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                                                                    EXHIBIT 10.7

                     SERVICES AND SOFTWARE LICENSE AGREEMENT

THIS SERVICES AND SOFTWARE LICENSE AGREEMENT ("Agreement") dated as of June 1,
2005, by and between PARAMOUNT DEVELOPMENT CORPORATION LIMITED ("Paramount") and
ASHTON WOODS USA L.L.C. ("Customer").

1.       PAYMENTS

         1.1      QUARTERLY FEE. In consideration for the services and license
                  provided herein, Customer shall pay to Paramount a fee of $600
                  for each Closing (as hereinafter defined) which occurred
                  during the Customer's previous fiscal quarter. Customer shall
                  pay such quarterly fee by the thirtieth day of each fiscal
                  quarter. If Customer fails to pay the quarterly fee by the
                  thirtieth day of each fiscal quarter, then in addition to the
                  quarterly fee, Customer shall pay a late charge on the
                  outstanding balance of the quarterly fee at a rate per annum
                  equal to eighteen percent (18%) from such thirtieth day until
                  such quarterly fee is paid in full. Such late charge shall be
                  computed on the basis of a 360-day year of twelve 30-day
                  months.

         1.2      SUPPORTING DOCUMENTATION. By the tenth business day of each
                  calendar month, Customer shall provide to Paramount with a
                  report regarding the number of Closings during the previous
                  calendar month and reasonably detailed support for the
                  information in the report.

         1.3      AUDIT RIGHTS. Paramount may from time to time during the term
                  of this Agreement have access to and the right to examine any
                  of Customer's and its Affiliates' (as hereinafter defined)
                  pertinent books, documents, papers, or other records to
                  determine if Customer is in compliance with the provisions of
                  Section 1.1. Such audits shall be conducted upon reasonable
                  notice during Customer's or its Affiliate's ordinary business
                  hours and be subject to appropriate provisions protecting the
                  confidentiality of the data. Audits shall not be conducted
                  more often than once every twelve (12) months.

         1.4      TAXES. Customer shall promptly and directly pay, and shall
                  indemnify and hold Paramount harmless from, any taxes of any
                  jurisdiction that may be assessed or imposed on copies of the
                  Software, any documentation related to the Software delivered
                  to Customer, the license granted under this Agreement or the
                  services provided under this Agreement, or otherwise assessed
                  or imposed in connection with the transactions contemplated by
                  this Agreement, including, without limitation, sales, use,
                  excise, value added, personal property, export, import and
                  withholding taxes, excluding only taxes based upon Paramount's
                  net income and any payroll taxes related to those Paramount
                  employees providing services under this Agreement, and
                  Customer shall promptly reimburse Paramount for any such taxes
                  payable or collectible by Paramount. The fees and other
                  amounts payable by Customer to Paramount pursuant to Section 1
                  of this Agreement do not include such taxes.

         1.5      CERTAIN REMEDIES FOR NONPAYMENT. If Customer fails to pay to
                  Paramount, within ten (10) days after Paramount makes written
                  demand therefor, any past-due amount payable under this
                  Agreement then, in addition to all other rights and remedies
                  which Paramount may have at law or in equity, Paramount may,
                  in its sole discretion and without further notice to Customer,
                  suspend performance of any or all of its obligations under
                  this Agreement (including its ongoing support services under
                  Section 4.1 and the Land Development Services (as hereinafter
                  defined) under Section 2.1) until all past due amounts are
                  paid in full.

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2.       LAND DEVELOPMENT SERVICES

         2.1      Paramount shall provide to Customer and its Affiliates
                  services of Paramount's employees to assist Customer and its
                  Affiliates with the management and oversight of the Customer's
                  land development process in a manner and in substance
                  generally consistent with land development management services
                  provided by Paramount to Customer on the date hereof ("Land
                  Development Services"). Paramount's employees performing the
                  Land Development Services shall perform such services at those
                  locations reasonably requested by Customer and its Affiliates,
                  and shall report to Customer's President.

3.       LIMITED LICENSE

         3.1      GRANT. Paramount grants to Customer and its Affiliates a
                  personal, non-transferable, non-exclusive, license to use, in
                  accordance with this Agreement, Paramount's proprietary
                  software identified on Schedule A to this Agreement
                  ("Software"), as the Software may be modified, revised and
                  updated from time to time, including, without limitation, in
                  accordance with Section 4.1(c) of this Agreement. The term of
                  the license granted hereunder for the proprietary software and
                  Documentation shall begin on the date this Agreement is
                  executed (the "Effective Date") and shall continue until this
                  Agreement is terminated in accordance with Section 8 of this
                  Agreement.

         3.2      DESIGNATED LOCATION(s). The Software may be installed and used
                  only on server(s) operated by Customer or its Affiliates at
                  their business offices in the United States and on laptops and
                  hand-held devices used in Customer's and its Affiliates'
                  businesses (the "Designated Locations"). Furthermore, as
                  Paramount converts the software from a server-based program to
                  a web-based program hosted on Paramount's servers, Paramount
                  will provide Customer's and its Affiliates' employees with
                  access to Paramount's website in order to access the Software.

         3.3      SCOPE. Customer and its Affiliates may use the Software only
                  in the ordinary course of their business operations and for
                  their own business purposes. Customer shall use the Software
                  only in accordance with the documentation provided by
                  Paramount and shall require that its Affiliates be bound by
                  this Agreement to the same extent as Customer.

         3.4      COPIES. Customer and its Affiliates may use only the copies of
                  the Software and related documentation that are provided by
                  Paramount, except that Customer and its Affiliates may copy
                  the Software and documentation to the extent reasonably
                  necessary for routine backup and disaster recovery purposes.

4.       PARAMOUNT'S OTHER OBLIGATIONS RELATED TO THE SOFTWARE

         4.1      ONGOING SUPPORT SERVICES. Beginning on the Effective Date,
                  Paramount shall provide the following ongoing support services
                  to Customer and its Affiliates:

                  (a)      Paramount shall provide to Customer and its
                           Affiliates, during Paramount's normal business hours,
                           telephone assistance regarding Customer's and its
                           Affiliates' proper and authorized use of the latest
                           release of the Software and all releases of the
                           Software previously provided to Customer and its
                           Affiliates.

                  (b)      Paramount shall provide to Customer and its
                           Affiliates, during Paramount's normal business hours,
                           commercially reasonable efforts in solving problems
                           that arise in connection with Customer's and its
                           Affiliates' proper and authorized use of the Software
                           or in correcting failures of the Software to perform
                           in accordance with the documentation provided to
                           Customer and its Affiliates. Customer shall

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                           provide to Paramount reasonably detailed
                           documentation and explanation, together with
                           underlying data, to substantiate any such problem or
                           failure and to assist Paramount in its efforts to
                           diagnose and correct the problem or failure. If,
                           within a commercially reasonable time, given the
                           severity of the failure, Paramount and Customer or
                           its Affiliate have been unable to diagnose a problem
                           through phone support, support services shall be
                           provided by Paramount at the Designated Location(s)
                           if necessary to diagnose or resolve the problem.

                  (c)      Paramount shall provide to Customer Paramount's
                           periodic modifications, revisions and updates to the
                           Software which Paramount incorporates into the
                           Software without additional charge. All
                           modifications, revisions and updates shall be
                           furnished by means of new releases of the Software
                           and shall be accompanied by updates to any related
                           documentation whenever Paramount determines that such
                           updates are necessary. To the extent any
                           modification, revision or update requires Customer or
                           its Affiliates to migrate data to the updated
                           Software, Paramount shall perform such migration at
                           its own expense.

