seventy-and one-half (70 1/2) except if the
                           Participant attained age 70 1/2 before January 1,
                           1988, in which case the distribution may commence
                           April 1 of the calendar year following the calendar
                           year in which the employee retires.

                  (II)     SPECIAL PROVISION FOR A PARTICIPANT WHO ATTAINS AGE
                           70 1/2 AFTER DECEMBER 31,

                                       29
<PAGE>

                           1987 AND RETIRES AFTER AGE 70 1/2

                           In addition to the required distribution of the total
                           amount in the Participants Accounts as of age 70 1/2
                           under Section 7.2(a)(I), additional benefits which
                           are contributed to his Accounts for Plan Years after
                           age 70 1/2 must be distributed no later than the
                           later of:

                           (A)      Sixty (60) days after the Anniversary Date
                                    of the Plan Year within which the
                                    Contributions were made, or

                           (B)      Sixty (60) days after the earliest date on
                                    which the amount of such benefits can be
                                    ascertained.

                           However, for Plan Years beginning after December 31,
                           1996: (A) the distribution of the Accounts of any
                           Participant who is a 5% owner (as defined in section
                           416(i) of the Code) and who attains age 70 1/2 in a
                           Plan Year must commence not later than April 1 of the
                           next Plan Year (even if he has not terminated
                           Service) and must be made in accordance with the
                           regulations under section 401(a)(9) of the Code,
                           including Section 1.401(a)(9)-2 of the regulations
                           thereunder; and (B) distribution of the Accounts of
                           any other Participant who has attained age 70 1/2 may
                           be made upon the election of the Participant.

         (b)      DISABILITY

                  The Administrative Committee shall distribute the benefits
                  payable to a Participant upon sustaining Disability no later
                  than the later of sixty (60) days following the last day of
                  the month in which Disability is determined by the
                  Administrative Committee under Section 1.12 or sixty (60) days
                  after the earliest date on which the amount of such benefits
                  can be ascertained. Distributions of benefits other than
                  Company Stock shall be valued as of the Valuation Date
                  immediately preceding the date of distribution. Such benefits
                  shall be paid in a lump sum.

         (c)      DEATH BENEFITS

                  (I)      Unless otherwise elected as provided below, upon the
                           death of a Participant while in the employ of the
                           Company his surviving spouse shall be entitled to
                           receive benefits equal to the total amount in the
                           deceased Participant's Accounts. Such benefits shall
                           be paid in a lump sum, no later than the later of
                           sixty (60) days following the last day of the month
                           in which the Administrative Committee determines such
                           Participant's death or sixty (60) days after the
                           earliest date on which the amount of such benefits
                           can be

                                       30
<PAGE>

                           ascertained. Distributions of benefits other than
                           Company Stock shall be valued as of the Valuation
                           Date immediately preceding the date of distribution.
                           The Committee may require such proof of death and
                           such evidence of the right of any person to receive
                           payment of a deceased Participant's interest in the
                           Trust Fund as the Committee may deem desirable.

                  (II)     The benefits described in Section 7.2(c)(I) may be
                           paid to the Participant's designated beneficiary and
                           not to the Participants surviving spouse only if (1)
                           the Participant elected that a designated beneficiary
                           other than his surviving spouse receive such
                           benefits, and (2) the Participant's spouse consented
                           to such election in writing. Such spouse's consent
                           must acknowledge the effect of such election and be
                           witnessed by a Plan representative or a notary
                           public. Such consent shall not be required if it is
                           established to the satisfaction of the Administrative
                           Committee that the consent cannot be obtained because
                           there is no spouse, the spouse cannot be located or
                           other circumstances that may be prescribed by
                           Treasury regulations. The election by the Participant
                           and consented to by the Participant's spouse may be
                           revoked by the Participant in writing without the
                           consent of the spouse, but may not be otherwise
                           amended without the spouse's consent. Any new
                           election must comply with the requirements of this
                           paragraph. A former spouse's waiver shall not be
                           binding on a new spouse.

                  (III)    ABSENCE OF VALID DESIGNATION OF BENEFICIARIES

                           Except as provided in Sections 7.2(c)(I) and (II),
                           if, on the death of a Participant, former
                           Participant, or beneficiary, there is no valid
                           designation of beneficiary on file with the Company,
                           the Administrative Committee shall designate as the
                           beneficiary, in the following order of priority: the
                           surviving spouse; surviving children, including
                           adopted children, in equal shares; surviving parents,
                           in equal shares; or the Participant's estate. The
                           Administrative Committee's determination of this
                           matter shall be binding.

         (d)      TERMINATION OF EMPLOYMENT

                  (I)      GENERAL

                           Notwithstanding any provision of the Plan to the
                           contrary that would otherwise limit a distributee's
                           election under this Section, a distributee may elect,
                           at the time and in the manner prescribed by the
                           Administrative Committee, to have any portion of an
                           Eligible Rollover Distribution paid

                                       31
<PAGE>

                           directly to an Eligible Retirement Plan specified by
                           the distributee in a direct rollover.

                           (A)      DEFINITIONS

                           (i)      ELIGIBLE ROLLOVER DISTRIBUTION

                                    An eligible rollover distribution is any
                                    distribution of all or any portion of the
                                    balance to the credit of the distributee,
                                    except that an eligible rollover
                                    distribution does not include: any
                                    distribution that is one of a series of
                                    substantially equal periodic payments (not
                                    less frequently than annually) made for the
                                    life (or life expectancy) of the distributee
                                    or the joint lives (or joint life
                                    expectancies) of the distributee and the
                                    distributees designated beneficiary, or for
                                    a specified period of ten years or more; any
                                    distribution to the extent such distribution
                                    is required under section 401(a)(9) of the
                                    Code; and the portion of any distribution
                                    that is not includible in gross income
                                    (determined without regard to the exclusion
                                    for net unrealized appreciation with respect
                                    to employer securities).

                           (ii)     ELIGIBLE RETIREMENT PLAN

                                    An eligible retirement plan is an individual
                                    retirement account described in section
                                    408(a) of the Code, an individual retirement
                                    annuity described in section 408(b) of the
                                    Code, an annuity plan described in section
                                    403(a) of the Code, or a qualified trust
                                    described in section 401 (a) of the Code,
                                    that accepts the distributees eligible
                                    rollover distribution. However, in the case
                                    of an eligible rollover distribution to the
                                    surviving spouse, an eligible retirement
                                    plan is an individual retirement account or
                                    individual retirement annuity.

                           (iii)    DISTRIBUTEES

                                    A distributee includes an Employee or former
                                    Employee. In addition, the Employee's or
                                    former Employee's surviving spouse and the
                                    Employee's or former Employee's spouse or
                                    former spouse who is the alternate payee
                                    under a qualified domestic relations order,
                                    as defined in section 414(p) of the

                                       32
<PAGE>

                                    Code, are distributees with regard to the
                                    interest of the spouse or former spouse.

                           (iv)     DIRECT ROLLOVER

                                    A direct rollover is a payment by the Plan
                                    to the eligible retirement plan specified by
                                    the distributee.

         (II)     PAYMENT OF VESTED BENEFITS

                  (A)      A Participant who incurs a Termination of Employment
                           may elect to receive such vested accrued benefits in
                           a lump sum prior to his Early Retirement or Normal
                           Retirement Dates. Such election must be made within
                           60 days of termination. Upon receipt of such
                           election, the Trustee shall distribute the
                           Participant's vested accrued benefits no later than
                           the later of:

                           (i)      Sixty (60) days after the next Valuation
                                    Date following the date he incurred his
                                    Termination of Employment; or

                           (ii)     Sixty (60) days after the earliest date on
                                    which the amount of such benefits can be
                                    ascertained.

                           (B)      EXCEPTIONS

                                    (i)     DEATH AND DISABILITY

                                            For purposes of Section
                                            7.2(d)(II)(A) above, if a
                                            Participant who incurs a Termination
                                            of Employment becomes disabled or
                                            dies prior to the applicable
                                            distribution date above, then his
                                            account balances shall be
                                            distributed in accordance with
                                            Sections 7.2(b) or (c), whichever is
                                            applicable, as if he were an
                                            Employee on the date of disability
                                            or death.

                                    (ii)     HARDSHIP

                                    a)       WITHDRAWAL

                                    A Participant may withdraw his vested
                                    accrued benefits prior to the date noted in
                                    Section 7.2(d)(II)(A) to meet the need
                                    created by a Financial Hardship.

                                       33
<PAGE>

                                    b)       DETERMINATION OF HARDSHIP

                                    The determination of whether a Financial
                                    Hardship exists shall be made by the
                                    Administrative Committee, in its absolute
                                    discretion and on a nondiscriminatory basis.
                                    The Participant shall complete and submit to
                                    the Administrative Committee a Financial
                                    Hardship withdrawal form on which he shall
                                    state the reason for the need, the amount
                                    necessary to satisfy the Financial Hardship,
                                    and that funds are not reasonably available
                                    from other sources.

                                    A Financial Hardship shall be deemed to
                                    occur if it cannot be relieved:

                                    (i)      Through reimbursement or
                                             compensation by insurance or
                                             otherwise;

                                    (ii)     By reasonable liquidation of the
                                             Employee's assets, to the extent
                                             such liquidation would not itself
                                             cause an immediate heavy financial
                                             need;

                                    (iii)    By other distributions or non-
                                             taxable (at the time of the loan)
                                             loans from Plans maintained by the
                                             Employer or by any other Employer,
                                             or by borrowing from commercial
                                             sources on reasonable commercial
                                             terms.

                                    A distribution will be deemed to be made on
                                    account of a Financial Hardship if it is
                                    for:

                                    (i)      Medical Expenses as described in
                                             Section 213 (d) of the Code
                                             incurred by the Employee, the
                                             Employee's spouse or any dependents
                                             of the Employee;

                                    (ii)     Payment of tuition for the or next
                                             semester or quarter of
                                             post-secondary education for the
                                             Employee, his or her spouse,
                                             children, or

                                       34
<PAGE>

                                             dependents; or

                                    (iii)    The need to prevent the eviction of
                                             the Employee from his principal
                                             residence or foreclosure on the
                                             mortgage of the Employee's
                                             principal residence.

                                    c)       Vested accrued benefits shall be
                                             distributed no later than the later
                                             of

                                    (i)      Sixty (60) days after the last day
                                             of the month in which the
                                             Administrative Committee has
                                             determined that a Financial
                                             Hardship exists; or

                                    (ii)     Sixty (60) days after the earliest
                                             date on which the amount of such
                                             benefits can be ascertained.

                                    d)       Distributions of benefits shall be
                                             valued as of the Valuation Date
                                             immediately preceding the date of
                                             distribution.

7.3      DISTRIBUTEES RIGHT TO DEMAND COMPANY STOCK

         A Participant, or his beneficiary, entitled to a distribution from his
         Capital Accumulation Account shall have the right to demand that the
         distribution of any contribution to his Capital Accumulation Account
         prior to January 1, 1999, be in the form of Company Stock.

7.4      INCOMPETENCE OF DISTRIBUTEE

         If the Administrative Committee receives evidence that a person
         entitled to receive any distribution under the Plan is physically or
         mentally incompetent or incompetent by reason of age to receive such
         distribution and give valid release therefor, such distribution may be
         made to the guardian, committee, or other representative of such person
         duly appointed by a court of competent jurisdiction. If a person or
         institution other than a guardian, committee or other representative of
         such person who has been duly appointed by a court of competent
         jurisdiction is then maintaining or has custody of such incompetent
         person, the distribution may be made to such other person or
         institution and the release to such other person or institution shall
         be a valid and complete discharge for the distribution.

7.5      LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN

                                       35
<PAGE>

         In the event that all, of any portion that the distribution payable to
         a Participant or his beneficiary under Section 7.2 remains unpaid
         solely by reason of the inability of the Administrator to ascertain the
         whereabouts of such Participant or his beneficiary after sending a
         registered letter, return receipt requested, to the last known address,
         and further diligent effort, an Individual Retirement Account, as
         defined in Code Section 408, shall be established in the persons name
         and the distribution shall be deposited therein.

7.6      PUT OPTION

         The Company shall provide a "put option" to any Participant (or
         Beneficiary) who receives a distribution of Company Stock which is not
         readily tradable on an established market. The put option shall permit
         the Participant (or Beneficiary) to sell such Company Stock to the
         Company at any time during two option periods, at the then fair market
         value. The first put option period shall be for at least 60 days
         beginning on the date of distribution. The second put option period
         shall be for at least 60 days beginning after the new determination of
         fair market value (and notice to the Participant thereof) in the
         following Plan Year. The Company may allow the Trust to purchase shares
         of Company Stock tendered to the Company under a put option. The
         payment for any Company Stock sold under a put option shall be made
         within 30 days if the shares were distributed as part of an installment
         distribution. If the shares were distributed in a lump sum
         distribution, payment shall commence within 30 days and may be made in
         a lump sum or in substantially equal, annual installments over a period
         not exceeding five years, with adequate security provided and interest
         payable at a reasonable rate on any unpaid installment balance.

7.7      RESTRICTIONS

         Shares of Company Stock held or distributed by the Trust may include
         such legend restrictions on transferability as the Company may
         reasonably require in order to assure compliance with applicable
         Federal and state securities laws. Except as otherwise provided in this
         Section 7, no shares of Company Stock held or distributed by the
         Trustee may be subject to a put, call or other option, or buy-sell or
         similar arrangement. The provisions of this Section 7.7 are
         nonterminable and shall continue to be applicable to Company Stock even
         if the Plan ceases to be an employee stock ownership plan under Section
         4975(e)(7) of the Code.

                                       36
<PAGE>

                                   SECTION 8.

