<SUBMISSION>
<ACCESSION-NUMBER>0000950123-10-100592
<TYPE>SC 13D
<PUBLIC-DOCUMENT-COUNT>7
<FILING-DATE>20101104
<DATE-OF-FILING-DATE-CHANGE>20101104
<GROUP-MEMBERS>JEN I, L.P.
<GROUP-MEMBERS>JEN PARTNERS, LLC
<GROUP-MEMBERS>JEN RESIDENTIAL LP
<FILED-BY>
<COMPANY-DATA>
<CONFORMED-NAME>LEIBOWITZ REUBEN S
<CIK>0001210982
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13D
</FILING-VALUES>
<MAIL-ADDRESS>
<STREET1>466 LEXINGTON AVENUE 10TH FL
<CITY>NEW YORK
<STATE>NY
<ZIP>10017
</MAIL-ADDRESS>
</FILED-BY>
<SUBJECT-COMPANY>
<COMPANY-DATA>
<CONFORMED-NAME>AVATAR HOLDINGS INC
<CIK>0000039677
<ASSIGNED-SIC>1531
<IRS-NUMBER>231739078
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>SC 13D
<ACT>34
<FILE-NUMBER>005-20987
<FILM-NUMBER>101163516
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>201 ALHAMBRA CIRCLE
<CITY>CORAL GABLES
<STATE>FL
<ZIP>33134
<PHONE>3054427000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>201 ALHAMBRA CIRCLE
<CITY>CORAL GABLES
<STATE>FL
<ZIP>33134
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>GAC CORP /DE/
<DATE-CHANGED>19801023
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>GENERAL ACCEPTANCE CORP
<DATE-CHANGED>19710208
</FORMER-COMPANY>
</SUBJECT-COMPANY>
<DOCUMENT>
<TYPE>SC 13D
<SEQUENCE>1
<FILENAME>g25091sc13d.htm
<DESCRIPTION>SC 13D
<TEXT>
<HTML>
<HEAD>
<TITLE>sc13d</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="font-size: 1pt; width: 100%; border-bottom: black 2pt solid"> </DIV>
<DIV style="font-size: 1pt; width: 100%; border-bottom: black 1pt solid"> </DIV>

<P align="center" style="font-size: 14pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<P align="center" style="font-size: 18pt"><B>SCHEDULE 13D</B>


<P align="center" style="font-size: 12pt"><B>UNDER THE SECURITIES EXCHANGE ACT OF 1934</B>


<DIV align="center">
<DIV style="font-size: 24pt; margin-top: 16pt; width: 100%; border-bottom: 1px solid #000000">Avatar Holdings Inc.</DIV>
</DIV>


<DIV align="center" style="font-size: 10pt">(Name of Issuer)
</DIV>


<DIV align="center">
<DIV style="font-size: 10pt; margin-top: 16pt; width: 100%; border-bottom: 1px solid #000000">Common Stock, $1.00 par value</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt">(Title and Class of Securities)
</DIV>


<DIV align="center">
<DIV style="font-size: 10pt; margin-top: 16pt; width: 100%; border-bottom: 1px solid #000000">053494-10-0</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt">(CUSIP Number)
</DIV>


<DIV align="center">
<DIV style="font-size: 10pt; margin-top: 16pt; width: 100%; border-bottom: 1px solid #000000">Reuben S. Leibowitz<BR>
JEN Partners, LLC<BR>
551 Madison Avenue, Suite 300<BR>
New York, NY 10022-3212<BR>
(212) 755-4300<BR></DIV>
</DIV>


<DIV align="center" style="font-size: 10pt">(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)
</DIV>

<DIV align="center">
<DIV style="font-size: 10pt; margin-top: 16pt">&#151; With a copy to &#151;</DIV>
</DIV>

<DIV align="center">
<DIV style="font-size: 10pt; margin-top: 16pt">Steven C. Koppel, Esq.<BR>
Andrew M. Levine, Esq.<BR>
Jones Day<BR>
222 E 41st Street<BR>
New York, NY  10017<BR>
(212) 326-3939
</DIV>
</DIV>


<DIV align="center">
<DIV style="font-size: 10pt; margin-top: 16pt; width: 100%; border-bottom: 1px solid #000000">October 25, 2010</DIV>
</DIV>

<DIV align="center" style="font-size: 10pt">(Date of Event Which Requires Filing of This Statement)
</DIV>

<P align="left" style="font-size: 10pt">If the filing person has previously filed a statement on Schedule&nbsp;13G to report
the acquisition that is the subject of this Schedule&nbsp;13D, and is filing this schedule because of &#167;&#167;240.13d-1(e),
240.13d-1(f) or 240.13d-1(g), check the following box. <FONT face="wingdings" size="2">&#111;</FONT>

<P align="left" style="font-size: 10pt"><B>Note: </B>Schedules filed in paper format shall include a signed original and five copies of the
schedule, including all exhibits. See Rule 13d-7 for other parties to whom copies are to be sent.

<P align="left" style="font-size: 10pt">* The remainder of this cover page shall be filled out for a reporting person&#146;s
initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing
information which would alter disclosures provided in a prior cover page.

<P align="left" style="font-size: 10pt">The information required on the remainder of this cover page shall not be deemed to
be &#147;filed&#148; for the purpose of section 18 of the Securities Exchange Act of 1934 (&#147;<U>Act</U>&#148;) or otherwise
subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however,
see the Notes).


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>

<P align="center" style="font-size: 10pt">
</DIV>



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<TD width="55%">&nbsp;</TD>
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<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
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<TR valign="bottom">
<TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px"><B>CUSIP No.</B></DIV></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><DIV style="border: 1px solid #000000"><B>053494-10-0&nbsp;</B></DIV></TD>
<TD align="center" valign="top"><B>SCHEDULE 13D</B></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">&nbsp;</TD>
<TD align="right" valign="top">Page&nbsp;</TD>
<TD align="left" valign="top">2&nbsp;</TD>
</TR>
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</TABLE>
</DIV>

<P>&nbsp;<DIV style="width: 100%; border: 1px solid black"><DIV align="center">

<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="1" width="100%">
<!-- Begin Table Head --><TR style="font-size: 1px">
<TD width="5%">&nbsp;</TD>
<TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="83%">&nbsp;</TD>
</TR>

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<TR valign="bottom">
<TD valign="middle" align="center"><FONT style="font-size: 18pt"><B>1</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">NAME OF REPORTING PERSON<BR>
<BR>
JEN I, L.P. </TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;</TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>2</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP<BR><BR></TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(a)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#111;</FONT>&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(b)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#111;</FONT>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>3</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">SEC USE ONLY</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>4</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">SOURCE OF FUNDS</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="11" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="11" align="left">OO</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>5</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>6</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CITIZENSHIP OR PLACE OF ORGANIZATION</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">Delaware
</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>7</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE VOTING POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">NUMBER OF</TD>
<TD>&nbsp;</TD>
<TD align="left">0</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">SHARES</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>8</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED VOTING POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">BENEFICIALLY</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">OWNED BY</TD>
<TD>&nbsp;</TD>
<TD>630,343</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom">
<TD align="center" colspan="3">EACH</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>9</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE DISPOSITIVE POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">REPORTING</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">PERSON</TD>
<TD>&nbsp;</TD>
<TD align="left">0</TD>
</TR>
<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">WITH</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>10</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED DISPOSITIVE POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="left">630,343</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>11</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">630,343</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>12</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK IF THE AGGREGATE AMOUNT IN ROW (11)&nbsp;EXCLUDES CERTAIN SHARES</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"><FONT face="wingdings" size="2">&#111;</FONT>
</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>13</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">5.1&#37;*</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>14</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">TYPE OF REPORTING PERSON</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">PN</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">* Based on 12,411,903 shares of common stock outstanding, which is the aggregate of (1) 11,361,331 shares of common
stock reported outstanding on the issuer&#146;s Quarterly Report on Form 10-Q for the quarterly period ended on June 30, 2010 and (2) an additional 1,050,572 shares
of common stock that were issued as described herein. JEN I, L.P. (&#147;<U>JEN I</U>&#148;) directly holds 630,343 shares of common stock (the &#147;<U>JEN I Shares</U>&#148;).
Reuben S. Leibowitz (&#147;<U>Mr. Leibowitz</U>&#148;) is the managing member of JEN Partners, LLC (&#147;<U>JEN Partners</U>&#148;), the general partner of JEN I. Accordingly,
JEN I, JEN Partners and Mr. Leibowitz may be deemed to share voting and dispositive power over the JEN I Shares.
</DIV>

<P align="center" style="font-size: 10pt">
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="20%">&nbsp;</TD>
<TD width="55%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>
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<!-- Begin Table Body -->


<TR valign="bottom">
<TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px"><B>CUSIP No.</B></DIV></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><DIV style="border: 1px solid #000000"><B>053494-10-0&nbsp;</B></DIV></TD>
<TD align="center" valign="top"><B>SCHEDULE 13D</B></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">&nbsp;</TD>
<TD align="right" valign="top">Page&nbsp;</TD>
<TD align="left" valign="top">3&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P>&nbsp;<DIV style="width: 100%; border: 1px solid black"><DIV align="center">

<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="1" width="100%">
<!-- Begin Table Head --><TR style="font-size: 1px">
<TD width="5%">&nbsp;</TD>
<TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="83%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
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<TR valign="bottom">
<TD valign="middle" align="center"><FONT style="font-size: 18pt"><B>1</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">NAME OF REPORTING PERSON<BR>
<BR>
JEN Residential LP</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;</TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>2</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP<BR><BR></TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(a)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#111;</FONT>&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(b)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#111;</FONT>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>3</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">SEC USE ONLY</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>4</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">SOURCE OF FUNDS</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="11" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="11" align="left">OO</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>5</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>6</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CITIZENSHIP OR PLACE OF ORGANIZATION</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">Delaware
</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>7</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE VOTING POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">NUMBER OF</TD>
<TD>&nbsp;</TD>
<TD align="left">0</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">SHARES</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>8</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED VOTING POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">BENEFICIALLY</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">OWNED BY</TD>
<TD>&nbsp;</TD>
<TD>420,229</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom">
<TD align="center" colspan="3">EACH</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>9</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE DISPOSITIVE POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">REPORTING</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">PERSON</TD>
<TD>&nbsp;</TD>
<TD align="left">0</TD>
</TR>
<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">WITH</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>10</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED DISPOSITIVE POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="left">420,229</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>11</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">420,229</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>12</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK IF THE AGGREGATE AMOUNT IN ROW (11)&nbsp;EXCLUDES CERTAIN SHARES</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"><FONT face="wingdings" size="2">&#111;</FONT>
</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>13</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">3.4&#37;*</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>14</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">TYPE OF REPORTING PERSON</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">PN</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">* Based on 12,411,903 shares of common stock outstanding, which is the aggregate of (1) 11,361,331 shares of common stock reported
outstanding on the issuer&#146;s Quarterly Report on Form 10-Q for the quarterly period ended on June 30, 2010 and (2) an additional 1,050,572 shares of common stock that were
issued as described herein. JEN Residential LP (&#147;<U>JEN Residential</U>&#148;) directly holds 420,229 shares of common stock (the &#147;<U>JEN Residential Shares</U>&#148;). Mr. Leibowitz
is the managing member of JEN Partners, the general partner of JEN Residential. Accordingly, JEN Residential, JEN Partners and Mr. Leibowitz may be deemed to share voting and
dispositive power over the JEN Residential Shares.
</DIV>

<P align="center" style="font-size: 10pt">
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="20%">&nbsp;</TD>
<TD width="55%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->


<TR valign="bottom">
<TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px"><B>CUSIP No.</B></DIV></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><DIV style="border: 1px solid #000000"><B>053494-10-0&nbsp;</B></DIV></TD>
<TD align="center" valign="top"><B>SCHEDULE 13D</B></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">&nbsp;</TD>
<TD align="right" valign="top">Page&nbsp;</TD>
<TD align="left" valign="top">4&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P>&nbsp;<DIV style="width: 100%; border: 1px solid black"><DIV align="center">

<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="1" width="100%">
<!-- Begin Table Head --><TR style="font-size: 1px">
<TD width="5%">&nbsp;</TD>
<TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="83%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
<TD valign="middle" align="center"><FONT style="font-size: 18pt"><B>1</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">NAME OF REPORTING PERSON<BR>
<BR>
JEN Partners, LLC</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;</TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>2</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP<BR><BR></TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(a)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#111;</FONT>&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(b)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#111;</FONT>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>3</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">SEC USE ONLY</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>4</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">SOURCE OF FUNDS</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="11" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="11" align="left">OO</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>5</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>6</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CITIZENSHIP OR PLACE OF ORGANIZATION</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">Delaware
</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>7</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE VOTING POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">NUMBER OF</TD>
<TD>&nbsp;</TD>
<TD align="left">0</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">SHARES</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>8</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED VOTING POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">BENEFICIALLY</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">OWNED BY</TD>
<TD>&nbsp;</TD>
<TD>1,050,572 </TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom">
<TD align="center" colspan="3">EACH</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>9</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE DISPOSITIVE POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">REPORTING</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">PERSON</TD>
<TD>&nbsp;</TD>
<TD align="left">0</TD>
</TR>
<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">WITH</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>10</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED DISPOSITIVE POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="left">1,050,572 </TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>11</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">1,050,572 </TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>12</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK IF THE AGGREGATE AMOUNT IN ROW (11)&nbsp;EXCLUDES CERTAIN SHARES</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"><FONT face="wingdings" size="2">&#111;</FONT>
</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>13</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">8.5&#37;*</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>14</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">TYPE OF REPORTING PERSON</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">PN</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">* Based on 12,411,903 shares of common stock outstanding, which is the aggregate of (1) 11,361,331 shares of common stock reported outstanding on the issuer&#146;s Quarterly Report on Form 10-Q for the quarterly period ended on June 30, 2010 and (2) an additional 1,050,572 shares of common stock that were issued as described herein. JEN I directly holds the JEN I Shares and JEN Residential directly holds the JEN Residential Shares. Mr. Leibowitz is the managing
member of JEN Partners, the general partner of JEN I and JEN Residential. Accordingly, JEN I, JEN Partners and Mr. Leibowitz may be deemed to share voting and dispositive power over the JEN I Shares, and JEN Residential, JEN Partners and Mr. Leibowitz may be deemed to share voting and dispositive power over the JEN Residential Shares.
</DIV>

<P align="center" style="font-size: 10pt">
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="20%">&nbsp;</TD>
<TD width="55%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="9%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->


<TR valign="bottom">
<TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px"><B>CUSIP No.</B></DIV></TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top"><DIV style="border: 1px solid #000000"><B>053494-10-0&nbsp;</B></DIV></TD>
<TD align="center" valign="top"><B>SCHEDULE 13D</B></TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="center" valign="top">&nbsp;</TD>
<TD align="right" valign="top">Page&nbsp;</TD>
<TD align="left" valign="top">5&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P>&nbsp;<DIV style="width: 100%; border: 1px solid black"><DIV align="center">

<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="1" width="100%">
<!-- Begin Table Head --><TR style="font-size: 1px">
<TD width="5%">&nbsp;</TD>
<TD width="1%" style="border-left: 1px solid #000000">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="5%">&nbsp;</TD>
<TD width="1%">&nbsp;</TD>
<TD width="83%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
<TD valign="middle" align="center"><FONT style="font-size: 18pt"><B>1</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">NAME OF REPORTING PERSON<BR>
<BR>
Reuben S. Leibowitz</TD>
</TR>
<TR valign="bottom">
<TD>&nbsp;</TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>2</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP<BR><BR></TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(a)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#111;</FONT>&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">(b)&nbsp;&nbsp;&nbsp;<FONT face="wingdings" size="2">&#111;</FONT>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>3</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">SEC USE ONLY</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>4</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">SOURCE OF FUNDS</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="11" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="11" align="left">OO</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>5</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"><FONT face="wingdings" size="2">&#111;</FONT></TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>6</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CITIZENSHIP OR PLACE OF ORGANIZATION</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">United States
</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>7</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE VOTING POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">NUMBER OF</TD>
<TD>&nbsp;</TD>
<TD align="left">0</TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">SHARES</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>8</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED VOTING POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">BENEFICIALLY</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">OWNED BY</TD>
<TD>&nbsp;</TD>
<TD>1,050,572 </TD>
</TR>

<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>


<TR valign="bottom">
<TD align="center" colspan="3">EACH</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>9</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SOLE DISPOSITIVE POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">REPORTING</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">PERSON</TD>
<TD>&nbsp;</TD>
<TD align="left">0</TD>
</TR>
<TR style="font-size: 1px">
<TD colspan="3">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000; border-left: 1px solid #000000; border-right: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
<TD align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD align="center" colspan="3">WITH</TD>
<TD valign="middle" align="center" rowspan="3" style="border-left: 1px solid #000000; border-right: 1px solid #000000"><FONT style="font-size: 18pt"><B>10</B></FONT></TD>
<TD>&nbsp;</TD>
<TD align="left">SHARED DISPOSITIVE POWER</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD align="center" colspan="3">&nbsp;</TD>
<TD>&nbsp;</TD>
<TD align="left">1,050,572 </TD>
</TR>
<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>11</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">1,050,572 </TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>12</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">CHECK IF THE AGGREGATE AMOUNT IN ROW (11)&nbsp;EXCLUDES CERTAIN SHARES</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left"><FONT face="wingdings" size="2">&#111;</FONT>
</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>13</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">8.5&#37;*</TD>
</TR>

<TR style="font-size: 1px">
<TD style="border-top: 1px solid #000000">&nbsp;</TD>
<TD style="border-left: 1px solid #000000; border-top: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>

<TR valign="bottom">
<TD valign="middle" align="center" rowspan="3"><FONT style="font-size: 18pt"><B>14</B></FONT></TD>
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">TYPE OF REPORTING PERSON</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">&nbsp;</TD>
</TR>
<TR valign="bottom">
<TD style="border-left: 1px solid #000000">&nbsp;</TD>
<TD colspan="4" align="left">IN</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>
</DIV>

<DIV style="font-size: 10pt; margin-top: 3pt">* Based on 12,411,903 shares of common stock outstanding, which is the aggregate of (1) 11,361,331 shares of common stock reported outstanding on the issuer&#146;s Quarterly Report on Form 10-Q for the quarterly period ended on June 30, 2010 and (2) an additional 1,050,572 shares of common stock that were issued as described herein. JEN I directly holds the JEN I Shares and JEN Residential directly holds the JEN Residential Shares. Mr. Leibowitz is the managing
member of JEN Partners, the general partner of JEN I and JEN Residential. Accordingly, JEN I, JEN Partners and Mr. Leibowitz may be deemed to share voting and dispositive power over the JEN I Shares, and JEN Residential, JEN Partners and Mr. Leibowitz may be deemed to share voting and dispositive power over the JEN Residential Shares.
</DIV>

<P align="center" style="font-size: 10pt">
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Page 6
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1. Security and Issuer</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This statement of beneficial ownership on Schedule&nbsp;13D (this &#147;<U>Schedule&nbsp;13D</U>&#148;) relates
to common stock, $1.00 par value (the &#147;<U>Common Stock</U>&#148;), of Avatar Holdings Inc., a Delaware
corporation (the &#147;<U>Issuer</U>&#148;). The principal executive offices of the Issuer are located at
201 Alhambra Circle, Coral Gables, Florida 33134.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2. Identity and Background</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The names of the persons filing this Schedule&nbsp;13D (collectively, the &#147;<U>Reporting
Persons</U>&#148;) are:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>JEN I, L.P. (&#147;<U>JEN I</U>&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>JEN Residential LP (&#147;<U>JEN Residential</U>&#148;);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>JEN Partners, LLC (&#147;<U>JEN Partners</U>&#148;), the general partner of
JEN I and JEN Residential; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Reuben S. Leibowitz (&#147;<U>Mr.&nbsp;Leibowitz</U>&#148;), the sole managing
member of JEN Partners and also a limited partner of JEN I and JEN Residential.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Reporting Persons have entered into a Joint Filing Agreement, dated as of the date hereof, a
copy of which is filed with this Schedule&nbsp;13D as Exhibit&nbsp;99.1 (which is hereby incorporated by
reference) pursuant to which the Reporting Persons have agreed to file this statement jointly in
accordance with the provisions of Rule&nbsp;13d-1(k)(1) under the Securities Exchange Act of 1934.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;JEN I and JEN Residential are Delaware limited partnerships. Each is a private equity fund
engaged in investing in real estate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;JEN Partners is a Delaware limited liability company. The principal business of JEN Partners
is the management of private equity investment funds. JEN Partners is controlled by Mr.&nbsp;Leibowitz,
whose principal occupation is as the managing member of JEN Partners. Mr.&nbsp;Leibowitz is a citizen
of the United States. The principal business address of each of the Reporting Persons is 551
Madison Avenue, Suite&nbsp;300, New York, New York 10022.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;None of the Reporting Persons has, during the last five years, been (1)&nbsp;convicted in a
criminal proceeding (excluding traffic violations or similar misdemeanors) or (2)&nbsp;a party to any
civil proceeding of a judicial or administrative body of competent jurisdiction that resulted in or
was subject to a judgment, decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws, or a finding of any violation
with respect to such federal or state securities laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;3. Source and Amount of Funds or Other Consideration</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On October&nbsp;25, 2010, JEN I and JEN Residential were issued 630,343 and 420,229 shares,
respectively, of Common Stock, pursuant to the Master Transaction Agreement, dated as of October
25, 2010, by and among Terra West Communities LLC, JEN JCH, LLC, Joseph Carl Mulac III, Stephen
Adams and Sun Terra Communities, LLC (collectively, the &#147;<U>Sellers</U>&#148;), the Issuer, Avatar
Properties Inc., a wholly owned subsidiary of the Issuer (&#147;<U>Avatar Properties</U>&#148;), and JEN
Partners (the &#147;<U>Master Transaction Agreement</U>&#148;). Under the terms of the Master Transaction
Agreement, the Sellers sold entities comprising a portfolio of real estate assets to Avatar
Properties in exchange for the receipt by JEN I and JEN Residential of (1) $30&nbsp;million in cash,
subject to adjustment as described in the Master Transaction Agreement, (2) $12&nbsp;million in
promissory notes of Avatar Properties (the &#147;<U>Notes</U>&#148;), and (3)&nbsp;1,050,572 shares of Common
Stock. As additional consideration for the sale, JEN I and JEN Residential may receive in 2015 up
to 420,168 additional shares of Common Stock (the &#147;<U>Earnout Shares</U>&#148;), subject
to the achievement by December&nbsp;31, 2014 of certain agreed upon metrics relating to one of the
purchased assets, pursuant to the terms and conditions of the Earnout Agreement, by and among the
Issuer, Avatar Properties, JEN I and JEN Residential (the &#147;<U>Earnout Agreement</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No cash payments were made by or on behalf of the Reporting Persons in connection with the
acquisition of the shares of Common Stock to which this Schedule&nbsp;13D relates. The descriptions of
the Master Transaction Agreement and the Earnout Agreement are qualified in their entirety by the
terms and conditions of the Master Transaction Agreement and the Earnout Agreement, which are filed
as Exhibits 99.2 and 99.3 hereto, respectively, and incorporated herein by reference.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Page 7
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;4. Purpose of Transaction</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Reporting Persons hold the shares to which this Schedule&nbsp;13D relates for investment
purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Master Transaction Agreement, the Issuer agreed to (1)&nbsp;appoint Mr.&nbsp;Leibowitz
and Allen Anderson to the Issuer&#146;s Board of Directors and (2)&nbsp;nominate Messrs.&nbsp;Leibowitz and
Anderson for election to the Issuer&#146;s Board of Directors at the next two annual shareholders
meetings. Messrs.&nbsp;Leibowitz and Anderson each became directors of the Issuer on October&nbsp;25, 2010,
following the closing of the transactions contemplated by the Master Transaction Agreement. Mr.
Anderson is employed by an affiliate of JEN Partners and is a non-controlling member of JEN
Partners. Riverside Ventures LLC, an affiliate of Mr.&nbsp;Anderson, is a limited partner of JEN
Residential. The description of Mr.&nbsp;Leibowitz&#146;s relationship to the other Reporting Persons is
described in Item&nbsp;2 and incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, the Reporting Persons intend to continually review various
factors relevant to their investment, including trading prices for Common Stock and conditions in
the capital markets generally, developments in the Issuer&#146;s business, financial condition, results
of operations and prospects, the Reporting Persons&#146; capital resources and other factors, and, based
thereon, the Reporting Persons may take or propose to take, alone or in conjunction with others
including the Issuer, other actions intended to increase or decrease the Reporting Persons&#146;
investment in the Issuer, including in open market or privately negotiated transactions, subject to
any applicable legal and contractual restrictions on their ability to do so, including the
contractual restrictions described in Item&nbsp;6 of this Schedule&nbsp;13D. Notwithstanding anything
contained herein, the Reporting Persons specifically reserve the right to change their intentions
with respect to any or all of the matters referred to in this Schedule&nbsp;13D.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The description of the Master Transaction Agreement is qualified in its entirety by the terms
and conditions of the Master Transaction Agreement, which is filed as Exhibit&nbsp;99.2 hereto and
incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;5. Interest in Securities of the Issuer.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)-(b) JEN I is the beneficial owner of 630,343 shares of Common Stock (representing
approximately 5.1% of the outstanding Common Stock), JEN Residential is the beneficial owner of
420,229 shares of Common Stock (representing approximately 3.4% of the outstanding Common Stock)
and each of JEN Partners and Mr.&nbsp;Leibowitz is the beneficial owner of 1,050,572 shares of Common
Stock (representing approximately 8.5% of the outstanding Common Stock).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of shares of Common Stock with respect to which each of the Reporting Persons has
or shares voting or dispositive power is set forth in Items 8 and 10 of each of the inside cover
pages to this Schedule&nbsp;13D relating to each Reporting Person (which is incorporated into this Item
5 by reference).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The voting and disposition of the shares of Common Stock held by the Reporting Persons are
subject in certain respects to limitations under the Voting and Lock-Up Agreement (see Item&nbsp;6).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as described in this Schedule&nbsp;13D, none of the Reporting Persons has effected any
transaction in Common Stock during the past 60&nbsp;days.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Not applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;6. Contracts, Arrangements, Undertakings or Relationships with Respect to Securities of the
Issuer.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In connection with the Master Transaction Agreement, JEN I and JEN Residential entered into a
Voting, Standstill and Lock-Up Letter Agreement, dated as of October&nbsp;25, 2010, with the Issuer and
Avatar Properties (the &#147;<U>Voting and Lock-Up
Agreement</U>&#148;), pursuant to which JEN I and JEN Residential have agreed, among other things, (1)&nbsp;to vote any Common Stock held by JEN Partners, JEN I
and JEN Residential in favor of all individuals nominated by the Issuer to be elected to its Board
of Directors until the date that neither Mr.&nbsp;Leibowitz nor Mr.&nbsp;Anderson serves on the Issuer&#146;s
Board of Directors, (2)&nbsp;to certain standstill restrictions that generally restrict the ability of
JEN I, JEN Residential and their respective affiliates to acquire more than 15% of the outstanding
Common Stock or seek to engage in a change of control of the Issuer, and (3)&nbsp;not to transfer,
subject to certain exceptions, any of the Common Stock acquired pursuant to the Master Transaction
Agreement until October&nbsp;25, 2012.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, under the Voting and Lock-Up Agreement, each of JEN I and JEN Residential have
pledged any shares of Common Stock acquired pursuant to the Master Transaction Agreement as
collateral to secure certain indemnification obligations of the Sellers until October&nbsp;25, 2012.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Page 8
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to an Agreement Among Transaction Participants, dated as of October&nbsp;25, 2010, by and
among JEN Partners, JEN I, JEN Residential, the Sellers, Mike Jesberger, John Kraynick, Richard
Jerman, Riverside Ventures LLC, Peter Bay Investment LLC and William and Ruth Bloom (the
&#147;<U>Participant Agreement</U>&#148;), JEN Partners has agreed to cause a portion of the Common Stock
issued to JEN I and JEN Residential at the closing of the transactions contemplated by the Master
Transaction Agreement, not to exceed 48,294 shares of Common Stock in the aggregate (representing
less than 0.4% of Common Stock currently outstanding), to be transferred to Joseph Carl Mulac III,
Mike Jesberger, Stephen Adams, Richard Jerman and John Kraynick (collectively, the &#147;<U>Potential
Recipients</U>&#148;). Pursuant to the Participant Agreement, JEN Partners has also agreed to cause a
portion of any payments made under a Note to be transferred to the Potential Recipients. The
actual number of shares and amount of Note proceeds will be determined following the satisfaction
of any indemnification obligations to Avatar Properties and the determination of responsibility for
such indemnified matters among the Potential Recipients pursuant to the terms of the Participant
Agreement. Additionally, under the Participant Agreement, JEN Partners has agreed to cause a
portion of the Earnout Shares, to the extent issued, to be transferred to Joseph Carl Mulac III,
Mike Jesberger and Stephen Adams.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, JEN I, JEN Residential and the Issuer entered into a Registration Rights
Agreement, dated as of October&nbsp;25, 2010 (the &#147;<U>Registration Rights Agreement</U>&#148;), pursuant to
which JEN I and JEN Residential have customary registration rights in respect of their acquired
shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The descriptions of the Master Transaction Agreement, the Voting and Lock-Up Agreement, the
Participant Agreement and the Registration Rights Agreement are qualified in their entirety by the
terms and conditions of the Master Transaction Agreement, the Voting and Lock-Up Agreement, the
Participant Agreement and the Registration Rights Agreement, which are filed as Exhibits 99.2,
99.4, 99.5 and 99.6 hereto, respectively, and incorporated herein by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;7. Material to be Filed as Exhibits.</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Joint Filing Agreement, dated as of
November&nbsp;4, 2010, by and among
the Reporting Persons</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Master Transaction Agreement, dated as of October&nbsp;25, 2010, by and
among the Issuer, Avatar Properties, JEN Partners and the Sellers</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Earnout Agreement, dated as of October&nbsp;25, 2010, by and among the
Issuer, Avatar Properties, JEN I and JEN Residential</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Voting, Standstill and Lock-Up Letter Agreement, dated as of October
25, 2010, by and among the Issuer, Avatar Properties, JEN I and JEN
Residential</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Agreement Among Transaction Participants, dated as of October&nbsp;25,
2010, by and among JEN Partners, JEN I, JEN Residential, the Sellers,
Mike Jesberger, John Kraynick, Richard Jerman, Riverside Ventures
LLC, Peter Bay Investment LLC and William and Ruth Bloom</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registration Rights Agreement, dated as of October&nbsp;25, 2010, by and
among the Issuer, JEN I and JEN Residential</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Page 9
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After reasonable inquiry and to the best of their knowledge and belief, the undersigned
certify that the information set forth in this statement is true, complete and correct.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dated:
November&nbsp;4, 2010
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JEN I, L.P.&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">JEN Partners, LLC, its general partner&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JEN RESIDENTIAL LP&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">JEN Partners, LLC, its general partner&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JEN PARTNERS, LLC<BR>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">REUBEN S. LEIBOWITZ<BR>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>g25091exv99w1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w1</TITLE>
</HEAD>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Page 10
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 6pt"><B>Exhibit&nbsp;99.1</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">Joint Filing Agreement
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned acknowledge and agree that the foregoing statement on Schedule&nbsp;13D is filed on
behalf of each of the undersigned and that all subsequent amendments to this statement on Schedule
13D will be filed on behalf of each of the undersigned without the necessity of filing additional
joint filing agreements. The undersigned acknowledge that each will be responsible for the timely
filing of such amendments, and for the completeness and accuracy of the information concerning it
contained therein, but will not be responsible for the completeness and accuracy of the information
concerning the other, except to the extent that it knows or has reason to believe that such
information is not accurate. It is understood and agreed that a copy of this Joint Filing
Agreement will be attached as an exhibit of the foregoing statement on Schedule&nbsp;13D.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dated:
November&nbsp;4, 2010
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JEN I, L.P.&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">JEN Partners, LLC, its general partner&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JEN RESIDENTIAL LP&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">JEN Partners, LLC, its general partner&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JEN PARTNERS, LLC<BR>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">REUBEN S. LEIBOWITZ<BR>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
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<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>g25091exv99w2.htm
<DESCRIPTION>EX-99.2
<TEXT>
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<TITLE>exv99w2</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit 99.2</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 6pt">EXECUTION COPY
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">MASTER TRANSACTION AGREEMENT
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">among
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">AVATAR PROPERTIES INC.<BR>
(the &#147;<U>Purchaser</U>&#148;)
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">TERRA WEST COMMUNITIES LLC
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">JEN JCH, LLC
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">JOSEPH CARL MULAC III
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">STEPHEN ADAMS
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">SUN TERRA COMMUNITIES LLC
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">(collectively, the &#147;<U>Sellers</U>&#148;)
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">and
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">AVATAR HOLDINGS INC.<BR>
(solely for purposes of <U>Sections&nbsp;2.2</U>, <U>2.3(d)</U>, <U>3.2</U>, and <U>9.1</U> and
<U>Articles VIII</U> and <U>X</U> hereof)
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 6pt">and
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">JEN PARTNERS LLC<BR>
(solely for the purposes of <U>Sections&nbsp;2.2</U>, <U>7.5</U>, <U>7.6</U>, and <U>9.2</U> and
<U>Article&nbsp;X</U> hereof)
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 15pt">Dated as of October&nbsp;25, 2010
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;&#95;
</DIV>