         4.2      CONSULTING AND OTHER SOFTWARE-RELATED SERVICES. At Customer's
                  or its Affiliates' reasonable request, provided that Customer
                  is in compliance with its payment obligations under Paragraph
                  1.1. Paramount shall provide to Customer and its Affiliates
                  consulting services, custom modification programming, support
                  services relating to custom modifications, assistance with
                  data transfers, system restarts and reinstallations, and other
                  specialized support services with respect to the Software, in
                  each case, to the extent provided at the Customer's request
                  for such additional reasonable fee as the parties shall agree.
                  These services shall be provided by Paramount at the
                  Designated Location(s) if and when Customer or its Affiliate
                  reasonably determines that on-site services are necessary.
                  Paramount agrees that personnel supplied for Customer and its
                  Affiliates consulting services will have appropriate technical
                  and/or business skills. Paramount's project coordinators will
                  periodically report the project status to Customer or its
                  Affiliate, as applicable, and coordinate with all other areas
                  of Paramount.

5.       CUSTOMER'S OTHER SOFTWARE OBLIGATIONS

         5.1      PROCUREMENT OF HARDWARE. Customer shall be responsible, at its
                  expense, for procuring, maintaining and updating the computer
                  hardware, systems software and other items on which the
                  Software will be used.

         5.2      ACCESS TO FACILITIES AND EMPLOYEES. Customer and its
                  Affiliates shall provide to Paramount access to the Designated
                  Location(s) and Customer's and its Affiliates' equipment and
                  employees, and shall otherwise cooperate with Paramount, as
                  reasonably necessary for Paramount to perform its training,
                  support and other obligations under this Agreement. Customer
                  and its Affiliates shall devote all equipment, facilities,
                  personnel and other resources reasonably necessary to install
                  the Software and begin using the Software in production on a
                  timely basis as contemplated by this Agreement.

6.       WARRANTIES AND LIMITATIONS

         6.1      RIGHT TO LICENSE; NO INFRINGEMENT. Paramount warrants to
                  Customer that it has the full legal right to grant to Customer
                  the license granted under this Agreement, and that the
                  Software and any related documentation in the form delivered
                  to Customer and its Affiliates by Paramount and when properly
                  used for the purpose and in the manner specifically authorized
                  by this Agreement, do not infringe upon any United States or
                  Canadian patent or copyright or any trade secret or other
                  proprietary right of any person. Paramount shall defend,
                  indemnify, and hold Customer and its Affiliates harmless from
                  and against all costs, losses, expenses, and damages arising
                  from third-party claims

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                  related to Paramount's breach of the foregoing warranty.
                  Paramount shall have no liability under this Section 6.1
                  unless Customer gives written notice to Paramount (in
                  accordance with Section 9.1) within fifteen (15) days after
                  Customer becomes aware of any such potential infringement
                  claim that may be initiated against Customer or its Affiliate,
                  and allows Paramount to have sole control of the defense or
                  settlement of the claim. If Customer's or its Affiliate's use
                  of the Software is enjoined, then Paramount shall have the
                  option, at its expense, to:

                  (a)      modify or replace all or the infringing part of the
                           Software so that it is no longer infringing, provided
                           that the Software functionality does not change in
                           any material adverse respect; or

                  (b)      procure for Customer or its Affiliate the right to
                           continue using the infringing part of the Software.

                  In no event shall Paramount's total liability exceed the
                  limitations as described in Paragraphs 6.4 and 6.5.

         6.2      EXCLUSION FOR UNAUTHORIZED ACTIONS. Paramount shall have no
                  liability under any provision of this Agreement with respect
                  to any performance problem, claim of infringement or other
                  matter to the extent attributable to any unauthorized or
                  improper use or modification of the Software, any unauthorized
                  combination of the Software with other software, any use of
                  any version of the Software other than the latest release of
                  the Software that is provided to Customer and its Affiliates,
                  or any breach of this Agreement by Customer and its
                  Affiliates.

         6.3      FORCE MAJEURE. Paramount shall not be liable for, nor shall
                  Paramount be considered in breach of this Agreement due to,
                  any failure to perform its obligations under this Agreement as
                  a result of a cause beyond its control, including any act of
                  God or a public enemy, act of any military, civil or
                  regulatory authority, change in any law or regulation, fire,
                  flood, earthquake, storm or other like event, disruption or
                  outage of communications, power or other utility, or any other
                  cause, whether similar or dissimilar to any of the foregoing.

         6.4      Disclaimer and Exclusions. EXCEPT AS EXPRESSLY STATED IN THIS
                  AGREEMENT, PARAMOUNT MAKES NO REPRESENTATIONS OR WARRANTIES,
                  ORAL OR WRITTEN, EXPRESS OR IMPLIED, INCLUDING IMPLIED
                  WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
                  PURPOSE, REGARDING THE SOFTWARE OR ANY OTHER MATTER PERTAINING
                  TO THIS AGREEMENT. PARAMOUNT'S TOTAL LIABILITY UNDER THIS
                  AGREEMENT SHALL UNDER NO CIRCUMSTANCES EXCEED THE TOTAL AMOUNT
                  ACTUALLY PAID BY CUSTOMER TO PARAMOUNT UNDER THIS AGREEMENT.
                  NOTWITHSTANDING ANY OTHER PROVISION UNDER THIS AGREEMENT,
                  PARAMOUNT MAKES NO REPRESENTATIONS OR WARRANTIES, ORAL OR
                  WRITTEN, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES OF
                  MERCHANTABILITY AND FITNESS FOR PARTICULAR PURPOSE, REGARDING
                  ANY THIRD PARTY HARDWARE, SOFTWARE OR SERVICES. UNDER NO
                  CIRCUMSTANCES SHALL EITHER PARTY BE LIABLE TO THE OTHER OR ANY
                  OTHER PERSON FOR LOST REVENUES, LOST PROFITS, LOSS OF
                  BUSINESS, OR ANY INDIRECT OR CONSEQUENTIAL DAMAGES OF ANY
                  NATURE, WHETHER OR NOT FORESEEABLE AND WHETHER OR NOT THE
                  POSSIBILITY OF SUCH DAMAGES HAS BEEN DISCLOSED.

         6.5      OTHER LIMITATIONS. The warranties made by Paramount in this
                  Agreement, and the obligations of Paramount under this
                  Agreement, run only to Customer and its Affiliates, but not
                  their customers or any other persons. Under no circumstances
                  shall any other

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                  person (other than the Customer's Affiliates) be considered a
                  third party beneficiary of this Agreement or otherwise
                  entitled to any rights or remedies under this Agreement.
                  Customer and its Affiliates shall have no rights or remedies
                  against Paramount except as specifically provided in this
                  Agreement. No action or claim of any type relating to this
                  Agreement may be brought or made by Customer or its Affiliate
                  more than one (1) year after Customer or its Affiliate first
                  has knowledge of the basis for the action or claim.