                            AMENDMENT AND TERMINATION

8.1      AMENDMENT

         The Company reserves the right to amend the Plan at any time and from
         time to time, in whole or in part, including, without limitation,
         retroactive amendments necessary or advisable to qualify the Plan and
         Trust under the provision of Section 401(a) of the Internal Revenue
         Code, or any successor or similar statute hereafter enacted. However,
         except as set forth in Section 8.3, no such amendment shall (1) cause
         any part of the assets of the Plan and Trust to revert to or be
         recoverable by the Company or be used for or diverted to purposes other
         than the exclusive benefit of Participants, former Participants, and
         beneficiaries; (2) deprive any Participant, former Participant, or
         beneficiary of any benefit already vested; (3) alter, change, or modify
         the duties, powers, or liabilities of the Trustees without its written
         consent; or (4) permit any part of the assets of the Plan and the Trust
         to be used to pay premiums or contributions of the Company under any
         other plan maintained by the Company for the benefit of its Employees.
         No amendment to the vesting schedule shall deprive a Participant of his
         unenforceable rights to benefits accrued to the date of the amendment.
         Further, if an amendment to the vesting schedule of the Plan reduces
         the vesting percentage of a Participant with at least 3 Years of
         Service, the Participant may elect, within a reasonable period after
         the adoption of the amendment, to have his nonforfeitable percentage
         computed under the Plan without regard to the amendment. The period
         during which the election may be made shall commence with the date the
         amendment is adopted and shall end on the latest of (1) 60 days after
         the amendment is adopted, (2) 60 days after the amendment becomes
         effective, (3) 60 days after the Participant is issued written notice
         of the amendment by the Company or by the Administrative Committee.

8.2      TERMINATION, PARTIAL TERMINATION, OR COMPLETE DISCONTINUANCE OF
         CONTRIBUTIONS

         Although the Company has established the Plan with the intention and
         expectation that it will make contributions indefinitely, nevertheless
         the Company shall not be under any obligation or liability to continue
         its contributions or to maintain the Plan for any given length of time.
         The Company may in its sole and absolute discretion discontinue
         contributions or terminate the Plan in whole or in part in accordance
         with its provisions at any time without any liability for the
         discontinuance or termination. If the Plan shall be terminated or
         partially terminated or if contributions of the Company shall be
         completely discontinued, the rights of all affected Participants in
         their Accounts shall become 100% vested and nonforfeitable
         notwithstanding any other provisions of the Plan. However, the Trust
         shall continue until all Participant's Accounts have been completely
         distributed to or

                                       37
<PAGE>

         for the benefit of the Participants in accordance with the Plan.

8.3      PERMISSIBLE REVERSIONS

         (a)      Notwithstanding any other provision of the Plan:

                  (I)      No Participant nor beneficiary shall have any right
                           or claim to any assets of the Trust or to any benefit
                           under the Plan before the Internal Revenue Service
                           determines that the Plan and Trust qualify under the
                           provisions of Code Section 401(a), or any statute of
                           similar import, other than any vested rights or
                           benefits accrued represented by any assets
                           transferred from a predecessor plan as defined in
                           Internal Revenue Code Section 411, to the extent
                           vested upon transfer to this Plan and Trust from such
                           predecessor plan. Upon the distribution to the
                           Participants of any vested amounts or benefits
                           transferred from a predecessor plan and the return of
                           any remaining contributions to the Company following
                           the denial of initial qualification of the Plan and
                           Trust under the provisions of Code Section 401 (a)
                           the Trust provided for in this Plan shall be
                           terminated and the Trustees shall be discharged from
                           all obligations hereunder.

                  (II)     To the extent the Company's contributions are made by
                           reason of a mistake of fact, they may be returned to
                           the Company within one year from the date of
                           contribution.

                  (III)    If the Company's contributions are conditioned on
                           their deductibility for federal income tax purposes,
                           to the extent the deduction is disallowed they may be
                           returned to the Company within one year from the date
                           of the disallowance.

(b)               The amounts that may be returned to the Company under Sections
                  8.3(a)(ii) and 8.3(a)(iii) above shall be the excess of the
                  amounts contributed over the amounts that would have been
                  contributed had there not been a mistake of fact or mistake in
                  determining the deduction, as applicable. No earnings on the
                  mistaken or nondeductible contributions may be returned to the
                  Company and losses sustained by the Trust after the date of
                  contribution shall proportionately reduce the amount that may
                  be returned to the Company.

                                       38

<PAGE>
                                   SECTION 9.

                                     CLAIMS

         Distributions of Accounts under the Plan will normally be made without
         a Participant (or beneficiary) having to file a claim for benefits.
         However, a Participant (or beneficiary) who does not receive a
         distribution to which he believes he is entitled may present a claim to
         the Administrative Committee for any unpaid benefits. All questions and
         claims regarding benefits under the Plan shall be acted upon by the
         Administrative Committee.

         Each Participant (or beneficiary) who wishes to file a claim for
         benefit with the Administrative Committee shall do so in writing,
         addressed to the Committee or to the Company. If the claim for benefits
         is wholly or partially denied, the Committee shall notify the
         Participant (or beneficiary) in writing of such denial of benefits
         within ninety (90) days after the Committee initially received the
         benefit claim.

         Any notice of a denial of benefits shall advise the Participant (or
         beneficiary) of:

         (a)      the specific reason or reasons for the denial;

         (b)      the specific provisions of the Plan on which the denial is
                  based;

         (c)      any additional material or information necessary for the
                  Participant (or beneficiary) to perfect his claim and an
                  explanation of why such material or information is necessary;
                  and

         (d)      the steps which the Participant (or beneficiary) must take to
                  have his claim for benefits reviewed.

         Each Participant (or beneficiary) whose claim for benefits has been
         denied shall have the opportunity to file a written request for a full
         and fair review of this claim by the Administrative Committee, to
         review all documents pertinent to his claim and to submit a written
         statement regarding issues relative to his claim. Such written request
         for review of his claim must be filed by the Participant (or
         beneficiary) within sixty (60) days after receipt of written
         notification of the denial of his claim. The Committee shall schedule
         an opportunity for a full and fair hearing of the issue within the next
         thirty (30) days. The decision of the Committee will be made within
         thirty (30) days thereafter and shall be communicated in writing to the
         claimant. Such written notice shall set forth the specific reasons and
         specific Plan provisions on which the Committee based its decision.

         All notices by the Administrative Committee denying a claim for
         benefits, and all decisions

                                       39
<PAGE>

         on requests for a review of the denial of a claim for the benefits,
         shall be written in a manner calculated to be understood by the
         Participant (or beneficiary) filing claim for requesting the review.

                                       40
<PAGE>

                                   SECTION 10.

                               TOP HEAVY PROVISION

10.1     APPLICATION OF TOP-HEAVY PROVISIONS

         If the sum of the Present Value of Accrued Benefits of Participants who
         are "Key Employees" for such Plan Year and the Aggregate Accounts of
         all the Key Employees under this Plan and of an Aggregation Group,
         exceed sixty percent of the sum of the Present Value of Accrued Benefit
         and Aggregate Accounts of all Participants under this Plan and all
         plans of an Aggregation Group, then the following provisions under this
         Section shall apply for such Plan Year.

         The date for determining the applicability of this Section
         (determination date) is the last day of the preceding Plan Year.

         (a)      If any Participant is a Non-Key Employee for any Plan Year,
                  but such Participant was a Key Employee for any prior Plan
                  Year, such Participant's Present Value of Accrued Benefit
                  and/or Aggregate Account Balance shall not be taken in account
                  for purposes of determining whether this Plan is a Top Heavy
                  Plan (or whether any Aggregation Group which includes this
                  Plan is a Top Heavy Group). In addition, if a Participant or
                  Former Participant has not received any Compensation from any
                  Employer maintaining the Plan (other than benefits under the
                  Plan) at any time during the five year period ending on the
                  Determination Date, the Aggregate Account and/or Present Value
                  of Accrued Benefit for such Participant or Former Participant
                  shall not be taken into account for the purposes of
                  determining whether this Plan is a Top Heavy Plan.

         (b)      SUPER TOP HEAVY

                  This Plan shall be a Super Top Heavy Plan for any Plan Year in
                  which, as of the Determination Date, the sum of Present Value
                  of Accrued Benefits of Key Employees in the Aggregate Accounts
                  of Key Employees under this Plan and all Plans of the
                  Aggregation Group, exceeds ninety percent (90%) of the sum of
                  the Present Value of Accrued Benefits in the Aggregate
                  Accounts of all Key and Non-Key Employees under this Plan and
                  all plans of the Aggregate Group.

         (c)      AGGREGATE ACCOUNT

                  Participant's Aggregate Account as of the Determination Date
                  is the sum of:

                                       41
<PAGE>

                  (I)      Participant's Account balance as of the most recent
                           valuation occurring within a twelve (12) month period
                           ending on the Determination Date;

                  (II)     an adjustment for any contributions due as of the
                           Determination Date. Such adjustment shall be the
                           amount of any contributions actually made after the
                           valuation date but on or before the Determination
                           Date, except for the first Plan Year when such
                           adjustment shall also reflect the amount of any
                           contributions made after the Determination Date that
                           are allocated as of a date in that first Plan Year;

                  (III)    any Plan distributions made within the Plan Year that
                           includes the Determination Date or within the four
                           (4) preceding Plan Years. However, in the case of
                           distributions made after the valuation date and prior
                           to the Determination Date, such distributions are not
                           included as distributions for top heavy purposes to
                           the extent that such distributions' are already
                           Included in the Participant's Aggregate Account
                           balance as of the valuation date. Notwithstanding
                           anything herein to the contrary, all distributions
                           and distributions under a terminated plan which if it
                           had not been terminated would have been required to
                           be included in an Aggregation Group, will be counted;

                  (IV)     any Employee contributions, whether voluntary or
                           mandatory. However, amounts attributable to tax
                           deductible qualified deductible employee
                           contributions shall not be considered to be a part of
                           the Participant's Aggregate Account balance;

                  (V)      with respect to unrelated rollovers and plan-to-plan
                           transfers (ones which are both initiated by the
                           Employee and made from a plan maintained by one
                           employer to a plan maintained by another employer),
                           if this Plan provides the rollovers or plan-to-plan
                           transfers, it shall always consider such rollover or
                           plan-to-plan transfer as a distribution for the
                           purposes of this Section. If this Plan is the plan
                           accepting such rollovers or plan-to-plan transfers,
                           it shall not consider such rollovers or plan-to-plan
                           transfers as part of the Participant's Aggregate
                           Account balance; and

                  (VI)     with respect to related rollovers and plan-to-plan
                           transfers (ones either not initiated by the Employee
                           or made to a plan maintained by the same employer),
                           if this Plan provides the rollover or plan-to-plan
                           transfer, it shall not be counted as a distribution
                           for purposes of this Section. If this Plan is the
                           plan accepting such rollover or plan-to-plan
                           transfer, it shall consider such rollover or
                           plan-to-plan transfer as part of the Participant's
                           Aggregate Account balance, irrespective of the date
                           on which such rollover or plan-to-

                                       42
<PAGE>

                           plan transfer is accepted.

         (d)      AGGREGATION GROUP

                  "Aggregation Group" means either a Required Aggregation Group
                  or a Permissive Aggregation Group as hereinafter determined.

                  (I)      REQUIRED AGGREGATION GROUP:

                           In determining a Required Aggregation Group
                           hereunder, each plan of the Employer in which a Key
                           Employee is a participant, and each other plan of the
                           Employer which enables any plan in which a Key
                           Employee participates to meet the requirements of
                           Code Sections 401(a)(4) or 410, will be required to
                           be aggregated. Such group shall be known as a
                           Required Aggregation Group. In the case of a Required
                           Aggregation Group, each plan in the group will be
                           considered a Top Heavy Plan if the Required
                           Aggregation Group is a Top Heavy Group. No plan in
                           the Required Aggregation Group will be considered a
                           Top Heavy Plan if the Required Aggregation Group is
                           not a Top Heavy Group.

                  (II)     PERMISSIVE AGGREGATION GROUP:

                           The Employer may also include any other plan not
                           required to be included in the Required Aggregation
                           Group, Provided the resulting group, taken as a
                           whole, would continue to satisfy the provisions of
                           Code Sections 401(a)(4) and 410. Such group shall be
                           known as a Permissive Aggregation Group. In the case
                           of a Permissive Aggregation Group, only a plan that
                           is part of the Required Aggregation Group will be
                           considered a Top Heavy Plan if the Permissive
                           Aggregation Group is a Top Heavy Group. No plan in
                           the Permissive Aggregation Group will be considered a
                           Top Heavy Plan if the Permissive Aggregation Group is
                           not a Top Heavy Group.

                  (III)    Only those plans of the Employer in which the
                           Determination Dates fall within the same calendar
                           year shall be aggregated in order to determine
                           whether such plans are Top Heavy Plans.

         (e)      DETERMINATION DATE

                  "Determination Date" means (a) the last day of the preceding
                  Plan Year, or (b) in the case of the first Plan Year, the last
                  day of such Plan Year.

                                       43
<PAGE>

         (f)      PRESENT VALUE OF ACCRUED BENEFIT

                  In the case of a defined benefit plan, a Participant's Present
                  Value of Accrued Benefit shall be as determined under the
                  provisions of the applicable defined benefit plan.

         (g)      TOP HEAVY GROUP

                  "Top Heavy Group" means an Aggregation Group in which, as of
                  the Determination Date, the sum of:

                  (1)      the Present Value of Accrued Benefits of Key
                           Employees under all defined benefit plans included in
                           the group, and

                  (2)      the Aggregate Accounts of Key Employees under all
                           defined contribution plans included in the group,
                           exceeds sixty percent (60%) of a similar sum
                           determined for all Participants.