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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>MASTER TRANSACTION AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MASTER TRANSACTION AGREEMENT (the &#147;<U><B>Agreement</B></U>&#148;), dated as of October&nbsp;25<B>, </B>2010, among
Avatar Properties Inc. (&#147;<U><B>Purchaser</B></U>&#148;), Terra West Communities LLC, a Delaware limited
liability company (&#147;<U><B>Terra West</B></U>&#148;), JEN JCH, LLC, a Delaware limited liability company
(&#147;<U><B>JEN JCH</B></U>&#148;), Joseph Carl Mulac III (&#147;<U><B>JCM</B></U>&#148;), Stephen Adams (&#147;<U><B>SA</B></U>&#148;), and Sun
Terra Communities LLC, a Delaware limited liability company (&#147;<U><B>Sun Terra</B></U>&#148; and, collectively
with Terra West, JEN JCH, JCM and SA, &#147;<U><B>Sellers</B></U>&#148;), solely for purposes of <U>Sections
2.2</U>, <U>2.3(d)</U>, <U>3.2</U>, and <U>9.1</U> and <U>Articles VIII</U> and <U>X</U>
hereof, Avatar Holdings Inc. (&#147;<U><B>Holdings</B></U>&#148;), and, solely for purposes of <U>Sections
2.2</U>, <U>7.5</U>, <U>7.6</U>, and <U>9.2</U> and <U>Article&nbsp;X</U> hereof, JEN Partners LLC
(&#147;<U><B>JEN Partners</B></U>&#148;).
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RECITALS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Terra West is the sole member of JCH Estrella, LLC, an Arizona limited liability
company (&#147;<U><B>JCH Estrella</B></U>&#148;), which owns the real property located in Maricopa County, Arizona
defined herein as the &#147;CantaMia Phase 1 Estrella Land&#148; and holds certain option rights to the
CantaMia Phase 2 and Phase 3 Land.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, JEN JCH, JCM and SA are the sole members of JCH Group, LLC, a Delaware limited
liability company (&#147;<U><B>JCH Group</B></U>&#148;), which is the sole member, directly or indirectly, of each
of Joseph Carl Homes, LLC, an Arizona limited liability company (&#147;<U><B>JCH AZ</B></U>&#148;), Joseph Carl
Homes, LLC, a Nevada limited liability company (&#147;<U><B>JCH NV</B></U>&#148;), JCH Construction, LLC, an
Arizona limited liability company (&#147;<U><B>Construction AZ</B></U>&#148;), JCH Construction, LLC, a Nevada
limited liability company (&#147;<U><B>Construction NV</B></U>&#148;), JCH Denali, LLC, a Nevada limited liability
company (&#147;<U><B>Denali</B></U>&#148;), JEN Arizona Acquisitions 2, LLC, a Delaware limited liability company
(&#147;<U><B>JEN AZ</B></U>&#148;), and PV Landbank, LLC, an Arizona limited liability company (&#147;<U><B>PV
Landbank</B></U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Sun Terra is the sole member of JEN Florida II, LLC, a Delaware limited liability
company (the &#147;<U><B>Sharpe Entity</B></U>&#148;), which owns certain rights to the real property located in
Orange County, Florida defined herein as the &#147;<U><B>Sharpe Land</B></U>.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, JEN AZ owns and holds rights to the real property located in Maricopa County, Arizona
defined herein as the &#147;<U><B>PV-Golf Land</B></U>.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, PV Landbank owns and holds rights to the real property located in Maricopa County,
Arizona defined herein as the &#147;<U><B>PV-Sereno Land</B></U>.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, JCH AZ is the sole member of JEN AZ and PV Landbank and owns and holds rights to the
real property defined herein as the &#147;CantaMia Phase 1 JCH AZ Land,&#148; the &#147;Arboleda Ranch Land&#148; and
the &#147;Blossom Hills Land.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Purchaser desires to acquire 100% of the ownership interests in each of the Purchased
Parents for the purpose of obtaining control of the Properties and the Purchased Entity Assets, and
Sellers desire to sell, transfer and assign to Purchaser all of their rights, title
and interest in and to all of the membership interests in the Purchased Parents, subject to
the terms and conditions of this Agreement.
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, and intending to be legally bound, each of the parties hereto hereby agrees as
follows:
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE I</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>DEFINITIONS; CONSTRUCTION; USAGE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized terms used and not defined herein shall have the meanings ascribed to such terms
in <U>Annex I</U>, which also sets forth rules of construction and usage that shall be applicable
herein.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE II</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>TRANSACTIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <U>Transactions</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;In contemplation of the execution of this Agreement and the consummation of the
Transactions, JCH AZ acquired all of the outstanding membership interests of JEN AZ and PV
Landbank. The consummation of the transfers contemplated by this <U>Section&nbsp;2.1</U> is an
essential part of the agreements set forth herein, and are made to induce Purchaser to enter into
this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;At the Closing, each Seller shall and hereby does sell to Purchaser, free and clear of any
and all Liens (other than any restrictions on or relating to the transfer thereof under the
Securities Act, the Exchange Act or such other state, federal, local or foreign securities laws
(collectively, the &#147;<U><B>Securities Law Restrictions</B></U>&#148;)), and Purchaser shall and hereby does
purchase from each Seller, the Interests set forth opposite such Seller&#146;s name on <U>Schedule
2.1(b)</U>, including all of such Seller&#146;s rights in and to the assets, distributions, profits and
losses of the Purchased Parents with respect to such Interests (the &#147;<U><B>Transactions</B></U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <U>Operative Documents</U>. In connection with the consummation of the Transactions,
each of the following documents and agreements (all of which are material to the consummation of
the Transactions) (collectively, the &#147;<U><B>Operative Documents</B></U>&#148;) shall be executed and delivered
to each of the parties thereto:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Notes</U>. At the Closing, Purchaser shall execute and deliver two promissory notes
of Purchaser, each in an aggregate principal amount of $6&nbsp;million, in the forms of <U>Exhibits
A-1</U> and <U>A-2</U> attached hereto (the &#147;<U><B>Notes</B></U>&#148;), together with a guarantee of such
obligations from Holdings in the form of <U>Exhibit&nbsp;A-3</U> (the &#147;<U><B>Holdings Guarantee</B></U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Earnout Agreement</U>. At the Closing, Holdings, Purchaser and each of the other
parties thereto shall enter into an earnout agreement in the form of <U>Exhibit&nbsp;B</U> attached
hereto (the &#147;<U><B>Earnout Agreement</B></U>&#148;).
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Independent Contractor Agreements</U>. At the Closing, Purchaser and the Independent
Land Developers shall enter into the independent contractor agreements in the forms of <U>Exhibit
C-1</U> and <U>C-2</U> attached hereto (the &#147;<U><B>Independent Contractor Agreements</B></U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Employment Agreement</U>. At the Closing, Purchaser and JCM shall enter into an
employment agreement in the form of <U>Exhibit&nbsp;D</U> attached hereto (the &#147;<U><B>Employment
Agreement</B></U>&#148;), and each of the Services Agreement dated April&nbsp;30, 2009 between JCH Group, LLC and
JCM, as amended, the Services Agreement dated April&nbsp;30, 2009 between JCH Group, LLC and SA, the
acknowledgment letter dated March&nbsp;26, 2009 from JEN Partners to Melissa Jones and the
acknowledgement letter dated March&nbsp;26, 2009 from JEN Partners to Dennis Palmer, and any other
written agreements relating to such Persons&#146; employment shall be terminated.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Lockup Agreement</U>. At the Closing, Jen Partners shall cause JEN I and JEN Res to
execute and deliver, and Holdings shall execute and deliver, the voting, standstill and lockup
agreement in the form of <U>Exhibit&nbsp;E</U> attached hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Registration Rights Agreement</U>. At the Closing, JEN Partners shall cause JEN I and
JEN Res to execute and deliver, and Holdings shall execute and deliver, the registration rights
agreement in the form of <U>Exhibit&nbsp;F</U> attached hereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>Assignment of Membership Interests</U>. At the Closing, each of the Sellers and
Purchaser shall execute and deliver an assignment of membership interests for the transfer of the
Interests owned by each such Seller (as reflected in <U>Schedule&nbsp;2.1(b)</U>), in the form of
<U>Exhibit&nbsp;G-1</U> through <U>G-3</U> attached hereto (the &#147;<U><B>Interest Transfer
Agreements</B></U>&#148;); <U>provided</U> that in lieu of the foregoing, with respect to each Seller
holding Interests that are certificated, such Seller shall deliver to Purchaser such certificated
Interests; together with membership interest powers in form reasonably satisfactory to Purchaser,
with all transfer Tax stamps affixed, duly endorsed by such Seller in blank for transfer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <U>Additional Sellers&#146; Closing Deliveries</U>. In furtherance of the transactions
contemplated by the Operative Documents, Sellers shall take the following actions or deliver the
following additional deliverables on or prior to the Closing Date:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Payment of Indebtedness and Release of Liens</U>. (i)&nbsp;Sellers shall cause all of the
Indebtedness of the Purchased Entities (other than the Indebtedness described on <U>Schedule
2.3(a)</U>), to be paid in full and all of the Liens with respect to any such Indebtedness (other
than Liens with respect to Indebtedness described on <U>Schedule&nbsp;2.3(a)</U> or that are Permitted
Exceptions), to be released, and (ii)&nbsp;Sellers shall deliver letters evidencing the payment in full
of such Indebtedness and the release of such Liens.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Consent and Notice Letters</U>. Sellers shall deliver the consents required for the
consummation of the Transactions and evidence of the notices given as described in <U>Schedule
4.3</U> and <U>Schedule&nbsp;5.3</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Certificates of Good Standing</U>. Sellers shall deliver certificates of good
standing for each of the Purchased Entities issued by the applicable State agency within three
Business Days prior to the Closing Date.
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Releases</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Holdings shall assume all of JCH Estrella&#146;s obligations under the Letter of Understanding
dated April&nbsp;28, 2010 between JCH Estrella and Jane Leibowitz relating to the irrevocable Standby
Letter of Credit No.&nbsp;S202939 with Bank of America issued to JCH Estrella on April&nbsp;26, 2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Sellers shall have received from Mutual of Omaha a release of JEN Partners and JCM from
all guaranties entered into in connection with the loan from Mutual of Omaha described in
<U>Schedule&nbsp;2.3(a)</U> in the amount of $3&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Closing Statement</U>. The parties shall agree on a closing settlement statement with
regard to the Cash Consideration.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Sharpe Property Matters</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Sellers shall cause the Sharpe Entity to execute and deliver to First American Title
Insurance Company (the &#147;<U><B>Title Company</B></U>&#148;) an affidavit stating that it is in sole and
exclusive possession of the Sharpe Land and attesting to the absence of any mechanic&#146;s, materialmen
or other liens or potential liens (if there are no such liens) with respect to the Sharpe Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Sellers shall cause the Sharpe Entity to provide the Title Company with a gap affidavit
in form reasonably acceptable to the Title Company to permit the Title Company to insure against
any Subsequent Adverse Title Matters and in accordance with the requirements of Section&nbsp;627.7841 of
the Florida Statutes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;The Title Company shall be unconditionally committed to issue to the Sharpe Entity a
title insurance policy insuring the Sharpe Land and any Subsequent Adverse Title Matters, in an
amount to be solely determined by Purchaser, subject only to commercially reasonable exceptions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;Within 30&nbsp;days following the public announcement by Purchaser of the Transactions,
Sellers shall deliver to Purchaser a copy of the unanimous consent of the members of Reams Road
Construction Group, LLC pursuant to the operating agreement of such entity consenting to the
&#147;Indirect Transfer&#148; (as defined in the operating agreement of such entity) by the Sharpe Entity of
its membership interests in such entity in connection with the consummation of the Transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;Within 45&nbsp;days following the public announcement by Purchaser of the Transactions, Sellers
shall deliver to Purchaser a copy of a binding agreement with RA Investment Holdings, Inc. and
Grant-Allan Enterprises, Inc. allocating development density rights to the Sharpe Entity, within
Parcel 2 of the Land Use Plan for the Lake Reams Neighborhood Planned Development, of 155
residential dwelling units.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;Sellers shall cause Richard Jerman, John Kraynick and Jennifer Jerman to resign as
directors and officers of Windermere Trails Homeowners Association, Inc., a
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Florida corporation
not-for-profit, and shall replace them with individuals designated by Purchaser.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>CantaMia Property Matters</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Sellers shall cause JCH Estrella to execute and deliver to the Title Company a letter in
the form previously agreed to with the Title Company stating that JCH Estrella is in sole and
exclusive possession of the CantaMia Phase 1 Estrella Land and attesting to the absence of any
mechanic&#146;s, materialmen or other liens (other than preliminary twenty day notices given by
contractors during work at the Properties) with respect to the CantaMia Phase 1 JCH Estrella Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Sellers shall cause JCH AZ to execute and deliver to the Title Company a letter in the
form previously agreed to with the Title Company stating that JCH AZ is in the sole and exclusive
possession of the CantaMia Phase 1 JCH AZ Land and attesting to the absence of any mechanic&#146;s,
materialmen or other liens (other than preliminary twenty day notices given by contractors during
work at the Properties) with respect to the CantaMia Phase 1 AZ Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;The Title Company shall be unconditionally committed to issue to JCH Estrella a title
insurance policy as of Closing insuring the CantaMia Phase 1 Estrella Land, the Newland Option
Contract and any Subsequent Adverse Title Matters, in an amount to be solely determined by
Purchaser, subject only to commercially reasonable exceptions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;The Title Company shall be unconditionally committed to issue to JCH AZ a title insurance
policy as of Closing insuring the CantaMia Phase 1 JCH AZ Land, the Rolling Option Agreement
between JCH Estrella and JCH AZ dated January&nbsp;19, 2010, and any Subsequent Adverse Title Matters,
in an amount to be solely determined by Purchaser, subject only to commercially reasonable
exceptions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;Sellers shall deliver to Purchaser a duly executed consent and estoppel certificate from
Mutual of Omaha Bank in the form of <U>Exhibit&nbsp;I</U> attached hereto (the &#147;<U><B>Omaha
Estoppel</B></U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;Sellers shall cause Melisa Boross to be elected as Vice President of the CantaMia at
Estrella Community Association, Inc., an Arizona nonprofit corporation, and all
actions taken prior to the Closing Date to be ratified by the board of directors of the
CantaMia at Estrella Community Association, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <U>Arboleda Ranch Property Matters</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Sellers shall cause JCH AZ to execute and deliver to the Title Company a letter in the
form previously agreed to with the Title Company stating that JCH AZ is in sole and exclusive
possession of the Arboleda Ranch Land and attesting to the absence of any mechanic&#146;s, materialmen
or other liens (other than preliminary twenty day notices given by contractors during work at the
Properties) with respect to the Arboleda Ranch Land.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;The Title Company shall be unconditionally committed to issue to JCH AZ a title insurance
policy as of Closing insuring the Arboleda Ranch Land, the Arboleda Option and any Subsequent
Adverse Title Matters, in an amount to be solely determined by Purchaser, subject only to
commercially reasonable exceptions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;Sellers shall cause Melisa Boross to be elected as Vice President of the Arboleda Ranch
Homeowners&#146; Association, an Arizona nonprofit corporation, and all actions taken prior to the
Closing Date to be ratified by the board of directors of the Arboleda Ranch Homeowners&#146;
Association.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Blossom Hills Property Matters</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Sellers shall cause JCH AZ to execute and deliver to the Title Company a letter in the
form previously agreed to with the Title Company stating that JCH AZ is in sole and exclusive
possession of the Blossom Hills Land and attesting to the absence of any mechanic&#146;s, materialmen or
other liens (other than preliminary twenty day notices given by contractors during work at the
Properties) with respect to the Blossom Hills Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;The Title Company shall be unconditionally committed to issue to the JCH AZ a title
insurance policy as of Closing insuring the Blossom Hills Land and any Subsequent Adverse Title
Matters, in an amount to be solely determined by Purchaser, subject only to commercially reasonable
exceptions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <U>PV-Sereno Property Matters</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Sellers shall cause JCH Group to execute and deliver to the Title Company a letter in the
form previously agreed to with the Title Company stating that JCH AZ is in sole and exclusive
possession of the PV-Sereno Land and attesting to the absence of any mechanic&#146;s, materialmen or
other liens (other than preliminary twenty day notices given by contractors during work at the
Properties) with respect to the PV-Sereno Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;The Title Company shall be unconditionally committed to issue to JCH AZ a title insurance
policy for the PV-Sereno Land, the PV-Sereno Option Agreement and any Subsequent Adverse Title
Matters, in an amount to be solely determined by Purchaser, subject only to commercially reasonable
exceptions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <U>PV-Golf Property Matters</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Sellers shall cause JCH Group to execute and deliver to the Title Company a letter in the
form previously agreed to with the Title Company stating that JCH AZ is in sole and exclusive
possession of the PV-Golf Land and attesting to the absence of any mechanic&#146;s, materialmen or other
liens (other than preliminary twenty day notices given by contractors during work at the
Properties) with respect to the PV-Golf Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;The Title Company shall be unconditionally committed to issue to JCH AZ a title insurance
policy for the PV-Golf Land and any Subsequent Adverse Title Matters, in an amount to be solely
determined by Purchaser, subject only to commercially reasonable exceptions.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <U>Powers of Attorney; Bank Accounts</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Sellers shall cause to be prepared and provided to Purchaser at the Closing a schedule
setting forth a list, as of the Closing, of the names and addresses of all Persons holding a
power-of-attorney on behalf of any Purchased Entity and all deposits and accounts, including
impound accounts and principal and interest accounts, lockboxes and safe-deposit boxes maintained
by the Purchased Entities (the &#147;<U><B>Bank Accounts</B></U>&#148;), the account or box numbers thereof, the
names and addresses of all banks or other financial institutions in which any of the Purchased
Entities has any such Bank Accounts, with the names of all Persons authorized to draw on Bank
Accounts or to have access to such Bank Accounts.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Sellers shall, on the Closing Date, take all steps necessary to remove all Persons who are
signatories or holders of powers-of-attorney in respect of any Bank Accounts who are not employees
of a Purchased Entity or Independent Land Developers from the list of such authorized signatories
and holders and otherwise extinguish their signing authority with respect to such Bank Accounts;
provided that Purchaser has timely delivered to Sellers the names of any Persons to replace such
authorized signatories and any information requested by the applicable bank with respect to such
Persons. After the Closing Date, the parties to the Bank Account Side Letter shall take the
actions described therein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <U>Other Seller Closing Deliveries</U>. Sellers shall deliver or cause to be delivered
to the Purchaser (i)&nbsp;such other appropriately executed instruments of sale, assignment, transfer
and conveyance (in addition to the Interest Transfer Agreements) as may be necessary to evidence
and effect the transfers contemplated by or in connection with the Transactions (it being
understood, however, that such instrument shall not require any Sellers or any other Person to make
any additional representations, warranties, covenants or agreements, express or implied, not
expressly set forth in this Agreement), (ii)&nbsp;certified copies of resolutions duly adopted by the
board of directors or other governing body of each applicable Seller authorizing the execution,
delivery and performance of this Agreement and the other agreements contemplated hereby, as
applicable, (iii)&nbsp;a certificate of the Secretary, Assistant Secretary or such other authorized
person of each applicable Seller as to the incumbency of the authorized signatory or signatories of
such Seller (who shall not be such Secretary, Assistant Secretary or other authorized signatory
with respect to any of the Operative Documents) executing this Agreement or any ancillary
agreement, as applicable, (iv)&nbsp;an affidavit of non-foreign status in the form attached hereto as
<U>Exhibit&nbsp;J</U> (in the case of an individual Seller) or the form attached hereto as <U>Exhibit
K</U> (in the case of a non-individual Seller), as appropriate, and (v)&nbsp;the IP Side Letter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <U>Additional Purchaser&#146;s Closing Deliveries</U>. In furtherance of the transactions
contemplated by the Operative Documents, Purchaser shall deliver or cause to be delivered to the
Seller Representative the following additional deliveries on or prior to the Closing Date: (i)
certified copies of resolutions duly adopted by the board of directors or other governing body of
the Purchaser authorizing the execution, delivery and performance of this Agreement and the other
agreements contemplated hereby, as applicable, (ii)&nbsp;a certificate of the Secretary, Assistant
Secretary or such other authorized person of the Purchaser as to the incumbency of the officer(s)
of Purchaser (who shall not be such Secretary, Assistant Secretary or other authorized person)
executing this Agreement or any ancillary agreement, as applicable, (iii)&nbsp;a short-form certificate
of good standing of Purchaser, certified by an appropriate
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">government official of the applicable
jurisdiction of organization as of a date not more than three Business Days prior to the Closing
Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <U>Books and Records</U>. At the Closing, Sellers shall deliver to Purchaser (i)
complete copies of the minute books of each of the Purchased Entities and (ii)&nbsp;an electronic copy
of the materials contained in the online data room establish by JEN Partners as further described
in the definition of &#147;Document Vault.&#148; Within five days following the Closing Date, Sellers shall
deliver to Purchaser all of the following documents, to the extent Sellers are in possession of
same, <U>provided</U> that any such documents shall be deemed to have been delivered to the extent
complete copies thereof are contained in the Document Vault as of the Closing Date: (a)&nbsp;copies of
all books and records of the Purchased Entities (including complete and correct copies of the
organizational documents of each Purchased Entity), financial statements (audited or unaudited) of
the Purchased Entities and Tax Returns of any type or nature filed by the Purchased Entities and
(b)&nbsp;any and all surveys, engineering, soil or environmental studies or other studies of any type or
nature with respect to the Properties made by Sellers, the Purchased Entities, or in the possession
or control of any of them.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE III</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>CLOSING; PURCHASE PRICE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <U>Closing</U>. Upon the terms and subject to the conditions set forth herein, the
consummation of the Transactions (the &#147;<U><B>Closing</B></U>&#148;) shall take place on the date hereof, at
the offices of Weil, Gotshal &#038; Manges LLP located at 767 Fifth Avenue, New York New York 10153 (or
at such other place as the parties may mutually designate in writing). (The date on which the
Closing shall be held is referred to in this Agreement as the &#147;<U><B>Closing Date</B></U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <U>Purchase Price</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Purchase of Interests; Payment to Sellers</U>. As consideration for the transfer of
Sellers&#146; Interests, Purchaser shall pay to Sellers US $62&nbsp;million, consisting of (A)&nbsp;US $30&nbsp;million
in cash plus an amount in cash equal to the Adjustment Amount (if the Adjustment Amount is
positive) or minus an amount of cash equal to the Adjustment Amount (if the Adjustment Amount is
negative), as the case may be, as determined under <U>Section&nbsp;3.3</U> (collectively, the &#147;<U><B>Cash
Consideration</B></U>&#148;), (B)&nbsp;the Notes, and (C)&nbsp;the issuance by Holdings to Sellers of 1,050,572 shares
of common stock of Holdings (the &#147;<U><B>Shares</B></U>&#148; and, together with the Cash Consideration and the
Notes, the &#147;<U><B>Purchase Price</B></U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Cash Consideration</U>. At the Closing, Purchaser shall pay the Cash Consideration
(determined in accordance with <U>Section&nbsp;3.3(a)</U>) to Sellers by wire transfer of immediately
available funds into an account or accounts designated in writing by JEN JCH to Purchaser.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Issuance of Holdings Common Stock to Sellers</U>. At the Closing, Holdings shall
issue to JEN I, L.P. (&#147;<U><B>JEN I</B></U>&#148;) and JEN Residential LP (&#147;<U><B>JEN Res</B></U>&#148;), all of the
Shares, for the benefit of the Sellers hereunder, as directed by the Sellers&#146; Representative.
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Notes</U>. At the Closing, Purchaser shall issue to JEN I and JEN Res, for the
benefit of the Sellers hereunder, the Notes as directed by the Sellers&#146; Representative.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <U>Adjustment Amount</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;For purposes of determining the Cash Consideration paid at the Closing, the
&#147;<U><B>Adjustment Amount</B></U>&#148; is US $3,292,480.58, representing Sellers&#146; calculation of the following
(which may be negative): (i)&nbsp;all investments and capital contributions made by or on behalf of the
Sellers in the Purchased Entities or their businesses or operations during the period commencing
August&nbsp;1, 2010 and ending on the Closing Date, <U>minus</U> (ii)&nbsp;all dividends or other
distributions declared or paid by the Purchased Entities to any of their respective equity holders
during the period commencing August&nbsp;1, 2010 and ending on the Closing Date, <U>plus</U> (iii)
$0.00 (Purchaser&#146;s share of any Prorated Taxes paid prior to the Closing Date, as further detailed
in <U>Schedule&nbsp;3.3(a)</U>), <U>minus</U> (iv) $324,935.17 (Sellers&#146; share of any Prorated Taxes
not paid as of July&nbsp;31, 2010, as further detailed in <U>Schedule&nbsp;3.3(a)</U>). <U>Schedule
3.3(a)</U> sets forth Sellers&#146; summary of the date and amount of each investment, capital
contribution, dividend, distribution and Prorated Tax proration.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Purchaser may, within 60&nbsp;days after the Closing Date, deliver a notice to Sellers
indicating its disagreement with the Adjustment Amount. Any such notice must be in writing and
detail Purchaser&#146;s calculation of the Adjustment Amount and specify each item set forth (or
excluded from) <U>Schedule&nbsp;3.3(a)</U> as to which it disagrees. Purchaser shall be deemed to have
agreed with all other items and amounts set forth on <U>Schedule&nbsp;3.3(a)</U> not expressly disputed
in the written notice. If no notice of disagreement is delivered within 60&nbsp;days after the Closing
Date, Purchaser shall be deemed to have agreed with all items and amounts relating to Sellers&#146;
calculation of the Adjustment Amount.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If a notice of disagreement is duly delivered pursuant to <U>Section&nbsp;3.3(b)</U>,
Purchaser and Sellers shall, during the 30&nbsp;days following such delivery, use their commercially
reasonable efforts to reach agreement on the disputed items or amounts. If following such period,
Purchaser and Sellers are unable to reach an agreement, they shall promptly thereafter engage
Margolin, Winer &#038; Evens LLP as the independent accountant mutually agreed upon by Purchaser and
Sellers (the &#147;<U><B>Independent Accountant</B></U>&#148;) to review this Agreement and the disputed items or
amounts with respect to the calculation of the Adjustment Amount and to calculate the final
Adjustment Amount. In making such calculation, the Independent Accountant shall consider only
those items or amounts disputed in the written notice delivered in accordance with <U>Section
3.3(b)</U>. Any determination by the Independent Accountant shall be final and binding upon
Purchaser and Sellers. The fees, costs and expenses of the Independent Accountant shall be shared
equally by Purchaser and Sellers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If, following the application of <U>Sections&nbsp;3.3(b)</U> and <U>3.3(c)</U>, the
Adjustment Amount is determined to be less than the amount set forth in <U>Section&nbsp;3.3(a)</U>,
Sellers shall pay the amount of such difference to Purchaser within 15&nbsp;days after such
determination.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <U>Allocation of Purchase Price</U>. As soon as practicable following the Closing Date
but in no event later than 120&nbsp;days thereafter, Purchaser shall deliver to Sellers&#146; Representative
a schedule (the &#147;<U><B>Allocation Schedule</B></U>&#148;) allocating the Purchase Price (together
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">with all other amounts treated as consideration for U.S. federal income tax purposes) among the Purchased
Entity Assets in accordance with Section&nbsp;1060 of the Code and the Treasury Regulations promulgated
thereunder. Purchaser shall prepare and deliver to Sellers&#146; Representative from time to time
revised copies of the Allocation Schedule (the &#147;<U><B>Revised Allocation Schedules</B></U>&#148;) so as to
report any matters on the Allocation Schedule that need updating (including for adjustments to the
Purchase Price, if any, or to conform to adjustments to Purchaser&#146;s audited financial statements).
The Allocation Schedule and each Revised Allocation Schedule shall be subject to a dispute
mechanism comparable to the procedure described in <U>Section&nbsp;3.3</U> hereof (provided that
Sellers&#146; Representative must provide any objection to the Allocation Schedule or a Revised
Allocation Schedule within 30&nbsp;days of receipt thereof). Except to the extent otherwise required by
Law, each party hereto shall prepare and file all Tax Returns and other statements in a manner
consistent with the Allocation Schedule (or the most recent Revised Allocation Schedule, as
applicable) and shall not make any materially inconsistent statement or adjustment on any Tax
Returns or otherwise during the course of an audit, investigation or other dispute with any Taxing
Authority or otherwise.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <U>Closing Costs</U>. All recording fees and other closing costs shall be paid by
Purchaser.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 <U>Closing Deliveries</U>. Purchaser acknowledges and agrees that the payment of the Cash
Consideration on the Closing Date will be conclusive evidence that all conditions precedent to the
Closing and all other closing deliverables required to be met or delivered prior to Closing have
been met, received or satisfied.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE IV</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>REPRESENTATIONS AND WARRANTIES RELATING TO SELLERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Seller, severally and not jointly, hereby represents and warrants to Purchaser that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <U>Organization and Good Standing</U>. Each Seller that is an entity is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its organization and
has all requisite power and authority to own, lease, develop, sell and operate its Assets and to
carry on its business as now conducted. Each Seller that is an entity is duly qualified or
authorized to do business as a foreign entity and is in good standing under the laws of each
jurisdiction in which it owns or leases real property and each other jurisdiction in which the
conduct of its business or the ownership of its properties requires such qualification or
authorization. The Operating Agreements are in full force and effect and are valid, binding and
enforceable against the respective parties thereto in accordance with their respective provisions.
No Seller has received any notice that it is in breach of any Operating Agreement or that any
member intends or desires to modify, waive, amend, rescind, release, cancel or terminate any
Operating Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <U>Authorization of Agreement</U>. Each Seller has all requisite power, authority and
legal capacity or has otherwise been given a legally valid and binding consent to execute and
deliver this Agreement and each other agreement, document, or instrument or
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">certificate contemplated by this Agreement or to be executed by such Seller in connection with the consummation
of the Transactions (the &#147;<U><B>Seller Documents</B></U>&#148;), and to consummate the transactions
contemplated hereby and thereby. Each Seller has taken all necessary corporate, limited liability
company or other action to authorize the execution, delivery and performance of this Agreement and
each of the Seller Documents to which such Seller is a party, and the consummation of the
transactions contemplated hereby and thereby. This Agreement and each of the Seller Documents have
been duly and validly executed and delivered by such Seller and (assuming due authorization,
execution and delivery by Purchaser) each of this Agreement and the Seller Documents constitute,
legal, valid and binding obligations of such Seller, enforceable against such Seller in accordance
with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium and other similar Laws relating to or affecting creditors&#146; rights
generally and general equitable principles, whether considered in a proceeding in equity or at law
(collectively, the &#147;<U><B>General Enforceability Exceptions</B></U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <U>Conflicts; Consents of Third Parties</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as set forth on <U>Schedule&nbsp;4.3</U>, none of the execution and delivery by each
Seller of this Agreement or the Seller Documents, the consummation of the transactions contemplated
hereby or thereby, or compliance by such Seller with any of the provisions hereof or thereof will
conflict with, or result in any violation of or default (with or without notice or lapse of time,
or both) under, or give rise to a right of termination or cancellation under any provision of (i)
the certificate of formation or organization or bylaws, partnership agreement or
operating agreement of any Seller that is an entity, (ii)&nbsp;any Contract or Permit to which any
Seller is a party or by which any of the Assets of such Seller are bound, (iii)&nbsp;any Order of any
Governmental Body applicable to such Seller or by which any of the Assets of such Seller are bound,
or (iv)&nbsp;any applicable Law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth on <U>Schedule&nbsp;4.3</U>, no consent, waiver, approval, Order, Permit
or authorization of, or declaration or filing with, or notification to, any Person or Governmental
Body is required on the part of such Seller in connection with the execution and delivery of this
Agreement, the Seller Documents, the compliance by such Seller with any of the provisions hereof or
thereof, or the consummation of the Transactions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <U>Ownership and Transfer of Interests</U>. Each Seller is the record and beneficial
owner of the Interests indicated as being owned by such Seller on <U>Schedule&nbsp;2.1(b)</U>, free and
clear of any and all Liens other than any Securities Law Restrictions. As of immediately prior to
Closing, such Seller has the power and authority to sell, transfer, assign and deliver such
Interests as provided in this Agreement and such delivery will convey to Purchaser good and valid
title to such Interests, free and clear of any and all Liens other than any Securities Law
Restrictions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <U>Litigation</U>. Except as set forth in <U>Schedule&nbsp;4.5</U>, there is no Legal
Proceeding pending or, to the Knowledge of such Seller, threatened against such Seller or to which
such Seller is otherwise a party relating to this Agreement, the Seller Documents or the
transactions contemplated hereby or thereby.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <U>Financial Advisors</U>. Except as set forth on <U>Schedule&nbsp;4.6</U>, no Person has
acted, directly or indirectly, as a broker, finder or financial advisor for any Seller in
connection with the Transactions and no Person is or will be entitled to any fee or commission or
like payment in respect thereof.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE V</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>REPRESENTATIONS AND WARRANTIES<BR>
RELATING TO THE PURCHASED ENTITIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each Seller hereby represents and warrants to Purchaser that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <U>Organization and Good Standing</U>. Each Purchased Entity is duly organized, validly
existing and in good standing under the laws of the state of its organization and has all requisite
corporate power and authority to own, lease, develop, sell and operate its Assets and to carry on
its business as now conducted. Each Purchased Entity is duly qualified or authorized to do
business as a foreign entity and is in good standing under the laws of each jurisdiction in which
it owns or leases real property and each other jurisdiction in which the conduct of its business or
the ownership of its properties requires such qualification or authorization, except where the
failure to be so qualified, authorized or in good standing would not have a Material Adverse
Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <U>Authorization of Agreement</U>. Each Purchased Entity has all requisite power,
authority and legal capacity or has otherwise been given a legally valid and binding consent to
execute and deliver each agreement, document, or instrument or certificate contemplated by this
Agreement to be executed by it in connection with the Transactions (the &#147;<U><B>Company
Documents</B></U>&#148;), to perform its obligations thereunder and to consummate the transactions
contemplated thereby. Each of the Purchased Entities has taken all necessary corporate, limited
liability company or other action to authorize the execution, delivery and performance of each of
the Company Documents to which such Purchased Entity is a party, and the consummation of the
transactions contemplated thereby. Each of the Company Documents is duly and validly executed and
delivered by each Purchased Entity party thereto and (assuming due authorization, execution and
delivery by the counterparties thereto, as applicable) each of the Company Documents constitute
legal, valid and binding obligations of each Purchased Entity party thereto, enforceable against
them in accordance with their respective terms, subject to the General Enforceability Exceptions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <U>Conflicts; Consents of Third Parties</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as set forth in <U>Schedule&nbsp;5.3</U>, none of the execution and delivery by any
Purchased Entity of this Agreement or the Company Documents, the consummation of the transactions
contemplated hereby or thereby, or compliance by any Purchased Entity with any of the provisions
hereof or thereof will conflict with, or result in any violation or breach of, conflict with or
default (with or without notice or lapse of time, or both) under, or give rise to a right of
termination, cancellation or acceleration of any obligation or to loss of a material benefit under,
or give rise to any obligation of any Purchased Entity to make any payment under, or to the
increased, additional, accelerated or guaranteed rights or entitlements of any Person under, or
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">result in the creation of any Liens (other than Permitted Exceptions) upon any of the Purchased
Entity Assets under, any provision of (i)&nbsp;the certificate of organization or operating agreement of
any Purchased Entity, (ii)&nbsp;any Contract or Permit to which any Purchased Entity is a party or by
which any of the Purchased Entity Assets are bound, (iii)&nbsp;any Order applicable to any Purchased
Entity or any of the Purchased Entity Assets, or (iv)&nbsp;any applicable Law, except as would not (in
the case of clauses (ii)&nbsp;through (iv)), individually or in the aggregate, have a Material Adverse
Effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth in <U>Schedule&nbsp;5.3</U>, no consent, waiver, approval, Order, Permit
or authorization of, or declaration or filing with, or notification to, any Person or Governmental
Body is required on the part of any Purchased Entity in connection with the execution and delivery
of this Agreement, the Company Documents the compliance by the Purchased Entities with any of the
provisions hereof and thereof, or the consummation of the Transactions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <U>Capitalization</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The holders of the ownership interests, whether by membership, profit, loss or capital, of
each Purchased Entity are as set forth on <U>Schedule&nbsp;2.1(b)</U>. Each Seller has made all
capital contributions as required by it (if any) in the Operating Agreement for each
respective Purchased Entity. None of the interests of the Purchased Entities were issued in
violation of any purchase or call option, right of first refusal, subscription right, preemptive
right or any similar rights.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth on <U>Schedule&nbsp;5.4(b)</U>, there are no outstanding options to
purchase ownership interests, whether by membership, profit, loss or capital, of the Purchased
Entities (&#147;<U><B>Purchased Entity Options</B></U>&#148;). There is no existing option, warrant, call, right
or Contract to which any Seller or any Purchased Entity is a party requiring, and there are no
securities of any Purchased Entity outstanding which upon conversion or exchange would require, the
issuance, sale or transfer of any additional ownership interest in any Purchased Entity or other
securities convertible into, exchangeable for or evidencing the right to subscribe for or purchase
ownership interests or other equity securities of any Purchased Entity. There are no obligations,
contingent or otherwise, of any Purchased Entity to (i)&nbsp;repurchase, redeem or otherwise acquire any
ownership interests or other equity interests of any Purchased Entity, or (ii)&nbsp;provide material
funds to, or make any material investment in (in the form of a loan, capital contribution or
otherwise), or provide any guarantee with respect to the obligations of, any Person. There are no
outstanding interest appreciation, phantom interests, profit participation or similar rights with
respect to any Purchased Entity. There are no bonds, debentures, notes or other Indebtedness of
the Purchased Entities having the right to vote or consent (or, convertible into, or exchangeable
for, securities having the right to vote or consent) on any matters on which members (or other
equity holders) of any Purchased Entity may vote. There are no voting trusts, irrevocable proxies
or other Contracts or understandings to which any Purchased Entity or any Seller is a party or is
bound with respect to the voting of any ownership interest of any Purchased Entity.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <U>Subsidiaries</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Schedule&nbsp;5.5(a)</U> sets forth the name of each Purchased Entity and each Subsidiary
thereof, and, with respect to each such Subsidiary, the jurisdiction in which it is incorporated or
organized, and the jurisdictions, if any, in which it is qualified to do business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Other than the entities set forth on <U>Schedule&nbsp;5.5(b)</U> or a Purchased Entity, the
Purchased Entities do not own, directly or indirectly, any equity or ownership interests in any
other Person.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 <U>Corporate Records</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Sellers have made available to Purchaser in the Document Vault true, correct and complete
copies of the certificates of organization or articles of organization (each certified by the
Secretary of State or other appropriate official of the applicable jurisdiction of organization) of
each Purchased Entity and its respective Operating Agreements in each case as amended and in effect
on the due date hereof, including all amendments thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Sellers have made available to Purchaser in the Document Vault true, correct and complete
copies of all written consents and minutes of meetings of the Purchased Entities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 <U>Financial Statements</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Sellers have delivered or made available to Purchaser copies of (i)&nbsp;the unaudited balance
sheets of JCH Estrella as at December&nbsp;31, 2009 and Joseph Carl Homes &#151; Consolidated (also known as
JCH Group) as at December&nbsp;31, 2009 and the related statements of income and of cash flows of such
Purchased Parents for the year then ended, (ii)&nbsp;the audited balance sheet of JCH Group as at
December&nbsp;31, 2009 (the &#147;<U><B>Audited JCH Statement</B></U>&#148;), (iii)&nbsp;the unaudited balance sheet of the
Sharpe Entity as at October&nbsp;8, 2010, and (iv)&nbsp;the unaudited balance sheets of JCH Estrella as at
August&nbsp;31, 2010 and Joseph Carl Homes &#151; Consolidated (also known as JCH Group) as at August&nbsp;31,
2010 and the related statements of income and cash flows of such Purchased Parents for the 8&nbsp;month
period then ended (collectively, the &#147;<U><B>Financial Statements</B></U>&#148;). The Audited JCH Statement
and the other financial statements relating to JCH Group (collectively, the &#147;<U><B>JCH
Financials</B></U>&#148;) have been prepared in accordance with GAAP consistently applied without
modification of the accounting principles used in the preparation thereof throughout the periods
presented and presents fairly in all material respects the assets, liabilities, financial position,
results of operations and cash flows of JCH Group as at the dates and for the periods indicated
therein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The balance sheets of such Purchased Parents as at December&nbsp;31, 2009 is referred to herein as
the &#147;<U><B>Balance Sheet</B></U>&#148; and December&nbsp;31, 2009 is referred to herein as the &#147;<U><B>Balance Sheet
Date</B></U>.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;All books, records and accounts of the Purchased Entities are accurate and are maintained
in all material respects in accordance with good business practice and all applicable Laws. JCH
Group maintains systems of internal accounting controls sufficient to provide reasonable assurances
that: (i)&nbsp;transactions are executed in accordance with
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">management&#146;s general or specific
authorization; (ii)&nbsp;transactions are recorded as necessary to permit the preparation of financial
statements in conformity with GAAP and to maintain accountability for assets; (iii)&nbsp;access to
assets is permitted only in accordance with management&#146;s general or specific authorization; and
(iv)&nbsp;the recorded accountability for assets is compared with the actual levels at reasonable
intervals and appropriate action is taken with respect to any differences.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 <U>No Undisclosed Liabilities</U>. No Purchased Entity has any liabilities of a nature
required to be reflected on a balance sheet prepared in accordance with GAAP (including any
contingencies required to be reflected in any notes thereto), other than those (i)&nbsp;specifically
reflected in the Financial Statements, (ii)&nbsp;incurred in the Ordinary Course of Business since the
Balance Sheet Date or (iii)&nbsp;that are immaterial to the Purchased Entities taken as a whole.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 <U>Absence of Certain Developments</U>. Except as expressly contemplated by this
Agreement or as set forth on <U>Schedule&nbsp;5.9</U>, since the Balance Sheet Date and through the
Closing Date there has not been any event, change, occurrence or circumstance that,
individually or in the aggregate with any such events, changes, occurrences or circumstances, has
had or could reasonably be expected to have a Material Adverse Effect. Without limiting the
generality of the foregoing, except as set forth on <U>Schedule&nbsp;5.9</U>, since the Balance Sheet
Date and through the Closing Date:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;no Purchased Entity has (A)&nbsp;made, changed or rescinded any election relating to Taxes; (B)
settled or compromised any claim relating to Taxes; (C)&nbsp;surrendered any Tax refund; amended any Tax
Return; or filed any Tax Return prepared not in accordance with past practice; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;no Purchased Entity has (A)&nbsp;mortgaged, pledged or subjected to any Lien any of its
Purchased Entity Assets, or (B)&nbsp;acquired any assets or sold, assigned, transferred, conveyed,
leased or otherwise disposed of any of its Purchased Entity Assets, except, in the case of clause
or (B), for assets acquired, sold, assigned, transferred, conveyed, leased or otherwise disposed of
in the Ordinary Course of Business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 <U>Taxes</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Each of the Purchased Entities is, and has been since its formation, properly treated as
either a partnership (in the case of JCH Group) or a &#147;disregarded entity&#148; (in the case of all the
Purchased Entities other than JCH Group) for U.S. federal and all applicable state and local income
tax purposes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i)&nbsp;All Tax Returns required to be filed by or on behalf of a Purchased Entity or any
Affiliated Group of which any Purchased Entity is or was a member have been duly and timely filed
with the appropriate Taxing Authority in all jurisdictions in which such Tax Returns are required
to be filed (after giving effect to any valid extensions of time in which to make such filings),
and all such Tax Returns are true, complete and correct in all material respects; and (ii)&nbsp;all
Taxes payable by or on behalf of a Purchased Entity and any Affiliated Group of which any Purchased
Entity is or was a member have been fully and timely paid.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each Purchased Entity has complied in all material respects with all applicable Laws
relating to the payment and withholding of Taxes and has duly and timely withheld and paid over to
the appropriate Taxing Authority all amounts required to be so withheld and paid under all
applicable Laws.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Purchaser has received from the Sellers complete copies of all federal, state, local and
foreign income or franchise Tax Returns of Terra West, JCH Group and Sun Terra relating to all the
taxable periods since their formation. All income and franchise Tax Returns have been filed by or
on behalf of JCH AZ. <U>Schedule&nbsp;5.10(d)</U> sets forth the Tax Returns of the Purchased Entities
to the extent complete copies thereof have been provided to Purchaser.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Sellers have received no written (or, to the Knowledge of Sellers, other) notice from a
Taxing Authority in a jurisdiction where any Purchased Entity does not file Tax Returns such that
it is or may be subject to taxation by that jurisdiction.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;All deficiencies asserted or assessments made as a result of any examinations by any
Taxing Authority of the Tax Returns of, or including, any Purchased Entity have been fully paid,
and, to the Knowledge of such Seller, there are no other audits or investigations by any Taxing
Authority in progress, nor have Sellers or any Purchased Entity received any notice from any Taxing
Authority that it intends to conduct such an audit or investigation. No issue has been raised by a
Taxing Authority in any prior examination of any Purchased Entity which, by application of the same
or similar principles, could reasonably be expected to result in a proposed deficiency for any
subsequent taxable period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;No Purchased Entity nor any other Person (including the Sellers) on their behalf has (i)
executed or entered into a closing agreement with any Taxing Authority with respect to any
Purchased Entity, (ii)&nbsp;requested any extension of time within which to file any Tax Return, which
Tax Return has not since been file, (iii)&nbsp;waived any statute of limitations or granted any
extension for the assessment or collection of Taxes, which Taxes have not since been paid, or (iv)
granted to any Person any power of attorney that is currently in force with respect to any Tax
matter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;No Seller is a foreign person within the meaning of Section&nbsp;1445 of the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;No Purchased Entity is a party to any tax sharing, allocation, indemnity or similar
agreement or arrangement (whether or not written) pursuant to which it will have any obligation to
make any payments after the Closing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;No Purchased Entity is subject to any private letter ruling of the IRS or comparable
rulings of any Taxing Authority.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;Except as set forth on <U>Schedule&nbsp;5.10</U>, there are no Liens as a result of any unpaid
Taxes upon any of the Purchased Entity Assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;There is no taxable income of any Purchased Entity that will be required under applicable
Tax Law to be reported by the Purchaser or any of its Affiliates, including any
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Purchased Entity, for a taxable period beginning after the Closing Date which taxable income was realized (and
reflects economic income) arising prior to the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 <U>Real Property</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Sharpe Property</U>. In addition to (and without limiting) any other representations
and warranties set forth elsewhere in this Agreement that are applicable to the assets of Sellers,
Sellers make the representations set forth on <U>Schedule&nbsp;5.11(a)</U> with respect to the Sharpe
Property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>CantaMia Property</U>. In addition to (and without limiting) any other
representations and warranties set forth elsewhere in this Agreement that are applicable to the
assets of Sellers, Sellers make the representations set forth on <U>Schedule&nbsp;5.11(b)</U> with
respect to the CantaMia Property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Arboleda Property</U>. In addition to (and without limiting) any other
representations and warranties set forth elsewhere in this Agreement that are applicable to the
assets of Sellers, Sellers make the representations set forth on <U>Schedule&nbsp;5.11(c)</U> with
respect to the Arboleda Property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Blossom Hills Property</U>. In addition to (and without limiting) any other
representations and warranties set forth elsewhere in this Agreement that are applicable to the
assets of Sellers, Sellers make the representations set forth on <U>Schedule&nbsp;5.11(d)</U> with
respect to the Blossom Hills Property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>PV-Sereno Property</U>. In addition to (and without limiting) any other
representations and warranties set forth elsewhere in this Agreement that are applicable to the
assets of Sellers, Sellers make the representations set forth on <U>Schedule&nbsp;5.11(e)</U> with
respect to the PV-Sereno Property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>PV-Golf Property</U>. In addition to (and without limiting) any other representations
and warranties set forth elsewhere in this Agreement that are applicable to the assets of Sellers,
Sellers make the representations set forth on <U>Schedule&nbsp;5.11(f)</U> with respect to the PV-Golf
Property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;There is no condemnation or eminent domain proceeding pending with respect to any portion
of any of the Properties and no Seller or Purchased Entity has received notice, nor do Sellers have
Knowledge of any pending or contemplated condemnation proceeding which could affect any portion of
any of the Properties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 <U>Tangible Personal Property</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Purchased Entities have good and valid title to all of the items of tangible personal
property used in the business of the Purchased Entities, including the sales trailer at the
CantaMia Property (except for any leased personal property described in <U>Schedule&nbsp;5.12(b)</U>,
free and clear of any and all Liens, other than the Permitted Exceptions.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Schedule&nbsp;5.12(b)</U> sets forth all leases of personal property (&#147;<U><B>Personal
Property Leases</B></U>&#148;) relating to personal property used in the business of any Purchased Entity or
to which any Purchased Entity is a party or by which any Purchased Entity Assets is bound. All of
the items of personal property under the Personal Property Leases are in all material respects in
the condition required of such property by the terms of the lease applicable thereto during the
term of the lease. Sellers have delivered or made available to Purchaser true, correct and
complete copies of the Personal Property Leases, together with all amendments, modifications or
supplements thereto.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13 <U>Technology and Intellectual Property</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Schedule&nbsp;5.13(a)</U> sets forth (i)&nbsp;all the material Intellectual Property, including
all pending registrations and applications therefor, that the Purchased Entities own, use or
license and (ii)&nbsp;all contracts, agreements or other arrangements under which the Purchased Entities
have granted, or are obligated to grant, rights to others to use, reproduce, market or exploit any
Intellectual Property. All owned and registered Intellectual Property used by or in connection
with the conduct and operation of the businesses relating to the CantaMia Property, including
rights to any architectural and engineering plans and designs and any materials relating thereto
with respect to the homes, the clubhouse and the grounds in respect of the CantaMia Property (the
&#147;<U><B>CantaMia IP</B></U>&#148;), are subsisting, and all necessary registration, maintenance, renewal, and
other relevant filing fees due through the date hereof in connection therewith have been timely
paid and all necessary documents and certificates in connection therewith have been timely filed
with the relevant patent, copyright, trademark, or other authorities in the United States or
foreign jurisdictions, as the case may be, for the purposes of maintaining such registered
Intellectual Property in full force and effect in all material respects.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as set forth on <U>Schedule&nbsp;5.13(b)</U>, the Purchased Entities own all right,
title and interest in and to, or have valid and continuing rights to use, sell and license without
limitation including the right to copy, distribute, display, prepare derivative works of any
CantaMia IP subject to copyright protection) all material Intellectual Property, Software and other
Technology used in the conduct of the business and operations in respect of the Properties as
presently conducted, free and clear of all Liens or obligations to others other than Permitted
Exceptions. Except as set forth on <U>Schedule&nbsp;5.13(b)</U>, to the Knowledge of Sellers none of
the Purchased Entity Assets (including any Intellectual Property of the Purchased Entities as used
in connection with their respective businesses, including but not limited to the names of any
Purchased Entity or any other Purchased Entity Assets), or the business or operations of the
Purchased Entities, infringe upon, misappropriate or otherwise violate any Intellectual Property of
any third party in any material respect. To the best of the Sellers&#146; Knowledge, no third party is
infringing on any rights of the Purchased Entities&#146; Intellectual Property.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Except as set forth in <U>Schedule&nbsp;5.13(c)</U>, there is no action, suit, proceeding,
hearing, investigation, notice or complaint pending or, to Sellers&#146; Knowledge, threatened by any
third party before any court or tribunal (including the United States Patent and Trademark Office
or equivalent authority anywhere in the world) relating to any of the Intellectual Property or
Technology owned by the Purchased Entities, nor has any claim or demand been made by any third
party that (i)&nbsp;challenges the validity, enforceability, use or exclusive ownership of any
Intellectual Property or Technology owned by the Purchased Entities or (ii)&nbsp;alleges any
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">infringement, misappropriation, violation, or unfair competition or trade practices by the
Purchased Entities of any Intellectual Property or Technology of any third party.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Purchased Entities are in compliance in all material respects with any posted privacy
policies and any laws or regulations relating to personally identifiable information.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14 <U>Material Contracts</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Schedule&nbsp;5.14(a)</U> sets forth, all of the following Contracts to which any Purchased
Entity is a party or by which any of them or their respective Purchased Entity Assets are bound
(collectively, the &#147;<U><B>Material Contracts</B></U>&#148;):
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Contracts with any Seller or Affiliate thereof or any current or former officer, director,
stockholder or Affiliate of any Purchased Entity (other than a Purchased Entity);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Contracts for the sale of any material assets of any Purchased Entity other than in the
Ordinary Course of Business or for the grant to any Person of any preferential rights to purchase
any of its material assets;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;Contracts for joint ventures, strategic alliances, partnerships, licensing arrangements,
or sharing of profits or proprietary information;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;Contracts containing covenants of any Purchased Entity not to compete in any line of
business or with any Person in any geographical area or not to solicit or hire any person with
respect to employment or covenants of any other Person not to compete with any Purchased Entity in
any line of business or in any geographical area or not to solicit or hire any person with respect
to employment;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;Contracts relating to the acquisition (by merger, purchase of stock or assets or
otherwise) by any Purchased Entity of any operating business or material assets or the capital
stock of any other Person;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;Contracts relating to the incurrence, assumption or guarantee of any Indebtedness or
imposing a Lien on any of the material assets of any Purchased Entity;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;all Contracts providing for payments by or to any Purchased Entity in excess of $50,000
in any fiscal year or $200,000 in the aggregate during the term thereof;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;all Contracts obligating any Purchased Entity to provide or obtain products or services
for a period of one year or more;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;Contracts for the employment of any individual on a full-time, part-time or consulting
basis; and
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;development agreements setting forth duties and obligations relating to the Properties,
public disclosure reports issued by the Arizona Department of Real Estate, and storm water plans
filed with the Arizona Department of Environmental Quality.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each of the Material Contracts is in full force and effect and is the legal, valid and
binding obligation of any Purchased Entity which is party thereto, and of the other parties thereto
enforceable against each of them in accordance with its terms. No Purchased
Entity is in default under any Material Contract, nor, to the Knowledge of Sellers, is any
other party to any Material Contract in breach of or in default thereunder, and, to the Knowledge
of Sellers, no event has occurred that with the lapse of time or the giving of notice or both would
constitute a breach or default of any Purchased Entity or any other party thereunder. Any payments
due under each Material Contract have been timely made by the applicable Purchased Entity. No
party to any of the Material Contracts has exercised any termination rights with respect thereto,
and no party has given notice of any significant dispute with respect to any Material Contract.
Sellers have delivered or made available to Purchaser true, correct and complete copies of all of
the Material Contracts, together with all amendments, modifications or supplements thereto and
assignments thereof, if any.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15 <U>Employee Benefits Plans</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as set forth in <U>Schedule&nbsp;5.15(a)</U>, no Purchased Entity has any material
Liability in respect of (i)&nbsp;any &#147;employee benefit plan&#148; (as defined in Section&nbsp;3(3) of the Employee
Retirement Income Security Act of 1974, as amended, or (ii)&nbsp;any bonus, incentive compensation,
deferred compensation, tax gross-up, salary continuation or other material employee benefit plan or
agreement, in each case of clauses (i)&nbsp;and (ii)&nbsp;that is sponsored or maintained by a Purchased
Entity. Sellers have made available to Purchaser correct and complete copies of each plan or
agreement set forth in <U>Schedule&nbsp;5.15(a)</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Neither the execution of this Agreement nor the consummation of the transactions
contemplated by this Agreement, will result in any &#147;excess&#148; parachute payment for purposes of
Section 280(g) of the Code for which any Purchased Entity has any Liability.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Seller has provided a complete and correct list of all Employees, and each Employee&#146;s base
salary, target annual cash bonus, position of employment and location of employment in the Benefits
Side Letter.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.16 <U>Labor</U>. Except as disclosed in the Labor Side Letter:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;No Purchased Entity is a party to any labor or collective bargaining agreement and there
are no labor or collective bargaining agreements which pertain to employees of any Purchased
Entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;There are no unfair labor practice charges, grievances or complaints pending or, to the
Knowledge of Sellers, threatened by or on behalf of any Employee or group of Employees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;There are no complaints, charges or claims against any Purchased Entity pending with or,
to the Knowledge of Sellers, threatened by any Governmental Body based on,
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">arising out of, in connection with or otherwise relating to the employment or termination of employment of or failure
to employ, any individual.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.17 <U>Litigation; Disputes</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as set forth in <U>Schedule&nbsp;5.17</U>, there is no Legal Proceeding pending or, to
the Knowledge of Sellers, threatened against any Purchased Entity (or to the Knowledge of Sellers,
pending or threatened, against any of the officers, directors or employees of any Purchased Entity
with respect to their business activities on behalf of the Purchased Entities), or regarding any of
the Purchased Entity Assets, or to which any Purchased Entity is otherwise a party before any
Governmental Body. Except as set forth on <U>Schedule&nbsp;5.17</U>, no Purchased Entity nor any
Purchased Entity Asset is subject to any Order, and no Purchased Entity or asset thereof is in
breach or violation of any Order. There are no Legal Proceedings pending or, to the Knowledge of
Sellers, threatened against any Purchased Entity or any Purchased Entity Asset or to which any
Purchased Entity is otherwise a party relating to this Agreement or any Company Document or the
transactions contemplated hereby or thereby.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i)&nbsp;Sellers have received no notices in writing regarding any pending disputes, claims or
events of default (or events, with the passage of time, would give rise to any events of default)
under the Newland Agreements and (ii)&nbsp;to the Knowledge of Sellers, none of the Purchased Entities
or, to the Knowledge of Sellers, any of the counterparties are in material breach of the terms of
the Newland Agreements.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.18 <U>Compliance with Laws; Permits</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except as set forth on <U>Schedule&nbsp;5.18</U>, each Purchased Entity is, and since its
formation has been, in compliance in all material respects with all Laws applicable to its
business, operations or Assets. No Purchased Entity has received any notice of or been charged
with the violation of any Laws. To the Knowledge of Sellers, no Purchased Entity is under
investigation with respect to the violation of any Laws and there are no facts or circumstances
which could form the basis for any such violation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Purchased Entities currently have all Permits that are required for the operation of
the business of the Purchased Entities as presently conducted (&#147;<U><B>Company Permits</B></U>&#148;), other
than those the failure of which to possess would not, individually or in the aggregate, cause a
Material Adverse Effect. No Purchased Entity is in default or violation, and no event has occurred
which, with notice or the lapse of time or both, would constitute a default or violation, in any
material respect of any term, condition or provision of any Company Permit. To the Knowledge of
Sellers, the consummation of the Transactions will not materially impair the Company Permits.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.19 <U>Environmental Matters</U>. Except as set forth on <U>Schedule&nbsp;5.19</U>:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;to the Knowledge of Sellers, no Purchased Entity has stored, disposed of or released
Hazardous Materials at or from any Property except in accordance with applicable Law;
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;no Purchased Entity is the subject of any outstanding written Order or Contract with any
Governmental Body or Person with respect to (i)&nbsp;Environmental Laws, (ii)&nbsp;Remedial Action, or (iii)
any Release or threatened Release of a Hazardous Material; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;to the Knowledge of Sellers, there is not located at any of the Properties currently or
previously owned, operated or leased by any Purchased Entity any (i)&nbsp;underground storage tanks,
(ii)&nbsp;landfill, (iii)&nbsp;surface impoundment, (iv)&nbsp;asbestos-containing material, (v)&nbsp;dipping vats, or
(vi)&nbsp;equipment containing polychlorinated biphenyls.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.20 <U>Insurance</U>. Set forth in <U>Schedule&nbsp;5.20</U> is a list of all insurance
policies and all fidelity bonds held by or applicable to any Purchased Entity setting forth, in
respect of each such policy, the policy name, policy number, carrier, term, type and amount of
coverage and annual premium, and a list of all material claims made since January&nbsp;1, 2009 under any
such insurance policies and binders (specifying the nature and amount of the claim, current status
and resolution, if any). Except as noted on <U>Schedule&nbsp;5.20</U>, all such insurance will remain
in full force and effect immediately following the consummation of the Transactions on the Closing
Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.21 <U>Accounts and Notes Receivable and Payable</U>. All accounts and notes receivable of
the Purchased Entities have arisen from bona fide transactions in the Ordinary Course of Business.
To the Knowledge of Sellers, none of the accounts or the notes receivable of any Purchased Entity
are subject to any setoffs or counterclaims.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.22 <U>Related Party Transactions</U>. Except as set forth on <U>Schedule&nbsp;5.22</U>,
immediately after consummation of the Transactions, no employee, officer, director, stockholder,
partner or member of any Purchased Entity, any member of his or her immediate family or any of
their respective Affiliates (&#147;<U><B>Related Persons</B></U>&#148;) (i)&nbsp;owes any material amount to any
Purchased Entity nor shall any Purchased Entity owe any amount to any Related Person, (ii)&nbsp;shall
have any claim or cause of action (other than claims relating to the payment of salary or employee
benefits in the Ordinary Course of Business) against any Purchased Entity or (iii)&nbsp;shall own
directly or indirectly any interest of any kind in, or control or be a director, officer or
employee of, any Person which is a competitor, supplier, customer, landlord, tenant, creditor or
debtor of any Purchased Entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.23 <U>Banks; Power of Attorney</U>. <U>Schedule&nbsp;5.23</U> contains a complete and correct
list of the names and locations of all banks in which any Purchased Entity has accounts or safe
deposit boxes and the names of all persons authorized to draw thereon or to have access thereto.
Except as set forth on <U>Schedule&nbsp;5.23</U>, no person holds a power of attorney to act on behalf
of any Purchased Entity.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.24 <U>Financial Advisors</U>. Except as set forth on <U>Schedule&nbsp;5.24</U>, no Person has
acted, directly or indirectly, as a broker, finder or financial advisor for Sellers or any
Purchased Entity in connection with the Transactions and no Person is or will be entitled to any
fee or commission or like payment in respect thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.25 <U>Recorded Restrictions</U>. No Purchased Entity has received any notice of or been
charged with the violation of any obligations, requirements and standards imposed by or under any
restrictions, covenants, easements, conditions, requirements or other provisions of
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">record (&#147;<U><B>Recorded Restrictions</B></U>&#148;) and applicable to its business, operations or Purchased Entity
Assets (including, but not limited to, real property interests), and no event has occurred that
with the lapse of time or the giving of notice or both would constitute a violation by any
Purchased Entity or any other party under any Recorded Restrictions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.26 <U>No Requested Funds</U>. No Purchased Entity has requested a sale of bonds or an
issuance of funds from any community facilities district or other taxing district that affects any
real property interest held by any Purchased Entity and that has not been issued, and no Purchased
Entity has any knowledge of any such requests pending by any other party.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.27 <U>Parties-In-Possession</U>. Except as set forth on <U>Schedule&nbsp;5.27</U>, there are
no parties-in-possession, leases, tenancies or claims to occupancy of any of the Properties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.28 <U>Ordinary Course Operations</U>. Since its respective formation date, each Purchased
Entity has been operated, and has conducted its business, in the Ordinary Course of Business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.29 <U>No Other Representations or Warranties; Schedules</U>. Except for the
representations and warranties contained in <U>Articles IV</U> and <U>V</U> (as modified or
supplemented by the schedules attached hereto), none of the Sellers or any Affiliate or
representative makes any other express or implied representation or warranty with respect to the
Purchased Entities, the Purchased Entity Assets, the business operated by the Purchased Entities or
the Transactions, and Sellers disclaim any other representations or warranties, whether made by
Sellers, any Affiliate of Sellers or any of the Sellers&#146; or their Affiliates&#146; respective
representatives. Except for the representations and warranties contained in <U>Articles IV</U>
and <U>V</U> (as modified or supplemented by the schedules attached hereto), Sellers (a)&nbsp;expressly
disclaim and negate any representation or warranty, expressed or implied, at common law, by statute
or otherwise, relating to the condition of the Purchased Entities or the Purchased Entity Assets
(including any implied or expressed warranty of merchantability or fitness for a particular
purpose) and (b)&nbsp;disclaim all liability and responsibility for any representation, warranty,
projection, forecast, statement or information made, communicated or furnished (orally or in
writing) to Purchaser or its Affiliates or representatives.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VI</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>REPRESENTATIONS AND WARRANTIES OF PURCHASER</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchaser hereby represents and warrants to Sellers that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <U>Organization and Good Standing</U>. Purchaser is duly organized, validly existing and
in good standing under the laws of the state of its organization and has all requisite corporate
power and authority to own, lease and operate its properties and to carry on its business as now
conducted and as currently proposed to be conducted.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <U>Authorization of Agreement</U>. Purchaser has all requisite power, authority and
legal capacity to execute and deliver this Agreement and each other agreement, document, or
instrument or certificate contemplated by this Agreement to which Purchaser is a party or to be
executed by it in connection with the Transactions (the &#147;<U><B>Purchaser Documents</B></U>&#148;), to
perform its
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">obligations hereunder and thereunder and to consummate the transactions contemplated
hereby and thereby. Purchaser has taken all necessary corporate, limited liability company or
other action to authorize the execution, delivery and performance of this Agreement and each of the
Purchaser Documents, and the consummation of the transactions contemplated hereby and thereby.
This Agreement and each of the Purchaser Documents is duly and validly executed and delivered by
Purchaser and (assuming due authorization, execution and delivery by Sellers and/or each Purchased
Entity party thereto) this Agreement constitutes, and each of the Purchaser Documents when so
executed and delivered will constitute, legal, valid and binding obligations of Purchaser,
enforceable against it in accordance with their respective terms.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <U>Conflicts; Consents of Third Parties</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;None of the execution and delivery by Purchaser of this Agreement or the Purchaser
Documents, the consummation of the transactions contemplated hereby or thereby, or compliance by
Purchaser with any of the provisions hereof or thereof will conflict with, or result in any
violation or breach of, conflict with or default (with or without notice or lapse of time, or both)
under any provision of (i)&nbsp;the certificate of incorporation and by-laws or comparable
organizational documents of Purchaser, (ii)&nbsp;any material Contract to which Purchaser is a party or
by which any of the properties or assets of Purchaser are bound, (iii)&nbsp;any Order applicable to
Purchaser, or (iv)&nbsp;any applicable Law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;No consent, waiver, approval, Order, Permit or authorization of, or declaration or filing
with, or notification to, any Person or Governmental Body is required on the part of Purchaser or
its shareholders in connection with the execution and delivery of this Agreement, the Purchaser
Documents, respectively, the compliance by Purchaser with any of the provisions hereof and thereof,
or the consummation of the transactions contemplated hereby or thereby (including the issuance of
any Shares hereunder or any other shares).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <U>Status of the Shares</U>. The Shares, and all of the shares of common stock issuable
pursuant to the Earnout Agreement, have been duly authorized and, when issued in accordance with
the terms of this Agreement or the Earnout Agreement, as applicable, will be validly issued, fully
paid and nonassessable shares of common stock of Holdings and will be free and clear of all Liens.
The issuance and delivery of all of such shares is not, and will not be, subject to any preemptive
right of shareholders of Holdings that has not been waived or to any right of first refusal or
other right in favor of any Person that has not been waived.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <U>SEC Filings</U>. Since January&nbsp;1, 2008, Holdings has filed all required reports,
schedules, forms, statements and other documents with the Securities and Exchange Commission (the
&#147;<U><B>SEC</B></U>&#148;) (such documents filed since January&nbsp;1, 2008, collectively referred to herein as the
&#147;<U><B>Holdings SEC Documents</B></U>&#148;). As of their respective dates, the Holdings SEC Documents
complied in all material respects with the requirements of the Securities Act, or the Securities
Exchange Act of 1934, as amended (the &#147;<U><B>Exchange Act</B></U>&#148;), as the case may be, and the rules
and regulations of the SEC promulgated thereunder applicable to the Holdings SEC Documents, and
none of the Holdings SEC Documents contained any untrue statement of a
material fact or omitted to state a material fact required to be stated therein or necessary
in order to make the statements therein, in light of the circumstances under which they were made,
not misleading. The financial statements of Holdings included in the Holdings SEC Documents, as
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of their respective dates, complied in all material respects with applicable accounting requirements
and the published rules and regulations of the SEC with respect thereto, were prepared in
accordance with GAAP (except, in the case of unaudited statements to the extent permitted by the
SEC&#146;s instructions to Form 10-Q and Article&nbsp;10 of Regulation&nbsp;S-X) applied on a consistent basis
during the periods involved (except as may be indicated in the notes thereto) and fairly present
the financial position of Holdings and its consolidated subsidiaries as of the dates thereof and
the results of its operations and cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal year-end audit adjustments and other adjustments described therein
that are not expected by Holdings to be material individually or in the aggregate).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <U>Litigation</U>. There are no Legal Proceedings pending or, to the Knowledge of
Purchaser, threatened against Purchaser or to which Purchaser is otherwise a party relating to this
Agreement, any Purchaser Document or the transactions contemplated hereby or thereby.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 <U>Financial Advisors</U>. Except as set forth on <U>Schedule&nbsp;6.7</U>, no Person has
acted, directly or indirectly, as a broker, finder or financial advisor for Purchaser in connection
with the Transactions and no Person is or will be entitled to any fee or commission or like payment
in respect thereof.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VII</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>COVENANTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <U>Other Actions</U>. Each of Sellers and Purchaser shall use its commercially
reasonable efforts to take all actions necessary or appropriate to consummate the Transactions.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <U>No Solicitation</U>. For a period from the date hereof to the second anniversary of
the Closing Date, no Seller shall, and each Seller shall not, and shall cause its controlling and
controlled Affiliates not to (i)&nbsp;seek to cause the termination of employment of, or solicit for
employment, any Employees of the Purchaser or of the Purchased Entities or hire, employ or
otherwise engage any such individual or (ii)&nbsp;seek to cause the termination or non-renewal of any
relationship between Purchaser and any Independent Land Developer or any other Person who has a
similar business relationship with the Purchased Entities; <U>provided</U>, <U>however</U>, that
nothing herein shall restrict any Seller or any of its Affiliates from making employment
solicitations to the general public.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <U>Preservation of Records</U>. Purchaser agrees that it shall preserve and keep the
records held by it relating to the business of the Purchased Entities in accordance with its
records retention policy as the same may be in effect from time to time (the &#147;<U><B>Records Retention
Policy</B></U>&#148;) and shall make such records and personnel available to the other as may be reasonably
required by such party in connection with, among other things, any insurance claims by, legal
proceedings against or governmental investigations of Sellers or any of their Affiliates or in
order to enable Sellers to comply with its obligations under this Agreement. At any time that
Purchaser wishes to destroy such records, such destruction will occur in accordance with the
Records Retention Policy.
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <U>Publicity</U>. Sellers and Purchaser shall not issue any press release or public
announcement concerning this Agreement or the Transactions without obtaining the prior written
approval of the other parties hereto, which approval will not be unreasonably withheld or delayed,
unless such disclosure is otherwise required by applicable Law or by the rules of any applicable
stock exchange on which a party&#146;s or its Affiliates&#146; securities are listed, <U>provided</U> that,
to the extent required by applicable Law, the party intending to make such release shall use its
commercially reasonable efforts consistent with such applicable Law or rules to consult with the
other party with respect to the text thereof; <U>provided</U>, <U>further</U> that nothing herein
shall prohibit any party from making any disclosure consisting of information that has previously
been disclosed to the public by any party in compliance with this <U>Section&nbsp;7.4</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <U>Confidentiality</U>. Except as and to the extent required by Law or the rules of any
applicable stock exchange on which a party&#146;s or its Affiliate&#146;s securities are listed, each of the
Purchaser, on the one hand, and Sellers, on the other hand, shall not disclose or use, and shall
use its commercially reasonable efforts to cause each of their respective Representatives not to
disclose or use, any Confidential Information (as defined below) of the other that was or will be
furnished by the disclosing party or its Representatives to such party or parties, or such party&#146;s
or parties&#146; Representatives in connection with the Transactions; provided, however, a party may
disclose Confidential Information of the other to another party or such other party&#146;s
Representatives to the extent necessary or required in connection with the consummation of the
Transactions. For purposes of this <U>Section&nbsp;7.5</U>, &#147;<U><B>Confidential Information</B></U>&#148; of a
party means the existence of this Agreement, the Operative Documents and their contents, any
information about the Transactions and any information about such party or any of its Affiliates
that may be proprietary; provided, however, that Confidential Information shall not include
information which the party receiving such information can demonstrate (i)&nbsp;is generally available
to or known by the public other than as a result of improper disclosure by such party or (ii)&nbsp;is
obtained by such party from a source other than a party hereto, which source is not bound by a duty
of confidentiality with respect to such information; and <U>provided</U>, <U>further</U>, that
after the Closing, Confidential Information of Sellers shall not include any proprietary
information of or relating to the Purchased Entities. If Confidential Information must be
disclosed by Law or pursuant to the rules of any applicable stock exchange, prior to making any
such disclosure, the party required to make such disclosure shall use its commercially reasonable
efforts consistent with such Law or rules to consult with the other parties with respect to the
text and the disclosure of such Confidential Information. Notwithstanding anything to the contrary
in this <U>Section&nbsp;7.5</U>, nothing herein shall prohibit JEN Partners from disclosing
Confidential Information to the limited partners or investors of JEN I or JEN Res to the extent
that such disclosure is of a type normally disclosed to a limited partner or investor in connection
with a transaction of the type contemplated in this Agreement; <U>provided</U> that such limited
partners or investors are advised of the confidential nature of the Confidential Information and
are required to keep the same confidential.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <U>Right of First Offer</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;For a period of two years following the Closing Date, JEN Partners shall and shall cause
the Persons identified on <U>Schedule&nbsp;7.6</U> (collectively, &#147;<U><B>Grantors</B></U>&#148;) to grant, and
Purchaser shall have, a right of first offer (the &#147;<U><B>ROFO</B></U>&#148;) with respect to any and all
opportunities with respect to the acquisition of real property or development of land with a value
in excess of
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">$2.5&nbsp;million that would reasonably be expected to be used for the development of single-family
residential communities or active adult communities in Florida (other than Cypress Lakes, Live Oak
Preserve, and Eagle Bay located in Orlando, Florida), Arizona (other than San Tan Heights located
in Pinal County, Arizona) or Nevada or any option relating to the acquisition of any such real
property or development of any such land (to the extent such land or real property has a value in
excess of $2.5&nbsp;million), in each case in respect of which any of the Grantors receives written
notice of or is actively engaged in or reviews an offer or proposal to acquire or develop land
(whether directly or indirectly through one or more entities), on and subject to the following
terms (collectively, the &#147;<U><B>Qualifying Opportunities</B></U>&#148;):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each Grantor shall promptly notify Purchaser in writing (such notification, the
&#147;<U><B>Recommendation</B></U>&#148;) of all Qualifying Opportunities and, as requested, assist the Purchaser
in the design and execution of development plans for such Qualifying Opportunities at the
Purchaser&#146;s cost and expense. Purchaser shall notify the Grantors of its decision to pursue any
Qualifying Opportunity, or to waive its ROFO with respect to such Qualifying Opportunity, no later
than 20&nbsp;days after its receipt of the Recommendation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;JEN Partners and its Affiliates that are investment funds will have an option to co-invest
in up to 20% of the aggregate investment in each Qualifying Opportunity on the same terms as
Purchaser; provided that Grantors shall have no voting rights in any vehicle utilized to acquire
such Qualifying Opportunities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;To the extent that any Qualifying Opportunity presented by any Grantor is waived by
Purchaser, the applicable Grantor shall have the right to pursue such Qualifying Opportunity on the
terms no more favorable to Grantor than those presented to Purchaser without further compliance
with this <U>Section&nbsp;7.6</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <U>Use of Name</U>. Following the Closing, none of the Sellers, any Affiliate of
Sellers, or any spouse of JCM or SA will (and each of the foregoing individuals will cause such
Person&#146;s spouse not to), directly or indirectly, use or otherwise exploit (or allow any other third
party to use or exploit) in any manner, or claim any interest in, the Intellectual Property owned
or used by or relating to the Purchased Entities, including the name &#147;Joseph Carl&#148; or use &#147;Joseph