7.       CONFIDENTIALITY, OWNERSHIP AND RESTRICTIVE COVENANTS

         7.1      CONFIDENTIAL INFORMATION. All business information disclosed
                  by one party to the other in connection with this Agreement
                  shall be treated as confidential information unless it is or
                  later becomes publicly available through no fault of the other
                  party or it was or later is rightfully developed or obtained
                  by the other party from independent sources free from any duty
                  of confidentiality. The terms and provisions of this Agreement
                  as well as all negotiations, proposals and other written and
                  oral communications between the parties in connection herewith
                  shall be treated as confidential information. During the term
                  of this Agreement and for two (2) years following the
                  termination of this Agreement, each party's confidential
                  information shall be held in strict confidence by the other
                  party, using the standards generally accepted in the industry
                  or the same standard of care as it uses to protect its own
                  confidential information, whichever is greater and shall not
                  be used or disclosed by the other party for any purpose except
                  as necessary to implement or perform this Agreement, or except
                  as required by law provided that the other party is given a
                  reasonable opportunity to obtain a protective order. Without
                  limiting the generality of the foregoing, such confidential
                  information shall include Customer's and its Affiliates' data
                  and the details of Customer's and its Affiliates' computer
                  operations.

         7.2      PARAMOUNT'S PROPRIETARY ITEMS. Customer acknowledges that the
                  Software and related documentation, the object code and the
                  source code for the Software, and other design features of the
                  Software, all ideas, methods, algorithms, formulae and
                  concepts used in developing or incorporated into the Software,
                  all future modifications, revisions, updates, releases,
                  refinements, improvements and enhancements of the Software,
                  all derivative works based upon any of the foregoing, and all
                  copies of the foregoing (referred to, collectively, as
                  "Proprietary Items") are trade secrets and proprietary
                  property of Paramount, having great commercial value to
                  Paramount. Customer acknowledges that the restrictions in this
                  Agreement are reasonable and necessary to protect Paramount's
                  legitimate business interests.

         7.3      OWNERSHIP RIGHTS. All Proprietary Items provided to Customer
                  under this Agreement are being provided on a strictly
                  confidential and limited use basis. Title to all Proprietary
                  Items and all related patent, copyright, trademark, trade
                  secret, intellectual property and other ownership rights shall
                  remain exclusively with Paramount, except with respect to such
                  items that were created by Paramount specifically for or on
                  behalf of Customer and its Affiliates pursuant to a written
                  contract that vests title to such specifically created items
                  in Customer or its Affiliates. This Agreement is not an
                  agreement of sale, and no title, patent, copyright, trademark,
                  trade secret, intellectual property or other ownership rights
                  to any Proprietary Items are transferred to Customer or its
                  Affiliates by virtue of this Agreement. All copies of
                  Proprietary Items in Customer's and its Affiliates' possession
                  shall remain the exclusive property of Paramount and shall be
                  deemed to be licensed to Customer and its Affiliates during
                  the term of this Agreement.

         7.4      DISCLOSURE RESTRICTIONS. All Proprietary Items in Customer's
                  or its Affiliate's possession, whether or not authorized,
                  shall be held in strict confidence by Customer and its
                  Affiliates, and Customer and its Affiliates shall take all
                  steps reasonably necessary to preserve the confidentiality
                  thereof. Customer shall not, directly or indirectly,
                  communicate, publish, display, loan, give or otherwise
                  disclose any Proprietary Item to any unauthorized person,

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                  or permit any unauthorized person to have access to or
                  possession of any Proprietary Item. Customer and its
                  Affiliates shall limit their use of and access to Proprietary
                  Items to only those of its employees, agents, and consultants
                  whose responsibilities require such use or access. Customer
                  and its Affiliates shall advise all such employees, agents,
                  and consultants before they receive access to or possession of
                  any Proprietary Items, of the confidential nature of the
                  Proprietary Items and require them to abide by the terms of
                  this Agreement. Customer and its Affiliates shall use the same
                  standard of care for protecting the Proprietary Items as
                  Customer and its Affiliates uses to prevent disclosure,
                  publication, or dissemination of its own proprietary
                  information. Customer and its Affiliates shall not be liable
                  for the inadvertent or accidental disclosure of Proprietary
                  Items if such disclosure occurs despite the exercise of the
                  same degree of care Customer and its Affiliates normally takes
                  to preserve its own such data or information.

         7.5      USE RESTRICTIONS. Customer shall not do, nor shall it permit
                  any other person to do, any of the following:

                  (a)      use any Proprietary Item for any purpose, at any
                           location or in any manner not specifically authorized
                           by this Agreement; or

                  (b)      make or retain any copy of any Proprietary Item
                           except as specifically authorized by this Agreement;
                           or

                  (c)      create or recreate the source code for the Software,
                           or re-engineer, reverse engineer, decompile or
                           disassemble the Software; or

                  (d)      modify, adapt, translate or create derivative works
                           based upon the Software or Documentation, or combine
                           or merge any part of the Software with or into any
                           other software or documentation except as
                           contemplated by this Agreement for Customer's and its
                           Affiliates' own internal use; or

                  (e)      refer to or otherwise use any Proprietary Item as
                           part of any effort to develop a program having any
                           functional attributes, visual expressions or other
                           features similar to those of the Software or to
                           compete with Paramount; or

                  (f)      remove, erase or tamper with any copyright or other
                           proprietary notice printed or stamped on, affixed to,
                           or encoded or recorded in any Proprietary Item, or
                           fail to preserve all copyright and other proprietary
                           notices in any copy of any Proprietary Item made by
                           Customer; or

                  (g)      sell, market, license, sublicense, distribute or
                           otherwise grant to any person, including any
                           outsourcer, vender, consultant or partner, any right
                           to use any Proprietary Item; or

                  (h)      attempt to do any of the foregoing.

         7.6      NOTICE AND REMEDY OF BREACHES. Customer shall promptly give
                  written notice to Paramount (in accordance with Section 9.1)
                  of any actual or suspected breach by Customer of any of the
                  provisions of this Section 7, whether or not intentional, and
                  Customer shall, at its expense, take all steps reasonably
                  requested by Paramount to prevent or remedy the breach.

         7.7      ENFORCEMENT. Customer acknowledges that any breach of any of
                  the provisions of this Section 7 shall result in irreparable
                  injury to Paramount for which money damages could not
                  adequately compensate. If Paramount notifies Customer of a
                  breach in writing (in accordance with Section 9.1) and
                  Customer fails to cure the breach within thirty (30) days,

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                  then Paramount shall be entitled, in addition to all other
                  rights and remedies which Paramount may have at law or in
                  equity, to seek a decree of specific performance or to seek to
                  have an injunction issued by any competent court, requiring
                  the breach to be cured or enjoining all persons involved from
                  continuing the breach. The existence of any claim or cause of
                  action which Customer or any other person may have against
                  Paramount shall not constitute a defense or bar to the
                  enforcement of any of the provisions of this Section 7.

8.       TERM AND TERMINATION

         8.1      Unless terminated as provided herein, this Agreement shall be
                  effective from the Effective Date until the second (2nd)
                  anniversary of the Effective Date. This Agreement shall
                  automatically renew for successive one (1) year terms, unless
                  at least ninety (90) days prior to the second anniversary or
                  each succeeding one year anniversary thereafter, either party
                  gives the other party written notice (in accordance with
                  Section 9.1) of its intention not to renew this Agreement.

         8.2      TERMINATION BY NONDEFAULTING PARTY. The nondefaulting party
                  may immediately terminate this Agreement, by giving written
                  notice of termination to the defaulting party (in accordance
                  with Section 9.1), upon the occurrence of any of the following
                  events:

                  (a)      Customer fails to pay to Paramount, within thirty
                           (30) days after Paramount makes written demand
                           therefor, any past-due amount payable under this
                           Agreement (including interest thereon).