         (h)      TOP HEAVY PLAN YEAR

                  "Top Heavy Plan" Year means that, for a particular Plan Year,
                  the Plan is a Top Heavy Plan.

10.2     KEY EMPLOYEES

         For purposes of this Section, the term "Key Employee" means any
         Employee or former Employee (and his beneficiaries) who, at any time
         during the Plan Year or any of the preceding four Plan Years, is:

         (a)      An officer of the Employer and has annual compensation (as
                  defined in Code Section 414(q)(7)) greater than 50% of the
                  amount in effect under Code Section 415(b)(1)(A) for any such
                  Plan Year;

         (b)      One of ten employees having annual compensation (as defined in
                  Code Section 414(q)(7)) greater than $30,000 (or such amount
                  adjusted in accordance with Code Section 415(c)(1)(A) as in
                  effect for the calendar year in which the Determination Date
                  falls) and owning (or considered as owning within the meaning
                  of Code Section 318) the largest interests in an Employer;

         (c)      A five percent owner of the Employer; and

         (d)      A one percent owner of the Employer who has annual
                  compensation (as defined in

                                       44
<PAGE>

                  Section 414(q)(7)) more than $150,000.

         A five percent owner means any person who owns (or is considered as
         owning within the meaning of Code Section 318) more than five percent
         of the outstanding stock of an Employer or stock possessing more than
         five percent of the total combined voting power of all stock of an
         Employer. A one percent owner means any person who owns (or is
         considered as owning within the meaning of Code Section 318) more than
         one percent of the outstanding stock of an Employer or stock possessing
         more than one percent of the total combined voting power of all stock
         of an Employer. If an Employee ceases to be a Key Employee, such
         Employee's Account balances shall be disregarded under the top heavy
         plan computation for any Plan Year following the last Plan Year for
         which the Employee was treated as a Key Employee. The Account Balances
         of an Employee who has not performed any service for an Employer at any
         time during the five year period ending on the Determination Date are
         excluded from the calculation to determine top heaviness. For purposes
         of clause (a) above no more than the lesser of (i) fifty Employees, or
         (ii) the greater of three Employees or ten percent of all Employees,
         are to be treated as Key Employees. For purposes of clause (b) above,
         if two Employees have the same interest in an Employer, the Employee
         having greater annual compensation from an Employer shall be treated as
         having a larger interest. For purposes of determining the number of
         officers taken into account under clause (a), Employees described in
         Code Section 414(q)(8) shall be excluded.

10.3     NON-KEY EMPLOYEE

         Any employee or former employee (and his beneficiaries) who is not a
         Key Employee.

10.4     ADDITIONAL RULES

         In determining the sum of the account balances under a defined
         contribution plan, Employer contributions and Employee contributions
         shall be taken into account. The account balance in a defined
         contribution plan will include any amount distributed to a Participant
         within the five year period ending on the Determination Date.

10.5     VESTING REQUIREMENTS

         If this Plan is determined to be top-heavy in any Plan Year under the
         provisions of paragraph 10.1 or 10.3, then a Participant's right to the
         contributions allocated to his Accounts shall vest in accordance with
         the following schedule:

                                       45
<PAGE>

               YEARS OF SERVICE                  VESTING PERCENTAGE
               ----------------                  ------------------

                 Less than 1                             0
                      1                                  20
                      2                                  40
                  3 or more                             100

         For this purpose, the term "Year of Service" shall be as defined in
         Section 1. Once the above schedule applies to a Participant, it will
         continue to apply to him, whether or not the Plan is top-heavy in any
         subsequent years, for as long as he remains a Participant.

10.6     MINIMUM BENEFIT

         If this Plan is determined to be top-heavy in any Plan Year under the
         provisions of paragraph 10.1 or 10.3, then the contribution for such
         Plan Year to be allocated to each Participant who is not a Key Employee
         in such Plan Year shall not be less than three percent of such
         Participants compensation (as defined in Code 414(q)(7)) or such lesser
         percentage as may be made with respect to Key Employees in such Plan
         Year. Amounts contributed under Plan Section 3.2(a) shall be taken into
         consideration in determining the lesser percentage for Key Employers
         noted in the immediately preceding sentence.

10.7     CEILING ON INCLUDIBLE COMPENSATION

         If this Plan is determined to be top-heavy in any Plan Year under the
         provision of paragraph 10.1 or 10.3, then only the first $200,000 of a
         Participant's compensation (as defined in Code Section 414(q)(7)) may
         be taken into account in determining the amount of the allocation to
         such Participant's Account for the Plan Year. The $200,000 limit shall
         automatically be adjusted for the Plan Years beginning after 1985 to
         the extent permitted by the Internal Revenue Service.

                                       46
<PAGE>

                                   SECTION 11.

                                  MISCELLANEOUS

11.1     LIMITATION OF RIGHTS; EMPLOYMENT RELATIONSHIP

         Neither the establishment of the Plan and the Trust nor any
         modifications of them, nor the creation of any fund or account, nor the
         payment of any benefits, shall be construed as modifying or affecting
         in any way the terms of employment of any Employee.

11.2     MERGER; TRANSFER OF ASSETS

         (a)      If the Company merges or consolidates with or into a
                  corporation, or if substantially all the assets of the Company
                  are transferred to a corporation, the Plan shall terminate on
                  the effective date of the merger, consolidation, or transfer.
                  However, if the surviving corporation resulting from the
                  merger or consolidation, or the corporation to which the
                  assets have been transferred, adopts this Plan, the Plan shall
                  continue and the successor corporation shall succeed to all
                  rights, powers, and duties of the Company under the Plan, and
                  the employment of any Employee who is continued in the
                  successor corporations employ shall not be deemed to have been
                  terminated for any purpose under the Plan.

         (b)      This Plan shall not be merged or consolidated with any other
                  employee benefit plan, nor shall there by any transfer of
                  assets or liabilities from this Plan to any other plan,
                  unless, immediately after the merger, consolidation, or
                  transfer, each Participants benefits, if the other plan were
                  then to terminate, are at least equal to the benefits to which
                  the Participant would have been entitled had this Plan been
                  terminated immediately before the merger, consolidation, or
                  transfer.

11.3     PROHIBITION AGAINST ASSIGNMENT

         (a)      Except as provided below, the benefits provided by this Plan
                  may not be assigned or alienated. Neither the Company nor the
                  Trustees shall recognize any transfer, mortgage, pledge,
                  hypothecation, order, or assignment by any Participant or
                  beneficiary of all or part of his interest under the Plan, and
                  the interest shall not be subject in any manner to transfer by
                  operation of law and shall be exempt from the claims of
                  creditors or other claimants from all orders, decrees, levies,
                  garnishment, and/or executions, and other legal or equitable
                  process or proceedings against the Participant or beneficiary
                  to the fullest extent that may be permitted by law.

         (b)      This provision shall not apply to the extent a Participant or
                  beneficiary is indebted to

                                       47
<PAGE>

                  the Plan, for any reason, under any provision of this
                  Agreement. At the time a distribution is to be made to or for
                  a Participant's or beneficiary's benefit, such proportion of
                  the amount distributed as shall equal such indebtedness, shall
                  be paid by the Trustees to the Trustees or the Administrative
                  Committee, at the direction of the Administrative Committee,
                  to apply against or discharge such indebtedness. Prior to
                  making a payment, however, the Participant or beneficiary must
                  be given written notice by the Administrative Committee that
                  such indebtedness is to be so paid in whole or part from his
                  account. If the Participant or beneficiary does not agree that
                  the indebtedness is a valid claim against his vested Accounts,
                  he shall be entitled to a review of the validity of the claim
                  in accordance with procedures provided in Section 9.

         (c)      This provision shall not apply to a "qualified domestic
                  relations order" defined in Code Section 414(p), and those
                  other domestic relations orders permitted to be so treated by
                  the Administrative Committee under the Code. The
                  Administrative Committee shall establish a written procedure
                  to determine the qualified status of domestic relations orders
                  and to administer distributions under such qualified orders.
                  Further, to the extent provided under a "qualified domestic
                  relations order", a former spouse of a Participant shall be
                  treated as the spouse or surviving spouse for all purposes
                  under the Plan.

11.4     APPLICABLE LAW; SEVERABILITY

         This Plan shall be construed, administered, and governed in all
         respects in accordance with ERISA and the laws of the State of Florida,
         provided, however, that if any provision is susceptible of more than
         one interpretation, it shall be interpreted in a manner consistent with
         the Plans "being a qualified employees" cash or deferred profit sharing
         plan within the meaning of the Internal Revenue Code. If any provision
         of this instrument shall be held by a court of competent jurisdiction
         to be invalid or unenforceable, the remaining provisions of the Plan
         shall continue to be fully effective.

11.5     RELIANCE UPON COPY OF PLAN

         Any person dealing with the Trustees may rely upon copies of the Plan
         and the Trust Agreement, and any amendments thereto, certified by the
         Administrative Committee to be true and correct copies.

11.6     GENDER AND NUMBER; CAPTIONS OR HEADINGS

         Wherever appropriate to the meaning or interpretation of this Plan, the
         masculine gender shall include the feminine, and the singular number
         shall include the plural and vice versa. Captions or headings are
         inserted and intended for organizational format and convenience

                                       48

<PAGE>

         of reference only; they are not to be given independent substantive
         meaning or effect.

                                       49
<PAGE>

                                   SECTION 12.

                            ADMINISTRATIVE COMMITTEE

12.1     APPOINTMENT OF COMMITTEE

         The Board shall appoint the Administrative Committee (the "Committee")
         the members of which shall serve at the pleasure of the Board, without
         bond, unless a bond shall be requested by the Board or secured
         voluntarily by a member. Any member of the Committee who is not an
         officer or employee of an Employer may be compensated for services as a
         member of the Committee. The Committee members may, but need not be,
         Participants under the Plan. Vacancies arising shall be filled in the
         same manner as appointments. Any member of the Committee may resign by
         delivering a written resignation to the Board and to the Secretary of
         the Committee and such resignation will become effective upon such
         delivery or at any later date specified therein.

12.2     COMMITTEE ORGANIZATION

         The members of the Committee shall elect from their number a Chairman
         and shall appoint a Secretary, who need not be a member of the
         Committee. The Chairman and the Secretary shall serve without bond and
         without compensation at the pleasure of the Committee.

12.3     COMMITTEE MEETINGS

         The Committee shall hold meetings upon such notice, at such time, and
         at such place as it may determine. A majority of the members of the
         Committee shall constitute a quorum for the transaction of business.
         All resolutions of actions taken by the Committee shall be by vote of a
         majority of those present at a meeting, or, if they act without a
         meeting, by unanimous written consent of the members of the Committee.

12.4     COMMITTEE FUNCTIONS AND POWERS

         The Committee shall be the administrator of the Plan, and its duties
         shall include, without limitation, powers with respect to the
         administration of the Trust as may be conferred upon it by the Trust
         Agreement and by the Plan. The Committee shall have the power to take
         all action and to make all decisions that shall be necessary or proper
         in order to carry out the provisions of the Plan and, without limiting
         the generality of the foregoing, the Committee shall have the following
         powers:

         (a)      to make (and enforce by suspension or forfeiture) such rules
                  and regulations as it shall deem necessary or proper for the
                  efficient administration of the Plan;

                                       50
<PAGE>

         (b)      to interpret or construe the Plan;

         (c)      to decide questions concerning the Plan and the eligibility of
                  any Employee to participate therein and the right of any
                  person to receive benefits thereunder;

         (d)      to decide any dispute arising under the Plan;

         (e)      to compute the amount of benefits which shall be payable to
                  any person in accordance with the provisions of the Plan;

         (f)      to authorize all disbursements by the Trustees;

         (g)      to recommend to the Board and to the respective boards of
                  directors of the other Employers the amounts of the Employer
                  contributions and payments for expenses to be made from time
                  to time under the provisions of the Plan;

         (h)      to prescribe and require the use of such forms as it shall
                  deem necessary or desirable in connections with the
                  administration of the Plan;

         (i)      to fix the criteria to be followed in determining the market
                  value of any security or property held in the Trust Fund or
                  the amount of any unliquidated charge, expense, or obligation
                  of the Trust Fund;

         (j)      to establish and monitor policy of proxy voting by the
                  Trustees for stock held for the plan consistent with
                  regulations and rulings of the U.S. Department of Labor;

         (k)      to appoint one (1) or more Independent Advisors and dismiss
                  and replace any of these, as it deems warranted;

         (l)      to supply any omissions in the Plan;

         (m)      to reconcile and correct any errors or inconsistencies in the
                  Plan; and

         (n)      to make equitable adjustments for any mistakes or errors made
                  in the administration of the Plan.

12.5     COMMITTEE ACTIONS CONCLUSIVE

         All actions and decisions taken by the Committee shall be final and
         conclusive and binding on all persons having any interest in the Plan
         or Trust Fund or in any benefits payable thereunder.

                                       51
<PAGE>

12.6     COMMITTEE APPOINTMENT OF AGENTS

         The Committee may employ or engage such accountants, counsel, other
         experts, and other persons as it deem necessary in connections with the
         administration of the Plan.

12.7     RELIANCE ON OPINIONS, ETC.

         The Committee and each member thereof and each person to whom it may
         delegate any power or duty in connection with administering the Plan
         shall be entitled to rely conclusively upon, and shall be fully
         protected in any action taken by them or any of them in good faith
         reliance upon any valuation, certificate, opinion, or report which
         shall be furnished to them or any of them by the Trustees or by any
         accountant, counsel, other expert, or other person who shall be
         employed or engaged by the Trustees or the Committee.