Carl&#148; or any similar name or expression in such a way or manner as would likely cause confusion,
mistake or deceit with any of the Purchased Entities or suggest any sponsorship, affiliation or
relationship with any of the Purchased Entities. Notwithstanding anything to the contrary in this
Agreement, JCM may continue to use the words &#147;Joseph Carl&#148; (i)&nbsp;in connection with any business
unrelated or dissimilar to the acquisition and/or development of real property or the sale or
provision of any products or services customarily ancillary to such acquisition or development,
real estate sales and brokerage services, mortgage and financial services, or recreational
facilities or (ii)&nbsp;in connection with any business that could not reasonably be expected to injure
the goodwill associated with the &#147;Joseph Carl&#148; name, any Intellectual Property containing the name
&#147;Joseph Carl&#148;, or any Intellectual Property similar thereto or otherwise denigrate any such
Intellectual Property or bring any such Intellectual Property or the name &#147;Joseph Carl&#148; into
disrepute.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 <U>Benefits</U>. Each employee of the Purchased Entities as of the Closing (including
those employees whose employment contracts are terminated pursuant to
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Section</U> <U>2.2(d),</U> an &#147;<U><B>Employee</B></U>&#148;) will continue to be employed by Purchaser or one of its
Affiliates following the Closing until December&nbsp;31, 2010 for at least the same total compensation
and in substantially the same position as was in effect immediately prior to the Closing; subject
to the employment policies of Purchaser, provided, however, that nothing contained in this
<U>Section&nbsp;7.8</U> shall be construed to prevent the termination of employment of any individual
Employee. Purchaser shall take the actions set forth in the Benefits Side Letter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 <U>Copyright Litigation</U>. Sellers, on behalf of and for the benefit of JCH AZ, and
JCM shall (a)&nbsp;at their sole expense and represented by counsel of their choice, actively and
diligently defend against, negotiate, settle or otherwise seek to resolve the Copyright Litigation;
(b)&nbsp;keep Purchaser reasonably informed of the progress of the Copyright Litigation; (c)&nbsp;actively
consult and in good faith with Purchaser with respect to significant developments in the Copyright
Litigation and of significant communications involving the plaintiff therein; and (d)&nbsp;provide
Purchaser with any settlement offers made by the plaintiff therein and give serious and good faith
consideration to any comments or suggestions that Purchaser or its advisors may have with respect
thereto. Sellers may compromise, settle or consent to the entry of any judgment with respect to
the Copyright Litigation without the prior consent of Purchaser, provided that as a result of any
such compromise, settlement or judgment, JCH AZ will be entitled to utilize the Arboleda Ranch
Documents that are the subject of the Copyright Litigation without an increase in the amount of
payments required to be made by Purchaser under any agreement for use of the Arboleda Ranch
Documents in effect as of the Closing Date.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VIII</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INDEMNIFICATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <U>Survival of Representations and Warranties</U>. The representations and warranties of
the parties contained in this Agreement and any certificate delivered pursuant hereto shall survive
the Closing through and including the 18-month anniversary of the Closing Date; provided, however,
that the representations and warranties (a)&nbsp;set forth in <U>Article&nbsp;IV</U> (Representations and
Warranties relating to Sellers) , <U>5.1</U> (Organization), <U>5.2</U> (Authorization),
<U>5.3</U> (Conflicts; Consents of Third Parties), <U>5.4</U> (Capitalization), <U>5.5</U>
(Subsidiaries), <U>5.10(a)</U>, <U>5.10(b)</U> and <U>5.10(c)</U> (Taxes), <U>6.1</U>
(Organization), <U>6.2</U> (Authorization), <U>6.3</U> (Conflicts; Consents of Third Parties),
<U>6.4</U> (Status of Shares) and <U>6.7</U> (Financial Advisors) (collectively, the
&#147;<U><B>Fundamental Reps</B></U>&#148;), shall survive the Closing indefinitely, and (b)&nbsp;set forth in
<U>Section&nbsp;5.19</U> (Environmental) shall survive the Closing until 90&nbsp;days following the
expiration of the applicable statute of limitations with respect to the particular matter that is
the subject matter thereof (in each case, the &#147;<U><B>Survival Period</B></U>&#148;); provided, however, that
any obligations under <U>Sections&nbsp;8.2(a)(i)</U>, <U>8.2(a)(ii)</U> and <U>8.2(b)(i)</U> shall
not terminate with respect to any Losses as to which the Person to be indemnified shall have given
notice (stating in reasonable detail the basis of the claim for indemnification) to the
indemnifying party in accordance with <U>Section&nbsp;8.3(a)</U> before the termination of the
applicable Survival Period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <U>Indemnification</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to <U>Sections&nbsp;8.1</U>, <U>8.4</U> and <U>8.7</U> hereof, Sellers hereby agree,
jointly and severally (except with respect to <U>Section&nbsp;8.2(a)(ii)</U>, severally, but not
jointly), to indemnify,
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">defend and hold Holdings, Purchaser and their respective directors, officers, employees,
Affiliates, stockholders, agents, attorneys, representatives, successors and assigns including the
Purchased Entities (collectively, the &#147;<U><B>Purchaser Indemnified Parties</B></U>&#148;) harmless for, from
and against, and pay to the applicable Purchaser Indemnified Parties the amount of, any and all
losses, liabilities, claims, obligations, deficiencies, demands, judgments, damages, interest,
fines, penalties, claims, suits, actions, causes of action, assessments, awards, costs and expenses
actually incurred (including costs of investigation and defense and attorneys&#146;, paraprofessionals&#146;
and other professionals&#146; fees and liquidated damages solely with respect to employment and Fair
Labor Standards Act matters, but excluding punitive damages (except to the extent payable under
Third Party Claims)), whether or not involving a third party claim (individually, a &#147;<U><B>Loss</B></U>&#148;
and, collectively, &#147;<U><B>Losses</B></U>&#148;), based upon, attributable to or resulting from:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;the failure of any of the representations or warranties made by Sellers to Purchaser in
this Agreement (other than in <U>Article&nbsp;IV</U>) or in any Seller Document or Company Document to
be true and correct in all respects at and as of the Closing Date (or, in the case of any such
representation or warranty made as of a date specified therein, any inaccuracy therein as of such
date);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;the failure of any of the representations and warranties made by each Seller to Purchaser
in <U>Article&nbsp;IV</U> or in any Seller Document or Company Documents to be true and correct in all
respects as of the Closing Date (or, in the case of any such representation or warranty made as of
a date specified therein, any inaccuracy therein as of such date);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;the breach of any covenant or other agreement on the part of Sellers under this
Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;the JCH AZ FLSA matter, to the extent provided for in the Labor Side Letter;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;the Copyright Litigation or the claims asserted in the Copyright Litigation;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;any and all Taxes of the Purchased Entities (or any predecessors thereof) for any taxable
period (or portion thereof) ending on or before July&nbsp;31, 2010, determined in accordance with
<U>Section&nbsp;8.5(a)</U>; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;any failure by Sellers to timely pay any and all Taxes required to be borne by Sellers
pursuant to <U>Section&nbsp;8.5(g).</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Subject to <U>Sections&nbsp;8.1</U>, <U>8.4</U> and <U>8.7</U> each of Purchaser and
Holdings hereby agrees, jointly and severally, to indemnify, defend and hold Sellers and their
respective Affiliates, stockholders, agents, attorneys, representatives, successors and permitted
assigns (collectively, the &#147;<U><B>Seller Indemnified Parties</B></U>&#148;) harmless for, from and against,
and pay to the applicable Seller Indemnified Parties the amount of any and all Losses based upon,
attributable to or resulting from:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;the failure of any of the representations or warranties made by Purchaser in this
Agreement or in any Purchaser Documents to be true and correct in all respects
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">at the Closing Date (or, in the case of any such representation or warranty made as of a date
specified therein, any inaccuracy therein as of such date);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;the breach of any covenant or other agreement on the part of Purchaser under this
Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;any and all Taxes of the Purchased Entities (or any predecessors thereof) for any
taxable period (or portion thereof) commencing on or after August&nbsp;1, 2010, determined in accordance
with <U>Section&nbsp;8.5(a)</U>; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;any failure by Purchaser to timely pay any and all Taxes required to be borne by
Purchaser pursuant to <U>Section&nbsp;8.5(g)</U> or <U>Section&nbsp;8.5(i)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <U>Indemnification Procedures</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;A claim for indemnification for any matter not involving a third party claim may be
asserted by notice to the party from whom indemnification is sought; provided, however, that
failure to so notify the indemnifying party shall not preclude the indemnified party from any
indemnification which it may claim in accordance with this <U>Article&nbsp;VIII</U>, except to the
extent that the indemnifying party can demonstrate actual loss and prejudice as a result of such
failure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In the event that any Legal Proceedings shall be instituted or that any claim or demand
shall be asserted by any third party in respect of which indemnification may be sought under
<U>Section&nbsp;8.2</U> hereof (regardless of the limitations set forth in <U>Section&nbsp;8.4</U>) (a
&#147;<U><B>Third Party Claim</B></U>&#148;), the indemnified party shall promptly cause written notice of the
assertion of any Third Party Claim of which it has knowledge which is covered by this indemnity to
be forwarded to the indemnifying party. The failure of the indemnified party to give reasonably
prompt notice of any Third Party Claim shall not release, waive or otherwise affect the
indemnifying party&#146;s obligations with respect thereto except to the extent that the indemnifying
party can demonstrate actual loss and prejudice as a result of such failure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Subject to the provisions of this <U>Section&nbsp;8.3</U>, the indemnifying party shall have
the right, at its sole expense, to be represented by counsel of its choice, which must be
reasonably satisfactory to the indemnified party, and to defend against, negotiate, settle or
otherwise deal with any Third Party Claim which relates to any Losses indemnified against
hereunder; <U>provided</U> that the indemnifying party shall have acknowledged in writing to the
indemnified party its unqualified obligation to indemnify the indemnified party as provided
hereunder, subject to the limitations set forth in <U>Section&nbsp;8.4</U>. If the indemnifying party
elects to defend against, negotiate, settle or otherwise deal with any Third Party Claim which
relates to any Losses indemnified by it hereunder, it shall within five days of the indemnified
party&#146;s written notice of the assertion of such Third Party Claim (or sooner, if the nature of the
Third Party Claim so requires) notify the indemnified party of its intent to do so;
<U>provided</U>, that the indemnifying party must conduct the defense of the Third Party Claim
actively and diligently thereafter in order to preserve its rights in this regard. If the
indemnifying party elects not to defend against, negotiate, settle or otherwise deal with any Third
Party Claim which relates to any Losses indemnified against hereunder, fails to notify the
indemnified party of its election as
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">herein provided or contests its obligation to indemnify the indemnified party for such Losses
under this Agreement, the indemnified party may defend against, negotiate, settle or otherwise deal
with such Third Party Claim unless it has contested its obligation to indemnify the indemnified
party as of such time. If the indemnified party defends any Third Party Claim, then the
indemnifying party shall reimburse the indemnified party for the expenses of defending such Third
Party Claim. If the indemnifying party shall assume the defense of any Third Party Claim, the
indemnified party may participate, at his or its own expense, in the defense of such Third Party
Claim; provided, however, that such indemnified party shall be entitled to participate in any such
defense with separate counsel at the expense of the indemnifying party if in the reasonable opinion
of counsel to the indemnified party, a conflict or potential conflict exists between the
indemnified party and the indemnifying party that would make such separate representation
advisable; and <U>provided</U>, <U>further</U>, that the indemnifying party shall not be required
to pay for more than one such counsel for all indemnified parties in connection with any Third
Party Claim. The parties hereto agree to provide reasonable access to the other to such documents
and information as may be reasonably requested in connection with the defense, negotiation or
settlement of any such Third Party Claim. Notwithstanding anything in this <U>Section&nbsp;8.3</U> to
the contrary, neither the indemnifying party nor the indemnified party shall, without the written
consent of the other party, settle or compromise any Third Party Claim or permit a default or
consent to entry of any judgment unless the claimant or claimants and such party provide to such
other party an unqualified release from all liability in respect of the Third Party Claim. If the
indemnifying party makes any payment on any Third Party Claim, the indemnifying party shall be
subrogated, to the extent of such payment, to all rights and remedies of the indemnified party to
any insurance benefits or other claims of the indemnified party with respect to such Third Party
Claim.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;After any final decision, judgment or award shall have been rendered by a Governmental
Body of competent jurisdiction and the expiration of the time in which to appeal therefrom, or a
settlement shall have been consummated, or the indemnified party and the indemnifying party shall
have reached an agreement, in each case with respect to an indemnifiable claim hereunder, the
indemnified party shall forward to the indemnifying party notice of any sums due and owing by the
indemnifying party pursuant to this Agreement with respect to such matter and the indemnifying
party shall pay all of such remaining sums so due and owing to the indemnified party in accordance
with <U>Section&nbsp;8.4</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <U>Limitations on Indemnification for Breaches of Representations and Warranties</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;An indemnifying party shall not have any liability under <U>Section&nbsp;8.2(a)(i)</U>,
<U>Section&nbsp;8.2(a)(ii)</U> or <U>Section&nbsp;8.2(b)(i)</U> hereof unless the aggregate amount of
Losses incurred by the indemnified parties and indemnifiable thereunder based upon, attributable to
or resulting from the failure of any of the representations or warranties to be true and correct
exceeds US $250,000 (the &#147;<U><B>Basket</B></U>&#148;) and, in such event, the indemnifying party shall be
required to pay the amount of such excess; provided that the Basket limitation shall not apply to
Losses related to the failure to be true and correct of any of the Fundamental Reps.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Neither Sellers nor Purchaser shall be required to indemnify any Person under <U>Section
8.2(a)(i)</U>, <U>8.2(a)(ii)</U> or <U>8.2(b)(i)</U> for an aggregate amount of Losses exceeding
US
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">$9,300,000 (the &#147;<U><B>Cap</B></U>&#148;) in connection with Losses related to the failure to be true and
correct of any of the representations or warranties of Sellers or Purchaser in <U>Articles IV</U>,
<U>V</U> and <U>VI</U>, respectively; provided that there shall be no Cap with respect to Losses
related to the failure to be true and correct of any of the Fundamental Reps.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Sellers shall have no right of contribution or other recourse against the Purchased
Entities or their respective directors, officers, employees, Affiliates, agents, attorneys,
representatives, assigns or successors for any Third Party Claims asserted by Purchaser Indemnified
Parties, it being acknowledged and agreed that the covenants and agreements of the Purchased
Entities are solely for the benefit of the Purchaser Indemnified Parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;If a Purchaser Indemnified Party is entitled to indemnification from Sellers hereunder,
such indemnification obligation of Sellers will (i)&nbsp;first, be satisfied by offsetting any amounts
otherwise payable under the Notes and (ii)&nbsp;to the extent any such indemnification obligations are
not so satisfied, and any remaining indemnification obligations of the Sellers will be satisfied
(A)&nbsp;against any Shares issued pursuant to this Agreement and (B)&nbsp;to the extent of any
indemnification obligation of the Sellers remaining after any offsets pursuant to the foregoing
clause (A), by offsetting any amounts payable as Earnout Shares (as defined in the Earnout
Agreement) under the Earnout Agreement. Except in connection with or relating to a breach of any
Fundamental Reps or covenants of Sellers, Sellers shall not be entitled to satisfy any
indemnification obligations hereunder other than by offsetting against the Notes, the Shares issued
pursuant to this Agreement or the Earnout Shares, as set forth in this <U>Section&nbsp;8.4(d)</U>, and
Purchaser acknowledges that its recourse is so limited.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;In determining the amount of any Losses for which the indemnified parties are entitled to
assert a claim for indemnification hereunder, the amount of any such Losses will be determined
after deducting therefrom (i)&nbsp;the Tax benefit actually realized by such indemnified parties arising
from the incurrence or payment of any such Losses in the taxable year in which the Losses are
incurred or paid and (ii)&nbsp;the amount of any insurance proceeds (after giving effect to any
applicable deductible or retention and resulting retrospective or other premium adjustment)
actually received by such indemnified parties in respect of such Losses, in each case net of costs
and expenses incurred by such indemnified parties or their Affiliates.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Notwithstanding anything to the contrary set forth in this Agreement, SA shall not have
any indemnification obligation under this Agreement for an amount greater than his share of the
Purchase Price received.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <U>Tax Matters</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Tax Returns</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Sellers shall timely file any income Tax Returns required to be filed by or on behalf of
any Purchased Entity in respect of any taxable period ending on or before the Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Sellers shall timely file all Tax Returns that are required to be filed by or on behalf
of any Purchased Entity on or before the Closing Date. In the case of any non-income Tax Return
required to be filed by or on behalf of any Purchased Entity on or before the
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Closing Date in respect of any taxable period that includes (but does not begin or end on)
July&nbsp;31, 2010 (a &#147;<U><B>Straddle Period</B></U>&#148;), Purchaser shall pay to Sellers the amount of Taxes, as
reasonably determined in accordance with <U>Section&nbsp;8.5(a)(v)</U>, allocable to Purchaser.
Sellers shall be liable for the payment of all other Taxes with respect to such Straddle Period not
otherwise allocable to Purchaser.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;Purchaser shall timely file (or cause to be timely filed) all non-income Tax Returns
required to be filed by or on behalf of any Purchased Entity for a Straddle Period (which Tax
Returns are not otherwise described in <U>Section&nbsp;8.5(a)(ii)</U>). Sellers shall pay to Purchaser
the amounts of Taxes, as reasonably determined in accordance with <U>Section&nbsp;8.5(a)(v)</U>,
allocable to Sellers, <U>provided</U> that Sellers shall not be required to make any payment to
Purchaser to the extent such Taxes allocable to Sellers have already been accrued by Sellers
according to its accounting methods for the accounting period ending on July&nbsp;31, 2010. Purchaser
shall be liable for the payment of all other Taxes with respect to such Straddle Period not
otherwise allocable to Sellers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;In the case of any Prorated Taxes, the provisions of <U>Section&nbsp;8.5(g)</U>, and not this
<U>Section&nbsp;8.5(a)</U>, shall apply as between Sellers and Purchaser for purposes of allocating
Taxes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;Taxes attributable to a Straddle Period under this <U>Section&nbsp;8.5(a)</U> shall be
allocated, on a closing-of the-books basis, (i)&nbsp;to Sellers for the period up to and including the
close of business on July&nbsp;31, 2010, and (ii)&nbsp;to Purchaser for the period subsequent to July&nbsp;31,
2010.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Tax Audits</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;If notice of any Legal Proceeding with respect to Taxes of any Purchased Entity (a
&#147;<U><B>Tax Claim</B></U>&#148;) shall be received by either party for which the other party may reasonably be
expected to be liable pursuant to <U>Sections&nbsp;8.2(a)(i)</U> (on account of <U>Section&nbsp;5.10</U>),
<U>8.2(a)(vi)</U>, <U>8.2(a)(vii)</U>, <U>8.2(b)(iii)</U> or <U>8.2(b)(iv)</U> as applicable,
the notified party shall notify such other party in writing of such Tax Claim; <U>provided</U>,
<U>however</U>, that the failure of the notified party to give the other party notice as provided
herein shall not relieve such failing party of its obligations under <U>Section&nbsp;8.2</U> or this
<U>Section&nbsp;8.5</U> except to the extent that the other party is actually and materially prejudiced
thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Except as provided in <U>Section&nbsp;8.5(g)(iv)</U>, Purchaser shall have the right, at the
expense of Sellers to the extent such Tax Claim is subject to indemnification by Sellers pursuant
to <U>Section&nbsp;8.2(a)(i)</U> (on account of <U>Section&nbsp;5.10</U>), <U>Section&nbsp;8.2(a)(vi)</U> or
<U>Section&nbsp;8.2(a)(vii)</U> hereof, as the case may be, to represent the interests of the Purchased
Entities in any Tax Claim; <U>provided</U>, that, in the case of Tax Claims subject to
indemnification by Sellers pursuant to <U>Section&nbsp;8.2(a)</U> hereof and provided that Sellers
acknowledge in writing their indemnification responsibilities in connection therewith, (A)
Purchaser shall keep Sellers&#146; Representative reasonably informed of the progress of such Tax Claim
and consult seriously and in good faith with Sellers&#146; Representative and its tax advisors with
respect to any issue relating to such Tax Claim; (B)&nbsp;Purchaser shall provide Sellers&#146;
Representative with copies of all correspondence, notice or other written materials received from
any Taxing Authorities and shall
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">otherwise keep Sellers&#146; Representative and its tax advisors advised of significant
developments in the Tax Claim and of significant communications involving representations of the
Taxing Authorities; (C)&nbsp;Purchaser shall provide Sellers&#146; Representative with a copy of any written
submission to be sent to a Taxing Authority prior to the submission thereof and shall give serious
and good faith consideration to any comments or suggested revisions that Sellers&#146; Representative or
its advisors may have with respect thereto; and (D)&nbsp;there will be no settlement, resolution, or
closing or other agreement with respect thereto without the consent of Sellers&#146; Representative,
which consent shall not be unreasonably withheld, conditioned or delayed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Disputes</U>. Any dispute as to any matter covered hereby shall be resolved by the
Independent Accountant. The fees and expenses of such accounting firm shall be borne equally by
Sellers, on the one hand, and Purchaser on the other.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Conflicts</U>. In the event of a conflict between the provisions of this <U>Section
8.5</U>, on the one hand, and the provisions of <U>Sections&nbsp;8.1</U> through <U>8.4</U>, on the
other, the provisions of this <U>Section&nbsp;8.5</U> shall control.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Tax Treatment</U>. The parties agree that the acquisition of the Interests by
Purchaser shall be treated in a manner consistent with &#147;Situation 2&#148; of Internal Revenue Service
Revenue Ruling 99-6, 1999-1 C.B. 432, and no party shall take any position on any Tax Return or
with any Taxing Authority that is inconsistent with such treatment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Cooperation</U>. Purchaser, Sellers and the Purchased Entities shall cooperate fully,
as and to the extent reasonably requested by each other, in connection with all Tax matters of the
Purchased Entities, including (as relevant) Tax Claims and Tax Returns of the Purchased Entities,
and including for the avoidance of doubt the provision by the Purchased Entities to the Sellers of
such information as is necessary for the preparation and filing of the final IRS Form&nbsp;1065 of JCH
Group.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>Prorated Taxes</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;In the case of any Prorated Taxes that are subsequently adjusted or redetermined (by any
Taxing Authority or otherwise) after being taken into account under <U>Section&nbsp;3.3(a)</U>,
appropriate payment shall be made between the parties to take into account such adjustment or
redetermination.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;In the case of any refund received by either party attributable to Prorated Taxes, the
recipient of the refund shall pay to other party such other party&#146;s proportionate share of such
refund, calculated in accordance with the principles set forth in the definition of &#147;Prorated
Taxes.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;Sellers, at Sellers&#146; sole cost and expense, have the right to contest the real property
Taxes assessed against the Properties prior to August&nbsp;1, 2010 and appeal any payment thereof. If
such contested Taxes relate to a taxable period ending on or before July&nbsp;31, 2010, Sellers&#146;
Representative shall keep Purchaser informed of the progress of such contest or appeal and shall
provide Purchaser with copies of all documents and other written materials either received from the
relevant Taxing Authority regarding such contest or submitted to the relevant Taxing Authority and
Sellers shall not settle or otherwise resolve such contest or appeal
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">without the written consent of Purchaser, such consent not to be unreasonably withheld or
delayed. If such contested Taxes relate to a taxable period that includes July&nbsp;31, 2010, but does
not begin or end on such date, Sellers and Purchaser shall jointly control such contest or appeal.
If such contest (and/or appeal, if appealed by Sellers and/or Purchaser) is successful, any refund
shall be shared in the manner described in subsection (iii)&nbsp;above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <U>Treatment of Consideration</U>. For all relevant Tax purposes, (i)&nbsp;the Shares issued
pursuant to <U>Section&nbsp;3.1(c</U>) hereof and the Notes issued pursuant to <U>Section&nbsp;3.1(d)</U>
hereof shall be treated as having been issued to Sellers and (ii)&nbsp;any Earnout Shares issued
pursuant to the Earnout Agreement (if any) shall, when and if actually issued, be treated as having
been issued to Sellers when so issued. All parties hereto shall report consistently with this
<U>Section&nbsp;8.5(b)</U> for all Tax purposes.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Transfer Taxes</U>. Purchaser shall be liable for and shall pay all sales, use,
stamp, documentary, filing, recording, transfer or similar fees or taxes or governmental charges as
levied by any Taxing Authority including any interest and penalties) in connection with the
Transactions.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;The parties hereto acknowledge that the Sharpe Entity is party to that certain Loan
Purchase and Assumption Agreement, dated as of March&nbsp;2, 2010, by and among the Sharpe Entity and
Fifth Third Bank (&#147;<U><B>Fifth Third</B></U>&#148;), an Ohio banking corporation (the &#147;<U><B>Fifth Third
Agreement</B></U>&#148;). Pursuant to Section&nbsp;27 of the Fifth Third Agreement, Fifth Third is required to
reimburse the Sharpe Entity for certain real estate taxes borne by the Sharpe Entity, if and to the
extent Fifth Third receives proceeds from the &#147;KB Litigation&#148; (as defined in the Fifth Third
Agreement) and after reduction for certain costs and expenses borne by Fifth Third. If and to the
extent the Sharpe Entity receives any payment from Fifth Third pursuant to Section&nbsp;27 of the Fifth
Third Agreement, the Sharpe Entity shall, and Purchaser shall cause the Sharpe Entity to, promptly
pay over such amounts to Sellers&#146; Representative, but not in any event to exceed $160,657.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 <U>Tax Treatment of Indemnity Payments</U>. Sellers and Purchaser agree to treat any
indemnity payment made pursuant to this <U>Article&nbsp;VIII</U> as an adjustment to the Purchase Price
for all income tax purposes.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 <U>Exclusivity</U>. Except with respect to any claims relating to, arising from or in
connection with any breach of any Fundamental Reps or covenants, fraud and claims for equitable
relief, the indemnification provided for in this <U>Article&nbsp;VIII</U> shall be the sole remedy of
each of the parties hereto.</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE IX</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>OTHER AGREEMENTS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <U>Board of Directors</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;As promptly as practicable following the Closing, Avatar Holdings Inc. shall take such
actions as may be required to appoint Reuben Leibowitz and Allen Anderson of JEN Partners to the
Board of Directors of Holdings (including by filling any vacancies on the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-35-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Board of Directors with Messrs.&nbsp;Leibowitz and Anderson). In connection with such
appointments, Holdings shall also take such actions as may be necessary or appropriate to cause
Reuben Leibowitz and Allen Anderson to be appointed to such committees of the Board of Directors of
Holdings as such Board of Directors shall determine.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In connection with the next two annual meetings of shareholders of Holdings (and any
special meetings of shareholders of Holdings held during the period starting on the Closing Date
through the date of the second annual shareholders&#146; meeting following the Closing Date) at which
directors are to be elected that follows the Closing Date, Holdings agrees to nominate Messrs.
Leibowitz and Anderson for election to the Board of Directors of Holdings and to recommend that the
shareholders of Holdings vote for each of Messrs.&nbsp;Leibowitz and Anderson at such meeting of
shareholders. For the period contemplated by the preceding sentence, Holdings agrees to use the
same efforts to cause such individuals to be elected to the Board of Directors as it uses to cause
other nominees of its Board of Directors to be elected and, once elected, each such individual
shall serve until his or her respective successor is elected and qualified or until his or her
earlier death, disability or resignation or removal by the shareholders of Holdings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <U>Appointment of Sellers&#146; Representative</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;JEN Partners is hereby appointed, authorized and empowered by each of Sellers to act as a
representative, for the benefit of Sellers (the &#147;<U><B>Sellers&#146; Representative</B></U>&#148;), as the
exclusive agent and attorney in fact to act on behalf of each Seller, in connection with and to
facilitate the consummation of the Transactions, which shall include the power and authority:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;to execute and deliver such waivers and consents in connection with this Agreement and the
consummation of the Transactions as the Sellers&#146; Representative, in its sole discretion, may deem
necessary or desirable;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;to enforce and protect the rights and interests of Sellers arising out of or under or in
any manner relating to this Agreement, and each other agreement, document, instrument or
certificate referred to herein or therein or the transactions provided for herein or therein
(including, receiving (or directly the receipt of) and allocating the Cash Consideration and the
other portions of the Purchase Price, determining the Adjustment Amount or any adjustment thereof
pursuant to <U>Section&nbsp;3.3</U> hereto and in connection with any and all claims for
indemnification brought under <U>Article&nbsp;VIII</U> (but excluding any agreements to which Purchaser
or any of its Affiliates are not a party, the Independent Contractor Agreements and the Employment
Agreement), and to take any and all actions which the Sellers&#146; Representative believes are
necessary or appropriate under this Agreement for and on behalf of Sellers;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;to pledge all Issuer Stock issued pursuant to this Agreement as collateral to secure the
obligations of Sellers under <U>Article&nbsp;VIII</U>; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;to make, execute, acknowledge and deliver all such other agreements, guarantees, orders,
receipts, endorsements, notices, requests, instructions, certificates, stock powers, letters and
other writings, and, in general, to do any and all things and to take any and all action that the
Sellers&#146; Representative, in its sole and absolute discretion, may
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-36-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">consider necessary or proper or convenient in connection with or to carry out the Transactions
and all other agreements, documents or instruments referred to herein or therein or executed in
connection herewith and therewith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Purchaser shall have the right to rely upon all actions taken or omitted to be taken by
the Sellers&#146; Representative pursuant to this Agreement, all of which actions or omissions shall be
legally binding upon Sellers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The grant of authority provided for herein (i)&nbsp;is coupled with an interest and shall be
irrevocable and survive the death, incompetency, bankruptcy or liquidation of any Seller; and (ii)
shall survive the consummation of the Transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Sellers agree that all actions, decisions and instructions of the Sellers&#146; Representative
will be conclusive and binding upon each of the Sellers and no Seller will have any cause of action
against the Sellers&#146; Representative for any action taken, decision made or instruction given by the
Sellers&#146; Representative under this Agreement, except for fraud or willful breach of this Agreement
by the Sellers&#146; Representative. Sellers hereby agree to jointly and severally indemnify and hold
harmless the Seller Representative from and against (i)&nbsp;any losses incurred without fraud or
willful breach on the part of the Seller Representative and arising out of or in connection with
the acceptance, performance or nonperformance of its duties hereunder and (ii)&nbsp;any related
out-of-pocket costs or expenses (including reasonable attorneys&#146; fees).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <U>Fees and Expenses</U>. On the Closing Date, Sellers shall deliver to Purchaser a
certificate of the Sellers confirming that there is no unpaid balance with respect to any Company
Transaction Expenses as of immediately prior to the Closing.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE X</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>MISCELLANEOUS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <U>Expenses</U>. Except as otherwise provided in this Agreement, Sellers and Purchaser
shall each bear their own expenses incurred in connection with the negotiation and execution of
this Agreement and each other agreement, document and instrument contemplated by this Agreement and
the consummation of the transactions contemplated hereby and thereby (including, with respect to
Sellers, the Company Transaction Expenses), it being understood that in no event shall any
Purchased Entity bear any of such costs and expenses.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <U>Specific Performance</U>. The parties acknowledge and agree that a breach of this
Agreement would cause irreparable damage to the other parties hereto and that such other parties
will not have an adequate remedy at law. Therefore, the obligations of the parties under this
Agreement, including Sellers&#146; obligation to sell the Interests to Purchaser and the Purchaser&#146;s
obligation to purchase the Interests from Sellers, shall be enforceable by a decree of specific
performance issued by any court of competent jurisdiction, and appropriate injunctive relief may be
applied for and granted in connection therewith. Subject to <U>Section&nbsp;8.6</U>, such remedies
shall, however, be cumulative and not exclusive and shall be in addition to any other remedies
which any party may have under this Agreement or otherwise.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-37-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <U>Submission to Jurisdiction; Consent to Service of Process; Waiver of Jury Trial</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The parties hereto hereby irrevocably submit to the exclusive jurisdiction of any federal
or state court located within the State of New York over any dispute arising out of or relating to
this Agreement or any of the Transactions and each party hereby irrevocably agrees that all claims
in respect of such dispute or any suit, action or proceeding related thereto may be heard and
determined in such courts. The parties hereby irrevocably waive, to the fullest extent permitted
by applicable law, any objection which they may now or hereafter have to the laying of venue of any
such dispute brought in such court or any defense of inconvenient forum for the maintenance of such
dispute. Each of the parties hereto agrees that a judgment in any such dispute may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Each of the parties hereto hereby consents to process being served by any party to this
Agreement in any suit, action or proceeding by delivery of a copy thereof in accordance with the
provisions of <U>Section&nbsp;10.6</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;THE PARTIES TO THIS AGREEMENT EACH HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW,
ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (i)&nbsp;ARISING UNDER THIS
AGREEMENT OR (ii)&nbsp;IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES
HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER
NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE. THE
PARTIES TO THIS AGREEMENT EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, OR
CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS
AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN
EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <U>Entire Agreement; Amendments and Waivers</U>. This Agreement (including the
schedules and exhibits hereto, which are incorporated herein by reference), the Seller Documents,
the Company Documents and the Purchaser Documents represent the entire understanding and agreement
between the parties hereto with respect to the subject matter hereof and can be amended,
supplemented or changed, and any provision hereof can be waived, only by written instrument making
specific reference to this Agreement signed by the party against whom enforcement of any such
amendment, supplement, modification or waiver is sought. No action taken pursuant to this
Agreement, including any investigation by or on behalf of any party, shall be deemed to constitute
a waiver by the party taking such action of compliance with any representation, warranty, covenant
or agreement contained herein. The waiver by any party hereto of a breach of any provision of this
Agreement shall not operate or be construed as a further or continuing waiver of such breach or as
a waiver of any other or subsequent breach. No failure on the part of any party to exercise, and
no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-38-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">such right, power or remedy by such party preclude any other or further exercise thereof or
the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are
not exclusive of any other remedies provided by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <U>Governing Law</U>. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and performed in such state,
without regard to principles of conflicts of laws thereof (other than Section&nbsp;5-1401 of the New
York General Obligations Law).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <U>Notices</U>. All notices and other communications under this Agreement shall be in
writing and shall be deemed given (i)&nbsp;when delivered personally by hand or (ii)&nbsp;one (1)&nbsp;Business
Day following the day sent by overnight courier, in each case at the following addresses (or to
such other address as a party may have specified by notice given to the other party pursuant to
this provision):
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">If to any Seller, to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">c/o JEN Partners, LLC<BR>
551 Madison Avenue<BR>
Suite&nbsp;300<BR>
New York, NY 10022<BR>
Attention: Reuben Leibowitz
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">With a copy to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Jones Day<BR>
222 E. 41<SUP style="FONT-size: 85%; vertical-align: text-top">st</SUP> Street<BR>
New York, New York 10017<BR>
Attention: Steven C. Koppel<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Andrew M. Levine
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">If to Purchaser or Holdings, to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Avatar Holdings Inc.<BR>
201 Alhambra Circle, Suite&nbsp;1200<BR>
Coral Gables, FL 33134<BR>
Attention: General Counsel
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">With a copy to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Weil, Gotshal &#038; Manges LLP<BR>
767 Fifth Avenue<BR>
New York, New York 10153<BR>
Attention: Simeon Gold<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jon-Paul Bernard
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">and
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-39-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Akerman Senterfitt LLP<BR>
One Southeast Third Avenue, 25th Floor<BR>
Miami, FL 33131<BR>
Attention: Stephen K. Roddenberry
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 <U>Severability</U>. If any term or other provision of this Agreement is invalid,
illegal, or incapable of being enforced by any law or public policy, all other terms or provisions
of this Agreement shall nevertheless remain in full force and effect so long as the economic or
legal substance of the Transactions is not affected in any manner materially adverse to any party.
Upon such determination that any term or other provision is invalid, illegal, or incapable of being
enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect
the original intent of the parties as closely as possible in an acceptable manner in order that the
Transactions are consummated as originally contemplated to the greatest extent possible.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 <U>Binding Effect; Assignment</U>. This Agreement shall be binding upon and inure to
the benefit of the parties and their respective successors and permitted assigns. Nothing in this
Agreement shall create or be deemed to create any third party beneficiary rights in any person or
entity not a party to this Agreement except as provided below. No assignment of this Agreement or
of any rights or obligations hereunder may be made by either Sellers or Purchaser (by operation of
law or otherwise) without the prior written consent of the other parties hereto and any attempted
assignment without the required consents shall be void; provided, however, that Holdings and
Purchaser may assign this Agreement and any or all rights or obligations hereunder (including
Holdings and Purchaser&#146;s rights to purchase the Interests and Holdings and Purchaser&#146;s rights to
seek indemnification hereunder) to any Affiliate of Holdings or Purchaser (i)&nbsp;as long as such
assignment does not relieve Holdings or Purchaser, as the case may be, of any of its obligations
hereunder or (ii)&nbsp;in connection with any consolidation or merger of Holdings or Purchaser with or
into another Person, to such other Person. Upon any such permitted assignment, the references in
this Agreement to Holdings or Purchaser shall also apply to any such assignee unless the context
otherwise requires.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 <U>Non-Recourse</U>. No past, present or future director, officer, employee,
incorporator, member, partner, stockholder, Affiliate (other than any Affiliates of Sellers that
are parties to this Agreement or any applicable Operative Agreement, including JEN I and JEN Res),
agent, attorney or representative of Purchaser or JEN Partners or their respective Affiliates,
shall have any liability for any obligations or liabilities of Purchaser or JEN Partners or their
respective Affiliates under this Agreement or for any claim based on, in respect of, or by reason
of, the Transactions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 <U>Counterparts</U>. This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original, and a complete set of such counterparts shall
constitute one Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11 <U>Electronic Delivery</U>. This Agreement, the agreements referred to herein, and
each other agreement or instrument entered into in connection herewith or therewith or contemplated
hereby or thereby, and any amendments hereto or thereto, to the extent executed and delivered by
means of a photographic, photostatic, facsimile, pdf or similar reproduction of such signed writing
using a facsimile machine or electronic mail shall be treated in all manner
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-40-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and respects as an original agreement or instrument and shall be considered to have the same
binding legal effect as if it were the original signed version thereof delivered in person. At the
request of any party hereto or to any such agreement or instrument, each other party hereto or
thereto shall re-execute original forms thereof and deliver them to all other parties. No party
hereto or to any such agreement or instrument shall raise the use of a facsimile machine or
electronic mail to deliver a signature or the fact that any signature or agreement or instrument
was transmitted or communicated through the use of a facsimile machine or electronic mail as a
defense to the formation or enforceability of a contract and each such party forever waives any
such defense.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>&#091;Signature pages follow.&#093;</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-41-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized as of the date first written above.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">AVATAR PROPERTIES INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Patricia Kimball Fletcher
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patricia Kimball Fletcher&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Executive Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">AVATAR HOLDINGS INC.<BR>
(solely for purposes of <U>Sections&nbsp;2.2</U>,
<U>2.3(d)</U>, <U>3.2</U>, and <BR>
<U>9.1</U> and <U>Articles VIII</U> and <U>X</U> hereof)<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Patricia Kimball Fletcher
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patricia Kimball Fletcher&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Executive Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">TERRA WEST COMMUNITIES LLC<BR>
By: JEN Partners LLC, its Manager<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member<br>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JEN JCH, LLC<BR>
By: JEN I, L.P., its Manager<BR>
By: JEN Partners LLC, its General Partner<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">                                                   /s/ Joseph Carl Mulac
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JOSEPH CARL MULAC III&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">                                                   /s/ Stephen Adams
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">STEPHEN ADAMS&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;Master Transaction Agreement&#093;
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">SUN TERRA COMMUNITIES LLC<BR>
JEN Partners LLC, its Manager<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JEN PARTNERS LLC<BR>
(solely for purposes of <U>Sections&nbsp;2.2</U>,
<U>7.5</U>, <U>7.6</U>, and <BR>
<U>9.2</U> and <U>Article&nbsp;X</U> hereof)<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;Master Transaction Agreement&#093;
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt">ANNEX I
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">DEFINITIONS
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For purposes of this Agreement, the following terms shall have the meanings specified in this
<U>Annex I</U>:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Adjustment Amount</B></U><B>&#148; </B>has the meaning set forth in <U>Section&nbsp;3.3(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Affiliate</B></U>&#148; means, with respect to any Person, any other Person that, directly or
indirectly through one or more intermediaries, controls, or is controlled by, or is under common
control with, such Person, and the term &#147;<U><B>control</B></U>&#148; (including the terms &#147;<U><B>controlled
by</B></U>&#148; and &#147;<U><B>under common control with</B></U>&#148;) means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of such Person, whether
through ownership of voting securities, by contract or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Affiliated Group</B></U>&#148; means any affiliated group within the meaning of Section&nbsp;1504 of
the Code or any comparable or analogous group under applicable Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Agreement</B></U>&#148; has the meaning set forth in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Allocation Schedule</B></U>&#148; has the meaning set forth in <U>Section&nbsp;3.4</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Arboleda Ranch Commitment</B></U>&#148; means that certain First American Title Insurance Company
Commitment with an effective date of September&nbsp;10, 2010 at 7:30 a.m.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Arboleda Ranch Documents</B></U>&#148; means any licenses, approvals and other permits relating to
the Arboleda Ranch Land, and any permits, licenses, soil tests, engineering and architectural
plans, designs and specifications, insurance policies, reports, studies, surveys, contracts,
warranties, guarantees, agreements and any and all other documents which Sellers or JCH AZ may have
or have the right to obtain, if reasonably available, pertaining to the Arboleda Ranch Land or any
entitlement of or development on the Arboleda Ranch Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Arboleda Ranch Improvements</B></U>&#148; means any and all improvements and fixtures located upon
the Arboleda Ranch Land to the extent owned by JCH AZ.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Arboleda Ranch Land</B></U>&#148; means the real property described in Exhibit&nbsp;A to the Arboleda
Ranch Commitment, together with all easements, water rights, rights of way inuring to the benefit
of the Arboleda Ranch Land and all right, title and interest, if any, of Sellers and JCH AZ in and
to any land lying in the bed of any street, road, avenue, open or proposed, in front of or
adjoining the Arboleda Ranch Land to the centerline thereof, and all right, title and interest of
Sellers or JCH AZ in and to any awards made or to be made in lieu thereof, and in and to any unpaid
awards for damage to the Arboleda Ranch Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Arboleda Property</B></U>&#148; means the Arboleda Ranch Land, the Arboleda Ranch Improvements,
the Arboleda Ranch Documents.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Assets</B></U>&#148; means with respect to any Person, all property and assets, tangible and
intangible, owned by such Person, including any real or personal property, Intellectual Property,
Software, Technology, Contracts and Permits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Audited JCH Statement</B></U>&#148; has the meaning set forth in <U>Section&nbsp;5.7(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Balance Sheet</B></U>&#148; has the meaning set forth in <U>Section&nbsp;5.7(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Balance Sheet Date</B></U>&#148; has the meaning set forth in <U>Section&nbsp;5.7(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Bank Account Side Letter</B></U>&#148; means that certain letter between Purchaser and JEN
Partners of even date herewith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Bank Accounts</B></U>&#148; has the meaning set forth in <U>Section&nbsp;2.4(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Basket</B></U>&#148; has the meaning set forth in <U>Section&nbsp;8.4(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Benefits Side Letter</B></U>&#148; means the letter agreement, dated as of the date hereof and
signed by Purchaser, in respect to certain employee benefits matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Blossom Hills Commitment</B></U>&#148; means that certain First American Title Insurance Company
Commitment with an effective date of September&nbsp;10, 2010 at 7:30 a.m.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Blossom Hills Documents</B></U>&#148; means any licenses, approvals and other permits relating to
the Blossom Hills Land, and any permits, licenses, soil tests, engineering and architectural plans,
designs and specifications, insurance policies, reports, studies, surveys, contracts, warranties,
guarantees, agreements and any and all other documents which Sellers or JCH AZ may have or have the
right to obtain, if reasonably available, pertaining to the Blossom Hills Land or any entitlement
of or development on the Blossom Hills Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Blossom Hills Improvements</B></U>&#148; means any and all improvements and fixtures located upon
the Blossom Hills Land to the extent owned by JCH AZ.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Blossom Hills Land</B></U>&#148; means the real property described in Exhibit&nbsp;A to the Blossom
Hills Commitment, together with all easements, water rights, rights of way inuring to the benefit
of the Blossom Hills Land and all right, title and interest, if any, of Sellers and JCH AZ in and
to any land lying in the bed of any street, road, avenue, open or proposed, in front of or
adjoining the Blossom Hills Land to the centerline thereof, and all right, title and interest of
Sellers or JCH AZ in and to any awards made or to be made in lieu thereof, and in and to any unpaid
awards for damage to the Blossom Hills Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Blossom Hills Property</B></U>&#148; means the Blossom Hills Land, the Blossom Hills Improvements,
the Blossom Hills Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Business Day</B></U>&#148; means any day of the year on which national banking institutions in New
York are open to the public for conducting business and are not required or authorized to close.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>CantaMia Documents</B></U>&#148; means any licenses, approvals and other permits relating to the
CantaMia Land, and any permits, licenses, soil tests, engineering and architectural plans, designs
and specifications, insurance policies, reports, studies, surveys, contracts, warranties,
guarantees, agreements and any and all other documents which Sellers, JCH Estrella or JCH AZ may
have or have the right to obtain, if reasonably available, pertaining to the CantaMia Land or any
entitlement of or development on the CantaMia Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>CantaMia Improvements</B></U>&#148; means any and all improvements and fixtures located upon the
CantaMia Land to the extent owned by JCH Estrella.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>CantaMia IP</B></U>&#148; has the meaning set forth in <U>Section&nbsp;5.13(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>CantaMia Land</B></U>&#148; means, collectively, CantaMia Phase 1 Estrella Land and CantaMia Phase
1 JCH AZ Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>CantaMia Name</B></U>&#148; means the name &#147;CantaMia&#148; as used in connection with the CantaMia
Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>CantaMia Phase 1 Estrella Land</B></U>&#148; means the real property described in <U>Schedule
A</U> to the CantaMia Phase 1 Commitment, together with all easements, water rights, rights of way
inuring to the benefit of the CantaMia Phase 1 Estrella Land and all right, title and interest, if
any, of Sellers and JCH Estrella in and to any land lying in the bed of any street, road, avenue,
open or proposed, in front of or adjoining the CantaMia Phase 1 Estrella Land to the centerline
thereof, and all right, title and interest of Sellers or JCH Estrella in and to any awards made or
to be made in lieu thereof, and in and to any unpaid awards for damage to the CantaMia Phase 1
Estrella Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>CantaMia Phase 1 JCH AZ Land</B></U>&#148; means the real property described in <U>Schedule&nbsp;A</U>
to the CantaMia Phase 1 Commitment, together with all easements, water rights, rights of way
inuring to the benefit of the CantaMia Phase 1 JCH AZ Land and all right, title and interest, if
any, of Sellers and JCH AZ in and to any land lying in the bed of any street, road, avenue, open or
proposed, in front of or adjoining the CantaMia Phase 1 JCH AZ Land to the centerline thereof, and
all right, title and interest of Sellers or JCH AZ in and to any awards made or to be made in lieu
thereof, and in and to any unpaid awards for damage to the CantaMia Phase 1 JCH AZ Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>CantaMia Phase 1 Commitment</B></U>&#148; means that certain First American Title Insurance
Company Commitment with an effective date of October&nbsp;4, 2010 at 7:30 a.m.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>CantaMia Phase 2 and Phase 3</B></U>&#148; means the real property described in the Newland Option
Contract.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>CantaMia Property</B></U>&#148; means the CantaMia Land, the CantaMia Improvements, the CantaMia
Documents and the CantaMia Name.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>CantaMia Rolling Option Memorandum</B></U>&#148; means that certain Memorandum of Rolling Option
Agreement recorded January&nbsp;19, 2010 as 2010-044066, and re-recorded January&nbsp;25, 2010 as
2010-060511, and further re-recorded on January&nbsp;26, 2010 as 2010-065404
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">official records of Maricopa County, Arizona, describing that certain Rolling Option Agreement
dated January&nbsp;19, 2010 between JCH Estrella (as seller) and JCH AZ (as buyer).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Cap</B></U>&#148; has the meaning set forth in <U>Section&nbsp;8.4(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Cash Consideration</B></U>&#148; has the meaning set forth in <U>Section&nbsp;3.2(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Closing</B></U>&#148; has the meaning set forth in <U>Section&nbsp;3.1</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Closing Date</B></U>&#148; has the meaning set forth in <U>Section&nbsp;3.1</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Code</B></U>&#148; means the Internal Revenue Code of 1986, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Commitments</B></U>&#148; means the Arboleda Ranch Commitment, the Blossom Hills Commitment, the
CantaMia Commitment, the PV-Sereno Commitment, the PV-Golf Commitment, and the Sharpe Commitment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Company Documents</B></U>&#148; has the meaning set forth in <U>Section&nbsp;5.2</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Company Permits</B></U>&#148; has the meaning set forth in <U>Section&nbsp;5.18(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Company Transaction Expenses</B></U>&#148; means, except as otherwise expressly set forth in this
Agreement, the aggregate amount of all out-of-pocket fees and expenses, incurred by or on behalf
of, or paid or to be paid by, the Purchased Entities in connection with the process of selling the
Purchased Entities or otherwise relating to the negotiation, preparation or execution of this
Agreement or any documents or agreements contemplated hereby or the performance or consummation of
the transactions contemplated hereby, including (A)&nbsp;any fees and expenses associated with obtaining
necessary or appropriate waivers, consents or approvals of third parties on behalf of any of the
Purchased Entities (net any benefit to the Purchased Entities post-Closing), (B)&nbsp;any fees or
expenses associated with obtaining the release and termination of any Liens, and (C)&nbsp;fees and
expenses of counsel, advisors, consultants, investment bankers, accountants, and auditors and
experts engaged solely for purposes of the transactions contemplated by this Agreement (and the
employer portion of any employment Taxes payable with respect thereto).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Confidential Information</B></U>&#148; has the meaning set forth in <U>Section&nbsp;7.5</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Construction AZ</B></U>&#148; has the meaning set forth in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Construction NV</B></U>&#148; has the meaning set forth in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Contract</B></U>&#148; means any contract, agreement, indenture, note, bond, mortgage, loan,
instrument, lease, license, warranty, guaranty, commitment or other arrangement, understanding,
undertaking, commitment or obligation, whether written or oral.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Copyright Litigation</B></U>&#148; means that certain complaint (copyright infringement), Merit
Homes, LLC, an Arizona limited liability company vs. Joseph Carl Homes, LLC, an Arizona limited
liability company and Joseph Carl Mulac III and Jane Doe Mulac, husband and
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">wife, Case No.: 2:10-cv-02030-NVW, filed in the United States District Court, District of
Arizona.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Denali</B></U>&#148; has the meaning set forth in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Document Vault</B></U>&#148; means documents delivered by Sellers, or their Affiliates to
Purchaser or its employees or legal counsel by electronic mail prior to the Closing Date, and the
documents contained in the online data room established by JEN Partners for the purpose of sharing
with the parties information and documentation in connection with the Transactions originally
located at jenpartners.collaborationhost.net as of the date hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Earnout Agreement</B></U>&#148; has the meaning set forth in <U>Section&nbsp;2.2(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Employee</B></U>&#148; has the meaning set forth in <U>Section&nbsp;7.8</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Employment Agreement</B></U>&#148; has the meaning set forth in <U>Section&nbsp;2.2(d)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Environmental Law</B></U>&#148; means any Law, as now or hereafter in effect, in any way relating
to the protection of human health and safety, the environment or natural resources including the
Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. &#167; 9601 <U>et</U>
<U>seq</U>.), the Hazardous Materials Transportation Act (49 U.S.C. App. &#167; 1801 <U>et</U>
<U>seq</U>.), the Resource Conservation and Recovery Act (42 U.S.C. &#167; 6901 <U>et</U>
<U>seq</U>.), the Clean Water Act (33 U.S.C. &#167; 1251 <U>et</U> <U>seq</U>.), the Clean Air Act
(42 U.S.C. &#167; 7401 <U>et</U> <U>seq</U>.) the Toxic Substances Control Act (15 U.S.C. &#167; 2601
<U>et</U> <U>seq</U>.), the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. &#167; 136
<U>et</U> <U>seq</U>.), and the Occupational Safety and Health Act (29 U.S.C. &#167; 651 <U>et</U>
<U>seq</U>.), as each has been or may be amended and the regulations promulgated pursuant thereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Environmental Permit</B></U>&#148; means any Permit required by Environmental Laws for the
operation of the Purchased Entities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Exchange Act</B></U>&#148; has the meaning set forth in <U>Section&nbsp;6.5</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Financial Statements</B></U>&#148; has the meaning set forth in <U>Section&nbsp;5.7(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Fundamental Reps</B></U>&#148; has the meaning set forth in <U>Section&nbsp;8.1</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>GAAP</B></U>&#148; means generally accepted accounting principles in the United States as of the
date hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>General Enforceability Exceptions</B></U>&#148; has the meaning set forth in <U>Section&nbsp;4.2</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Governmental Body</B></U>&#148; means any government or governmental or regulatory body thereof,
or political subdivision thereof, whether federal, state, local or foreign, or any agency,
instrumentality or authority thereof, or any court, arbitrator or mediator (in each case public or
private).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Grantors</B></U>&#148; has the meaning set forth in <U>Section&nbsp;7.6(a)</U>.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Hazardous Material</B></U>&#148; means any substance, material or waste that is regulated,
classified, or otherwise characterized under or pursuant to any Environmental Law as &#147;hazardous,&#148;
&#147;toxic,&#148; &#147;pollutant,&#148; &#147;contaminant,&#148; &#147;radioactive,&#148; or words of similar meaning or effect,
including petroleum and its by-products, asbestos, polychlorinated biphenyls, radon, mold and urea
formaldehyde insulation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Holdings</B></U>&#148; has the meaning set forth in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Holdings Guarantee</B></U>&#148; has the meaning set forth in <U>Section&nbsp;2.2(c)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Holdings SEC Documents</B></U>&#148; has the meaning set forth in <U>Section&nbsp;6.5</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Indebtedness</B></U>&#148; of any Person means, without duplication, (i)&nbsp;the principal, accreted
value, accrued and unpaid interest, prepayment and redemption premiums or penalties (if any),
unpaid fees or expenses and other monetary obligations in respect of (A)&nbsp;indebtedness of such
Person for money borrowed and (B)&nbsp;indebtedness evidenced by notes, debentures, bonds or other
similar instruments for the payment of which such Person is responsible or liable; (ii)&nbsp;all
obligations of such Person issued or assumed as the deferred purchase price of property, all
conditional sale obligations of such Person and all obligations of such Person under any title
retention agreement (but excluding trade accounts payable and other accrued current liabilities
arising in the Ordinary Course of Business (other than the current liability portion of any
indebtedness for borrowed money)); (iii)&nbsp;all obligations of such Person under leases required to be
capitalized in accordance with GAAP; (iv)&nbsp;all obligations of such Person for the reimbursement of
any obligor on any letter of credit, banker&#146;s acceptance or similar credit transaction; (v)&nbsp;all
obligations of such Person under interest rate or currency swap transactions (valued at the
termination value thereof); (vi)&nbsp;the liquidation value, accrued and unpaid dividends; prepayment or
redemption premiums and penalties (if any), unpaid fees or expenses and other monetary obligations
in respect of any redeemable preferred stock of such Person; (vii)&nbsp;all obligations of the type
referred to in clauses (i)&nbsp;through (vi)&nbsp;of any Persons for the payment of which such Person is
responsible or liable, directly or indirectly, as obligor, guarantor, surety or otherwise,
including guarantees of such obligations; and (viii)&nbsp;all obligations of the type referred to in
clauses (i)&nbsp;through (vii)&nbsp;of other Persons secured by (or for which the holder of such obligations
has an existing right, contingent or otherwise, to be secured by) any Lien on any property or asset
of such Person (whether or not such obligation is assumed by such Person).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Independent Accountant</B></U>&#148; has the meaning set forth in <U>Section&nbsp;3.3(c)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Independent Contractor Agreements</B></U>&#148; has the meaning set forth in <U>Section
2.2(c)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Independent Land Developers</B></U>&#148; means Michael Jesberger, John Kraynick and Richard
Jerman or their respective entities, Residential Real Estate Advisors, LLC and Terra West
Management Co. LLC.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Intellectual Property</B></U>&#148; means any rights available (including with respect to
Technology) under patent, copyright, trade secret or trademark law or any other similar statutory
provision or common law doctrine in the United States or anywhere else in the world, and also
websites and domain names.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Interest Transfer Agreements</B></U>&#148; has the meaning set forth in <U>Section&nbsp;2.2(g)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Interests</B></U>&#148; means the ownership interests, by percentage, whether by membership,
profit, loss or capital, held by each Seller in the Purchased Parents set forth opposite such
Seller&#146;s name in <U>Schedule&nbsp;2.1(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>IP Side Letter</B></U>&#148; means the letter, dated on or about the date hereof, between
Purchaser and Carl Mulac IV.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>IRS</B></U>&#148; means the Internal Revenue Service.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>JCH AZ</B></U>&#148; has the meaning set forth in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>JCH Estrella</B></U>&#148; has the meaning set forth in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>JCH Financials</B></U>&#148; has the meaning set forth in <U>Section&nbsp;5.7(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>JCH Group</B></U>&#148; has the meaning set forth in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>JCH NV</B></U>&#148; has the meaning set forth in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>JCM</B></U>&#148; has the meaning set forth in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>JEN I</B></U>&#148; has the meaning set forth in <U>Section&nbsp;3.2(c)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>JEN AZ</B></U>&#148; has the meaning set forth in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>JEN JCH</B></U>&#148; has the meaning set forth in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>JEN Partners</B></U>&#148; has the meaning set forth in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>JEN Res</B></U>&#148; has the meaning set forth in <U>Section&nbsp;3.2(c)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Knowledge</B></U>&#148; means (a)&nbsp;with respect to Sellers, knowledge of each of the individuals
listed on <U>Schedule&nbsp;1.1(a)</U> hereto after due inquiry and (b)&nbsp;with respect to Purchaser,
knowledge of each of the individuals listed on <U>Schedule&nbsp;1.1(b)</U> hereto after due inquiry.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Labor Side Letter</B></U>&#148; means the letter agreement, dated as of the date hereof, by and
among JCH, AZ and the other parties thereto, in respect to certain labor matters.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Law</B></U>&#148; means any foreign, federal, state or local law (including common law), statute,
code, ordinance, rule, regulation, Order, stipulation, condition of approval, requirement of any
Governmental Body.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Legal Proceeding</B></U>&#148; means any judicial, administrative or arbitral actions, suits,
mediation, investigation, inquiry, proceedings or claims (including counterclaims) by or before a
Governmental Body.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Liability</B></U>&#148; means any debt, loss, damage, adverse claim, fines, penalties, liability
or obligation (whether direct or indirect, known or unknown, asserted or unasserted, absolute or
contingent, accrued or unaccrued, matured or unmatured, determined or determinable, liquidated or
unliquidated, or due or to become due, and whether in contract, tort, strict liability or
otherwise), and including all costs and expenses relating thereto including all fees, disbursements
and expenses of legal counsel, experts, engineers and consultants and costs of investigation).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Lien</B></U>&#148; means any lien, pledge, mortgage, deed of trust, security interest, claim,
lease, charge, option, right of first refusal, easement, servitude, proxy, voting trust or
agreement, transfer restriction under any shareholder or similar agreement, or any other
encumbrance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Loss</B></U>&#148; and &#147;<U><B>Losses</B></U>&#148; has the meaning set forth in <U>Section&nbsp;8.2(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Material Adverse Effect</B></U>&#148; means a material and adverse effect on (i)&nbsp;the business,
Purchased Entity Assets, results of operations, or condition (financial or otherwise) of the
Purchased Entities, taken as a whole or (ii)&nbsp;the ability of the Sellers to consummate the
Transactions or perform their obligations under this Agreement or the Seller Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Material Contracts</B></U>&#148; has the meaning set forth in <U>Section&nbsp;5.14(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Newland Option Contract</B></U>&#148; means that certain Option Contract and Joint Escrow
Instructions dated December&nbsp;29, 2009, under which NNP III &#151; Estrella Mountain Ranch, LLC is the
seller and JCH Estrella is the buyer of CantaMia Phase 2 and Phase 3.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Notes</B></U>&#148; has the meaning set forth in <U>Section&nbsp;2.2(c)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Omaha Estoppel</B></U>&#148; has the meaning set forth in <U>Section&nbsp;2.3(g)(v)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Operating Agreement</B></U>&#148; means each of the following: Operating Agreement of JCH
Estrella, dated September&nbsp;25, 2009; Amended and Restated Organization and Limited Liability Company
Agreement of JCH Group, dated January&nbsp;1, 2009; Operating Agreement of JCH AZ, dated May&nbsp;5, 2009;
Operating Agreement of Construction AZ, dated May&nbsp;5, 2009; Operating Agreement of JCH NV, dated
July&nbsp;1, 2009; Operating Agreement of Construction NV, dated July&nbsp;1, 2009; Operating Agreement of
Denali, dated September&nbsp;9, 2009; Operating Agreement of PV LandBank, an Arizona limited liability
company, dated May&nbsp;25, 2010; and Limited Liability Company Agreement of the Sharpe Entity, dated
February&nbsp;23, 2010. &#147;<U><B>Operating Agreements</B></U>&#148; means the foregoing agreements collectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Operative Documents</B></U>&#148; has the meaning set forth in <U>Section&nbsp;2.2</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Order</B></U>&#148; means any order, injunction, judgment, doctrine, decree, ruling, writ,
assessment or arbitration award of a Governmental Body.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Ordinary Course of Business</B></U>&#148; means the ordinary and usual course of day-to-day
operations of the business of the Purchased Entities through the date hereof consistent with past
practice.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Permits</B></U>&#148; means any approvals, authorizations, consents, licenses, permits or
certificates of a Governmental Body.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Permitted Exceptions</B></U>&#148; means (i)&nbsp;all defects, exceptions, restrictions, easements,
rights of way and encumbrances disclosed in policies of title insurance which have been delivered
or made available to Purchaser; (ii)&nbsp;statutory liens for current Taxes, assessments or other
governmental charges not yet delinquent or the amount or validity of which is being contested in
good faith by appropriate proceedings, provided an appropriate reserve has been established
therefor in the Financial Statements; (iii)&nbsp;mechanics&#146;, carriers&#146;, workers&#146;, repairers&#146; and similar
Liens arising or incurred in the Ordinary Course of Business that are not material to the business,
operations and financial condition of the Sellers or the Purchased Entities (as applicable), or any
of their property or asset so encumbered, and that are not resulting from a breach, default or
violation by any Seller or Purchased Entity (as applicable) of any Contract or Law; (iv)&nbsp;zoning,
entitlement and other land use and environmental regulations by any Governmental Body,
<U>provided</U> that such regulations have not been violated; and (v)&nbsp;any Liens with respect to
the Indebtedness described on <U>Schedule&nbsp;2.3(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Person</B></U>&#148; means any individual, corporation, limited liability company, partnership,
firm, joint venture, association, joint-stock company, trust, unincorporated organization,
Governmental Body or other entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Personal Property Leases</B></U>&#148; has the meaning set forth in <U>Section&nbsp;5.12(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Properties</B></U>&#148; means, collectively, the Arboleda Property, the Blossom Hills Property,
the CantaMia Property, the PV-Sereno Property, the PV-Golf Property and the Sharpe Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Prorated Taxes</B></U>&#148; means all real property Taxes or similar ad valorem obligations with
respect to real property levied with respect to the Purchased Entity Assets for any taxable period
that includes July&nbsp;31, 2010 and ends after July&nbsp;31, 2010, whether imposed or assessed before or
after July&nbsp;31, 2010. Prorated Taxes shall be pro rated between Sellers and Purchaser as of 12:01
a.m. (Eastern time) on August&nbsp;1, 2010 based on the relative number of days in each portion of the
relevant taxable period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Purchase Price</B></U>&#148; has the meaning set forth in <U>Section&nbsp;3.2(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Purchased Entities</B></U>&#148; means the Purchased Parents and their Subsidiaries known as JCH
AZ, JCH NV, Construction AZ, Construction NV, Denali, JEN AZ and PV Landbank.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Purchased Entity Assets</B></U>&#148; means the Assets of the Purchased Entities, including the
Properties, any assets described in <U>Section&nbsp;5.11</U> with respect to any Purchased Entity and
the personal property described in <U>Section&nbsp;5.12</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Purchased Entity Options</B></U>&#148; has the meaning set forth in <U>Section&nbsp;5.4(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Purchased Parents</B></U>&#148; means JCH Group, JCH Estrella and the Sharpe Entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Purchaser</B></U>&#148; has the meaning set forth in the Preamble.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Purchaser Documents</B></U>&#148; has the meaning set forth in <U>Section&nbsp;6.2</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Purchaser Indemnified Parties</B></U>&#148; has the meaning set forth in <U>Section&nbsp;8.2(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>PV-Golf Commitment</B></U>&#148; means that certain First American Title Insurance Company
Commitment with an effective date of September&nbsp;10, 2010 at 7:30 a.m.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>PV-Golf Documents</B></U>&#148; means any licenses, approvals and other permits relating to the
PV-Golf Land, and any permits, licenses, soil tests, engineering and architectural plans, designs
and specifications, insurance policies, reports, studies, surveys, contracts, warranties,
guarantees, agreements and any and all other documents which Sellers or JCH AZ may have or have the
right to obtain, if reasonably available, pertaining to the PV-Golf Land or any entitlement of or
development on the PV-Golf Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>PV-Golf Improvements</B></U>&#148; means any and all improvements and fixtures located upon the
PV-Golf Land to the extent owned by JCH AZ.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>PV-Golf Land</B></U>&#148; means the real property described in Exhibit&nbsp;A to the PV-Golf
Commitment, together with all easements, water rights, rights of way inuring to the benefit of the
PV-Golf Land and all right, title and interest, if any, of Sellers and JCH AZ in and to any land
lying in the bed of any street, road, avenue, open or proposed, in front of or adjoining the
PV-Golf Land to the centerline thereof, and all right, title and interest of Sellers or JCH AZ in
and to any awards made or to be made in lieu thereof, and in and to any unpaid awards for damage to
the PV-Golf Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>PV-Golf Property</B></U>&#148; means the PV-Golf Land, the PV-Golf Improvements, the PV-Golf
Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>PV-Sereno Commitment</B></U>&#148; means that certain First American Title Insurance Company
Commitment with an effective date of September&nbsp;15, 2010 at 7:30 a.m.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>PV-Landbank</B></U>&#148; has the meaning set forth in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>PV-Sereno Documents</B></U>&#148; means any licenses, approvals and other permits relating to the
PV-Sereno Land, and any permits, licenses, soil tests, engineering and architectural plans, designs
and specifications, insurance policies, reports, studies, surveys, contracts, warranties,
guarantees, agreements and any and all other documents which Sellers or JCH AZ may have or have the
right to obtain, if reasonably available, pertaining to the PV-Sereno Land or any entitlement of or
development on the PV-Sereno Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>PV-Sereno Improvements</B></U>&#148; means any and all improvements and fixtures located upon the
PV-Sereno Land to the extent owned by JCH AZ.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>PV-Sereno Land</B></U>&#148; means the real property described in Exhibit&nbsp;A to the PV-Sereno
Commitment, together with all easements, water rights, rights of way inuring to the benefit of the
PV-Sereno Land and all right, title and interest, if any, of Sellers and JCH AZ in and to any land
lying in the bed of any street, road, avenue, open or proposed, in front of or adjoining the
PV-Sereno Land to the centerline thereof, and all right, title and interest of Sellers
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">or JCH AZ in and to any awards made or to be made in lieu thereof, and in and to any unpaid
awards for damage to the PV-Sereno Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>PV-Sereno Option Agreement</B></U>&#148; means that certain Option Agreement evidenced by the
Memorandum of Rolling Option Agreement between PV Landbank and JCH AZ, dated as of May&nbsp;26, 2010,
and recorded June&nbsp;1, 2010 at 2010-0463560 on the PV-Sereno Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>PV-Sereno Property</B></U>&#148; means the PV-Sereno Land, the PV-Sereno Improvements, the
PV-Sereno Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Qualifying Opportunities</B></U>&#148; has the meaning set forth in <U>Section&nbsp;7.6(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Recommendation</B></U>&#148; has the meaning set forth in <U>Section&nbsp;7.6(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Recorded Restrictions</B></U>&#148; has the meaning set forth in <U>Section&nbsp;5.25</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Records Retention Policy</B></U>&#148; has the meaning set forth in <U>Section&nbsp;7.3</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Related Persons</B></U>&#148; has the meaning set forth in <U>Section&nbsp;5.22</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Release</B></U>&#148; means any release, spill, emission, leaking, pumping, poring, injection,
deposit, dumping, emptying, disposal, discharge, dispersal, leaching or migration into the indoor
or outdoor environment, or into or out of any property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Remedial Action</B></U>&#148; means all actions including any capital expenditures undertaken to
(i)&nbsp;clean up, remove, treat or in any other way address any Hazardous Material; (ii)&nbsp;prevent the
Release or threat of Release, or minimize the further Release of any Hazardous Material so it does
not migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor
environment; (iii)&nbsp;perform pre-remedial studies and investigations or post-remedial monitoring and
care; or (iv)&nbsp;to correct a condition of noncompliance with Environmental Laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Representatives</B></U>&#148; of a Person means the directors, officers, members, managers,
limited and general partners, employees, advisors, agents, consultants, attorneys, accountants,
investment bankers and other representatives of such Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Revised Allocation Schedules</B></U>&#148; has the meaning set forth in <U>Section&nbsp;3.4</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>ROFO</B></U>&#148; has the meaning set forth in <U>Section&nbsp;7.6(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>SA</B></U>&#148; has the meaning set forth in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>SEC</B></U>&#148; has the meaning set forth in <U>Section&nbsp;6.5</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Securities Act</B></U>&#148; means the Securities Act of 1933, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Securities Laws Restrictions</B></U>&#148; has the meaning set forth in <U>Section&nbsp;2.1(b)</U>.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Seller Documents</B></U>&#148; has the meaning set forth in <U>Section&nbsp;4.2</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Seller Indemnified Parties</B></U>&#148; has the meaning set forth in <U>Section&nbsp;8.2(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Sellers</B></U>&#148; has the meaning set forth in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Sellers&#146; Representative</B></U>&#148; has the meaning set forth in <U>Section&nbsp;9.2(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Shares</B></U>&#148; has the meaning set forth in <U>Section&nbsp;3.2(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Sharpe Commitment</B></U>&#148; that certain First American Title Insurance Company Commitment
with an effective date of October&nbsp;16, 2010 at 8:00 a.m.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Sharpe Credits</B></U>&#148; means (i)&nbsp;the right to receive the transportation impact fee credits
in the amount of $158,850.00 to be issued by Orange County, Florida for the dedication of the Reams
Road Right of Way; (ii)&nbsp;the right to receive the impact fee credits for the initial payment of
$763,115.00 pursuant to the RR Operating Agreement as defined in Schedule&nbsp;5.11(a); and (iii)&nbsp;the
right to utilize $174,656.00 paid to the FWC Land Acquisition Trust Fund as mitigation for Permit
No.&nbsp;ORA-255 for the incidental taking of gopher tortoises within the Sharpe Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Sharpe Documents</B></U>&#148; means any licenses, approvals and other permits relating to the
Sharpe Land, and any permits, licenses, soil tests, engineering and architectural plans, designs
and specifications, insurance policies, reports, studies, surveys, contracts, warranties,
guarantees, agreements and any and all other documents which Sellers or the Sharpe Entity may have
or have the right to obtain, if reasonably available, pertaining to the Sharpe Land or any
entitlement or development of the Sharpe Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Sharpe Entity</B></U>&#148; has the meaning set forth in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Sharpe Improvements</B></U>&#148; has the meaning set forth in <U>Schedule&nbsp;5.11(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Sharpe Land</B></U>&#148; means the real property described in Exhibit&nbsp;A to the Sharpe Commitment,
together with all easements, water rights, rights of way inuring to the benefit of the Sharpe Land
and all right, title and interest, if any, of Sellers and the Sharpe Entity in and to any land
lying in the bed of any street, road, avenue, open or proposed, in front of or adjoining the Sharpe
Land to the centerline thereof, and all right, title and interest of Sellers or the Sharpe Entity
in and to any awards made or to be made in lieu thereof, and in and to any unpaid awards for damage
to the Sharpe Land.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Sharpe Property</B></U>&#148; means the Sharpe Land and the Sharpe Documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Software</B></U>&#148; means any and all computer programs, whether in source code or object code;
databases and compilations, whether machine readable or otherwise; descriptions, flow-charts and
other work product used to design, plan, organize and develop any of the foregoing; and all
documentation including user manuals and other training documentation related to any of the
foregoing.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Straddle Period</B></U><B>&#148; </B>has the meaning set forth in <U>Section&nbsp;8.5(a).</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Subsidiary</B></U>&#148; of any Person means (i)&nbsp;any Person of which a majority of the outstanding
share capital, voting securities or other equity interests are owned, directly or indirectly, by
such Person or (ii)&nbsp;another Person in respect of which such first Person is entitled, directly or
indirectly, to appoint a majority of the board of directors, board of managers or comparable body.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Subsequent Adverse Title Matters</B></U>&#148; means those adverse matters first appearing in the
public records on a date subsequent to the effective date of the Commitments, as applicable to each
corresponding Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Sun Terra</B></U>&#148; has the meaning set forth in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Survival Period</B></U>&#148; has the meaning set forth in <U>Section&nbsp;8.1</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Tax Claim</B></U>&#148; has the meaning set forth in <U>Section&nbsp;8.5(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Taxes</B></U>&#148; means (i)&nbsp;all federal, state, local or foreign taxes, charges, fees, imposts,
levies or other assessments, including all income, gross receipts, capital, sales, use, ad valorem,
value added, transfer, franchise, profits, inventory, capital stock, license, withholding, payroll,
employment, social security, unemployment, excise, severance, stamp, occupation, property and
estimated taxes, customs duties, fees, assessments and charges of any kind whatsoever, (ii)&nbsp;all
interest, penalties, fines, additions to tax or additional amounts imposed by any Taxing Authority
in connection with any item described in clause (i)&nbsp;and (iii)&nbsp;any liability in respect of any items
described in clauses (i)&nbsp;or (ii)&nbsp;payable by reason of Contract, assumption, transferee liability,
operation of Law or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Taxing Authority</B></U>&#148; means the IRS and any other Governmental Body responsible for the
administration of any Tax.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Tax Return</B></U>&#148; means any return, report or statement filed or required to be filed with
respect to any Tax (including any elections, declarations, schedules or attachments thereto, and
any amendment thereof) including any information return, claim for refund, amended return or
declaration of estimated Tax.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Technology</B></U>&#148; means, collectively, designs, formulae, algorithms, procedures, methods,
techniques, ideas, know-how, results of research and development, Software, tools, data,
inventions, apparatus, creations, improvements, works of authorship and other similar materials,
and all recordings, graphs, drawings, reports, analyses, and other writings, and any other
embodiments of the above, in any form whether or not specifically listed herein, and all related
technology, that are used, incorporated or embodied in or displayed by any of the foregoing or used
in the design, development, reproduction, sale, marketing, maintenance or modification of any of
the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Terra West</B></U>&#148; has the meaning set forth in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Third Party Claim</B></U>&#148; has the meaning set forth in <U>Section&nbsp;8.3(b)</U>.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Title Company</B></U>&#148; has the meaning set forth in <U>Section&nbsp;2.3(f)(i)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Transactions</B></U>&#148; has the meaning set forth in <U>Section&nbsp;2.1(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Treasury Regulations</B></U>&#148; means the U.S. Department of Treasury Regulations promulgated
under the Code.
</DIV>