                  (b)      Customer or its Affiliate breaches, in any material
                           respect, any of the provisions of Section 7 and fails
                           to cure the breach within forty five (45) days of
                           written notification by Paramount.

                  (c)      Either party breaches any of its other obligations
                           under this Agreement and does not cure the breach
                           within forty five (45) days after the nondefaulting
                           party gives written notice to the defaulting party
                           (in accordance with Section 9.1) describing the
                           breach in reasonable detail.

                  (d)      Either party dissolves or liquidates or otherwise
                           discontinues all or a significant part of its
                           business operations.

         8.3      EFFECT OF TERMINATION. Within one (1) year after the
                  termination of this Agreement, whether under this Section 8 or
                  otherwise, Customer and its Affiliates shall discontinue all
                  use of the Software, Customer shall promptly return to
                  Paramount all copies of the Software, any related
                  documentation, and any other Proprietary Items then in
                  Customer's possession, and Customer shall give written notice
                  to Paramount (in accordance with Section 9.1) certifying that
                  all copies of the Software have been permanently deleted from
                  its computers. Customer shall remain liable for all payments
                  due to Paramount with respect to the period ending on the then
                  current term of the Agreement. The provisions of Section 7
                  shall survive any termination of this Agreement, whether under
                  this Section 8 or otherwise.

9.       OTHER PROVISIONS

         9.1      NOTICE. All notices, consents and other communications under
                  or regarding this Agreement shall be in writing and shall be
                  deemed to have been received on the earlier of the date of
                  actual receipt, the fifth business day after being mailed by
                  first class certified air mail, or the second business day
                  after being sent by a reputable overnight delivery service.
                  Any notice may be given by facsimile, provided that a signed
                  written original is

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                  sent by one of the foregoing methods within twenty-four (24)
                  hours thereafter. Customer's address for notices is 1080
                  Holcomb Bridge Road, Building 200, Suite 350, Roswell, Georgia
                  30076, Attention: Robert Salomon, fax: (770) 998-7494.
                  Paramount's address for notices is 3751 Victoria Park Avenue,
                  Toronto, Ontario M1W 3Z4, Attention: Seymour Joffe, fax: (416)
                  449-6438. Either party may change its address for notices by
                  giving written notice of the new address to the other party in
                  accordance with this Section.

         9.2      DEFINED TERMS. As used in this Agreement, the following terms
                  have the following meanings:

                  (a)      "Affiliate" means any corporation, firm, partnership
                           or other entity that directly or indirectly controls,
                           is controlled by or is under common control with a
                           party to this Agreement. As used herein, "control"
                           means ownership, directly or through one or more
                           Affiliates, of fifty percent (50%) or more of the
                           shares of stock entitled to vote for the election of
                           directors, in the case of a corporation, fifty
                           percent (50%) or more of the equity interests in the
                           case of any other type of legal entity, status as a
                           general partner in any partnership, manager of any
                           limited liability company operated under documents
                           providing authority for the limited liability company
                           manager similar to the authority of a general partner
                           in a partnership, or any other arrangement whereby a
                           party controls or has the right to control the board
                           of directors or equivalent governing body of a
                           corporation or other entity.

                  (b)      "Change of Control" means (i) the sale of all or
                           substantially all of the assets of a party in one or
                           any related series of transactions, (ii) a merger or
                           consolidation of the party with any other entity,
                           whether or not the party is the surviving entity, if
                           following such merger or consolidation less than 50%
                           of the total voting power of the surviving entity is
                           held by those persons who held voting securities of
                           the party immediately prior to such merger or
                           consolidation, (iii) any other transaction or series
                           of related transactions, the result of which is a
                           change in ownership of more than 50% of the total
                           voting power of the party, or (iv) the entities
                           holding more than 50% of the total voting power of a
                           party engage in a transaction described in (i) -
                           (iii).

                  (c)      "Closing" means the transference of the title to a
                           residence from the Customer or its Affiliate to the
                           buyer of the residence.

                  (d)      "copy" means any paper, disk, tape, film, memory
                           device, or other material or object on or in which
                           any words, object code, source code or other symbols
                           are written, recorded or encoded, whether permanent
                           or transitory.

                  (e)      "including" means including but not limited to.

                  (f)      "person" means any individual, sole proprietorship,
                           joint venture, partnership, corporation, limited
                           liability company, limited liability partnership,
                           company, firm, bank, association, cooperative, trust,
                           estate, government, governmental agency, regulatory
                           authority, or other entity of any nature.

         9.3      ASSIGNMENT. This Agreement will bind, benefit and be
                  enforceable by and against Paramount and Customer and, to the
                  extent permitted hereby, their respective successors and
                  assigns. Neither party shall assign this Agreement or any of
                  its rights hereunder, nor delegate any of its obligations
                  hereunder, without the other party's prior written consent.
                  Any Change in Control of a party, and any assignment by merger
                  or otherwise by operation of law, will constitute an
                  assignment of this Agreement by that party for the purposes of
                  this Section 9.3.

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         9.4      RELATIONSHIP. The relationship between the parties created by
                  this Agreement is that of independent contractors and not
                  partners, joint venturers or agents and any of Paramount's
                  employees providing services under this Agreement shall not be
                  deemed to be Customer's or its Affiliates' employees.

         9.5      ENTIRE UNDERSTANDING. This Agreement, which includes and
                  incorporates the Schedules referred to herein, states the
                  entire understanding between the parties with respect to its
                  subject matter, and supersedes all prior proposals, marketing
                  materials, negotiations and other written or oral
                  communications between the parties with respect to the subject
                  matter of this Agreement.

         9.6      MODIFICATION AND WAIVER. No modification of this Agreement,
                  and no waiver of any breach of this Agreement, shall be
                  effective unless in writing and signed manually by an
                  authorized representative of the party against whom
                  enforcement is sought. Such assigned writing containing a
                  manual signature may be transmitted by electronically
                  confirmed facsimile telephone transmission, but no other
                  electronic embodiment or means of transmission (such as
                  electronic mail, irrespective of whether an electronic or
                  digital signature statute has been enacted in any relevant
                  jurisdiction) shall constitute either a writing or a signature
                  for purposes of this Section. No waiver of any breach of this
                  Agreement, and no course of dealing between the parties, shall
                  be construed as a waiver of any subsequent breach of this
                  Agreement.

         9.7      SEVERABILITY. A determination that any provision of this
                  Agreement is invalid or unenforceable shall not affect the
                  other provisions of this Agreement.

         9.8      HEADINGS. Section headings are for convenience of reference
                  only and shall not affect the interpretation of this
                  Agreement.

         9.9      ARBITRATION. All disputes involving this Agreement, except
                  actions arising under the patent and copyright provisions of
                  the U.S. Code, and breaches of the provisions of Section 7,
                  shall be submitted to a binding arbitration by a panel of
                  three (3) arbitrators of the American Arbitration Association
                  under its rules and procedures in effect at the time of
                  submission. Such panel shall include only persons with
                  experience in the areas of information technology or computer
                  software licensing installation or implementation. Each party
                  shall choose one arbitrator, and the third arbitrator shall be
                  chosen by the two arbitrators selected by the parties. The
                  location of the arbitration hearing will be Atlanta, Georgia.
                  The costs of such arbitration shall be borne by the
                  non-prevailing party in such arbitration. The final
                  arbitration decision shall be enforceable by a court of
                  competent jurisdiction.