12.8     RECORDS AND ACCOUNTS

         The Committee shall keep or cause to be kept all data, records and
         documents pertaining to the administration of the Plan, and the
         Secretary of the Committee may execute all documents necessary to carry
         out the provisions of the Plan. To enable the Committee to perform its
         functions, the Employer shall supply full and timely information to the
         Committee on all matters relating to the salaries of Participants,
         their retirement, death, termination of employment, and such other
         pertinent facts as the Committee may require. The Committee shall
         advise the Trustees of such of the foregoing facts as may be pertinent
         to the Trustees' administration of the Trust Fund and shall give proper
         instruction to the Trustees for carrying out the purposes of the Plan.

12.9     PAYMENT OF EXPENSE

         (a)      Subject to the provisions of paragraph (b) of this Section
                  12.9, expenses in connection with the administration of the
                  Plan and Trust including commissions, taxes or other expenses
                  relating to the purchase and maintenance of property held as a
                  part of any Investment Fund, expenses payable to any member of
                  the Committee pursuant to Section 12.1, expenses of the
                  Committee or any member thereof, expenses of the Trustees and
                  of any accountant or other person who shall be employed by the
                  Committee or Trustees in the administration thereof, shall be
                  paid by the Plan. To the extent such expenses are not paid by
                  the Plan, they may be paid by the Company.

         (b)      In the event of permanent discontinuance of contributions or
                  termination any further payment of expenses which arise or
                  have arisen in connection with the

                                       52
<PAGE>

                  administration of the Plan and Trust Agreement shall be paid
                  by the Plan unless paid by the Employer.

12.10    LIABILITY OF THE ADMINISTRATIVE COMMITTEE

         No member of the Administrative Committee shall incur liability for any
         action taken or not taken in good faith reliance on advice of counsel,
         who may be counsel for the Company or taken or not taken in good faith
         reliance on a determination as to a matter of fact which has been
         represented or certified by a person reasonably believed to have
         knowledge of the fact so represented or certified, or taken or not
         taken in good faith reliance on a recommendation or opinion expressed
         by a person reasonably believed to be qualified or expert as to any
         matter where it is reasonable or customary to seek or rely on such
         recommendations or opinions. Nor shall any Administrative Committee
         member be liable for the wrongful or negligent conduct of any other
         Administrative Committee member or any person having fiduciary
         responsibilities with respect to the Plan unless he (i) knowingly
         participates in or undertakes to conceal an act or omission of such
         other person knowing the act or omission is a breach of fiduciary duty,
         (ii) by failing to act solely in the interests of participants and
         beneficiaries or to exercise the care, skill, prudence and diligence
         under the circumstances prevailing from time to time that a prudent man
         acting in a like capacity and familiar with such matters would
         exercise, has enabled the other fiduciary to commit a breach of his
         obligation, or (iii) he has knowledge of a breach by the other
         fiduciary and does not make reasonable efforts under the circumstances
         to remedy it. Except as otherwise affirmatively required by the Act, no
         Administrative Committee member shall be required to post a bond. The
         Company shall jointly and severally indemnify the Administrative
         Committee members and hold them harmless from loss, liability and
         expense in respect of the Plan, including the legal cost of defending
         claims and amounts paid in satisfaction or settlement thereof provided
         only that no indemnification is intended that would be void as against
         public policy under the Act.

                                       53
<PAGE>

                                   SECTION 13.

                                 TRUST AGREEMENT

13.1     THE TRUST AGREEMENT

         All contributions under the Plan shall be made to the Trust Fund held
         by the Trustees under a separate Trust Agreement known as the "SBS
         Trust Company Trust Agreement" (the "Trust Agreement"). The Trustees
         are to hold, invest, and distribute the Trust's assets, and maintain
         records of the Trust Fund in accordance with the terms and provisions
         of the Trust Agreement except that they may delegate such
         responsibility to an Investment Manager. The Trust Agreement shall be
         deemed to form a part of the Plan, and any and all rights or benefits
         which may accrue to any person under the Plan shall be subject to all
         the terms and provisions of the Trust Agreement. If there is any
         conflict between the terms of the Plan and the terms of the Trust
         Agreement, the terms of the Plan shall control.

13.2     NO DIVERSION OF CORPUS OR INCOME

         In no event shall any portion of the corpus or income of the Trust Fund
         be used for or diverted to purposes other than the exclusive benefit of
         Participants and their Beneficiaries.

                                       54
<PAGE>

         IN WITNESS WHEREOF, the Company has caused this Plan as revised and
amended to be executed and have affixed their seals this _________ day of
_____________, 19___.

                                            COMPANY:

                                            By:_________________________________

                                       55EXHIBIT 10.15

                              PART NERSHIP AGREEMENT

                                 BY AND BETWEEN

                        LENNAR LAND PARTNERS SUB II, INC.

                                       AND

                         LNR LAND PARTNERS SUB II, INC.

<PAGE>
<TABLE>
<CAPTION>
                                TABLE OF CONTENTS

                                                                                                       PAGE
                                                                                                       ----
<S>      <C>      <C>                                                                                   <C>
ARTICLE I Organizational Matters.........................................................................1
         1.1      Formation..............................................................................1
         1.2      Name...................................................................................1
         1.3      Principal Office.......................................................................1
         1.4      Term...................................................................................1
         1.5      Purpose................................................................................2
         1.6      Powers.................................................................................2
         1.7      Statutory Filings......................................................................2

ARTICLE II Definitions...................................................................................2

ARTICLE III Capital Contributions........................................................................5
         3.1      Initial Capital Contributions..........................................................5
         3.2      Voluntary Contributions................................................................5
         3.3      Required Additional Capital Contributions..............................................5
         3.4      No Withdrawal..........................................................................6
         3.5      Interest...............................................................................6
         3.6      Loans to the Partnership...............................................................7
         3.7      Capital Accounts.......................................................................7

ARTICLE IV Allocations and Distributions................................................................10
         4.1      Allocations for Capital Account Purposes..............................................10
         4.2      Allocations for Tax Purposes..........................................................11
         4.3      Distributions.........................................................................12

ARTICLE V Governance and Management of Business.........................................................12
         5.1      Executive Committee...................................................................12
         5.2      Management Agreement..................................................................15
         5.3      Indemnification.......................................................................15
         5.4      Insurance.............................................................................15
         5.5      Annual Business Plan..................................................................16
         5.6      Reimbursement of Partners.............................................................16
         5.7      Outside Activities....................................................................17
                       TABLE OF CONTENTS

                                                                                                       PAGE
                                                                                                       ----

         5.8      Dealings With Partnership.............................................................17
</TABLE>

                                       i

<PAGE>
<TABLE>
<CAPTION>
<S>      <C>      <C>                                                                                   <C>
         5.9      Partnership Funds.....................................................................17
         5.10     Title to Partnership Assets...........................................................17

ARTICLE VI Books, Records, Accounting and Reports.......................................................18
         6.1      Records and Accounting................................................................18
         6.2      Fiscal Year...........................................................................18
         6.3      Financial Statements and Financial Information........................................18
         6.4      Other Information.....................................................................19
         6.5      Reimbursement.........................................................................19

ARTICLE VII Tax Matters.................................................................................19
         7.1      Recognition of Partnership............................................................19
         7.2      Preparation of Tax Returns............................................................19
         7.3      Accounting Methods: Tax Elections.....................................................19
         7.4      Tax Controversies.....................................................................20
         7.5      Withholding...........................................................................20
         7.6      Reimbursement.........................................................................20

ARTICLE VIII Transfer of Interests......................................................................20
         8.1      Restrictions on Transfer..............................................................20
         8.2      Permissible Transfers.................................................................20
         8.3      Right of First Refusal................................................................21

ARTICLE IX Admission of Partners........................................................................21
         9.1      Admission of Additional Partners......................................................21
         9.2      Interest of New Partner...............................................................21

ARTICLE X Dissolution and Liquidation...................................................................22
         10.1     Dissolution...........................................................................22
         10.2     Effect of Dissolution.................................................................22
         10.3     Liquidation...........................................................................22
                       TABLE OF CONTENTS

                                                                                                       PAGE
                                                                                                       ----

         10.4     Distribution in Kind..................................................................23
         10.5     Reasonable Time for Winding Up........................................................23
         10.6     Waiver of Partition...................................................................23
         10.7     Voluntary Termination.................................................................23

ARTICLE XI General Provisions...........................................................................23
         11.1     Indemnification by Partners...........................................................23
</TABLE>

                                       ii

<PAGE>
<TABLE>
<CAPTION>
<S>      <C>      <C>                                                                                   <C>
         11.2     Contribution by Partners..............................................................23
         11.3     Notices...............................................................................24
         11.4     Amendments............................................................................24
         11.5     Titles and Captions...................................................................24
         11.6     Binding Effect........................................................................24
         11.7     Integration...........................................................................25
         11.8     Creditors.............................................................................25
         11.9     Counterparts..........................................................................25
         11.10    Applicable Law........................................................................25
         11.11    Survival..............................................................................25
</TABLE>

                                      iii

<PAGE>

                                       iv

<PAGE>

                                       v

<PAGE>

                                    EXHIBITS

A.       Schedule of Original Properties, Fair Market Values and Option Prices

B.       Management Agreement

C.       Business Plan and Budget for the Partnership's fiscal year 1999

                                       vi

<PAGE>

                              PARTNERSHIP AGREEMENT

         This is a PARTNERSHIP AGREEMENT (the "Agreement") dated as of June 28,
1999, by and among LENNAR LAND PARTNERS SUB II, INC., a Nevada corporation (the
"Managing General Partner"), and LNR LAND PARTNERS SUB II, INC., a Nevada
corporation (the "General Partner") and together with the Managing General
Partner, the "Partners"), and, only with respect to Section 8.1, LENNAR
CORPORATION, a Nevada corporation ("Lennar") and LNR Property Corporation, a
Nevada corporation ("LNR").

                                    RECITALS

         A.       The  Partners  desire to form a general  partnership  under
the laws of the State of Florida for the purposes and on the terms and
conditions stated in this Agreement.

         B.       The  Managing  General  Partner  was  formed  solely  for the
purpose of participating in the partnership created by this Agreement, and is a
wholly owned subsidiary of Lennar.

         C.       The  General  Partner  was formed  solely for the  purpose of
participating in the partnership created by this Agreement, and is a wholly
owned subsidiary of LNR.

         All capitalized terms used in this Agreement which are not otherwise
defined are defined in Article II.

                                    ARTICLE I

                             ORGANIZATIONAL MATTERS

         1.1     FORMATION. By signing this Agreement, the Managing General
Partner and the General Partner form a general partnership (the "Partnership")
under the laws of the State of Florida.

         1.2     NAME. The name of the partnership is "Lennar Land Partners II."

         1.3     PRINCIPAL OFFICE. The principal business address of the
Partnership will be 700 Northwest 107th Avenue, Miami, Florida 33172, or such
other place as the Executive Committee may from time to time provide. The
Partnership my maintain offices at such other place or places as the Executive
Committee deems advisable.

         1.4     TERM. The Partnership will begin on the date of this Agreement
and will continue until one or more of the Partners gives written notice to the
Partnership and to the other Partner(s) of an election to terminate the
Partnership, which any Partner may do at any time after November 30, 2002, but
not before then. Beginning 60 days after a Partner elects to terminate the
Partnership, the Partnership will cease acquiring assets and will engage in no
activities other than (i) fulfilling agreements in effect at the end of the 60
day period, (ii) disposing of assets in the ordinary course,

<PAGE>

and (iii) when an event described in any of paragraphs 10.1 (a) through (d)
occurs, dissolving and liquidating the Partnership as described in Article X..

         1.5      PURPOSE. The purposes of the Partnership will be to acquire,
own, invest in, hold, develop, improve and sell land and to engage in all
activities which are incidental or necessary to the foregoing.

         1.6      POWERS. The Partnership is empowered to do any and all things
necessary, appropriate, or convenient for the furtherance and accomplishment of
its purposes, and for the protection and benefit of the Partnership and its
properties.

         1.7      STATUTORY FILINGS. The Partnership shall execute and file with
the Florida Department of State it registration statement pursuant to Section
620.8105 of the Florida Act in which the name of the Partnership and the
location and complete add of the Partnership's principal office in Miami,
Florida, as set forth above, is set forth and in which an agent of the
Partnership for service of process is designated.

                                   ARTICLE II

                                   DEFINITIONS

         The following definitions, will, unless otherwise clearly indicated to
the contrary, apply to the terms used in this Agreement.

         "ADJUSTED ASSET" means any Partnership asset, the Carrying Value of
which has been adjusted pursuant to Section 3.7(c) or (d).

         "AFFILIATE" means any Person that directly or indirectly controls, is
controlled by, or is under common control with, the Person in question. As used
in the definition of "Affiliate," the term "control" means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting
securities, by contract or otherwise. The Partnership will not be deemed an
Affiliate of any Partner.

         "AGREEMENT" means this Partnership Agreement, as it may be amended,
supplemented or restated from time to time.

         "BUSINESS DAY" means Monday through Friday of each week, except that a
day on which state chartered banks in the State of Florida are not required to
be open for general business will not be regarded as a Business Day.

         "BUSINESS PLAN" means the annual Business Plan for the Partnership
contemplated by Section 5.5.

                                       2
<PAGE>

         "CAPITAL ACCOUNT" means the capital account maintained for a Partner
pursuant to section 3.7.

         "CAPITAL CONTRIBUTION" means any cash or Contributed Asset that a
Partner contributes to the Partnership pursuant to Sections 3.1, 3.2 or 9.2.

         "CARRYING VALUE" means (a) with respect to a Contributed Asset, the
Fair Market Value of the asset reduced (but not below zero) by all depreciation,
cost recovery and amortization deductions charged to the Partners' Capital
Accounts pursuant to Section 3.7(a) with respect to the asset, and (b) with
respect to any other asset, the adjusted basis of the asset for federal income
tax purposes, as of the time of determination. The Carrying Value of any asset
will be adjusted from time to time in accordance with Sections 3.7(c) and (d),
and to reflect costs or proceeds of dispositions, acquisitions or improvements
relating to the asset, as deemed appropriate by the Executive Committee.