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<DIV align="center" style="font-size: 10pt; margin-top: 18pt">CONSTRUCTION; USAGE
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The words &#147;<U><B>include</B></U>,&#148; &#147;<U><B>includes</B></U>&#148; and &#147;<U><B>including</B></U>&#148; shall be deemed to be
followed by the phrase &#147;<U><B>without limitation</B></U>.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The words &#147;<U><B>hereof</B></U>,&#148; &#147;<U><B>herein</B></U>&#148; and &#147;<U><B>hereunder</B></U>&#148; and words of similar
import when used in any agreement or instrument shall refer to such agreement or instrument as a
whole and not to any particular provision of such agreement or instrument.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless the context otherwise requires, references to all agreements or instruments include
attachments thereto and instruments incorporated therein and references to any statute,
proclamation or decree include all rules and regulations promulgated thereunder.
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="CENTER" STYLE="BORDER-BOTTOM: 1PX SOLID #000000; font-size: 8pt"><B>Page</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE I DEFINITIONS; CONSTRUCTION; USAGE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE II TRANSACTIONS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transactions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Operative Documents</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Additional Sellers&#146; Closing Deliveries</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Powers of Attorney; Bank Accounts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Seller Closing Deliveries</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Additional Purchaser&#146;s Closing Deliveries</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Books and Records</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE III CLOSING; PURCHASE PRICE</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Closing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Purchase Price</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Adjustment Amount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Allocation of Purchase Price</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Closing Costs</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Closing Deliveries</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE IV REPRESENTATIONS AND WARRANTIES RELATING TO SELLERS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Organization and Good Standing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Authorization of Agreement</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conflicts; Consents of Third Parties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ownership and Transfer of Interests</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Litigation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">11</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Advisors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE V REPRESENTATIONS AND WARRANTIES RELATING TO THE PURCHASED
ENTITIES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Organization and Good Standing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Authorization of Agreement</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conflicts; Consents of Third Parties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Capitalization</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Subsidiaries</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-i-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B><BR>
(continued)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="CENTER" STYLE="BORDER-BOTTOM: 1PX SOLID #000000; font-size: 8pt"><B>Page</B></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Corporate Records</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Statements</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Undisclosed Liabilities</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Absence of Certain Developments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Taxes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Real Property</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tangible Personal Property</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Technology and Intellectual Property</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.14</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Material Contracts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.15</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Employee Benefits Plans</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.16</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Labor</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">20</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.17</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Litigation; Disputes</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.18</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Compliance with Laws; Permits</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.19</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Environmental Matters</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.20</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insurance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.21</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Accounts and Notes Receivable and Payable</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.22</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Related Party Transactions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.23</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Banks; Power of Attorney</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.24</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Advisors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.25</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Recorded Restrictions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.26</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Requested Funds</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.27</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Parties-In-Possession</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.28</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ordinary Course Operations</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.29</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Other Representations or Warranties; Schedules</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE VI REPRESENTATIONS AND WARRANTIES OF PURCHASER</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Organization and Good Standing</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Authorization of Agreement</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Conflicts; Consents of Third Parties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Status of the Shares</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">SEC Filings</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-ii-<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B><BR>
(continued)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="CENTER" STYLE="BORDER-BOTTOM: 1PX SOLID #000000; font-size: 8pt"><B>Page</B></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Litigation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Financial Advisors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE VII COVENANTS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Other Actions</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">No Solicitation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preservation of Records</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Publicity</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Confidentiality</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Right of First Offer</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">26</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Use of Name</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Benefits</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">27</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Copyright Litigation</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE VIII INDEMNIFICATION</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Survival of Representations and Warranties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indemnification</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indemnification Procedures</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Limitations on Indemnification for Breaches of Representations and Warranties</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tax Matters</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tax Treatment of Indemnity Payments</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exclusivity</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE IX OTHER AGREEMENTS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Board of Directors</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Appointment of Sellers&#146; Representative</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Fees and Expenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="3" align="left">ARTICLE X MISCELLANEOUS</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Expenses</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Specific Performance</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Submission to Jurisdiction; Consent to Service of Process; Waiver of Jury Trial</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Entire Agreement; Amendments and Waivers</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-iii-<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B><BR>
(continued)
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="76%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="CENTER" STYLE="BORDER-BOTTOM: 1PX SOLID #000000; font-size: 8pt"><B>Page</B></TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Governing Law</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Notices</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Severability</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Binding Effect; Assignment</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Non-Recourse</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Counterparts</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Electronic Delivery</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->-iv-<!-- /Folio -->
</DIV>