         9.10     JURISDICTION AND PROCESS. In any court action relating to this
                  Agreement, (a) each of the parties irrevocably consents to the
                  exclusive jurisdiction and venue of the federal and state
                  courts located in the State of Georgia, (b) each of the
                  parties irrevocably consents to service of process by first
                  class certified mail, return receipt requested, postage
                  prepaid, to the address at which the party is to receive
                  notice in accordance with Section 9.1 and (d) the prevailing
                  party shall be entitled to recover its reasonable attorney's
                  fees (including, if applicable, charges for in-house counsel),
                  court costs and other legal expenses from the other.

         9.11     GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED
                  IN ACCORDANCE WITH THE LAWS OF THE STATE OF GEORGIA.

                                       9
<PAGE>

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as a
sealed instrument as of the day and year first above written.

                                        PARAMOUNT DEVELOPMENT CORPORATION

                                        ----------------------------------------

                                        By:
                                           -------------------------------------
                                        Its:
                                           -------------------------------------

                                        ASHTON WOODS USA L.L.C.

                                        ----------------------------------------

                                        By:
                                           -------------------------------------
                                        Its:
                                           -------------------------------------

                                       10
<PAGE>

                                   SCHEDULE A
                          TO SOFTWARE LICENSE AGREEMENT
                              DATED APRIL ___, 2005

SOFTWARE:                            Paramount's software systems which provides
                                     homebuilders with the following functions:
                                        1.   Sales and land development
                                        2.   Warranty and calendar
                                        3.   Custom reports
                                        4.   Work orders
                                        5.   Job costing
                                        6.   Layered takeoffs
                                        7.   Options and design centers
                                        8.   Purchase orders
                                        9.   Scheduling
                                        10.  Accounting

                                       11<PAGE>

                                                                    EXHIBIT 10.8

                            ASHTON WOODS USA, L.L.C.
                    NONQUALIFIED DEFERRED COMPENSATION PLAN
                             Effective June 1, 2005

<PAGE>

                                    SECTION 1

                           PURPOSE AND ADMINISTRATION

1.1. Name of Plan. Ashton Woods USA, L.L.C. (the "Company") hereby adopts the
Ashton Woods USA, L.L.C. Deferred Compensation Plan (the "Plan"), as set forth
herein.

1.2. Effective Date. The effective date of this Plan is June 1, 2005 .

1.3. Purpose. The Company has established the Plan primarily for the purpose of
providing deferred compensation to a select group of management or highly
compensated employees of the Participating Employers. The Plan is intended to be
a top-hat plan as described in Section 201(2), 301(a)(3) and 401(a)(1) of ERISA.
The Company intends that the Plan shall be treated as unfunded for tax purposes
and for purposes of Title I of ERISA. The Plan is not intended to qualify under
Section 401 (a) or the Code. A Participating Employer's obligations hereunder,
if any, to a Participant (or to a Participant's beneficiary) shall be unsecured
and shall be a mere promise by the Participating Employer to make payments
hereunder in the future. A Participant (and, if applicable, the Participant's
beneficiary) shall be treated as a general unsecured creditor of any
Participating Employer.

1.4. Administration. The Plan shall be administered by the committee appointed
by the Company's Board of Directors.

(a)   Authority. The Plan Administrative Committee shall have full authority and
      power to administer and construe the Plan, subject to applicable
      requirements of law. Without limiting the generality of the foregoing, the
      Plan Administrative Committee shall have the following powers and duties:

      (i)   To make and enforce such rules and regulations as it deems necessary
            or proper for the administration of the Plan;

      (ii)  To interpret the Plan and to decide all questions concerning the
            Plan;

      (iii) To designate persons eligible to participate in the Plan, subject to
            the approval of the Board;

      (iv)  To determine the amount and the recipient of any payments to be made
            under the Plan;

      (v)   To designate and value any investments deemed held in the Accounts;

      (vi)  To appoint such agents, counsel, accountants, consultants and other
            persons as may be required to assist in administering the Plan; and

                                                      Ashton Woods USA, L.L.C.
                                                     Deferred Compensation Plan
                                                         Effective June 1, 2005

                                       1

<PAGE>

      (vii) To make all other determinations and to take all other steps
            necessary or advisable for the administration of the Plan.

      Subject to paragraph (b) below, all decisions made by the Plan
      Administrative Committee pursuant to the provisions of the Plan shall be
      made in its sole discretion and shall be final, conclusive, and binding
      upon all parties.

(b)   Authority of Board of Directors. Notwithstanding anything in this Plan to
      the contrary, the Board shall have the power

      (i)   to review and approve the persons who will be eligible to
            participate in the Plan; and

      (ii)  to make determinations with respect to the participation and
            benefits of to any member of the Plan Administrative Committee who
            is a participant in the Plan.

(c)   Delegation of Duties. The Plan Administrative Committee may delegate such
      of its duties and may engage such experts and other persons as it deems
      appropriate in connection with administering the Plan. The Plan
      Administrative Committee shall be entitled to rely conclusively upon, and
      shall be fully protected in any action taken by the Plan Administrative
      Committee, in good faith in reliance upon any opinions or reports
      furnished to it by any such experts or other persons.

(d)   Expenses. All expenses incurred prior to the termination of the Plan that
      shall arise in connection with the administration of the Plan, including,
      without limitation, administrative expenses and compensation and other
      expenses and charges of any actuary, counsel, accountant, specialist, or
      other person who shall be employed by the Plan Administrative Committee in
      connection with the administration of the Plan shall be paid by the
      Participating Employers.

(e)   Indemnification of Plan Administrative Committee. The Participating
      Employers agree to indemnify and to defend to the fullest extent permitted
      by law any person serving as a member of the Plan Administrative
      Committee, and each employee of a Participating Employer or any of their
      affiliated companies appointed by the Plan Administrative Committee to
      carry out duties under this Plan, against all liabilities, damages, costs
      and expenses (including attorneys' fees and amounts paid in settlement of
      any claims approved by the Company) occasioned by any act or omission to
      act in connection with the Plan, if such act or omission is in good faith.

(f)   Liability. To the extent permitted by law, neither the Plan Administrative
      Committee nor any other person shall incur any liability for any acts or
      for any failure to act except for liability arising out of such person's
      own willful misconduct or willful breach of the Plan.

                                                       Ashton Woods USA, L.L.C.
                                                     Deferred Compensation Plan
                                                          Effective June 1, 2005

                                       2

<PAGE>

                                    SECTION 2
                                   DEFINITIONS

For purposes of the Plan, the following words and phrases shall have the
meanings set forth below, unless their context clearly requires a different
meaning:

2.1. Account. "Deferred Compensation Account" means the bookkeeping account
maintained for each Participant in accordance with Section 6.1 and which
includes the following subaccounts:

(a)   "Employer Contribution Account" means the portion of the Participant's
      Account attributable to Discretionary Contributions, and the earnings
      thereon.

2.2. Affiliate. "Affiliate" means any corporation, partnership, joint venture,
association or similar organization or entity in which the Company owns,
directly or indirectly, a majority of equity interests.

2.3. Board. "Board" means the Board of Directors of Ashton Woods USA, L.L.C.

2.4. Change in Control. "Change in Control" means a Change in Control as
described in Appendix A to this Plan.

2.5. Code. "Code" means the Internal Revenue Code of 1986, as amended from time
to time. Any reference to a section of the Code includes any comparable section
or sections of any future legislation that amends, supplements or supersedes
that section.