         "CODE" means the Internal Revenue Code of 1986, as amended (and any
successor to it). Any reference in this Agreement to a specific section of the
Code will be deemed to include a reference to any corresponding provision of any
future law.

         "CONTRIBUTED ASSET" means the interest in a property or other asset (it
the time of contribution to the Partnership), other than cash, contributed to
the Partnership by a Partner, including the Original Properties.

         "EXECUTIVE COMMITTEE" means the committee which governs the Partnership
pursuant to Section 5.1.

         "FAIR MARKET VALUE" of any Contributed Asset (other than the Original
Properties, which have the Fair Market Values shown on Exhibit A) means the
gross fair market value of that asset (i.e., without regard to any liabilities
assumed by the Partnership or to which that asset is subject) as determined by
the Executive Committee. The Executive Committee shall, in its discretion, use
such method as it deems reasonable and appropriate to allocate the Fair Market
Value of any group of Contributed Assets (other than the Original Properties)
transferred to the Partnership in a single or integrated transaction among each
separate asset. The Fair Market Value of any Contributed Asset will reflect any
adjustments made pursuant to Section 3.7(c).

         "FLORIDA ACT" means the Florida Revised Uniform Partnership Act of
1995, Florida Statutes ss.620.81001 to ss.620.8908, as it may be amended from
time to time, and any successor to such Act.

         "GENERAL PARTNER"means LNR Land Partners Sub II, Inc., a Nevada
corporation and a wholly-owned subsidiary of LNR, or any successor to such
Person admitted as a Partner of the Partnership, in its capacity as a Partner of
the Partnership.

                                       3
<PAGE>

         "LENNAR" means Lennar Corporation, a Delaware corporation.

         "LIQUIDATION DATE" means the earlier of the date upon which (i) the
Partnership is terminated under Section 708(b)(1) of the Code or (ii) the
Partnership ceases to be a going concern.

         "LNR" means LNR Property Corporation, a Delaware corporation.

         "MANAGEMENT AGREEMENT" means the management agreement, dated as of the
date hereof, between the Partnership and the Manager, pursuant to which the
Manager will conduct the day-to-day activities of the Partnership.

         "MANAGER" means Lennar in its capacity as manager under the Management
Agreement or, if the Management Agreement terminates, the manager under a
successor agreement. If there is no management agreement, the Managing General
Partner will be the Manager.

         "MANAGING GENERAL PARTNER" means Lennar Land Partners Sub II, Inc., a
Nevada corporation and a wholly-owned subsidiary of Lennar, or any successor to
such Person admitted as a Partner of the Partnership, in its capacity as a
Partner of the Partnership.

         "MASTER PLAN" means a subdivision plan, zoning plan or other plan
required to be filed with any governmental authority relating to the manner in
which a property can be developed.

         "NET FAIR MARKET VALUE" means (a) in the case of any Contributed Asset,
the Fair Market Value of the Contributed Asset reduced by any indebtedness or
liabilities assumed by the Partnership, or to which the Contributed Asset is
subject, when the Contributed Asset is contributed to the Partnership and (b) in
the case of any net distributed to a Partner pursuant to Section 4.3 or
distributed in liquidation of the Partnership pursuant to Sections 10.3 and
10.4, the Fair Market Value of the asset at the time it is distributed reduced
by any indebtedness assumed by the Partner, or to which the asset is subject,
when it is distributed.

         "ORIGINAL PROPERTIES" mean the assets described on Exhibit A.

         "PARTNER" means the Managing General Partner, the General Partner and
any Person admitted as a general partner pursuant to Article VII or IX of this
Agreement.

         "PARTNER MINIMUM GAIN" has the meaning set forth in Regulation Section
1.704-2(i).

         "PARTNERSHIP" means the general partnership created pursuant to this
Agreement.

         "PARTNERSHIP INTEREST" means the interest of a Partner in the
Partnership under this Agreement and the Florida Act.

                                       4
<PAGE>

         "PARTNERSHIP MINIMUM GAIN" has the meaning set forth in Regulation
Section 1.704-2(d).

         "PERCENTAGE INTEREST" of a Partner at a point in time means the
quotient of that Partner's Capital Account at that point in time divided by the
total Capital Accounts of all the Partners at that point in time.

         "PERSON" means an individual or a corporation, partnership, limited
liability company, trust, estate, unincorporated organization. association or
other entity.

         "REGULATIONS" mean the Income Tax Regulations promulgated under the
Code, as such regulation my be amended from time to time (including
corresponding provisions of succeeding regulations).

         "UNREALIZED GAIN" attributable to a partnership asset means, as of any
date, the excess, if any, of the fair market value of the asset (a determined
under Section 3.7(d)) on that date over the Carrying Value of the asset on that
date (prior to any adjustment to be made pursuant to Section 3.7(d) as of that
date).

         "UNREALIZED LOSS" attributable to a Partnership asset means, as of any
date, the excess, if any, of the Carrying Value of the asset on that date (prior
to any adjustment to be made pursuant to Section 3.7(d) on that date) over the
fair market value of the asset (as determined under Section 3.7(d)) on that
date.

                                   ARTICLE III

                              CAPITAL CONTRIBUTIONS

         1.8      INITIAL CAPITAL CONTRIBUTIONS. The Aggregate Net Fair Market
Value on the date of this Agreement of the Capital Contribution made by each
Partners is         and the initial Percentage Interest of each Partner is 50%.

         1.9      VOLUNTARY CONTRIBUTIONS. A Partner may with the consent of the
Executive Committee (but not without it) make voluntary contributions of capital
to the Partnership.

         1.10     REQUIRED ADDITIONAL CAPITAL CONTRIBUTIONS.

         (1) If at any time the Managing General Partner requests that the
Executive Committee require the Partners to make additional capital
contributions to the Partnership in a specified aggregate amount (the requested
aggregate amount being a "Requested Additional Capital Contribution") and the
Executive Committee approves the request, each Partner will be required to
contribute to the Partnership a portion of the aggregate amount approved by the
Executive Committee (the "Additional Capital Contribution"), whether or not it
is the same as the Requested

                                       5
<PAGE>

Additional Capital Contribution equal to the Partner's Percentage Interest (the
portion of an Additional Capital Contribution which a Partner is required to
contribute being the "Partner's Additional Contribution"). The Executive
Committee may reject a request for a Requested Additional Capital Contribution,
may approve Additional Capital Contributions in an aggregate amount which is
greater or less than the Requested Additional Capital Contribution, and may
cause the Partnership to borrow some or all of the funds which would have been
provided by the Requested Additional Capital Contribution instead of asking the
Partners to contribute those funds.

         (2) Each Partner will make any Partner's Additional Contribution it is
required to make within 20 business days after the day on which the Executive
Committee approves the Additional Capital Contribution of which the Partner's
Additional Contribution is a part, by wire transfer to a bank account of the
Partnership specified by the Executive Committee.

         (3) If any Partner (the "Non-Contributing Partner") fails to make any
Partner's Additional Contribution when it is due, the Partner which made its
required Partner's Additional Contribution (the "Contributing Partner") will
have the option to (i) bring an action at law or in equity, in the Partner's own
name or on behalf of the Partnership, to enforce the obligation of the
Non-Contributing Partner to make the required Partner's Additional Contribution
(provided that the liability of the Non-Contributing Partner will be limited to
its own assets, and no shareholder, officer or director of the Non-Contributing
Partner will have any liability as a result of a failure of the NonContributing
Partner to make the required Partner's Additional Contribution), or (ii) pay
into the Partnership a sum, equal to the Partner's Additional Contribution which
the Non-Contributing Partner failed to make, which payment will be treated as
(x) a capital contribution by the Non-Contributing Partner and (y) a loan from
the Contributing Partner to the Non-Contributing Partner, which is (A) payable
on demand by the Contributing Partner, (B) will bear interest from the date the
sum is paid into the Partnership until the date it is repaid at 20 % per annum
(or such lower rate as is the maximum rate permitted by law), (C) will be
secured by a lien on the Non-Contributing Partner's Partnership Interest, and
(D) will be automatically repaid (whether or not the Contributing Partner has
demanded payment) by the Partnership's paying to the Contributing Partner all
sums which otherwise would be paid to the Non-Contributing Partner, to be
applied first against interest, and then against principal, until the loan and
all interest on it has been repaid in full.

         1.11     NO WITHDRAWAL. No Partner will be entitled to withdraw any
part of its Capital Contribution or Capital Account or to receive any
distribution from the Partnership without the consent of the Executive
Committee.

         1.12     INTEREST. No interest will be paid by the Partnership on
Capital Contributions or on balances in Partners' Capital Accounts.

         1.13     LOANS TO THE PARTNERSHIP. No Partner may lend to the
Partnership or advance money for the Partnership's benefit without the approval
of the Executive Committee. Except as otherwise provided in Section 3.3. loans
by a Partner to the Partnership, or advances by a Partner for the

                                       6

<PAGE>

Partnership's benefit, (a) will not be considered Capital Contributions, and (b)
will be on terms (including terms as to interest and repayment) which am
approved by the Executive Committee.

         1.14     CAPITAL ACCOUNTS.

         (1) The Partnership will maintain a separate Capital Account for each
Partner. A Partner's Capital Account will be: (i) increased by (A) the cash
amount or Net Fair Market Value of all Capital Contributions made by the Partner
and (B) all items of Partnership income and gain allocated to the Partner
pursuant to Section 4.1, and (ii) decreased by (A) the cash amount or Net Fair
Market Value of all distributions of cash or assets made by the Partnership to
the Partner and (B) all Items of Partnership deduction and loss allocated to the
Partner pursuant to Section 4.1.

         (2) For the purpose of computing the amount of any item of income,
gain, loss or deduction to be reflected in a Partner's Capital Account, the
determination, recognition and classification of each item will be the same as
its determination, recognition and classification for Federal income tax
purposes (including any method of depreciation, cost recovery or amortization
used for this purpose), subject to the following exception:

               (1) In accordance with Section 704 of the Code, any deduction for
depreciation, cost recovery or amortization attributable to a Contributed Asset
will be determined as if the adjusted basis of the asset on the date it was
contributed to the Partnership were equal to the Fair Market Value of the asset
("BOOK Depreciation"). Upon an adjustment pursuant to Section 3.7(c) or (d) to
the Carrying Value of any Partnership asset subject to depreciation, cost
recovery or amortization, any further deductions for the Book Depreciation with
regard to the asset immediately after the adjustment will be determined as if
the adjusted basis of the asset immediately after the adjustment were equal to
the Carrying Value of the asset immediately following the adjustment. For any
period, Book Depreciation attributable to any asset will be the amount that
bears the same relationship to the Fair Market Value (in the case of Contributed
Asset) or carrying Value (immediately following any adjustment referred to in
the preceding sentence), as the case may be, of the asset at the beginning of
the period that the Federal income tax depreciation, cost recovery or
amortization deduction with respect to the asset for the period bears to the
adjusted basis of the asset at the beginning of the period; PROVIDED that if an
asset has a zero adjusted basis, the Book Depreciation may be determined under
any reasonable method selected by the Managing General Partner. For all purposes
of this Section 3.7, Book Depreciation will be in lieu of any Federal income tax
depreciation, cost recovery or amortization deductions with respect to
Partnership Assets and will be allocated among the Partners pursuant to Section
4.1.

               (2) Any income, gain or loss resulting from the taxable
disposition of any Partnership asset will be determined as if the adjusted basis
of the asset at the date of the disposition were equal in amount to the Carrying
Value of the asset at that date. For all purposes of this Section 3.7, the
income, gain or loss computed in that manner will be in lieu of any income, gain
or loss for

                                       7
<PAGE>

Federal income tax purposes resulting from such a disposition and will be
allocated among the Partners pursuant to Section 4.1.

               (3) Any expenditures of the Partnership described, or treated
under, Regulation Section 1.704-1(b)(2)(iv)(i) as described in Section
705(a)(2)(B) of the Code and not otherwise taken into account in computing any
item of income, gain, deduction or loss for Federal income tax purposes will be
treated as an item of deduction and allowed among the Partners pursuant to
Section 4.1.

               (4) To the extent an adjustment to the adjusted basis of any
Partnership asset under Section 734(b) of the Code or Section 743(b) of the Code
is required by Regulation Section 1.704-1(b)(2)(iv)(m) to be taken into account
in determining Capital Accounts, the amount of the adjustment to the Capital
Account of each of the Partners will be treated as an item of gain (if the
adjustment increases the basis of the Partnership asset) or loss (if the
adjustment decreases the basis), and that gain or loss will be specially
allocated to the Partners in a manner consistent with the manner in which their
Capital Accounts are required to be adjusted pursuant to such Regulation;
PROVIDED that no adjustment pursuant to this Section 3.7(b)(iv) will be made to
the extent that the Managing General Partner determines that an adjustment to
Capital Accounts pursuant to Section 3.7(c) or (d) is necessary or appropriate
in connection with a transaction that would otherwise result in an adjustment
pursuant to this Section 3.7(b)(iv).

               (5) Any income of the Partnership that is exempt from Federal
income tax, or any expense of the Partnership that is not deductible or
available as a credit for Federal income tax purposes, will be treated as an
item of income or expense and allocated among the Partners pursuant to Section
4.1.