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</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>g25091exv99w3.htm
<DESCRIPTION>EX-99.3
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w3</TITLE>
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<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.3</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EARNOUT AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS EARNOUT AGREEMENT (this &#147;<B>Agreement</B>&#148;) is entered into as of October&nbsp;25, 2010, by and among
Avatar Holdings Inc. (the &#147;<B>Issuer</B>&#148;), Avatar Properties Inc., a wholly owned subsidiary of the
Issuer (the &#147;<B>Purchaser</B>&#148;), JEN I, L.P., a Delaware limited partnership and Jen Residential LP, a
Delaware limited partnership (collectively, the &#147;<B>Recipients</B>&#148;, and collectively with the Issuer and
the Purchaser, the &#147;<B>Parties</B>&#148;). Capitalized terms used but not otherwise defined herein shall have
the meanings ascribed to them in the Master Transaction Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Issuer, the Purchaser and certain other parties (including parties affiliated
with the Recipients) are all parties to the Master Transaction Agreement, dated as of the date
hereof (the &#147;<B>Master Transaction Agreement</B>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, in furtherance of the transactions contemplated by the Master Transaction Agreement,
the Parties desire to provide for the issuance to the Recipients, subject to the achievement of
certain agreed performance metrics as further detailed herein relating to the CantaMia Property, of
such number of shares of common stock of the Issuer (the &#147;<B>Issuer Stock</B>&#148;) as determined by the
calculation method hereinafter set forth, it being acknowledged and agreed that no such issuance
shall occur unless the Average Unit Contribution is greater than or equal to $87,603 and the
Project Contribution is greater than the Minimum Project Contribution Threshold as of the Milestone
Date, all as hereinafter defined.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the mutual promises set forth herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties
hereby agree as set forth in the foregoing recitals (which shall constitute in their entirety a
part of this Agreement) and as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1. <U>Definitions</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Actual Phase I Expenses</B>&#148; has the meaning set forth in <U>Section&nbsp;2(c)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Agreement</B>&#148; has the meaning set forth in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Arizona Operations</B>&#148; means the operations of the CantaMia Property, Arboleda Ranch Property,
Blossom Hills Property, PV-Sereno Property, PV-Golf Property and any other communities acquired by
JCH AZ after the date of this Agreement but excluding Rio Rico and Estancia and other Arizona
properties acquired by Purchaser, until such time as they are under the day to day management of
Carl Mulac III and/or owned by JCH AZ or any successor by merger or otherwise and/or such
properties are managed by Purchaser&#146;s employees or representatives located in Arizona (e.g., such
assets are no longer managed from Florida or another location outside of Arizona).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Average Unit Contribution</B>&#148; has the meaning set forth in <U>Section&nbsp;2(d)(ii)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Budgeted Expenses</B>&#148; has the meaning set forth in <U>Section&nbsp;2(c)</U>.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Business Combination</B>&#148; has the meaning set forth in <U>Section&nbsp;4(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>CantaMia Property</B>&#148; means the CantaMia Land and CantaMia Phase 2 and Phase 3 as defined in the
Master Transaction Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Commencement Date</B>&#148; has the meaning set forth in <U>Section&nbsp;2(d)(i)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Development Budget</B>&#148; means the budget relating to the development of the CantaMia Property
attached hereto as <U>Exhibit&nbsp;A</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Earnout Amount</B>&#148; has the meaning set forth in <U>Section&nbsp;2(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Earnout Report</B>&#148; has the meaning set forth in <U>Section&nbsp;3(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Earnout Shares</B>&#148; has the meaning set forth in <U>Section&nbsp;2(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Excess Expense</B>&#148; has the meaning set forth in <U>Section&nbsp;2(c)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Exchange Cap&#148; </B>has the meaning set forth in <U>Section&nbsp;5.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Exchangeable Property</B>&#148; has the meaning set forth in <U>Section&nbsp;4(b)(i)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Final Earnout Report</B>&#148; has the meaning set forth in <U>Section&nbsp;3(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Issue Price</B>&#148; means $19.04.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Issuer</B>&#148; has the meaning set forth in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Issuer Stock</B>&#148; has the meaning set forth in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Land Development Expenditures</B>&#148; means the all costs and expenses associated with the land and
land development contemplated by the Development Budget.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Master Transaction Agreement</B>&#148; has the meaning set forth in the Recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Maximum Earnout&#148; </B>has the meaning set forth in <U>Section&nbsp;2(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Maximum Issuable Shares</B>&#148; has the meaning set forth in <U>Section&nbsp;5</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Maximum Project Contribution Threshold</B>&#148; has the meaning set forth in <U>Section
2(b)(ii)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Milestone Date</B>&#148; has the meaning set forth in <U>Section&nbsp;2(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Minimum Average Unit Contribution Threshold</B>&#148; has the meaning set forth in <U>Section
2(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Minimum Project Contribution Threshold</B>&#148; has the meaning set forth in <U>Section&nbsp;2(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Net Cash Flow</B>&#148; has the meaning set forth in <U>Section&nbsp;2(d)(i).</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Parties</B>&#148; has the meaning set forth in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Project Contribution</B>&#148; has the meaning set forth in <U>Section&nbsp;2(d)(i)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Purchaser</B>&#148; has the meaning set forth in the Preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Rate Change Threshold</B>&#148; has the meaning set forth in <U>Section&nbsp;2(b)(i)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Recipients</B>&#148; has the meaning set forth in the Preamble.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Registration Rights Agreement</B>&#148; has the meaning set forth in the Master Transaction Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Special Accountant</B>&#148; has the meaning set forth in <U>Section&nbsp;3(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>SG&#038;A</B>&#148; has the meaning set forth in <U>Section&nbsp;2(d)(i)</U>.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2. <U>The Earnout</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;In the event that the Average Unit Contribution relating to the CantaMia Property as of
December&nbsp;31, 2014 (the &#147;<B>Milestone Date</B>&#148;) equals to or is greater than $87,603 (the &#147;<B>Minimum Average
Unit Contribution Threshold</B>&#148;) <U>and</U> the Project Contribution relating to the CantaMia
Property as of the Milestone Date exceeds $59&nbsp;million (subject to prior adjustment pursuant to
<U>Section&nbsp;2(c)</U>, the &#147;<B>Minimum Project Contribution Threshold</B>&#148;), the Recipients shall be
entitled to receive, and the Issuer shall issue to the Recipients, such number of shares of Issuer
Stock equal to the Earnout Amount (as defined below), <I>divided by </I>the Issue Price (the &#147;<B>Earnout
Shares</B>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The earnout amount (the &#147;<B>Earnout Amount</B>&#148;) shall be determined as follows, subject to a
maximum Earnout Amount (the &#147;<B>Maximum Earnout</B>&#148;) of $8&nbsp;million:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event that the Project Contribution equals $64&nbsp;million (subject to prior
adjustment pursuant to <U>Section&nbsp;2(c)</U>, the &#147;<B>Rate Change Threshold</B>&#148;), the Earnout
Amount shall be $2&nbsp;million;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) In the event that the Project Contribution equals or exceeds $72&nbsp;million (subject
to prior adjustment pursuant to <U>Section&nbsp;2(c)</U>, the &#147;<B>Maximum Project Contribution
Threshold</B>&#148;), the Earnout Amount shall be $8&nbsp;million; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) In the event that the Project Contribution exceeds the Minimum Project
Contribution Threshold and is less than the Rate Change Threshold, the Earnout Amount shall
be equal to the product of (a) $2&nbsp;million <I>multiplied by </I>(b)&nbsp;a fraction, the numerator of
which is the amount by which the Project Contribution exceeds the Minimum Project
Contribution Threshold, and the denominator of which is $5&nbsp;million.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In the event that the Project Contribution exceeds the Rate Change Threshold and
is less than the Maximum Project Contribution Threshold, the Earnout Amount shall be equal
to the sum of (a) $2&nbsp;million <I>plus </I>(b)&nbsp;the product of (i) $6&nbsp;million <I>multiplied by </I>(ii)&nbsp;a
fraction, the numerator of which is the amount by which the Project Contribution exceeds
the Rate Change Threshold (it being agreed that for this purpose, in no event shall the
numerator be in excess of $8&nbsp;million), and the denominator of which is $8&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For illustrative purposes only (assuming no adjustments have been made pursuant to <U>Section
2(c))</U>:
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(i)&nbsp;In the event that the Project Contribution equals to $61&nbsp;million, the Earnout Amount
would be:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="58%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(A) $2&nbsp;million X (B)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$(61&nbsp;million &#151; 59&nbsp;million)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">= $800,000</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$5&nbsp;million</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">(ii)&nbsp;In the event that the Project Contribution equals to $71&nbsp;million, the Earnout Amount
would be:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="25%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(A) $2&nbsp;million &#043; (B) (i) $6&nbsp;million X
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$(71&nbsp;million &#151; 64&nbsp;million)
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">= $7,250,000</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">$8&nbsp;million</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In the event that the actual expenses for the period commencing on the Commencement Date
through the Milestone Date relating to the first phase of development of the CantaMia Property (the
&#147;<B>Actual Phase I Expenses</B>&#148;) exceed the estimate for such amounts set forth in the Development Budget
(the &#147;<B>Budgeted Expenses</B>&#148;) by more than $500,000 (other than as a result of any changes to the
Development Budget by or on behalf of the Purchaser to the scope of work or the timing of any
expenditures relating to the CantaMia Property, including modifications of any annual HOA
assessments outlined in Exhibit&nbsp;A, and excluding any expenditures relating to the vertical
construction of homes on the CantaMia Property) (the amount of such excess over $500,000, the
&#147;<B>Excess Expense</B>&#148;), each of the Minimum Project Contribution Threshold, the Maximum Project
Contribution Threshold and the Rate Change Threshold shall be deemed to be increased by the amount
of such Excess Expense.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For illustrative purposes only, if the amount of Budgeted Expenses is $21.5&nbsp;million and the
amount of Actual Phase I Expenses is determined to be $22.5&nbsp;million, then the Minimum Project
Contribution Threshold, the Maximum Project Contribution Threshold and the Rate Change Threshold
hereunder shall be adjusted to be $59.5&nbsp;million, $72.5&nbsp;million and $64.5&nbsp;million, respectively.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;For the purposes of this Agreement:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &#147;<B>Project Contribution</B>&#148; means the cumulative net cash flow in respect of the
closing of home sales, construction and operating activities (including sales and
marketing) relating to the CantaMia Property (&#147;<B>Net Cash Flow</B>&#148;), without taking into account
any Land Development Expenditures, for the period commencing on October&nbsp;1, 2010 (the
&#147;<B>Commencement Date</B>&#148;) and ending on the Milestone Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">For the purposes of this Agreement, Net Cash Flow will be determined in accordance with
GAAP, subject to the following paragraph, and based on the general categories reflected on
the model attached as <U>Exhibit&nbsp;B</U> hereto, it being acknowledged and agreed that the
categories listed on <U>Exhibit&nbsp;B</U> are intended to
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">be an illustrative and not a comprehensive list of such general categories, subject to
adjustments to: (1)&nbsp;exclude expenditures relating to the construction of homes on the
CantaMia Property, the sale of which is not closed prior to the Milestone Date, (2)&nbsp;include
any amounts paid or accrued after the Milestone Date and relating to closing of home sales
on the CantaMia Property which closings occurred prior to the Milestone Date, and (3)&nbsp;be
reduced by an additional amount equal to one percent of the gross revenue relating to
closed home sales with unexpired warranties as of the Milestone Date (which amount shall
include the amounts in respect of the base home price, and any premiums and options, less
any incentives paid), as warranty and other reserves for home sales on the CantaMia
Property closed prior to the Milestone Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">For the purpose of calculating the cash outflows included in Net Cash Flow, selling,
general and administrative expenses (&#147;<B>SG&#038;A</B>&#148;) included in the calculation shall: (a)&nbsp;include
the direct expenditures or costs, as set forth on <U>Exhibit&nbsp;C-1</U>, associated with the
sales of homes on the CantaMia Property that are closed prior to the Milestone Date, (b)
include all of the divisional SG&#038;A directly allocable to the CantaMia Property as set forth
in <U>Exhibit&nbsp;C-2A</U>, following the Commencement Date but prior to the Milestone Date,
and (c)&nbsp;include an allocation of the other components of divisional SG&#038;A, as set forth in
<U>Exhibit&nbsp;C-2B</U>, from the homebuilding operations of the Arizona Operations following
the Commencement Date but prior to the Milestone Date, <I>multiplied </I>(in the case of clause
(c)&nbsp;only) by a fraction the numerator of which is the number of actual closings prior to
the Milestone Date relating to the CantaMia Property and the denominator of which is the
total number of closings of home sales by the Arizona Operations prior to the Milestone
Date; <U>provided</U> that the aggregate amount allocated to the CantaMia Property
pursuant to clauses (b)&nbsp;and (c)&nbsp;shall be no less than $2,000,000, and (d)&nbsp;exclude all other
corporate overhead allocations other than costs incurred at the corporate level of the
Purchaser for services that directly benefit the CantaMia Property and that replace, reduce
or are otherwise in substitution for, services of the type provided or made available to
the CantaMia Property prior to the Closing (including, without limitation, insurance that
Purchaser can reasonably demonstrate to management are corporate level expenses directly
allocable to the CantaMia Property).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Notwithstanding the foregoing in this <U>Section&nbsp;2(d)(i)</U>, the Project Contribution in
respect of the CantaMia Property shall be deemed to be $0 if the Average Unit Contribution
is less than Minimum Average Unit Contribution Threshold as of the Milestone Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) &#147;<B>Average Unit Contribution</B>,&#148; means the result of (A)&nbsp;the Project Contribution
<I>divided by </I>(B)&nbsp;the aggregate number of closed home sales on the CantaMia Property closed
during the period commencing on the Commencement Date and ending on the Milestone Date.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3. <U>Determination of Earnout Amount and Issuance of Earnout Shares</U>.
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Not later than 30&nbsp;days following the filing by the Issuer with the Securities and
Exchange Commission of its periodic report on Form 10-K beginning after its fiscal year
ended December&nbsp;31, 2010 and through the filing of its periodic report on Form 10-K for its
fiscal year ended December&nbsp;31,2014, the Purchaser shall cause to be prepared and delivered
to the Recipients a report (the &#147;<B>Earnout Report</B>&#148;) setting forth (1)&nbsp;whether there is any
Earnout Amount, (2)&nbsp;its computation of the Earnout Amount (if any), (3)&nbsp;its calculation of
the Project Contribution, (4)&nbsp;its calculation of the Average Unit Contribution, (5)&nbsp;its
calculation of the Excess Amount, if any, (6)&nbsp;its calculation of Net Cash Flow, and (7)&nbsp;all
supporting calculations and documentation with respect thereto. Unless any of the
Recipients notifies the Purchaser within 60&nbsp;days after receipt of the Earnout Report
relating to its fiscal year ended December&nbsp;31, 2014 (the &#147;<B>Final Earnout Report</B>&#148;) that it
objects to the computation relating to the determination of any of the foregoing items in
the Final Earnout Report, the Final Earnout Report shall be binding and conclusive for the
purposes of this Agreement. The Recipients shall have reasonable access to the books and
records and any accountant&#146;s work papers relating to any of the foregoing during regular
business hours, to verify the computations set forth above and in the Final Earnout Report.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any of the Recipients notifies the Purchaser in writing within 60&nbsp;days after
the receipt of the Final Earnout Report that it objects to the computation or applicability
of any of the items included in the Final Earnout Report, the Final Earnout Report shall be
discussed in good faith by the Parties, with a view towards reaching agreement on the
Earnout Amount. If the Parties are unable to reach agreement within 30&nbsp;days after such
notification, the determination of the Earnout Amount and the resolution of any disputed
items in respect thereof shall be submitted to a mutually agreeable third party independent
auditor (the &#147;<B>Special Accountant</B>&#148;) for determination, whose determination of the Earnout
Amount shall be binding and conclusive on the Parties (<U>provided</U> that if the Parties
are unable to agree upon third party auditors, the Parties to the dispute shall each select
one third party independent auditor, and the independent auditors so selected shall choose
the Special Accountant). The fees, costs and expenses of the Special Accountant&#146;s review
and report shall be shared equally among the Purchaser, on the one hand, and the
Recipients, on the other hand.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On such date as the Purchaser determines in its sole discretion, within 10
Business Days following the final determination of the Earnout Amount, the Issuer shall
issue to the Recipients in the aggregate such number of Earnout Shares as determined in
accordance with <U>Section&nbsp;2(a)</U>, subject to any decrease of the Earnout Amount in
order to offset against any indemnification obligations then owed by Sellers (as defined in
the Master Transaction Agreement) pursuant to <U>Section&nbsp;8.4(d)</U> of the Master
Transaction Agreement. Upon and following such issuance, the Earnout Shares shall be
subject to the
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">terms and provisions of the Registration Rights Agreement and shall constitute
&#147;Registrable Securities&#148; thereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Issuer agrees that the Earnout Shares will, upon issuance in accordance
herewith, be duly authorized, validly issued, fully paid and nonassessable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4. <U>Adjustment of Earnout Shares</U>. The number of Earnout Shares issuable to
the Recipients shall be subject to adjustment from time to time as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Subdivision or Combination of Issuer Stock</U>. If the Issuer at any time following
the Closing Date subdivides (by any split, dividend or otherwise) its outstanding Issuer Stock into
a greater number of shares or pays a stock dividend or otherwise distributes shares of Issuer Stock
to the holders of Issuer Stock, the Issue Price shall be proportionately decreased (and as a result
the number of Earnout Shares issuable upon the determination of the Earnout Amount, if any, shall
be proportionately increased). If the Issuer at any time combines (by reverse split, combination
or otherwise) its outstanding Issuer Stock into a smaller number of shares, the Issue Price shall
be proportionately increased (and as a result the number of Earnout Shares issuable upon the
determination of the Earnout Amount, if any, shall be proportionately decreased) (any of the
foregoing subdivisions or consolidations of Issuer Stock, together with any Business Combination
(as defined below), an &#147;<B>Adjustment Event</B>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Consolidation, Merger or Sale</U>. Any consolidation or merger of the Issuer with or
into another person or entity, or any capital reorganization of the Issuer or any reclassification
of the Issuer Stock pursuant to which, in each case, the holders of Issuer Stock are entitled to
receive stock, securities, assets or other property (&#147;<B>Exchangeable Property</B>&#148;) with respect to or in
exchange for Issuer Stock is referred to herein as &#147;<B>Business Combination</B>.&#148; Prior to the
consummation of any Business Combination, the Issuer shall make appropriate provision to ensure
that the Recipients shall have the right to receive (to the extent the Recipients are ultimately
entitled to Earnout Shares hereunder), in substitution for such Earnout Shares, the same per share
consideration in Exchangeable Property as may be issued or paid to other holders of Issuer Stock in
connection with such Business Combination with respect to any Earnout Shares that the Recipients
would be entitled to receive but for such Business Combination. The Issuer shall not effect any
such Business Combination unless the successor entity (if other than the Issuer) resulting from the
Business Combination assumes, by operation of law or otherwise, the obligations of the Issuer
hereunder; it being assumed that neither the Issuer nor the successor entity, as the case may be,
shall be required to deliver any Exchangeable Property to Recipients until after the Milestone Date
(and then only to the extent Earnout Shares would otherwise be required to be distributed to the
Recipients pursuant to <U>Section&nbsp;2(a)</U>) as set forth in this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Notification to Recipients</U>. Within 10&nbsp;days after any Adjustment Event, the Issuer
or the successor entity, as applicable, shall give written notice thereof to Recipients, which
notice shall set forth the maximum number of shares of Issuer Stock
</DIV>