2.6. Company. "Company" means Ashton Woods USA, L.L.C. or any successor company
that adopts this Plan.

2.7. Compensation. "Compensation" means such forms of compensation payable in
cash as may be designated by the Plan Administrative Committee, from time to
time, in its sole discretion, as eligible for deferral under this Plan.
Compensation may include, but shall be not limited to, any performance based or
bonus compensation, payable to the Participant.

2.8. Discretionary Contribution. "Discretionary Contribution" means the
contribution deemed credited to a Participant's Account pursuant to Section 4.

2.9. Eligible Employee. "Eligible Employee" means an employee of a Participating
Employer who has been designated pursuant to Section 3 as eligible to
participate in the Plan.

2.10. "ERISA. "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended from time to time. Any reference to a section of ERISA includes any
comparable section or sections of any future legislation that amends,
supplements or supersedes that section.

                                                      Ashton Woods USA, L.L.C.
                                                     Deferred Compensation Plan
                                                         Effective June 1, 2005

                                       3

<PAGE>

2.11. Participant. "Participant" means an Employee who meets the eligibility
criteria set forth in Section 3.

2.12. Participating Employer. "Participating Employer" means Ashton Woods USA,
L.L.C., and any of its participating Affiliates, or any successor companies.

2.13. Plan Administrative Committee. The "Plan Administrative Committee" means
the committee appointed by the Company's Board of Directors to administer the
Plan.

2.14. Plan Year. "Plan Year" shall be June 1 through May 31, which is the fiscal
year of the Company.

2.15. Retirement Date. "Retirement Date" means the date on which a Participant
elects to retire having an attained age of sixty-five (65) or greater.

2.16. Totally Disabled or Total Disability. A Participant shall be considered to
be "Totally Disabled" or to have a "Total Disability" if he or she meets the
definition of "Disabled" as defined in Internal Revenue Code Section
409A(a)(2)(C).

2.17. Valuation Date. "Valuation Date" means each business day the financial
markets are open, unless the underlying investment requires a less frequent
valuation.

2.18. Other Definitions. In addition to the terms defined in this Section 2,
other terms are defined when first used in Sections of this Plan.

                                                       Ashton Woods USA, L.L.C.
                                                     Deferred Compensation Plan
                                                         Effective June 1, 2005

                                       4

<PAGE>

                                    SECTION 3
                          ELIGIBILITY AND PARTICIPATION

3.1. Eligible Employees. Only employees who are designated by the Plan
Administrative Committee and approved by the Board shall be eligible to
participate in the Plan.

3.2. Participation.

(a)   An Eligible Employee shall become a Participant in the Plan by (i)
      completing and submitting to the Company a Participation Agreement Form,
      and (ii) complying with such terms and conditions as the Board and/or the
      Plan Administrative Committee may from time to time establish for the
      implementation of the Plan, including, but not limited to, any condition
      the Board and/or the Plan Administrative Committee may deem necessary or
      appropriate for the Participating Employers to meet their obligations
      under the Plan.

(b)   An employee shall only be a Participant eligible to have compensation
      deferred under this Plan while he or she is designated as an Eligible
      Employee. If an employee subsequently ceases to be a designated eligible
      employee after becoming a Participant, he or she shall remain a
      Participant for the other purposes of the Plan to the extent of any
      existing Account balance subject to Section 13.1.

                                                       Ashton Woods USA, L.L.C.
                                                     Deferred Compensation Plan
                                                         Effective June 1, 2005

                                       5

<PAGE>

                                    SECTION 4
                           DISCRETIONARY CONTRIBUTIONS

4.1. Discretionary Contribution.

(a)   For any Plan Year, a Participating Employer may credit to the Deferred
      Compensation Account of any Participant employed by that Participating
      Employer a Discretionary Contribution in such amount as may be determined
      by the Participating Employer in its sole discretion within forty-five
      (45) days after the end of the Plan Year.

      The amount of the Discretionary Contribution to be credited to a
      Participant's Account for a Plan Year shall be determined by the
      Participating Employer in its sole discretion. The formula to be used in
      determining the Discretionary Contribution shall be determined from time
      to time by the Participating Employer.

(b)   Any Discretionary Contribution will be credited to a Participant's
      Participating Employer Contribution Account as of the Valuation Date
      specified by the Participating Employer.

4.2. Vesting of Discretionary Contribution.

(a)   Except as otherwise provided in paragraph (b) below and subject to Section
      9, the Discretionary Contribution credited to a Participant's Account with
      respect to a particular Plan Year shall become vested in accordance with
      the following schedule:

<TABLE>
<CAPTION>
 Years of Service Completed
Following Plan Year for which
   Contribution is Credited                 Vested Percentage
-----------------------------               -----------------
<S>                                         <C>
     1 Year of Service                            20%
     2 Years of Service                           40%
     3 Years of Service                           60%
     4 Years of Service                           80%
     5 Years of Service                          100%
</TABLE>

      A Participant will be credited with a Year of Service if he or she is
      actively employed by a Participating Employer for a continuous period of
      at least 6 months during the Plan Year AND is actively employed by a
      Participating Employer as of the date any bonus or performance based
      compensation is payable or credited to the Participant.

(b)   Notwithstanding the foregoing vesting schedule, the balance credited to a
      Participant's Participating Employer Contribution Account shall be become
      fully vested if the Participant remains continuously employed by a
      Participating Employer or an Affiliate until his or her death, Total
      Disability, attainment of age sixty-five (65), or the occurrence of a
      Change in Control in which the Participant is terminated without cause
      within two (2) years following the Change in Control.

                                                     Ashton Woods USA, L.L.C.
                                                     Deferred Compensation Plan
                                                         Effective June 1, 2005

                                       6

<PAGE>

                                    SECTION 5
                             DISTRIBUTION ELECTIONS

5.1. In-Service Distribution of Discretionary Contributions. The Participant
shall receive the total amount of 100% vested Discretionary Contributions
credited to his or her Deferred Compensation Account, and any earnings thereon,
distributed in a lump sum as soon as administratively feasible following the
100% vesting date.

5.2. Retirement Distribution. The Participant shall have his or her Deferred
Compensation Account distributed in a single lump sum payment upon termination
of employment following his or her Retirement Date as soon as administratively
feasible.

                                                       Ashton Woods USA, L.L.C.
                                                     Deferred Compensation Plan
                                                         Effective June 1, 2005

                                       7

<PAGE>

                                    SECTION 6
                         DEFERRED COMPENSATION ACCOUNTS

6.1. Participant's Accounts. The Company shall establish and maintain a separate
memorandum account in the name of each Participant. Such account shall be
credited or charged with (a) Discretionary Contributions, if any; (b) income,
gains, losses, and expenses of investments deemed held in such account; and (c)
distributions from such account.

6.2. Investment of Employer Discretionary Contribution Accounts. The amount
credited to a Participant's Employer Contribution Account shall be deemed to be
invested and reinvested in the growth of the Company, and any other assets or
investment vehicles, as may be selected by the Plan Administrative Committee in
its sole discretion. The amount credited to a Participant's Employer
Contribution Account shall be credited with interest earnings on an annual
basis. The amount credited for the First Plan Year shall be a minimum of nine
percent (9%). Thereafter, the Plan Administrative Committee shall review and
determine the minimum credit rate at least sixty (60) days prior to the
beginning of the Plan Year.