         (3) If there is a termination of the Partnership under Section
708(b)(1)(B) of the Code, to the extent provided in applicable Regulations, the
Partnership assets will be deemed to have been distributed in liquidation of the
Partnership to the remaining Partners (including the transferee of the
Partnership Interest) and deemed contributed by those Partners and transferees
in reconstitution of the Partnership. Those deemed distributions and deemed
contributions will be made in accordance with all provisions of this Agreement
relating to Capital Accounts. In addition, in such event, the Carrying Values of
the Partnership properties will be adjusted immediately prior to the deemed
distribution pursuant to Section 3.7(d)(ii) (and those adjusted Carrying Values
will constitute the Fair Market Values of the assets upon the deemed
contribution to the reconstituted Partnership). The Capital Accounts of the
reconstituted Partnership will be maintained in accordance with the principles
of this Section 3.7.

         (4) (1) Upon the admission of additional Partners pursuant to Article
IX, the Capital Accounts of all Partners; and the Carrying Values of all
Partnership assets will, immediately prior to the admission of the additional
Partners, be adjusted upwards or downwards to reflect any Unrealized Gain or
Unrealized Loss attributable to those assets (as if that Unrealized Gain or

                                       8
<PAGE>

Unrealized Loss had been recognized upon an actual sale of each such asset,
immediately prior to such admission, and had been allocated to the Partners at
that time pursuant to Section 4.1). In determining such Unrealized Gain or
Unrealized Loss, the Executive Committee will determine the aggregate gross fair
market value of Partnership using any reasonable method of valuation which it
deems appropriate and shall adjust the Carrying Value of the Partnership's
assets to reflect that fair market value.

               (1) Immediately prior to a distribution (whether in connection
with a Liquidation of the Partnership or otherwise) of Partnership property
(other than a DE MINIMIS distribution, as determined by the Managing General
Partner), the Capital Accounts of all Partners and the Carrying Values of all
Partnership assets shall, be adjusted upwards or downwards to reflect any
Unrealized Gain or Unrealized Loss attributable to those assets (as if the
Unrealized Gain or Unrealized Loss had been recognized upon an actual sale of
each asset immediately prior to the distribution, and had been allocated to the
Partners at that time pursuant to Section 4.1). In determining such Unrealized
Gain or Unrealized Loss, the Managing General Partner shall determine the
aggregate gross fair market value of the Partnership using any reasonable method
of valuation which it deems appropriate.

               (2) Notwithstanding anything to the contrary in this Section
3.7(d), all or any portion of any adjustment pursuant to Section 3.7(d)(i) or
(ii) will be made only if, and to the extent that, the Managing General Partner
reasonably determines that the adjustment is necessary or appropriate to reflect
the relative economic interests of the Partners in the Partnership.

         (5) The determination of the amount of any liability for purposes of
this Section 3.7 (including, without limitation, in connection with the
computation of Net Fair Market Value, Unrealized Gain and Unrealized Loss) will
be made in accordance with Section 752(c) of the Code and any other applicable
provisions of the Code and Regulations.

         (6) If all or a portion of a Partnership Interest is transferred in
accordance with the terms of this Agreement, the transferee will succeed to the
Capital Account of the transferor in accordance with Regulation Section
1.704-1(b)(2)(iv)(1).

         (7) It is the intention of the Partners that Capital Accounts will be
determined in a manner so that the allocations in this Agreement will have, or
be deemed to have, substantial economic effect under Section 704(b) of the Code
and Regulations thereunder. If the Managing General Partner determines that it
is prudent to modify the manner in which Capital Accounts, of any debits or
credits (including, without limitation, debits or credits relating to
liabilities that are secured by contributed or distributed property or that are
assumed by the Partnership or the Partners or their Affiliates), are computed in
order to comply with such Regulations, the Managing General Partner shall make
that modification. The Managing General Partner may also make any modifications
to this Agreement which are necessary so unanticipated events will not cause
this Agreement to fail to comply with those Regulations.

                                       9
<PAGE>

                                   ARTICLE IV

                          ALLOCATIONS AND DISTRIBUTIONS

         1.15     ALLOCATIONS FOR CAPITAL ACCOUNT PURPOSES.

         (1) For Purposes of maintaining the Capital Accounts, except as
otherwise provided in this Section 4.1, each item of Partnership income, gain,
loss and deduction will be allocated to the Partners in proportion to their
respective Percentage Interests, determined as of the end of each fiscal year or
other applicable period and before taking into account the allocations under
this Section 4.1.

         (2) Notwithstanding anything to the contrary in this Agreement, if
there is a net decrease in Partnership Minimum Gain or Partner Minimum Gain for
any fiscal year, each Partner will be specially allocated items of Partnership
income and gain for that fiscal year (and, if necessary, for each subsequent
fiscal year) equal to that Partner's share of the net decrease in Partnership
Minimum Gain and Partner Minimum Gain for that fiscal year to the extent
required in Regulation Sections 1.704-2(f) and 1.704-2(i)(4). This Section
4.1(b) is intended to constitute a "minimum gain chargeback" and "partner
minimum gain chargeback" within the meaning of those Regulations and is to be
interpreted consistently with those Regulations.

         (3) The Managing General Partner is authorized to adopt any convention
or combination of conventions (including, without limitation, a semi-monthly or
full-month convention) likely to be upheld under Section 706 of the Code
regarding the allocation of items of Partnership income, gain, loss and
deduction with respect to a transferred Partnership Interest or a newly issued
Partnership Interest.

         (4) Except as otherwise provided in Section 4.1(b), if Federal income
tax principles dealing with the deduction, apportionment or allocation of tax
items between or among commonly controlled taxpayers apply to any transaction
between the Partnership and a Partner, any items of Partnership income, gain,
loss or deduction with regard to that transaction shall be allocated by the
Managing General Partner, and correlative adjustments to Capital Accounts will
be deemed to have been made by the Managing General Partner, such that each
Partner will be in the same net after-tax position it would have been in (to the
fullest extent practicable and taking into account net after-tax disparities, if
any, remaining from prior taxable years), and have the same Capital Account
balance that it would have had (to the fullest extent practicable and taking
into account Capital Account disparities, if any, remaining from prior taxable
years) if those Federal income tax principles had not applied.

         1.16     ALLOCATIONS FOR TAX PURPOSES.

                                       10
<PAGE>

         (1) For Federal, state and local income tax purposes, except as
otherwise provided in this Section 4.2, each item of Partnership income, gain,
loss and deduction shall be allocated to the Partners consistent with the
allocations of income, gain, loss and deduction described in Section 4.1.

         (2) In the case of a Contributed Asset or Adjusted Asset, items of
income, gain, and loss and depreciation, cost recovery and amortization
deductions, attributable to the Contributed Asset or Adjusted Asset will be
allocated for Federal income tax purposes among the Partners as follows:

               (1) In the case of a Contributed Asset, deductions for
depreciation, cost recovery or amortization attributable to the asset and gain
or loss upon the sale or other disposition of the assets will be allocated to
the Partners in accordance with Regulation Section 1.704-3, using methods
permitted by that Regulation selected by the Managing General Partner.

               (2) In the case of an Adjusted Asset which was not originally a
Contributed Asset, such items will be allocated among the Partners in a manner
consistent with the principles of Section 704(c) of the Code to take into
account the Unrealized Gain or Unrealized Loss attributable to the Adjusted
Asset and the allocations of that Unrealized Gain or Unrealized Loss pursuant to
Section 3.7(d)(i). In the case of an Adjusted Asset which was originally a
Contributed Asset, such items shall be allocated among the Partners in a manner
consistent with Section 4.2(b)(i).

         (3) All items of income, gain, loss, deduction, credit and basis
allocation recognized by the Partnership for Federal income tax purposes and
allocated to the Partners in accordance with the provisions of this Section 4.2
will be determined without regard to any election under Section 754 of the Code
that may be made by the Partnership; PROVIDED that those allocations, once made,
will be adjusted, as necessary or appropriate, to take into account the
adjustments permitted by Sections 734 and 743 of the Code and, where
appropriate, to provide only Partners recognizing gain on Partnership
distributions covered by Section 734 of the Code with the Federal income tax
benefits attributable to the increased basis in Partnership assets resulting
from any election under Section 754 of the Code.

         (4) Any credits of the Partnership will be allocated to the Partners in
accordance with their respective Percentage Interests.

         (5) Allocations pursuant to this Section 4.2 are solely for Federal,
state and local tax purposes and will not affect, or in any way be taken into
account in computing, any Partner's Capital Account or share of income, gain,
loss and deduction described in Section 4.1 or distributions pursuant to any
provision of this Agreement.

         (6) The Partners are aware of the income and other tax consequences of
the allocations made by this Article IV and agree to report their shares of
items of Partnership income,

                                       11
<PAGE>

gain, loss, deduction and credit in accordance with this Article IV; subject,
however, to any adjustments required as a result of an audit of the Partnership
or a Partner by a taxing authority.

         1.17     DISTRIBUTIONS. The Executive Committee may from, time to time
cause the Partnership to distribute cash or other property to the Partners in
accordance with their respective Percentage Interests.

                                    ARTICLE V

                      GOVERNANCE AND MANAGEMENT OF BUSINESS

         1.18     EXECUTIVE COMMITTEE. The Partnership will be governed by an
Executive Committee as follows:

         (1) The Executive Committee will consist of not more than three members
designated by each Partner. The members of the Executive Committee designated by
a Partner (the Partner's "Representatives") will act as representatives of that
Partner, and in voting or otherwise acting in their capacity as members of the
Executive Committee, the Representatives of a Partner will have no obligation to
consider what may be in the best interests of any other Partner and, will have
no fiduciary or other obligations to any other Partner. All the members of the
Executive Committee designated by a Partner will, together, have one vote, which
they will cast as determined by the Partner (or by those representatives in
accordance with authority granted to them by the Partner). Except as provided in
subsection (c) of this Section, all actions of the Executive Committee will be
by majority vote (based upon one vote per Partner). Each Partner will have the
power to remove and replace any member of the Executive Committee designated by
that Partner.

         (2) The business and affairs of the Partnership will be managed by or
under the direction of the Executive Committee, except (i) as specifically
provided in this Agreement or in the Management Agreement, and (ii) that, except
as provided in subsection (c) of this Section, the Executive Committee may
delegate authority to the Managing General Partner or its designees to manage
the affairs of the Partnership.

         (3) Each of the following matters will require the unanimous vote of
the Executive Committee (based upon one vote per Partner):

               (1) The acquisition by the Partnership of any real property,
other than the acquisition by the Partnership of the Original Properties.

               (2) The sale of any real property to a Partner or an Affiliate of
a Partner, other than upon exercise by that Partner or its Affiliate of an
option or under a purchase agreement, which had been approved by the Executive
Committee or upon exercise of the options dated on or before October 31, 1997
relating to portions of the Original Properties.

                                       12
<PAGE>

               (3) The adoption of an annual Business Plan.

               (4) Approval of a Master Plan relating to property owned by the
Partnership.

               (5) Any transaction or related series of transactions involving
the expenditure by the Partnership of more than $50,000, unless the transaction
or series of transactions was contemplated by a Business Plan adopted by the
Executive Committee as contemplated in clause (iii), in which case the
transaction or related series of transactions must be separately approved only
if it exceeds the greater of $50,000 or 110% of the budgeted amount.

               (6) Any borrowing from, or loan to, any person (including, but
not limited to, a Partner or an Affiliate of a Partner).

               (7) Any amendment to the Management Agreement.

               (8) Any decision by the Executive Committee to require the
Partners to make Additional Capital Contributions as contemplated by Section
3.3.

               (9) Any agreement with a Partner or an Affiliate of a Partner,
other than one described in clauses (i) through (vii).

               (10) The institution of legal proceedings against anyone.

               (11) The selection of the Partnership's auditors.

If any Partner binds the Partnership to any undertaking or liability not
authorized as provided in this Agreement, that Partner will indemnify the
Partnership and each of the other Partners against, and hold each of them
harmless from, any loss, liability or expense (including reasonable attorneys'
fees) incurred by the Partnership or the other Partner as a result of the
unauthorized action.

         (4) QUORUM. No meeting of the Executive Committee will be validly
convened unless at least one member appointed by each Partner is present. The
Executive Committee may act without a meeting by written consent executed on
behalf of each Partner by at least one member appointed by that Partner.

         (5) MEETINGS. Meetings of the Executive Committee will be held at such
place as may be determined by the Managing General Partner. Meetings may be
called by any member of the Executive Committee on at least five days' prior
written notice to each member. Decisions made by the Executive Committee at any
meeting will be valid even if the required notice is not

                                       13
<PAGE>

given if there was a quorum present at the meeting or if all Partners waived the
requirement of notice, whether before or after the meeting.

         (6) CONFERENCE TELEPHONE. Meetings of the Executive Committee may be
held by conference telephone or similar communications equipment by means of
which all members participating in a meeting can hear each other member.

         (7) MINUTES. Minutes of each meeting of the Executive Committee will be
kept by the Manager (or, if the Manager does not do that, by the Managing
General Partner) and copies will be sent to each member.

         (8) LIMITATION OF LIABILITIES AND OBLIGATIONS.

               (1) No Partner, no Affiliate, stockholder, officer, director,
employee or agent, of any Partner, and no Representative of any Partner will be
liable to the Partnership, any other Partner or any Affiliate of any Partner for
any breach of any alleged duty to the Partnership or to any other Partner in
connection with the management of the business and affairs of the Partnership,
or the exercise of any voting rights as a member of the Executive Committee,
except to the extent such a breach is found to have involved a knowing violation
of law, or, in the case of an individual only, an improper personal benefit.