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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">issuable in respect of the Maximum Earnout or the maximum amount of Exchangeable Property
payable in respect of the Earnout Shares relating to the Maximum Earnout before and after such
Adjustment Event, and the facts and figures upon which such calculations are based, it being agreed
that no Earnout Shares or Exchangeable Property shall be issuable or payable to Recipients
hereunder prior to the Milestone Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Certain Other Actions</U>. The Issuer (i)&nbsp;shall take all reasonable actions as may be
necessary under the Delaware General Corporation Law in order that the Issuer may validly and
legally issue fully paid and nonassessable shares of Issuer Stock to the Recipients at such time as
required under this Agreement and (ii)&nbsp;shall at all times reserve and keep available out of its
authorized but unissued shares, a sufficient number of shares of Issuer Stock to permit the
issuance of Earnout Shares, as may be adjusted hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5. <U>Alternative Payment</U>. In the event that the Earnout Shares are in the
aggregate a number of shares of Issuer Stock that would exceed the number of shares that the Issuer
may issue under the applicable rules and regulations of NASDAQ or such other securities exchange on
which the Issuer Stock then trades (the &#147;<B>Exchange Cap</B>&#148;), then, upon determination of the Earnout
Amount in accordance with Sections&nbsp;2 and 3, the Issuer shall issue to Recipient such maximum number
of shares as would not cause the aggregate number of Issuer&#146;s issued and outstanding shares to
exceed the Exchange Cap (the &#147;<B>Maximum Issuable Shares</B>&#148;) and pay Recipients an amount in cash equal
to the product of (a)&nbsp;the average of the 20 prior trading day closing prices of the Issuer and (b)
the difference between the Earnout Shares and the Maximum Issuable Shares; <U>provided</U> that
the foregoing shall not apply if the Issuer obtains the approval of its shareholders as required by
the applicable rules and regulations of the NASDAQ or other applicable exchange for issuances of
shares of common stock in excess of the Exchange Cap.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6. <U>Operating Authority</U>. Each of the Recipients acknowledges and agrees that
immediately following the Closing under the Master Transaction Agreement, the Purchaser shall have
the ultimate authority and control over the operation and administration of the CantaMia Property
and shall have the sole discretion to take such actions as it deems necessary or appropriate,
including, without limitation, directing the project managers of the CantaMia Property to approve
or revise any applicable budgets (whether as a result of changes in the local, regional or national
economic environment, the current or prospective operating performance of the CantaMia Property or
otherwise). Each of the Recipients further acknowledges and agrees that the exercise of authority
and control by the Purchaser pursuant to this <U>Section&nbsp;6</U> shall not create or increase any
liability or obligation to the Recipients, notwithstanding that such exercise of authority and
control may have an adverse impact on the Earnout Amount and the full or partial payment thereof;
<U>provided</U> that to the extent reasonably practicable, the Purchaser advises the Recipients in
advance of any material increase to the amount of any budgeted expenses or expenditures
contemplated by any budgets relating to the CantaMia Property and gives due consideration to the
bona fide concerns of the Recipients in advance of making any material revisions to any applicable
budgets; <U>provided</U>, <U>further</U>, <U>however</U>, that
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Issuer will not take any action primarily for the purpose of avoiding any earnout payments
required hereunder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7. <U>General Provisions</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Amendments and Waivers</U>. Except as otherwise provided herein, the provisions of
this Agreement may be amended, modified or waived only with the prior written consent of the
Parties. The failure or delay of any Party to enforce any of the provisions of this Agreement
shall in no way be construed as a waiver of such provisions and shall not affect the right of such
Party thereafter to enforce each and every provision of this Agreement in accordance with its
terms. A waiver or consent to or of any breach or default by any Party in the performance by that
Party of his, her or its obligations under this Agreement shall not be deemed to be a consent or
waiver to or of any other breach or default in the performance by that Party of the same or any
other obligations of that Party under this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Remedies</U>. The Parties shall be entitled to enforce their rights under this
Agreement specifically (without posting a bond or other security), to recover damages caused by
reason of any breach of any provision of this Agreement and to exercise all other rights existing
in their favor. The Parties agree and acknowledge that a breach of this Agreement would cause
irreparable harm and money damages would not be an adequate remedy for any such breach and that, in
addition to any other rights and remedies existing hereunder, any Party shall be entitled to
specific performance and/or other injunctive relief from any court of law or equity of competent
jurisdiction (without posting any bond or other security) in order to enforce or prevent violation
of the provisions of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Severability</U>. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be prohibited, invalid, illegal or unenforceable in any respect under
any applicable law or regulation in any jurisdiction, such prohibition, invalidity, illegality or
unenforceability shall not affect the validity, legality or enforceability of any other provision
of this Agreement in such jurisdiction or in any other jurisdiction, but this Agreement shall be
reformed, construed and enforced in such jurisdiction as if such prohibited, invalid, illegal or
unenforceable provision had never been contained herein.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Entire Agreement</U>. Except as otherwise provided herein, this Agreement and the
Master Transaction Agreement contains the complete agreement and understanding among the parties
hereto with respect to the subject matter hereof and supersedes and preempts any prior
understandings, agreements or representations by or among the parties hereto, written or oral,
which may have related to the subject matter hereof in any way. In the event there is a conflict
with this Agreement and the Master Transaction Agreement, this Agreement shall control.
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Assignment; Successors and Assigns</U>. Except as otherwise provided herein, this
Agreement shall bind and inure to the benefit and be enforceable by the Issuer and its successors
and assigns and the other Parties and their successors and permitted assigns (whether so expressed
or not). Nothing in this Agreement shall create or be deemed to create any third party beneficiary
rights in any person or entity that is not a party to this Agreement. There shall be no assignment
of this Agreement or of any rights or obligations hereunder by any Party by operation of law or
otherwise without the prior written consent of the other Parties hereto, and any attempted
assignment without the required consents shall be void. Notwithstanding the foregoing, the Issuer
and Purchaser shall be permitted, subject to compliance with <U>Section&nbsp;4(b)</U>, to assign this
Agreement to any Person with which it engages in a Business Combination.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Notices</U>. All notices and other communications required or permitted under this
Agreement shall be in writing and shall be deemed given when delivered personally, or shall be
deemed given on the next Business Day after deposit with a guaranteed overnight delivery or courier
service, to the parties at the following addresses (or such other addresses as shall be changed by
a like notice), except as expressly provided in this Agreement:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">If to the Issuer, to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Avatar Holdings Inc.<BR>
201 Alhambra Circle, Suite&nbsp;1200<BR>
Coral Gables, FL 33134<BR>
Attention: General Counsel
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">With a copy to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Weil, Gotshal &#038; Manges LLP<BR>
767 Fifth Avenue<BR>
New York, New York 10153<BR>
Attention: Simeon Gold<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jon-Paul Bernard
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">and to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Akerman Senterfitt LLP<BR>
One Southeast Third Avenue, 25th Floor<BR>
Miami, FL 33131<BR>
Attention: Stephen K. Roddenberry
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">If to any Recipient, to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">c/o JEN Partners, LLC<BR>
551 Madison Avenue<BR>
Suite&nbsp;300<BR>
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">
New York, NY 10022<BR>
Attention: Reuben Leibowitz
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">With a copy to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Jones Day<BR>
222 E. 41st Street<BR>
New York, New York 10017<BR>
Attention: Steven C. Koppel
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>Business Days</U>. If any time period for giving notice or taking action hereunder
expires on a day that is not a Business Day, the time period shall automatically be extended to the
Business Day immediately following such Saturday, Sunday or legal holiday.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <U>Governing Law</U>. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and performed in such state,
without regard to the principles of conflict of laws thereof (other than Section&nbsp;5-1401 of the New
York General Obligations Law).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Submission to Jurisdiction; Consent to Service of Process; Waiver of Jury Trial</U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The parties hereto hereby irrevocably submit to the exclusive jurisdiction of any federal
or state court located within the State of New York over any dispute arising out of or relating to
this Agreement and each party hereby irrevocably agrees that all claims in respect of such dispute
or any suit, action or proceeding related thereto may be heard and determined in such courts. The
parties hereby irrevocably waive, to the fullest extent permitted by applicable law, any objection
which they may now or hereafter have to the laying of venue of any such dispute brought in such
court or any defense of inconvenient forum for the maintenance of such dispute. Each of the
parties hereto agrees that a judgment in any such dispute may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Each of the parties hereto hereby consents to process being served by any party to this
Agreement in any suit, action or proceeding by delivery of a copy thereof in accordance with the
provisions of <U>Section&nbsp;7(f)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;THE PARTIES TO THIS AGREEMENT EACH HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (i)&nbsp;ARISING UNDER
THIS AGREEMENT OR (ii)&nbsp;IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE
PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">EQUITY, OR OTHERWISE. THE PARTIES TO THIS AGREEMENT EACH HEREBY AGREES AND CONSENTS THAT ANY
SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND
THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT
WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR
RIGHT TO TRIAL BY JURY.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <U>Descriptive Headings; Interpretation</U>. The descriptive headings of this Agreement
are inserted for convenience only and do not constitute a part of this Agreement. The use of the
word &#147;including&#148; in this Agreement shall be by way of example rather than by limitation.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <U>No Strict Construction</U>. The language used in this Agreement shall be deemed to be
the language chosen by the parties hereto to express their mutual intent, and no rule of strict
construction shall be applied against any party.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <U>Counterparts</U>. This Agreement may be executed in multiple counterparts, any one of
which need not contain the signature of more than one party, but a complete set of which shall
constitute one and the same agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <U>Electronic Delivery</U>. This Agreement, the agreements referred to herein, and each
other agreement or instrument entered into in connection herewith or therewith or contemplated
hereby or thereby, and any amendments hereto or thereto, to the extent executed and delivered by
means of a photographic, photostatic, facsimile, pdf or similar reproduction of such signed writing
using a facsimile machine or electronic mail shall be treated in all manner and respects as an
original agreement or instrument and shall be considered to have the same binding legal effect as
if it were the original signed version thereof delivered in person. At the request of any party
hereto or to any such agreement or instrument, each other party hereto or thereto shall re-execute
original forms thereof and deliver them to all other parties. No party hereto or to any such
agreement or instrument shall raise the use of a facsimile machine or electronic mail to deliver a
signature or the fact that any signature or agreement or instrument was transmitted or communicated
through the use of a facsimile machine or electronic mail as a defense to the formation or
enforceability of a contract and each such party forever waives any such defense.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <U>Further Assurances</U>. In connection with this Agreement and the transactions
contemplated hereby, the Parties shall execute and deliver any additional documents and instruments
and perform any additional acts that may be necessary or appropriate to effectuate and perform the
provisions of this Agreement and the transactions contemplated hereby.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>&#091;Signature Page Follows.&#093;</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the Parties have executed this Earnout Agreement as of the date first
written above.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">AVATAR HOLDINGS INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Patricia Kimball Fletcher
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patricia Kimball Fletcher&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Executive Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">AVATAR PROPERTIES INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Patricia Kimball Fletcher
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patricia Kimball Fletcher&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Executive Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JEN I, L.P.<BR>
<BR>
By:&nbsp;&nbsp; JEN Partners, LLC, Its Manager<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JEN RESIDENTIAL LP<BR>
<BR>
By:&nbsp;&nbsp;JEN Partners, LLC, Its Manager<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">[EARNOUT AGREEMENT]</DIV>
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<TYPE>EX-99.4
<SEQUENCE>5
<FILENAME>g25091exv99w4.htm
<DESCRIPTION>EX-99.4
<TEXT>
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<TITLE>exv99w4</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.4</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 6pt">October&nbsp;25, 2010
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="16%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">JEN I, L.P.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">JEN Residential LP
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">c/o JEN Partners, LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">c/o JEN Partners, LLC</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">551 Madison Avenue
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">551 Madison Avenue</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Suite&nbsp;300
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Suite&nbsp;300</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">New York, NY 10022
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">New York, NY 10022</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Attn: Reuben Leibowitz
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Attn: Reuben Leibowitz</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Ladies and Gentlemen:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is hereby made to that certain Master Transaction Agreement, dated as of October&nbsp;25,
2010, by and among Avatar Holdings, Inc. (&#147;<U>Avatar</U>&#148;), Avatar Properties Inc.
(&#147;<U>API</U>&#148;), JEN Partners LLC (&#147;<U>JEN</U>&#148;) and the seller parties thereto (the
&#147;<U>Sellers</U>&#148;) (the &#147;<U>Master Agreement</U>&#148;). Capitalized terms used and not defined herein
shall have the respective meaning ascribed to them in the Master Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;JEN I, L.P. (&#147;<U>JEN I</U>&#148;) and JEN Residential LP (&#147;<U>JEN Res</U>&#148; and, together with JEN
I, the &#147;<U>JEN Holders</U>&#148;) hereby acknowledge that, as a condition to Avatar&#146;s and API&#146;s
willingness to enter into the Master Agreement, Avatar and API have required that the JEN Holders
enter into this letter agreement (this &#147;<U>Agreement</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As of the date hereof and after giving effect to the transactions contemplated by the Master
Agreement, each JEN Holder is the record and beneficial owner of the shares of common stock, $1.00
par value, of Avatar (&#147;<U>Avatar Common Stock</U>&#148;) listed opposite its name on <U>Exhibit&nbsp;A</U>
(such shares, together with any other shares of Avatar Common Stock acquired by JEN, a JEN Holder
or any of their respective Affiliates (collectively, the &#147;<U>JEN Group</U>&#148;) after the date
hereof, being collectively referred to herein as the &#147;<U>JEN Shares</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <U>Agreement to Vote</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Voting</U>. From the date hereof until the date (the &#147;<U>Vote Termination Date</U>&#148;)
on which neither Reuben Leibowitz nor Allen Anderson serves on the board of directors of Avatar
(the &#147;<U>Board</U>&#148;), at each meeting of the stockholders of Avatar pertaining to the election of
directors however called (or any action by written consent in lieu of a meeting pertaining to the
election of directors) or any adjournment thereof, each JEN Holder shall appear at such meeting of
stockholders or otherwise cause all JEN Shares to be counted as present thereat for the purpose of
establishing a quorum, and vote all JEN Shares (or cause them to be voted) or (as appropriate)
execute written consents in respect thereof, in favor of all individuals nominated by Avatar to be
elected to the Board. Any such vote shall be cast (or consent shall be given) by the JEN Holders
in accordance with the procedures governing such meeting or consent so as to ensure that it is duly
counted, including for purposes of determining that a quorum is present and for purposes of
recording the results of such vote (or consent) pertaining to the election of directors.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Proxy</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;In furtherance of the JEN Holders&#146; agreement in <U>Section&nbsp;1.1(a)</U> above, but subject
to the following sentence, each JEN Holder hereby irrevocably constitutes and appoints Avatar and
any officer(s) of Avatar designated as proxy or proxies by Avatar as its attorney-in-fact and proxy
in accordance with the Delaware General Corporation Law (the &#147;<U>DGCL</U>&#148;) (with full power of
substitution and re-substitution), for and in the name, place and stead of such JEN Holder, to vote
all JEN Shares at any meeting of stockholders of Avatar pertaining to the election of directors
however called (or any adjournment or postponement thereof), or to execute one or more written
consents in respect of JEN Shares, in each case, in favor of all individuals nominated by Avatar to
be elected to the Board.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Such proxy shall be valid and irrevocable until the Vote Termination Date. Each JEN
Holder represents that no other proxies have been given in respect of its JEN Shares. Each JEN
Holder affirms that the foregoing proxy is (x)&nbsp;given to secure the performance of such JEN Holder&#146;s
obligations under this Agreement and (y)&nbsp;irrevocable until the Vote Termination Date and coupled
with an interest in accordance with the provisions of Section 212(e) of the DGCL. If for any
reason the proxy granted herein is not irrevocable or is for any reason unenforceable, then each
JEN Holder irrevocably agrees to vote or to direct the voting or the execution of written consents
in respect of its JEN Shares in accordance with, and to the extent set forth in, <U>Section
1.1(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;The inspector of elections at any meeting of the stockholders of Avatar shall have the
sole authority to make any determinations with regard to the voting of the JEN Shares, and any
other determinations required under this <U>Section&nbsp;1.1</U> and any determination by such
inspector of elections shall be conclusive and binding, absent manifest error.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <U>Standstill</U>. Each JEN Holder agrees that, during the period commencing on the date
hereof until the date on which the members of the JEN Group, in the aggregate, no longer
beneficially own 5% or more of the outstanding shares of Avatar Common Stock or are required to
file a Schedule&nbsp;13D or Schedule&nbsp;13G (or, in each case, any document that serves as a successor
thereto) (in each case, a &#147;<U>5% Filing</U>&#148;) with the Securities and Exchange Commission (the
&#147;<U>SEC</U>&#148;) pursuant to applicable law with respect to their beneficial ownership of shares of
Avatar Common Stock, it will not, and will cause each of its Affiliates not to, do or agree to do
any of the following without the prior written consent of Avatar:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;acquire, offer or propose to acquire, solicit an offer to sell or agree to acquire,
directly or indirectly, alone or in concert with others, by purchase or otherwise, any direct or
indirect beneficial interest in any voting securities of Avatar or direct or indirect rights,
warrants or options to acquire, or securities convertible into or exchangeable for, any voting
securities of Avatar; <U>provided</U>, that nothing herein shall prohibit the JEN Holders from
acquiring shares of Avatar Common Stock in accordance with the terms and conditions of the Earnout
Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;make, or in any way participate in, directly or indirectly, alone or in concert with
others, any &#147;solicitation&#148; of &#147;proxies&#148; to vote (as such terms are used in the proxy
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">rules of the SEC promulgated pursuant to Section&nbsp;14 of the Securities Exchange Act of 1934, as
amended (the &#147;<U>Exchange Act</U>&#148;)), or seek to advise or influence in any manner whatsoever any
Person with respect to the voting of, any voting securities of Avatar with respect to, in each
case, any of the matters described in <U>Section&nbsp;1.2(d)</U>;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;form, join or in any way participate in a &#147;group&#148; within the meaning of Section&nbsp;13(d)(3)
of the Exchange Act with respect to any voting securities of Avatar in connection with any of the
matters described in <U>Section&nbsp;1.2(d)</U>; <U>provided</U>, that nothing herein shall prohibit
the JEN Holders from filing or amending any 5% Filing in respect of shares of Avatar Common Stock
acquired pursuant to the Master Agreement or the Earnout Agreement or otherwise acquired in
accordance with the Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;otherwise act, alone or in concert with others, to seek to propose to Avatar or any of its
stockholders any merger, business combination, restructuring, recapitalization or other similar
transaction to or with Avatar or otherwise seek, alone or in concert with others, to control,
change or influence the management or Board or nominate any person as a director who is not
nominated by the then incumbent directors, or propose any matter to be voted upon by the
stockholders of Avatar; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;subject to the other provisions of this <U>Section&nbsp;1.2</U>, take any action that could
reasonably be expected to compel Avatar to make a public announcement regarding any of the matters
referred to in clauses (a)&nbsp;through (d)&nbsp;of this <U>Section&nbsp;1.2</U>, or publicly announce an
intention to do, or enter into any arrangement or understanding with others to do, any of the
actions restricted or prohibited under clauses (a)&nbsp;through (d)&nbsp;of this <U>Section&nbsp;1.2</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, (1)&nbsp;the members of the JEN Group may take any of the actions
otherwise prohibited by <U>Section&nbsp;1.2(a)</U> so long as, after giving effect to any such actions
and the acquisition of any shares of Avatar Common Stock by the JEN Holders pursuant to the Earnout
Agreement, the members of the JEN Group would not beneficially own, in the aggregate, more than 15%
of the outstanding shares of Avatar Common Stock, (2)&nbsp;in the event the Board approves a transaction
of a type described in <U>Section&nbsp;1.2(d)</U>, the members of the JEN Group will not be prohibited
from voting to approve such transaction or selling any Avatar Common Stock (including by
participating in a tender offer) in connection with, and pursuant to the terms of, such
transaction, and (3)&nbsp;nothing in this Agreement will limit or affect or be deemed to apply to Reuben
Leibowitz&#146;s or Allen Anderson&#146;s actions taken in connection with his service as a member of the
Board, including without limitation discussing any proposal concerning any extraordinary
transaction involving Avatar or any of its Affiliates with the Board and representatives of Avatar
and its advisors who are involved in the evaluation and execution of any such proposal on behalf of
Avatar.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <U>Restriction on Transfer</U>. From the date hereof until the second anniversary of the
date hereof (the &#147;<U>Lockup Period</U>&#148;), no JEN Holder shall directly or indirectly (i)&nbsp;sell,
transfer (including by operation of law), give, pledge, encumber, assign or otherwise dispose of
(including, without limitation, any Constructive Disposition (as hereinafter defined)), or enter
into any contract, option or other arrangement or understanding with respect to the sale, transfer,
gift, pledge, encumbrance, assignment or other disposition of (each, a &#147;<U>Transfer</U>&#148;), any JEN
Shares acquired pursuant to the Master Agreement (or any right, title or interest thereto or
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">therein), (ii)&nbsp;deposit any JEN Shares acquired pursuant to the Master Agreement into a voting
trust or grant any proxies or enter into a voting agreement, power of attorney or voting trust with
respect to any such JEN Shares, (iii)&nbsp;take any action that would make any representation or
warranty of a JEN Holder set forth in this Agreement untrue or incorrect in any material respect or
have the effect of preventing, disabling or delaying a JEN Holder from performing any of its
obligations under this Agreement, or (iv)&nbsp;agree (whether or not in writing) to take any of the
actions referred to in the foregoing clauses (i), (ii)&nbsp;or (iii)&nbsp;of this <U>Section&nbsp;1.3</U> to the
extent that any such actions would be effective prior to the end of the Lockup Period. If
requested by Avatar, the JEN Holders agree that all certificates representing JEN Shares acquired
at the Closing pursuant to the Master Agreement may bear a prominent legend stating that such JEN
Shares are subject to the transfer, voting and other restrictions described in this Agreement;
<U>provided</U>, <U>however</U>, that in the event that such JEN Shares are no longer subject to
the applicable restrictions pursuant to the terms of this Agreement, upon written request by the
applicable JEN Holder, Avatar shall, as promptly as reasonably practicable, remove such legends
from the certificates representing such JEN Shares. As used herein, the term &#147;<U>Constructive
Disposition</U>&#148; means, with respect to any JEN Shares acquired pursuant to the Master Agreement, a
short sale with respect to such security, entering into or acquiring an offsetting derivative
contract with respect to such security, entering into or acquiring a futures or forward contract to
deliver such security or entering into any other hedging or other derivative transaction that has
the effect of materially changing the economic benefits and risks of ownership or any other
transaction having a comparable effect. Notwithstanding the foregoing, nothing in this Agreement
shall restrict the ability of a JEN Holder to (a)&nbsp;engage in any hedging, derivative or other
transactions relating to, or to otherwise transfer, any securities of any Person other than Avatar,
(b)&nbsp;take any of the actions described in clause (2)&nbsp;of the last paragraph of <U>Section&nbsp;1.2</U> to
the extent permitted thereby, or (c)&nbsp;Transfer any JEN Shares acquired pursuant to the Master
Agreement to the other JEN Holder or to another member of the JEN Group as long as the transferee
delivers a written instrument to Avatar, in form and substance reasonably satisfactory to Avatar,
confirming that such transferee is subject to and bound by all of the obligations of this Agreement
(including, but not limited to, <U>Section&nbsp;1.5</U>) as a &#147;<U>JEN Holder</U>.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 <U>Representations and Warranties of Sellers</U>. Except for proxies and restrictions in
favor of Avatar pursuant to this Agreement and except for such transfer restrictions of general
applicability as may be provided under the Securities Act and the &#147;blue sky&#148; laws of the various
states of the United States, each JEN Holder has sole voting power and sole power of disposition
with respect to all of the JEN Shares listed on <U>Exhibit&nbsp;A</U> opposite its name, with no
restrictions on such JEN Holder&#146;s rights of voting or disposition pertaining thereto and no Person
other than the JEN Holders has any right to direct or approve the voting or disposition of any JEN
Shares. As of the date hereof, neither JEN Holder owns, beneficially or of record, any securities
of Avatar other than the JEN Shares listed on <U>Exhibit&nbsp;A</U> opposite its name.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5 <U>Pledge</U>. (a)&nbsp;Subject to clause (c)&nbsp;of this <U>Section&nbsp;1.5</U>, each of the JEN
Holders hereby acknowledges and agrees that, from the date hereof until the end of the Lockup
Period, the JEN Shares owned by it are and shall be collateral security for the indemnification
obligations of the Sellers set forth in the Master Agreement. In furtherance of the foregoing, to
secure the obligations and liabilities of the Sellers under Article&nbsp;VIII of the Master Agreement
(collectively, the &#147;<U>Secured Obligations</U>&#148;), each JEN Holder hereby pledges and assigns to
Avatar and API, and grants to Avatar and API a security interest in, all of such JEN Holder&#146;s
right, title
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and interest, whether now existing or hereafter arising, in the JEN Shares (the &#147;<U>Pledged
Collateral</U>&#148;). All certificates or instruments (if any) representing or evidencing any Pledged
Collateral shall be delivered to and held by or on behalf of Avatar and API and shall either be in
suitable form for transfer by delivery, or shall be accompanied by duly executed undated
instruments of transfer or assignment in blank, all in form and substance reasonably satisfactory
to Avatar and API. Each JEN Holder hereby authorizes Avatar and API to file one or more UCC
financing or continuation statements, and amendments thereto (or similar documents required by any
laws of any applicable jurisdiction), relating to all or any part of the Pledged Collateral without
the signature of such JEN Holder, in each case in form and substance reasonably satisfactory to
such JEN Holder.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In the event that a Purchaser Indemnified Party is entitled to indemnification from the
Sellers under the Master Agreement pursuant to a claim for indemnification against Sellers under
<U>Section&nbsp;8.2(a)</U> thereof that is resolved and not otherwise satisfied by offsetting any
amounts payable under the Notes, Avatar and API shall be entitled to exercise all remedies in
respect of the Pledged Collateral in accordance with the Uniform Commercial Code as in effect in
the State of New York from time to time, to the extent of the value of such indemnification claim.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Subject to <U>Section&nbsp;1.5(b)</U>, at 11:59 PM on the last day of the Lockup Period,
notwithstanding whether any Secured Obligations remain outstanding, (i)&nbsp;all security interests and
other liens granted to or held by Avatar and/or API pursuant to this <U>Section&nbsp;1.5</U> shall
automatically terminate without further action with respect to the Released Shares, (ii)&nbsp;the pledge
of the Released Shares under this <U>Section&nbsp;1.5</U> shall automatically terminate without further
action and have no further force or effect, (iii)&nbsp;Avatar and API shall return to the JEN Holders
within one Business Day, by overnight mail or hand delivery, all collateral in respect of the
Released Shares consisting of original stock certificates and instruments in their possession, and,
following which, each JEN Holder will be deemed to be fully authorized to file any applicable UCC
termination statements, and (iv)&nbsp;Avatar and API will execute and deliver to the JEN Holders, at the
JEN Holders&#146; request and expense, such additional documents, instruments or releases as either JEN
Holder may reasonably request to further evidence the termination of all instruments of record in
favor of Avatar and/or API with respect to the security interests and liens securing the Secured
Obligations in respect of the Released Shares. In the event that there are any Holdback Shares on
the last day of the Lockup Period, the actions described in clauses (i)-(iv) of this <U>Section
1.5(c)</U> shall be taken with respect to any portion of such Holdback Shares that remain
outstanding to the extent that the claims in respect of which such Holdback Shares were not
released on the last day of the Lockup Period have been finally resolved and, if applicable,
satisfied from the Holdback Shares pursuant to <U>Section&nbsp;1.5(b)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;For purposes of this <U>Section&nbsp;1.5, (i)</U> &#147;<U>Released Shares</U>&#148; means a number of
JEN Shares determined by subtracting (A)&nbsp;the number of Holdback Shares from (B)&nbsp;the total number of
JEN Shares outstanding at the applicable time, and (ii) &#147;<U>Holdback Shares</U>&#148; means a number of
JEN Shares determined by dividing (A)&nbsp;the aggregate amount, if any, of outstanding claims for
indemnification against Sellers under Section&nbsp;8.2(a) of the Master Agreement properly asserted in a
written notice within the required timing for asserting such claim in accordance with Article&nbsp;VIII
of the Master Agreement (but not yet resolved as of the last day of the Lockup
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Period) by (B)&nbsp;the per share price of Avatar Common Stock as of the last day of the Lockup
Period based on the average of the 20 prior trading day closing prices thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6 <U>Definition of &#147;Beneficial Ownership&#148; and &#147;Affiliates</U>.&#148; For purposes of this
Agreement, (a) &#147;beneficial ownership&#148; with respect to (or to &#147;own beneficially&#148;) any securities
shall mean &#147;beneficial ownership&#148; of such securities as determined pursuant to Rule&nbsp;13d-3 under the
Exchange Act and (b) &#147;Affiliate&#148; shall be deemed to have the meaning set forth in the Master
Agreement; <U>provided</U>, <U>however</U>, that for the avoidance of doubt no limited partner of
either JEN Holder shall be deemed to be a member of the JEN Group for purposes of this Agreement
unless such limited partner is a controlled Affiliate of Reuben Leibowitz or Allen Anderson.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.7 <U>Notices</U>. All notices and other communications under this Agreement shall be in
writing and shall be deemed given (i)&nbsp;when delivered personally by hand or (ii)&nbsp;one Business Day
following the day sent by overnight courier, in each case at the following addresses (or to such
other address as a party may have specified by notice given to the other party pursuant to this
provision):
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">If to either JEN Holder, to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">JEN Partners, LLC<BR>
551 Madison Avenue<BR>
Suite&nbsp;300<BR>
New York, NY 10022<BR>
Attn: Reuben Leibowitz
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">with a copy (which shall not constitute notice) to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Jones Day<BR>
222 E. 41st Street<BR>
New York, New York 10017<BR>
Attention: Steven C. Koppel<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Andrew M. Levine
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">If to Avatar or API, to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Avatar Holdings Inc.<BR>
201 Alhambra Circle, Suite&nbsp;1200<BR>
Coral Gables, FL 33134<BR>
Attention: General Counsel
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">with a copy (which shall not constitute notice) to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Weil, Gotshal &#038; Manges LLP<BR>
767 Fifth Avenue<BR>
New York, New York 10153<BR>
Attention: Simeon Gold<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jon-Paul Bernard
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Akerman Senterfitt LLP<BR>
One Southeast Third Avenue, 25th Floor<BR>
Miami, FL 33131<BR>
Attention: Stephen K. Roddenberry
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.8 <U>Miscellaneous</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Further Assurances</U>. Each of the JEN Holders, Avatar and API shall use their
commercially reasonable efforts to take, or cause to be taken, all actions necessary or appropriate
to consummate the transactions contemplated by this Agreement
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Expenses</U>. Except as otherwise provided in this Agreement, the JEN Holders, on the
one hand, and Avatar and API, on the other hand, shall each bear their own expenses incurred in
connection with the negotiation and execution of this Agreement and each other agreement, document
and instrument contemplated by this Agreement and the consummation of the transactions contemplated
hereby and thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Specific Performance</U>. The parties acknowledge and agree that a breach of this
Agreement would cause irreparable damage to the other parties hereto and that such other parties
will not have an adequate remedy at law. Therefore, the obligations of the parties under this
Agreement shall be enforceable by a decree of specific performance issued by any court of competent
jurisdiction, and appropriate injunctive relief may be applied for and granted in connection
therewith. Such remedies shall, however, be cumulative and not exclusive and shall be in addition
to any other remedies which any party may have under this Agreement or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Submission to Jurisdiction; Consent to Service of Process; Waiver of Jury Trial</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The parties hereto hereby irrevocably submit to the exclusive jurisdiction of any federal
or state court located within the State of New York over any dispute arising out of or relating to
this Agreement and each party hereby irrevocably agrees that all claims in respect of such dispute
or any suit, action or proceeding related thereto may be heard and determined in such courts. The
parties hereby irrevocably waive, to the fullest extent permitted by applicable law, any objection
which they may now or hereafter have to the laying of venue of any such dispute brought in such
court or any defense of inconvenient forum for the maintenance of such dispute. Each of the
parties hereto agrees that a judgment in any such dispute may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Each of the parties hereto hereby consents to process being served by any party to this
Agreement in any suit, action or proceeding by delivery of a copy thereof in accordance with the
provisions of <U>Section&nbsp;1.7</U>.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;THE PARTIES TO THIS AGREEMENT EACH HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (i)&nbsp;ARISING UNDER
THIS AGREEMENT OR (ii)&nbsp;IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE
PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE.
THE PARTIES TO THIS AGREEMENT EACH HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION,
OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO THIS
AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN
EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Entire Agreement; Amendments and Waivers</U>. This Agreement represents the entire
understanding and agreement among the parties hereto with respect to the subject matter hereof and
can be amended, supplemented or changed, and any provision hereof can be waived, only by written
instrument making specific reference to this Agreement signed by the party against whom enforcement
of any such amendment, supplement, modification or waiver is sought. No action taken pursuant to
this Agreement, including any investigation by or on behalf of any party, shall be deemed to
constitute a waiver by the party taking such action of compliance with any representation,
warranty, covenant or agreement contained herein. The waiver by any party hereto of a breach of
any provision of this Agreement shall not operate or be construed as a further or continuing waiver
of such breach or as a waiver of any other or subsequent breach. No failure on the part of any
party to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate
as a waiver thereof, nor shall any single or partial exercise of such right, power or remedy by
such party preclude any other or further exercise thereof or the exercise of any other right, power
or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies
provided by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Governing Law</U>. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and performed in such state,
without regard to principles of conflict of laws thereof (other than Section&nbsp;5-1401 of the New York
General Obligations Law).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>Severability</U>. If any term or other provision of this Agreement is invalid,
illegal, or incapable of being enforced by any law or public policy, all other terms or provisions
of this Agreement shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby are not affected in any manner materially
adverse to any party. Upon such determination that any term or other provision is invalid,
illegal, or incapable of being enforced, the parties hereto shall negotiate in good faith to modify
this Agreement so as to effect the original intent of the parties as closely as possible in an
acceptable manner in order that the transactions contemplated hereby are consummated as originally
contemplated to the greatest extent possible.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;<U>Binding Effect; Assignment</U>. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and permitted assigns.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Nothing in this Agreement shall create or be deemed to create any third party beneficiary
rights in any person or entity not a party to this Agreement. Except as expressly permitted
hereby, no assignment of this Agreement or of any rights or obligations hereunder may be made by
either the JEN Holders, Avatar or API (by operation of law or otherwise) without the prior written
consent of the other parties hereto and any attempted assignment without the required consents
shall be void. Notwithstanding the foregoing, Avatar and API shall be permitted to assign this
Agreement in connection with any consolidation or merger of Avatar and/or API, respectively, with
or into another Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U>Counterparts</U>. This Agreement may be executed in any number of counterparts, each
of which shall be deemed to be an original, and a complete set of such counterparts shall
constitute one Agreement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;Remainder of this page left intentionally blank.&#093;
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Sincerely,
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">AVATAR HOLDINGS INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">AVATAR PROPERTIES INC.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Patricia Kimball Fletcher
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Patricia Kimball Fletcher</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Patricia Kimball Fletcher<BR>
Title: Executive Vice President
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Patricia Kimball Fletcher<BR>
Title: Executive Vice President</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>ACKNOWLEDGED AND AGREED UPON
AS OF THE DATE FIRST WRITTEN ABOVE:</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="13%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD colspan="3" valign="top" align="left">JEN I, L.P.</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">JEN RESIDENTIAL LP</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Reuben S. Leibowitz
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Reuben S. Leibowitz</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Reuben S. Leibowitz <BR>
Title: Managing Member
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Name: Reuben S. Leibowitz <BR>
Title: Managing Member</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">[LOCK-UP LETTER AGREEMENT]
</DIV>