                                                       Ashton Woods USA, L.L.C.
                                                     Deferred Compensation Plan
                                                         Effective June 1, 2005

                                       8

<PAGE>

                                    SECTION 7
DISTRIBUTION OF COMPENSATION DEFERRAL ACCOUNT PRIOR TO TERMINATION OF EMPLOYMENT

7.1. Financial Hardship. The Plan Administrative Committee, in his sole
discretion, may permit a hardship payment from the vested portion of a
Participant's Deferred Compensation Account to be made to a Participant at any
time prior to a Designated In-Service Distribution Date or termination of
employment in the event of an "unforeseeable emergency". Withdrawals of amounts
because of an unforeseeable emergency will be permitted to the extent reasonably
needed to satisfy the emergency need. Applications for hardship distributions
and determinations thereon by the Administrative Committee shall be in writing,
and a Participant may be required to furnish written proof of the Financial
Hardship. Amounts paid to a Participant pursuant to this Section 7.1 shall be
treated as distributions from the Participant's Account. The Administrative
Committee will designate the subaccount from which the hardship distribution
will be made.

(a)   For purposes of this Section, an "unforeseeable emergency" is a severe
      financial hardship to the Participant resulting from a sudden and
      unexpected illness or accident of the Participant or of a dependent (as
      defined in Section 152(a) of the Code) of the Participant, loss of the
      Participant's property due to casualty, or other similar extraordinary and
      unforeseeable circumstances arising as a result of events beyond the
      control of the Participant.

(b)   The circumstances that will constitute an unforeseeable emergency will
      depend upon the facts of each case, but, in any case, payment may not be
      made to the extent that such hardship is or may be relieved:

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

      (ii)  By liquidation of the Participant's assets, to the extent the
            liquidation of such assets would not itself cause severe financial
            hardship

                                                       Ashton Woods USA, L.L.C.
                                                     Deferred Compensation Plan
                                                         Effective June 1, 2005

                                       9

<PAGE>

                                    SECTION 8
          DISTRIBUTION OF ACCOUNTS FOLLOWING TERMINATION OF EMPLOYMENT

8.1. Termination of Employment Prior to Retirement Date. In the event that a
Participant terminates employment for any reason other than death or becoming
Totally Disabled prior to his or her Retirement Date, the vested balance
credited to his or her Account will be distributed to the Participant in a
single lump sum within the calendar month following the calendar month of the
Participant's employment termination date.

8.2. Termination of Employment At or After Retirement Date. In the event that a
Participant terminates employment at or after his or her Retirement Date, the
Participant's Account shall be distributed in a single lump sum payment within
the calendar month following the calendar month of the Participant's employment
termination date.

8.3. Termination of Employment Due to Total Disability. In the event that a
Participant terminates employment at any time by reason of becoming Totally
Disabled, the balance credited to his or her Account will be distributed to the
Participant in a single lump payment within the calendar month following the
calendar month of the Participant's employment termination date.

8.4. Death. In the event that a Participant's employment is terminated by reason
of his or her death, the balance credited to his or her Account will be
distributed to the Participant's designated beneficiary in a single lump payment
within the calendar month following the calendar month of the Participant's
death.

8.5. Designated Beneficiary.

(a)   The Participant may name a beneficiary or beneficiaries to receive the
      balance of the Participant's Deferred Compensation Account in the event of
      the Participant's death prior to the payment of the Participant's entire
      Deferred Compensation Account. To be effective, any beneficiary
      designation must be filed in writing with the Plan Administrative
      Committee in accordance with rules and procedures adopted by the Plan
      Administrative Committee for that purpose.

(b)   A Participant may revoke an existing beneficiary designation by filing
      another written beneficiary designation with the Plan Administrative
      Committee. The latest beneficiary designation received by the Plan
      Administrative Committee shall be controlling; provided, however, that no
      designation, or change or revocation thereof, shall be effective unless
      received by the Plan Administrative Committee prior to the Participant's
      death.

(c)   If no beneficiary is named by a Participant, or if the Participant
      survives all of the Participant's named beneficiaries and does not
      designate another beneficiary, the

                                                       Ashton Woods USA, L.L.C.
                                                     Deferred Compensation Plan
                                                         Effective June 1, 2005

                                       10

<PAGE>

Participant's Deferred Compensation Account shall be paid in the following order
of precedence:

(i)   The Participant's Spouse;

(ii)  The Participant's children (including adopted children) per stirpes; or

(iii) The Participant's estate.

                                                       Ashton Woods USA, L.L.C.
                                                     Deferred Compensation Plan
                                                         Effective June 1, 2005

                                       11
<PAGE>

                                    SECTION 9
                             FORFEITURE OF BENEFITS

9.1. Notwithstanding anything in this Plan to the contrary, if the Plan
Administrative Committee, in its sole discretion, determines that the
Participant's employment with the Participating Employer has been terminated for
Good Cause, then the Plan Administrative Committee may cause the Participant's
entire interest in benefits attributable to his or her Employer Contribution
Account to be forfeited and discontinued, or may cause the Participant's
payments of benefits under the Plan to be limited or suspended for such other
period the Plan Administrative Committee finds advisable under the
circumstances, and may take any other action and seek any other relief the Plan
Administrative Committee, in its sole discretion, deems appropriate.

9.2. "Good Cause" means the Participant's fraud, dishonesty, or willful
violation of any law or significant policy of the Participating Employer that is
committed in connection with the Participant's employment by or association with
the Company or Affiliate. Whether a Participant has been terminated for Good
Cause shall be determined by the Plan Administrative Committee.

Regardless of whether a Participant's employment initially was considered to be
terminated for any reason other than Good Cause, the Participant's employment
will be considered to have been terminated for Good Cause for purposes of this
Plan if the Plan Administrative Committee subsequently determines that the
Participant engaged in an act constituting Good Cause.

9.3. The decision of the Plan Administrative Committee shall be final. The
omission or failure of the Plan Administrative Committee to exercise this right
at any time shall not be deemed a waiver of its right to exercise such right in
the future. The exercise of discretion will not create a precedent in any future
cases.

                                                        Ashton Woods USA, L.L.C.
                                                      Deferred Compensation Plan
                                                          Effective June 1, 2005

                                       12
<PAGE>

                                   SECTION 10
                               APPEALS PROCEDURE

10.1. The Plan Administrative Committee shall approve or wholly or partially
deny all claims for benefits under the Plan within a reasonable period of time
after all required documentation has been furnished to the Plan Administrative
Committee.

10.2. If a claim is wholly or partially denied, the Plan Administrative
Committee shall provide the claimant with written notice setting forth the
specific reasons for the denial, making reference to the pertinent provisions of
the Plan or the Plan documents on which the denial is based; describe any
additional material or information that should be received before the claim may
be acted upon favorably, and explain why such material or information, if any,
is needed; and inform the person making the claim of his or her right pursuant
to this Section to request review of the decision by the Plan Administrative
Committee.

10.3. A claimant shall have the right to request a review of the decision
denying the claim. Such request must be made by filing a written application for
review with the Plan Administrative Committee no later than sixty (60) days
after receipt by the claimant of written notice of the denial of his or her
claim. The claimant may review pertinent Plan documents and shall submit such
written comments and other information which he or she wishes the Plan
Administrative Committee to consider in connection with his or her claim.

10.4. The Plan Administrative Committee may hold any hearing or conduct any
independent investigation which it deems necessary to render its decision on
review. Such decision shall be made as soon as practicable after the Plan
Administrative Committee receives the request for review. Written notice of the
decision on review shall be promptly furnished to the claimant and shall include
specific reasons for the decision.