               (2) Each Partner, through its Representatives, will be entitled
to act with regard to the business and affairs of the Partnership in the manner
it believes in its sole discretion is in the Partner's best interests, and will
be entitled to cause its Representatives to vote for or against any matter
submitted to a vote or for consent pursuant to this Agreement in the Partner's
sole discretion as it deems to be in its best interests. Subject to clause (i),
no Partner, nor any Affiliate, stockholder, officer, director, employee or
agent, including any Representative, of any Partner will be liable to the
Partnership or any other Partner or any Affiliate of any other Partner for any
such conduct. Without limiting the foregoing, each Representative of a Partner
on the Executive Committee is entitled to manage the business and affairs of the
Partnership, and exercise his or her voting rights on the Executive Committee,
in interest of the Partner for which such person is a Representative, even if
such conduct is not in the interest of the other Partners, or the Partnership as
a whole, and, subject to clause (i), no such Representative shall be liable to
the Partnership, or any other Partner or any Affiliate of any Partner, for any
such act or omission.

               (3) To the extent the provisions of this Section 5.1 eliminate or
reduce any duties and liabilities of any person otherwise existing at law or in
equity, the Partners have expressly agreed to eliminate or reduce those
obligations. To the extent that, but for these provisions, any person would have
duties (including fiduciary duties) to the Partnership, the Partners or any
Affiliate of any Partner, or could be liable for failing to perform those
duties, the person is entitled to rely on the provisions of this Section 5.1,
and, except as provided in clause (i), will not be liable

                                       14
<PAGE>

to the Partnership, any Partner or any Affiliate of any Partner for acts or
omissions in good faith reliance on the provisions of this Section 5.1.

         1.19     MANAGEMENT AGREEMENT. The Partnership will enter into the
Management Agreement with the Manager. Pursuant to the Management Agreement, the
Manager will conduct the day-to-day activities of the Partnership, including but
not limited to, overseeing planning and development of properties, overseeing
sales of portions of properties to Lennar and its Affiliates upon exercise of
options or otherwise, and the marketing and sale of portions of properties to
other builders. The manager will be compensated as provided in the Management
Agreement. Unless otherwise specifically directed by the Executive Committee or
provided in Section 5.1, the Manager will be authorized, without further
approval of the Executive Committee, to conduct the day-to-day operations and
business of the Partnership in accordance with the applicable Business Plan and
Budget or as otherwise provided in Section 5.5.

         1.20     INDEMNIFICATION. The Partnership shall indemnify each member
of the Executive Committee, the Manager and each employee, director or officer
of the Manager as follows:

         (1) OBLIGATION TO INDEMNIFY. To the extent permitted by law, the
Partnership will indemnify each Partner, each person who at any time is or was a
member of the Executive Committee, the Manager and each person who at any time
is or was an employee, director or officer of the Manager (each, an "INDEMNIFIED
PERSON") against, and will hold each Indemnified Person harmless from, any
liability, loss, damage, or reasonable expense (including reasonable attorneys'
fees and other costs of investigation and defense and any amounts expended in
the settlement of any claims) incurred in connection with or resulting from a
claim, action, suit, investigation, or proceeding (other than one brought by the
Partnership on its own behalf) by reason of the Indemnified Person's being or
having been a Partner, a member of the Executive Committee, the Manager or an
employee, director or officer of the Manager, except in instances in which the
Indemnified Person is found not to have acted in good faith or to have acted in
a manner opposed to the best interests of the Partnership and, in addition, with
respect to any criminal action or proceeding, except in instances in which the
Indemnified Person had reasonable grounds to believe that conduct was lawful.

         (2) SOURCE OF INDEMNIFICATION. Any indemnification pursuant to this
Section 5.3 will be recoverable only from the assets of the Partnership and not
from the assets of the Partners.

         1.21     INSURANCE. The Partnership may purchase insurance insuring the
Manager and any Person who is or was a member of the Executive Committee, an
officer, employee, or agent of the Partnership, or an employee, director or
officer of the Manager against any liability asserted against that Person
because that Person served in that capacity or because of any action or omission
by that Person in that capacity, whether or not the Partnership would have the
power to indemnify the Person against the applicable liability under the
provisions of this Agreement.

                                       15
<PAGE>

         1.22     ANNUAL BUSINESS PLAN. Attached to this Agreement as Exhibit C
is the Business Plan for the period from the inception of the Partnership to the
end of the Partnership's fiscal year ending November 30, 1997. Not later than
two months before the end of each fiscal year of the Partnership, the Manager
will submit to the Executive Committee a proposed Business Plan for the next
succeeding Partnership fiscal year, which will include a schedule for
development of particular properties, a property development budget, and, if
applicable, a property acquisition budget and such other schedules and details
as am reasonably necessary to enable the Partners fully to understand, and to
evaluate, the proposed Business Plan. If the Executive Committee does not
approve a Business Plan for a fiscal year prior to the beginning of the fiscal
year, until the Executive Committee approves the Business Plan and Budget for
the fiscal year:

               (1) the Manager will continue all property development projects
and marketing programs which were in process at the end of the prior fiscal
year,

               (2) the Partnership will not begin any new property development
projects,

               (3) any items or portions of the Business Plan and amounts of
expenses provided therein which have been approved by the Executive Committee
shall, become operative immediately and the Partnership shall be entitled to
expend funds in accordance with those operative portions;

               (4) the Partnership will be entitled to expend, in respect of
noncapital, recurring expenses in any quarter of the then-current fiscal year,
an amount equal to the budgeted amount for the corresponding quarter of the
immediately preceding fiscal year, as set forth on the immediately preceding
fiscal year's Business Plan, after giving effect to any dispositions or other
material changes to the Partnership property or its operations during the prior
fiscal year; provided, however, that if any contract approved by the Executive
Committee provides for an automatic increase in costs thereunder after the
beginning of the then current fiscal year, then the Partnership shall be
entitled to expend the amount of such increase;

               (5) the Partnership shall be entitled to expend funds in respect
of debt service on the Partnership's financing (including the expense of curing
any defaults); and

               (6) the Manager will cause the Partnership to conduct its other
activities in a manner consistent with the way in which they were conducted
during the prior fiscal year, except to the extent of differences because of
prior contractual obligations of the partnership.

         1.23     REIMBURSEMENT OF PARTNERS.

         (1) Each Partner shall be reimbursed by the Partnership as a cost of
the Partnership for all expenses, disbursements and advances incurred or made in
connection with the organization of the Partnership and the qualification of the
Partnership to do business.

                                       16
<PAGE>

         (2) Each Partner shall be reimbursed on a monthly basis, or such other
basis as the Executive Committee may determine, for all direct out-of-pocket
expenses the Partner incurs on behalf of the Partnership (including amounts paid
to other Persons to perform services to the Partnership). Except to the extent
provided in the Management Agreement, no Partner will be reimbursed for time
spent by its employees on matters relating to the Partnership.

         1.24     OUTSIDE ACTIVITIES. Any Partner or Affiliate of a Partner may
have business interests and engage in business activities in addition to those
relating to the Partnership, including business interests and activities which
conflict with or are in direct competition with the Partnership. Without
limiting what is said in the preceding sentence, any Partner of any Affiliate of
a Partner (including Lennar, even though it is the Manager) may acquire
properties for its own account without considering whether those properties
would be suitable for the Partnership, and if a Partner or an Affiliate of a
Partner (including Lennar in its role as Manager) proposes to the Executive
Committee that the Partnership acquire a property on particular terms but the
Executive Committee does not approve the acquisition of the property, the
Partner who proposed that the Partnership acquire the property, or any other
Partner, may acquire all or any portion of the property for its own account on
the same terms as those on which it was proposed that the Partnership acquire
the property or on any other terms, even if the other terms are more favorable
to the buyer than the terms proposed to the Partnership.

         1.25     DEALINGS WITH PARTNERSHIP. Subject to the approval
requirements of Section 5.1, any Partner or any Affiliate of a Partner
(including Lennar, even though it is the Manager) may acquire properties or
other assets, or interests in them, from, sell properties or other assets, or
interests in them, to, borrow or lend money from or to, and enter into option
agreements or other agreements with, the Partnership on any terms which are
approved by the Executive Committee. Neither the Partnership nor any of the
Partners will have any rights by virtue of this Agreement or the partnership
relationship created by it to participate in any business ventures of any other
Partners or Affiliates of other Partners or any revenues, profits or losses from
any such business ventures.

         1.26     PARTNERSHIP FUNDS. Until funds of the Partnership are used in
connection with Partnership activities or distributed to the Partners, the funds
shall be deposited in the Partnership's name in such bank accounts as the
Manager determines or may be invested in commercial paper, money market funds or
other short or long term investments which the Manager deems appropriate for the
Partnership.

         1.27     TITLE TO PARTNERSHIP ASSETS. All Partnership assets, whether
real, personal or mixed, tangible or intangible, will be owned by the
Partnership as an entity, and no Partner individually (or collectively with
other Partners) will have any ownership interest in any Partnership assets.
Title to Partnership assets my be held in the name of the Partnership or one or
more nominees, as the Manager may determine. All Partnership assets will be
recorded on the books of the Partnership as being owned by the Partnership
irrespective of the name in which legal title to such Partnership assets is
held.

                                       17
<PAGE>

                                   ARTICLE VI

                     BOOKS, RECORDS, ACCOUNTING AND REPORTS

         1.28     RECORDS AND ACCOUNTING. Complete and accurate books of account
of the Partnership will be kept at the Partnership's principal place of business
and will be open to inspection by any of the Partners or their authorized
representatives at any reasonable times during business hours. The books of the
Partners will be maintained, for financial reporting purposes, on an accrual
basis in accordance with generally accepted accounting principles. All decisions
as to accounting matters, except as specifically provided to the contrary in
this Agreement, will be made by the Manager.

         1.29     FISCAL YEAR. The fiscal year of the Partnership will end on
November 30 of each year or such other date as may be required to be used for
Federal income tax purposes.

         1.30     FINANCIAL STATEMENTS AND FINANCIAL INFORMATION.

         (1) As soon as practicable, but in no event later than 60 days, after
the close of each fiscal year, the Manager will cause financial statements of
the Partnership for the fiscal year, prepared in accordance with generally
accepted accounting principles, including a balance sheet, a statement of
income, a statement of Partners' equity and a cash flow statement, audited by a
firm of independent public accountants selected by the Manager and approved by
the Executive Committee, to be given to each Partner.

         (2) As soon as practicable, but in no event later than the fifteenth
day, after the end of each month, the Manager will cause a flash report
regarding the net income, cash flow and other material operating results of the
Partnership during the month, to be given to each Partner.

         (3) As soon as practicable, but not later than the 25th day, after the
end of month, the Manager will cause financial statements and other relevant
financial information about the Partnership during and at the end of the month,
to be given to each Partner.

         (4) As soon as practicable, but in no event later than 30 days, after
the close of each fiscal quarter, except the last quarter of each fiscal year,
the Manager will cause quarterly financial information about the Partnership,
including any financial Information which any Partner requires for any filing it
is required to make with the Securities and Exchange Commission, any stock
exchange or securities quotation system, or any other governmental or
self-regulatory organization, to be given to each Partner.

         (5) The Partnership will, and will cause the Manager to, cooperate in
all ways with each of the Partners in enabling the Partner to make all filings
it is required to make generally, or in connection with offerings of its
securities or other transactions, with the Securities and

                                       18
<PAGE>

Exchange Commission, any stock exchange or securities quotation system, or any
other governmental agency or self-regulatory organization, including causing
financial information to be prepared in sufficient detail to enable the Partner
to comply with applicable Securities and Exchange Commission or other
governmental regulations and including permitting auditors for the Partner to
review the audit work papers relating to the Partnership and to make comfort
reviews or other reviews regarding the Partnership.

         1.31     OTHER INFORMATION. The Manager may release to the public such
information concerning the operations of the Partnership as is customary in the
industry or required by law or regulation of any regulatory body.

         1.32     REIMBURSEMENT. The Partnership will pay all costs relating to
matters described in this Article VI.

                                   ARTICLE VII

                                   TAX MATTERS

         1.33     RECOGNITION OF PARTNERSHIP. The Partners recognize that this
Agreement creates a partnership for U.S. Federal income tax purposes, and the
Partners shall not elect to be excluded from the application of Subchapter K of
Chapter I of Subtitle A of the Code, or any similar state statute.

         1.34     PREPARATION OF TAX RETURNS. The Managing General Partner shall
arrange for the preparation and timely filing of all returns of Partnership
income, gains, deductions, losses and other items necessary for Federal and
state income or other tax purposes and shall use all reasonable efforts to
furnish to each Partner within 75 days after the close of each taxable year the
tax information reasonably required by the Partners for Federal and state income
tax reporting purposes. Each Partner shall provide to the Manager, when and as
requested, all information concerning the affairs of the Partner which is
reasonably required to permit the preparation of such returns. The Partnership
will not file any federal or state income tax return until it has been approved
by the Executive Committee.

         1.35     ACCOUNTING METHODS: TAX ELECTIONS. The classification,
realization and recognition of income, gains, losses and deductions and other
items with regard to the Partnership will be on the accrual method of accounting
for Federal income tax purposes; PROVIDED that the Managing General Partner may
change the method of accounting used for Federal income tax purposes if the
Managing General Partner determines that such a change would be possible and
desirable. The taxable year of the Partnership will be the same as the
Partnership's fiscal year, unless the Managing General Partner determines
otherwise. The Partnership shall elect to deduct expenses incurred in organizing
the Partnership ratably over a 60-month period as provided in Section 709 of the
Code. The Managing General Partner may make or revoke (if made) the election
under Section 754 of the Code. Except

                                       19
<PAGE>

as specifically provided in this Agreement, the Managing General Partner may
determine whether the partnership should make any other available tax elections
or select any other appropriate tax accounting methods or conventions.