<P ALIGN="CENTER" STYLE="FONT-SIZE: 10PT"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




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<DOCUMENT>
<TYPE>EX-99.5
<SEQUENCE>6
<FILENAME>g25091exv99w5.htm
<DESCRIPTION>EX-99.5
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w5</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit
99.5</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AGREEMENT AMONG TRANSACTION PARTICIPANTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS AGREEMENT AMONG TRANSACTION PARTICIPANTS (this &#147;<U><B>Agreement</B></U>&#148;), dated as of October
25, 2010, is by and among JEN Partners LLC, a Delaware limited liability company (&#147;<U><B>JEN
Partners</B></U>&#148;), JEN I, L.P., a Delaware limited partnership (&#147;<U><B>JEN I</B></U>&#148;), Jen Residential LP,
a Delaware limited partnership (&#147;<U><B>JEN Res</B></U>&#148;), Terra West Communities LLC, a Delaware limited
liability company (&#147;<U><B>Terra West</B></U>&#148;), JEN JCH, LLC, a Delaware limited liability company
(&#147;<U><B>JEN JCH</B></U>&#148;), Sun Terra Communities, LLC, a Delaware limited liability company (&#147;<U><B>Sun
Terra</B></U>&#148;), Joseph Carl Mulac III (&#147;<U><B>JCM</B></U>&#148;), Stephen Adams (&#147;<U><B>SA</B></U>&#148;), Mike Jesberger
(&#147;<U><B>MJ</B></U>&#148;), John Kraynick (&#147;<U><B>JK</B></U>&#148;), Richard Jerman (&#147;<U><B>RJ</B></U>&#148;), Riverside Ventures
LLC, a Delaware limited liability company (&#147;<U><B>Riverside</B></U>&#148;), Peter Bay Investment LLC, a
Delaware limited liability company (&#147;<U><B>Peter Bay</B></U>&#148;), and William and Ruth Bloom, individuals,
as joint tenants (&#147;<U><B>Bloom</B></U>&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RECITALS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;JEN Partners, Terra West, JEN JCH, Sun Terra, SA and JCM (collectively, the
&#147;<U><B>Sellers</B></U>&#148;), Avatar Properties Inc. (the &#147;<U><B>Purchaser</B></U>&#148;) and Avatar Holdings Inc.
(&#147;<U><B>Holdings</B></U>&#148;) are parties to the Master Transaction Agreement (the &#147;<U><B>Master
Agreement</B></U>&#148;), dated as of the date hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;As contemplated in the Master Agreement, the Sellers wish to appoint a representative to
act on their behalf in association with the transactions contemplated therein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.&nbsp;The Sellers may be subject to certain indemnification obligations under Article&nbsp;VIII of the
Master Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.&nbsp;MJ, JK, RJ, Riverside, Peter Bay and Bloom are not parties to the Master Agreement; however
each will receive certain consideration as a result of the transactions set forth in the Master
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.&nbsp;The Parties wish to document their understanding with respect to certain matters related to
the Master Agreement and the transactions contemplated thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.&nbsp;Riverside, Peter Bay and Bloom are parties to this Agreement solely for purposes of
<U>Sections&nbsp;3.1</U> and <U>3.5</U>, and <U>Article&nbsp;V</U> hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties
agree to the following:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE I<BR>
DEFINITIONS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;1.1 </B>Capitalized terms used and not otherwise defined herein have the meanings given to such
terms in the Master Agreement.
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;1.2 </B>The following terms have the following meanings:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<U><B>Parties</B></U>&#148; means, collectively, JEN Partners, JEN I, JEN Res, Terra West, JEN
JCH, JCM, SA, MJ, JK, RJ, Riverside, Peter Bay and Bloom.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;<U><B>Responsible Parties</B></U>&#148; means the Parties identified as &#147;Responsible Parties&#148; on
<U>Annex B-1</U>, <U>Annex B-2</U>, <U>Annex B-3</U> or <U>Annex B-4</U>, as applicable.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE II<BR>
SELLERS&#146; REPRESENTATIVE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;2.1 </B>Without limiting Section&nbsp;9.2 of the Master Agreement, each of the Parties hereby
irrevocably appoints JEN Partners as the Sellers&#146; Representative under the Master Agreement from
time to time as such Party&#146;s true and lawful attorney-in-fact, to act as such Party&#146;s
representative (a &#147;<U><B>Sellers&#146; Representative</B></U>&#148;) and agrees to be bound by such Section&nbsp;9.2 for
all purposes, assuming for that purpose that references to &#147;<U><B>Seller</B></U>&#148; in such Section&nbsp;9.2
include each of the Parties, regardless of whether they are parties to the Master Agreement.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE III<BR>
DISTRIBUTION OF PROCEEDS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;3.1 </B><U>Cash Consideration</U>. Subject to Article&nbsp;IV hereof, as soon as reasonably
practicable following the determination of the final Adjustment Amount in accordance with Section
3.3 of the Master Agreement, the Sellers&#146; Representative will deliver or cause to be delivered to
each Party listed on <U>Annex A-1</U> hereto (or its designee) the amount of the Cash
Consideration set opposite such Party&#146;s name on <U>Annex A-1</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;3.2 </B><U>Promissory Notes</U>. Subject to Article&nbsp;IV hereof, as soon as reasonably
practicable following the date upon which any payment is made under a Note by Purchaser or
Holdings, the Sellers&#146; Representative will deliver or cause to be delivered to each Party listed on
<U>Annex A-2</U> hereto (or its designee) the percentage of any payment from such Note set
opposite such Party&#146;s name on <U>Annex A-2</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;3.3 </B><U>Shares</U>. Subject to Article&nbsp;IV hereof, as soon as reasonably practicable
following the later to occur of (a)&nbsp;the second anniversary of the Closing Date and (b)&nbsp;the time at
which shares of Holdings are from time to time released to, or for the benefit of, Sellers pursuant
to the terms of the Voting, Standstill and Lockup Agreement, dated as of the Closing Date, by and
among Holdings, Purchaser, JEN I and JEN Res, Sellers&#146; Representative will deliver or cause to be
delivered to each Party listed on <U>Annex A-3</U> hereto (or its designee) the percentage of such
shares of Holdings received by or for the benefit of Sellers set opposite such Party&#146;s name on
<U>Annex A-3</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;3.4 </B><U>Earnout Shares</U>. Subject to Article&nbsp;IV hereof, as soon as reasonably
practicable following the receipt of the Earnout Shares (if any) by JEN I and/or JEN Res pursuant
to the Earnout Agreement, dated as of the Closing Date, by and among Holdings, JEN I and JEN Res
(the &#147;<U><B>Earnout Agreement</B></U>&#148;), Sellers&#146; Representative will deliver or cause to be delivered to
each Party listed on <U>Annex A-4</U> hereto (or its designee) the percentage of the Earnout
Shares set opposite such Party&#146;s name on <U>Annex A-4</U>.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->-2-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;3.5 </B><U>Consideration and Release</U>. Each of the Parties acknowledges and agrees that
the consideration received pursuant to this Article&nbsp;III (and in the case of Riverside, Peter Bay
and Bloom, pursuant to Section&nbsp;3.1 only) will constitute the payment in full, in full satisfaction
and discharge, of any and all claims or rights such Party has with respect to the proceeds of the
transactions contemplated under and by the Master Transaction Agreement. In consideration for such
payment, each Party hereby releases, remises, acquits and forever discharges, irrevocably and
unconditionally, JEN Partners and its Affiliates from, against and with respect to any and all
claims that such Party has had or may have against JEN Partners or its Affiliates relating to or
arising out of the Master Transaction Agreement, the transactions contemplated thereunder, the
Purchased Entities and Purchased Entity Assets; <U>provided</U>, <U>however</U>, that nothing in
this Section&nbsp;3.5 shall be deemed to release JEN Partners or its Affiliates from (i)&nbsp;any of its
obligations under this Agreement and (ii)&nbsp;JEN Partner or its Affiliate&#146;s fraud or gross negligence.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE IV<BR>
RESPONSIBILITY FOR INDEMNIFICATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.1 </B><U>Responsibility</U>. If Sellers are required to indemnify any Purchaser Indemnified
Party any amount pursuant to Section&nbsp;8.2(a) of the Master Agreement, the Parties&#146; responsibility
for such indemnification obligation shall be determined as follows:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of indemnification pursuant to (1)&nbsp;Section&nbsp;8.2(a)(ii) of the Master
Agreement as a result of a breach of a representation or warranty made by a Seller in
Article&nbsp;IV of the Master Agreement or any other Seller Document or Company Document or (2)
Section&nbsp;8.2(a)(iii) as a result of a breach of a covenant or other agreement on the part of
such Seller under the Master Agreement, such Seller shall be responsible for such indemnity
obligation in its entirety, subject to Section&nbsp;4.2;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of indemnification pursuant to Section&nbsp;8.2(a)(i) of the Master Agreement as
a result of a breach of a representation or warranty made with respect to a particular
Purchased Entity in Article&nbsp;V of the Master Agreement or any other Seller Document or
Company Document, the Responsible Parties identified on <U>Annex B-1</U> shall be
responsible for such indemnity obligation in accordance with the pro rata percentages set
forth on <U>Annex B-1</U> and with Section&nbsp;4.2;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of indemnification pursuant to Section&nbsp;8.2(a)(iv) of the Master Agreement as
a result of the JCH AZ FLSA matter and to the extent provided for in the Labor Side Letter,
the Responsible Parties identified on <U>Annex B-2</U> shall be responsible for such
indemnity obligation in accordance with the pro rata percentages set forth on <U>Annex
B-2</U> and with Section&nbsp;4.2;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of indemnification pursuant to Section&nbsp;8.2(a)(v) of the Master Agreement as
a result of the copyright infringement claim referenced in Section&nbsp;8.2(a)(v), the
Responsible Parties identified on <U>Annex B-3</U> shall be responsible for such indemnity
obligation in its entirety in accordance with the pro rata percentages set forth on
<U>Annex B-3</U> and with Section&nbsp;4.2; and</TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-3-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in the case of indemnification pursuant to Section&nbsp;8.2(a)(vi) or Section&nbsp;8.2(a)(vii) of
the Master Agreement regarding failure to timely pay Taxes pursuant to Section&nbsp;8.5 of the
Master Transaction Agreement, the Responsible Parties identified on <U>Annex B-4</U> shall
be responsible for such indemnity obligation in its entirety in accordance with the pro rata
percentages set forth on <U>Annex B-4</U> and with Section&nbsp;4.2.</TD>
</TR>
</TABLE>
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.2 </B><U>Satisfaction</U>. The indemnification obligations of the Responsible Parties
pursuant to Section&nbsp;4.1 will be satisfied first, by offsetting any amounts otherwise payable to the
applicable Responsible Party (valued in the case of Shares or Earnout Shares at the per share price
of Holdings&#146; common stock on the applicable distribution date, based on the average of the 20 prior
trading day closing prices thereof), and, to the extent any such indemnification obligations are
not so satisfied, any remaining indemnification obligations shall be satisfied by payment in the
amount of the applicable indemnification obligation to the Sellers&#146; Representative;
<U>provided</U>, <U>however</U>, that (a)&nbsp;in no event shall any Non-JEN Responsible Party be
obligated to offset or pay any amount in respect of its indemnification obligations arising under
Section&nbsp;4.1(a) or 4.1(b) as a result of a breach of a Fundamental Rep (a &#147;<U><B>Fundamental Rep
Obligation</B></U>&#148;) to the extent such amount would exceed the consideration that such Non-JEN
Responsible Party has received (or is entitled to receive) pursuant to Article&nbsp;III and (b)&nbsp;all
indemnification obligations of a Non-JEN Responsible Party arising under Section&nbsp;4.1 (other than a
Fundamental Rep Obligation) shall be satisfied only by offset against amounts such Non-JEN
Responsible Party is at the applicable time (or thereafter becomes) entitled to receive pursuant to
Article&nbsp;III. The amount of any proceeds payments by a Responsible Party to the Sellers&#146;
Representative made pursuant to this Section&nbsp;4.2 shall be reallocated by the Sellers&#146;
Representatives to the Parties (other than the applicable Responsible Parties) in accordance with
the percentages set forth in the applicable Section of Article&nbsp;III (as such percentages would be
increased as a result of reducing the applicable Responsible Parties&#146; percentages to zero). For
purposes of this Agreement, &#147;<U><B>Non-JEN Responsible Parties</B></U><B>&#148; </B>means, collectively, any of SA,
JCM, MJ, JK, and RJ.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;4.3 </B><U>Equitable Adjustment</U>. To the extent that any Seller or other Responsible Party
becomes obligated to indemnify any Purchaser Indemnified Party directly pursuant to Article&nbsp;VIII of
the Master Agreement, the Sellers&#146; Representative shall make such adjustments and/or reallocations
under this Agreement, or direct the other Responsible Parties to make such payments, as may be
necessary to ensure that arrangements relating to responsibility for indemnification obligations
under the Master Agreement set forth in this Article&nbsp;IV are effected to the fullest extent
practicable.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE V<BR>
MISCELLANEOUS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;5.1 </B><U>Counterparts</U>. This Agreement may be executed in counterparts (each of which
shall be deemed to be an original but all of which taken together shall constitute one and the same
agreement) and shall become effective when one or more counterparts have been signed by each of the
Parties. Facsimile transmission of any signed original document shall be deemed the same as
delivery of an original.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->-4-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;5.2 </B><U>Governing Law</U>. This Agreement, and all matters arising out of or relating to
this Agreement, shall be governed, construed and interpreted in accordance with the laws of the
State of New York.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;5.3 </B><U>Severability</U>. If any provision of this Agreement, or the application thereof
to any person or circumstance is held invalid or unenforceable, the remainder of this Agreement,
and the application to other persons or circumstances, shall not be affected thereby, and to such
end, the provisions of this Agreement are agreed to be severable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><B>Section&nbsp;5.4 </B><U>Notices</U>. All notices and other communications required or permitted under this
Agreement shall be in writing and shall be deemed given when delivered personally, or shall be
deemed given on the next Business Day after deposit with a guaranteed overnight delivery or courier
service, to the parties at the addresses (or such other addresses as shall be changed by a like
notice) set forth on <U>Annex C</U>.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><I>&#091;Signature Page Follows&#093;</I>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-5-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the following Parties have executed this Agreement as of the date first
set forth above.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>SELLERS</B></U>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">TERRA WEST COMMUNITIES LLC<BR>
By: JEN Partners LLC, its Manager<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben. S. Leibowitz
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">SUN TERRA COMMUNITIES LLC<BR>
By: JEN Partners LLC, its Manager<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben. S. Leibowitz
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JEN JCH, LLC<BR>
By: JEN I, L.P., its Manager<BR>
By: JEN Partners LLC, its General Partner<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben. S. Leibowitz
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">                                                  /s/ Joseph Carl Mulac
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JOSEPH CARL MULAC&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">                                                  /s/ Stephen Adams
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">STEPHEN ADAMS&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><i>[Agreement Among Transaction Participants]
</i></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>OTHER PARTIES</B></U>
</DIV>