10.5. For all purposes under the Plan, decisions on claims (where no review is
requested) and decisions on review (where review is requested) shall be final,
binding and conclusive on all interested persons.

                                                        Ashton Woods USA, L.L.C.
                                                      Deferred Compensation Plan
                                                          Effective June 1, 2005

                                       13
<PAGE>

                                   SECTION 11
                      AMENDMENT OR TERMINATION OF THE PLAN

11.1. The Plan Administrative Committee may, in its sole discretion, modify,
terminate, suspend or amend this Plan at any time or from time to time, in whole
or in part, with respect to any Participants or beneficiaries whether or not
payments have commenced to such Participants or beneficiaries.

11.2. In the event the Plan is terminated, the Plan Administrative Committee
shall distribute the remaining amounts in Participants' Accounts at such times
and in such ways as the Plan Administrative Committee, in its sole discretion,
may deem appropriate.

                                                        Ashton Woods USA, L.L.C.
                                                      Deferred Compensation Plan
                                                          Effective June 1, 2005

                                       14
<PAGE>

                                   SECTION 12
                        UNFUNDED PLAN; CHANGE IN CONTROL

12.1. Unfunded Plan. Nothing in this Plan shall be construed as giving any
Participant, or his or her legal representative or designated beneficiary, any
claim against any specific assets of the Company or any of its affiliated
companies or as imposing any trustee relationship upon the Company or any of its
affiliated companies in respect of the Participant. The Participating Employers
shall not be required to segregate any assets in order to provide for the
satisfaction of the obligations hereunder. Investments deemed held in the
Accounts shall continue to be a part of the general funds of the applicable
Participating Employers, and no individual or entity other than the
Participating Employer shall have any interest whatsoever in such funds. If and
to the extent that the Participant or his or her legal representative or
designated beneficiary acquires a right to receive any payment pursuant to this
Plan, such right shall be no greater than the right of an unsecured general
creditor of the applicable Participating Employer.

                                                        Ashton Woods USA, L.L.C.
                                                      Deferred Compensation Plan
                                                          Effective June 1, 2005

                                       15
<PAGE>

                                   SECTION 13
                            MISCELLANEOUS PROVISIONS

13.1. Top-Hat Status. Notwithstanding any provision of the Plan to the contrary,
if the Plan Administrative Committee determines that participation in the Plan
by any one or more Participants shall cause the Plan to be subject to Parts 2, 3
or 4 of Title I of ERISA, the entire interest of such Participant or
Participants under the Plan shall be immediately paid to such Participant or
Participants by the Participating Employer, or shall otherwise be segregated
from the Plan in the discretion of the Plan Administrative Committee, and such
Participant or Participants shall cease to have any interest under the Plan.

13.2. Benefits Non-Assignable. Benefits under the Plan may not be anticipated,
assigned or alienated, and will not be subject to claims of a Participant's
creditors by any process whatsoever, except as specifically provided in this
Plan or by the Plan Administrative Committee in its sole discretion.

13.3. Right to Withhold Taxes. The Participating Employers shall have the right
to withhold such amounts from any payment under this Plan as it determines
necessary to fulfill any federal, state, or local wage or compensation
withholding requirements.

13.4. No Right to Continued Employment. Neither the Plan, nor any action taken
under the Plan, shall confer upon any Participant any right to continuance of
employment by the Company or any of its affiliated companies nor shall it
interfere in any way with the right of the Company or any of its affiliated
companies to terminate any Participant's employment at any time.

13.5. Mental or Physical Incompetency. If the Plan Administrative Committee
determines that any person entitled to payments under the Plan is incompetent by
reason of physical or mental disability, as established by a court of competent
jurisdiction, the Plan Administrative Committee may cause all payments
thereafter becoming due to such person to be made to any other person for his or
her benefit, without responsibility to follow the application of amounts so
paid. Payments made pursuant to this Section shall completely discharge the Plan
Administrative Committee and the Participating Employer.

13.6. Suspension of Payments. If any controversy, doubt or disagreement should
arise as to the person to whom any distribution or payment should be made, the
Plan Administrative Committee, in its discretion, may, without any liability
whatsoever, retain the funds involved or the sum in question pending settlement
or resolution to the Plan Administrative Committee's satisfaction of the matter,
or pending a final adjudication by a court of competent jurisdiction.

13.7. Governing Laws. The provisions of the Plan shall be construed,
administered and enforced according to applicable Federal law and the laws of
State of Georgia.

13.8. Severability. The provisions of the Plan are severable. If any provision
of the Plan is deemed legally or factually invalid or unenforceable to any
extent or in any application, then the

                                                      Ashton Woods USA, L.L.C.
                                                    Deferred Compensation Plan
                                                        Effective June 1, 2005

                                       16
<PAGE>

remainder of the provision and the Plan, except to such extent or in such
application, shall not be affected, and each and every provision of the Plan
shall be valid and enforceable to the fullest extent and in the broadest
application permitted by law.

13.9. No Other Agreements or Understandings. This Plan represents the sole
agreement between the Participating Employers and Participants concerning its
subject matter, and it supersedes all prior agreements, arrangements,
understandings, warranties, representations, and statements between or among the
parties concerning its subject matter.

                                                        Ashton Woods USA, L.L.C.
                                                      Deferred Compensation Plan
                                                          Effective June 1, 2005

                                       17
<PAGE>
IN WITNESS WHEREOF, the Company has caused this Plan to be executed by its duly
authorized officer on this_____day of_____,2005.

                                         ASHTON WOODS USA, L.L.C.
                                         (the "Company")

                                         By:________________________

                                         Title:_____________________

ATTEST:

By:___________________________

Title:________________________

                                                        Ashton Woods USA, L.L.C.
                                                      Deferred Compensation Plan
                                                          Effective June 1, 2005

                                       18
<PAGE>

                                   APPENDIX_A
                                CHANGE IN CONTROL

A "Change in Control" of the Company shall occur upon the happening of any of
the following:

            (i) a change in ownership of the Company. A change in ownership
      generally occurs when a person (or group of people pursuant to a merger or
      similar transaction) acquires more than fifty-percent (50%) of the total
      fair market value or total voting power of the Company's stock;

            (ii) a change in effective ownership of the Company, A change in
      effective ownership generally occurs when (i) a person (or group of people
      as above) acquires (or has acquired during a 12-month period) fifty
      percent (50%) or more of the total voting power of the Company's stock or
      (ii) a majority of members of the Company's board of directors is replaced
      during any 12-month period by directors whose appointment or election is
      not endorsed by a majority of the members of the preexisting board of
      directors; or

            (iii) a change in ownership of substantial assets of the Company. A
      change in ownership of substantial assets generally occurs when a person
      (or group of people as above) acquires (or has acquired during the
      preceding 12-month period) assets totaling more than fifty-percent (50%)
      of the gross fair market value of all the Company's assets.

For purposes of this Appendix A, the Incumbent Board, by a majority vote, shall
have the power to determine on the basis of information known to them (a) the
number of shares beneficially owned by any person, entity or group; (b) whether
there exists an agreement, arrangement or understanding with another as to
matters referred to in this Appendix A; and (c) such other matters with respect
to which a determination is necessary under this Appendix A.

                                                        Ashton Woods USA, L.L.C.
                                                      Deferred Compensation Plan
                                                          Effective June 1, 2005

                                       19

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