         1.36     TAX CONTROVERSIES. The Managing General Partner is designated
the "Tax Matters Partner" (as defined in Section 6231 of the Code) and is
authorized to represent the Partnership (at the Partnership's expense) in
connection with all examinations of the Partnership's affairs by tax authorities
and all resulting administrative and judicial proceedings, and to expend
Partnership funds for costs of professional services and other costs incurred in
connection with those examinations and proceedings. Any Partner may participate
in any such examination or proceeding at the Partner's expense. Each Partner
shall cooperate with the Managing General Partner in connection with all tax
examinations and resulting administrative or judicial proceedings. The Managing
General Partner may not agree to any settlement or adjustment to any tax item in
connection with any examination by any tax authority or legal proceeding without
the consent of the Executive Committee.

         1.37     WITHHOLDING. Notwithstanding any other provision of this
Agreement, the Managing General Partner is authorized to cause the Partnership
to comply with any Federal, state, local or foreign withholding requirement with
respect to any payment or distribution by the Partnership to any Partner or
other Person. Any amount withheld from a payment or distribution to a Partner
and paid over to a tax authority will, for the purposes of this Agreement, be
treated as having been paid or distributed to the Partner. Any amount withheld
from any payment or distribution by any Person to the Partnership will be
treated as a distribution to the Partners allocated among them in accordance
with Section 4.3 or Article X, as the case may be.

1.38 REIMBURSEMENT. The Managing General Partner will be reimbursed for all
out-of-pocket costs relating to matters described in Sections 7.2 through 7.5.

                                  ARTICLE VIII

                              TRANSFER OF INTERESTS

         1.39     RESTRICTIONS ON TRANSFER. Except as otherwise provided in this
Article VIII, no Partner may directly or indirectly assign, transfer,
hypothecate, or otherwise dispose of all or any portion of its Partnership
Interests (including, without limitation, any right to receive distributions or
allocations of profits or losses in respect of such Partnership Interests),
whether voluntarily, by operation of law or otherwise (a "TRANSFER" for purposes
of this Article VIII), and any attempt to do so will be null and void and will
not bind, or be recognized by, the Partnership. In addition, neither Lennar nor
LNR may, without the prior written consent of the other of them, transfer any
interest in the Managing General Partner or the General Partner.

         1.40     PERMISSIBLE TRANSFERS. Notwithstanding the provisions of
Section 8.1, at any time after [NOVEMBER 30, 2002,] a Partner may, upon
compliance with Section 8.3, transfer all, but not

                                       20
<PAGE>

less than all, of the Partner's Partnership Interests to a Person on terms
permitted by Section 8.3, provided that (i) the transferee agrees in writing (in
a form approved by the other Partner) to be bound as a party to this Agreement
and (ii) the Partnership receives a written opinion from its counsel that the
transferee's acquisition of the Partnership Interest will not cause the
termination of the Partnership or loss of partnership status under the Code or
cause the Partnership to be deemed to be other than a U.S. partnership for
purposes of the Code.

         1.41     RIGHT OF FIRST REFUSAL. If a Partner (the "DISPOSING PARTNER")
proposes to transfer all, but not less than all, of its Partnership Interests to
any Person, the Disposing Partner may give the other Partner (the "NOTIFIED
PARTNER") a written notice (a "NOTICE OF INTENTION") stating that the Disposing
Partner intends to sell its Partnership Interests, identifying the Person to
whom the Partnership Interests are to be sold and stating the price and other
terms of the proposed sale. The Notified Partner may then, by a notice to the
Disposing Partner given within 30 days after the day on which the Notice of
Intention was given, elect to purchase the Partnership Interests of the
Disposing Partner for the price and on the terms specified in the Notice of
Intention. If the Notified Partner gives that notice, the closing of the
purchase will take place at the Partnership's principal office (or another place
agreed upon by the Disposing Partner and the Notified Partner) at a time and on
a date specified in the notice, which is not fewer than 10 nor more than 30 days
after the day on which the notice is given. If the Notified Partner does not
give that notice, the Disposing Partner may within 90 days after the end of the
30 day period, sell the Disposing Partner's Partnership Interests to the Person
identified in the Notice of Intention for a price, and on other terms, which are
not more favorable to the buyer than those stated in the Notice of Intention.

                                   ARTICLE IX

                              ADMISSION OF PARTNERS

         1.42     ADMISSION OF ADDITIONAL PARTNERS. The Partners may by
unanimous written consent (but not otherwise), admit new Partners to the
Partnership from time to time. Each new Partner will be admitted when the new
Partner executes this Agreement or an appropriate supplement to it in which the
new Partner agrees to be bound by the terms and provisions of this Agreement as
they may be modified by that supplement. Admission of a new Partner will not
cause dissolution of the Partnership.

         1.43     INTEREST OF NEW PARTNER. A newly admitted Partner's Capital
Contribution and share of the Partnership's profits and losses will be set forth
in the written consents of the Partners described in Section 9.1.

                                       21
<PAGE>

                                    ARTICLE X

                           DISSOLUTION AND LIQUIDATION

         1.44     DISSOLUTION. Except as otherwise provided in this Agreement,
the business of the Partnership will be continued by the Partners pursuant to
this Agreement, notwithstanding the occurrence of any event which would result
in the dissolution of a Partnership under the laws of the State of Florida, and
no Partner will be released or relieved of any duty or obligation under this
Agreement by reason of any such event. The Partnership will dissolve, and its
affairs will be wound up, upon:

         (1)      the unanimous approval of all the Partners;

         (2)      an election to dissolve the Partnership by a Partner as
                  provided in Section 1.4;

         (3)      the bankruptcy or insolvency of the Partnership; or

         (4)      the sale or disposition of all or substantially all of the
assets of the Partnership.

         1.45     EFFECT OF DISSOLUTION. Upon dissolution of the Partnership in
accordance with Section 10.1, the Partnership will conduct only activities
necessary to wind up its affairs.

         1.46     LIQUIDATION. Upon dissolution of the Partnership pursuant to
Section 10.1, as expeditiously as possible, the Executive Committee shall
appoint a special liquidator (which may be a Partner and may be the Manager) to
wind up the affairs of the Partnership, liquidate the assets of the Partnership
in accordance with a plan prepared by the liquidator and approved by the
Executive Committee, and apply and distribute the proceeds of such liquidation
in the following order of priority, unless otherwise required by mandatory
provisions of applicable law:

         (1) to the payment of all costs and expenses of the liquidation;

         (2) to creditors of the Partnership, including Partners, in order of
priority provided by law, and the creation of a reserve of cash or other assets
of the Partnership for contingent liabilities in an amount, if any, determined
by the liquidator to be appropriate for that purpose; and

         (3) to the Partners in accordance with the positive balances in their
respective Capital Accounts, after taking into account all adjustments to
Capital Accounts for all periods.

                                       22
<PAGE>

If upon liquidation of the Partnership any Partner has a deficit balance in its
Capital Account, that Partner shall promptly contribute the amount of the
deficit to the Partnership for payment or distribution in accordance with the
preceding sentence.

         1.47     DISTRIBUTION IN KIND. If upon dissolution of the Partnership,
the liquidator determines that an immediate sale of part or all of the
Partnership's assets would be impractical or would cause undue loss to the
Partners, the liquidator my defer for a reasonable time the liquidation of any
assets except those necessary to satisfy liabilities of the Partnership (other
than those to Partners) and may distribute to the Partners, in lieu of cash, as
tenants in common and in accordance with the provisions of Section 10.3(b),
undivided interests in the Partnership assets which the liquidator deems not
suitable for liquidation. Any such distributions in kind will be subject to such
conditions relating to the disposition and management of particular assets as
the liquidator deem reasonable and equitable and to any options and any
agreements governing the operation of those assets which are in effect when they
are distributed in kind. The liquidator shall determine the fair market value of
any asset distributed in kind using such reasonable method of valuation as it
deems appropriate.

         1.48     REASONABLE TIME FOR WINDING UP. A reasonable time will be
allowed for the orderly winding up of the business and affairs of the
Partnership and the liquidation of its assets pursuant to Section 10.3 in order
to minimize any losses otherwise attendant upon such winding up.

         1.49     WAIVER OF PARTITION. Each Partner waives any right to
partition of the Partnership property.

         1.50     VOLUNTARY TERMINATION. Notwithstanding anything contained in
this Article X to the contrary, if either Partner desires to terminate the
Partnership pursuant to Section 1.4, that Partner (the "TERMINATING PARTNER")
will give written notice to the other Partner (the "RECEIVING PARTNER") of its
intention to terminate. The Receiving Partner will then have 30 days either to
(i) agree in writing to a termination of the Partnership in accordance with
Sections 10.1 through 10.5, or (ii) propose a price at which the Receiving
Partner would be willing to purchase the Partnership Interests of the
Terminating Partner. If the Receiving Partner proposes a purchase price, the
Terminating Partner may (i) accept the proposed purchase price and sell its
Partnership Interests to the Receiving Partner for the proposed purchase price,
or (ii) reject the proposed purchase price and buy the Receiving Partner's
Partnership Interests for the proposed purchase price.

                                   ARTICLE XI

                               GENERAL PROVISIONS

         1.51     INDEMNIFICATION BY PARTNERS. Each Partner will indemnify the
Partnership and each of the other Partners against, and hold each of them
harmless from, any expense or liability resulting from or arising out of any
gross negligence or wilful misconduct on the part of the indemnifying Partner to
the extent the amount is not covered by insurance carried by the Partnership.

                                       23
<PAGE>

         1.52     CONTRIBUTION BY PARTNERS. If any Partner (the "PAYING
PARTNER") makes any payment as a result of a liability of the Partnership, or
incurs any costs or expenses on behalf of the Partnership, and the Paying
Partner is not promptly reimbursed by the Partnership for the amount paid, or
the costs or expenses incurred, by the Paying Partner, each other Partner will
make a payment to the Paying Partner, promptly after being requested to do so by
the Paying Partner, equal to (i) the amount paid, or the costs or expenses
incurred, by the Paying Partner, times (ii) the other Partner's Percentage
Interest, so that, after the payments by all the other Partners, each Partner
(including the Paying Partner) will have borne a portion of the total amount
paid by all the Partners as a result of the liability of the Partnership, or the
total costs or expenses incurred by all the Partners on behalf of the
Partnership, equal to the Partner's Percentage Interest.

         1.53     NOTICES. Any notice, report or other communication required or
permitted to be given to a Partner under this Agreement must be in writing and
will be deemed given or made when delivered in person or sent by facsimile
transmission, or on the third day after the day when mailed by first class mail
from within the United States of America, to the Partner at the following
address (or at the most recent address specified to the sender by the addressee
in the manner provided in this Section):

                  If to Lennar Land Partners Sub II, Inc.

                           Lennar Land Partners Sub II, Inc.
                           c/o Lennar Corporation
                           700 N.W. 107th Avenue
                           Miami, Florida 33172
                           Attention: President
                           Facsimile No.: (305) 226-7691

                  If to LNR Land Partners Sub II, Inc.

                           LNR Land Partners Sub II, Inc.
                           c/o LNR Property Corporation
                           760 N.W. 107th Avenue
                           Miami, Florida 33172
                           Attention: President
                           Facsimile No.: (305) 226-7691

         1.54     AMENDMENTS. This Agreement may be amended at any time with the
written consent of all Partners.

         1.55     TITLES AND CAPTIONS. This article and section titles or
captions in this Agreement are for convenience only, and are not intended to
affect the terms or the interpretation of this Agreement.

                                       24

<PAGE>

         1.56     BINDING EFFECT. This Agreement will be binding upon and inure
to the benefit of the parties to this Agreement and their respective successors
and permitted assigns, except to the extent of any contrary provision in this
Agreement.

         1.57     INTEGRATION. This Agreement constitutes the entire agreement
among the parties relating to the subject matter of this Agreement and
supersedes all prior agreements and understandings relating to that subject
matter.

         1.58     CREDITORS. None of the provisions of this Agreement will be
for the benefit of or enforceable by any creditors of the Partnership or of any
Partner.

         1.59     COUNTERPARTS. The parties may execute this Agreement in two or
more counterparts, each of which will be an original, but all of which will
constitute one and the same document.

         1.60     APPLICABLE LAW. This Agreement will be governed by and
construed in accordance with the substantive laws of the State of Florida.

         1.61     SURVIVAL. All indemnities and reimbursement obligations in
this Agreement will survive dissolution and liquidation of the Partnership until
expiration of the longest applicable statute of limitations (including
extensions and waivers) with respect to any matter for which a party would be
entitled to be indemnified or reimbursed, as the case may be.

         IN WITNESS WHEREOF, the undersigned have executed this Agreement or
caused it to be executed on their behalf, as of the date shown on the first page
of this Agreement.

LENNAR LAND PARTNERS SUB II, INC.          LNR LAND PARTNERS SUB II, INC.

By: /s/ DAVID B. MCCAIN                    By: /s/ SHELLY RUBIN
   ---------------------------------          ----------------------------------
Name: DAVID B. MCCAIN                      Name:  SHELLY RUBIN
     -------------------------------            --------------------------------
Title: VICE PRESIDENT                      Title:  VICE PRESIDENT
      ------------------------------             -------------------------------

Address:                                  Address:

700 Northwest 107th Avenue          760 Northwest 107th Avenue
Miami, Florida 33172                Miami, Florida 33172
Facsimile No.:                      Facsimile No.:

                                       25

<PAGE>

LENNAR CORPORATION                         LNR PROPERTY CORPORATION

By: /s/ DAVID B. MCCAIN                    By: /s/ SHELLY RUBIN
   ---------------------------------          ----------------------------------
Name: DAVID B. MCCAIN                      Name:  SHELLY RUBIN
     -------------------------------            --------------------------------
Title: VICE PRESIDENT                      Title:  VICE PRESIDENT
      ------------------------------             -------------------------------

Address:                                  Address:

700 Northwest 107th Avenue          760 Northwest 107th Avenue
Miami, Florida 33172                Miami, Florida 33172
Facsimile No.:                      Facsimile No.:

                                       26

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