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JEN PARTNERS LLC<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben. S. Leibowitz
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JEN I, L.P.<BR>
By: JEN Partners LLC, its General Partner<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben. S. Leibowitz
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JEN RESIDENTIAL LP<BR>
By: JEN Partners LLC, its General Partner<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben. S. Leibowitz
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">                                                   /s/ Mike Jesberger
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">MIKE JESBERGER&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">                                                   /s/ Richard Jerman
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">RICHARD JERMAN&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">                                                   /s/ John Kraynick
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">JOHN KRAYNICK&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><i>[Agreement Among Transaction Participants]
</i></DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">RIVERSIDE VENTURES LLC (solely for <BR> purposes of
<U>Sections&nbsp;3.1</U> and <U>3.5</U>, and
<U>Article&nbsp;V<BR></U> hereof)<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Allen J. Anderson
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Allen J. Anderson&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Manager&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">PETER BAY INVESTMENT LLC (solely for<BR> purposes of
<U>Sections&nbsp;3.1</U> and <U>3.5</U>, and <U>Article&nbsp;V<BR></U> hereof)<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">


/s/ David C. Bloom
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">David C. Bloom&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Manager&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">                                                       /s/ William Bloom
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WILLIAM BLOOM (solely for purposes of&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><U>Sections 3.1</U> and <U>3.5</U>, and
<U>Article V</U> hereof)&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">                                                       /s/ Ruth Bloom
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">RUTH BLOOM (solely for purposes of&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><U>Sections&nbsp;3.1</U> and <U>3.5</U>, and <U>Article V</U>
hereof)&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><i>[Agreement Among Transaction Participants]
</i></DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.6
<SEQUENCE>7
<FILENAME>g25091exv99w6.htm
<DESCRIPTION>EX-99.6
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w6</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><b>Exhibit&nbsp;99.6</b>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>REGISTRATION RIGHTS AGREEMENT

</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>BY AND AMONG</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>AVATAR HOLDINGS INC.</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>JEN I, L.P.,</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>JEN RESIDENTIAL LP</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>AND</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>THE OTHER SHAREHOLDERS FROM TIME TO TIME PARTY HERETO</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Dated as of October&nbsp;25, 2010</B>
</DIV>






<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>TABLE OF CONTENTS</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="81%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Page</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Section&nbsp;1.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Definitions
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Section&nbsp;2.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Demand Registration
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Section&nbsp;3.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Piggyback Registrations
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Section&nbsp;4.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Holdback Agreements
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">6</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Section&nbsp;5.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registration Procedures
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">7</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Section&nbsp;6.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Registration Expenses
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">11</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Section&nbsp;7.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Indemnification and Contribution
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">12</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Section&nbsp;8.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Underwritten Registrations
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">14</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Section&nbsp;9.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Current Public Information
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Section&nbsp;10.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Transfer of Registrable Securities
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Section&nbsp;11.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">General Provisions
</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AVATAR HOLDINGS INC.</B>
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 6pt"><U><B>REGISTRATION RIGHTS AGREEMENT</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS REGISTRATION RIGHTS AGREEMENT (this &#147;<U>Agreement</U>&#148;) is made as of October&nbsp;25, 2010,
among Avatar Holdings Inc., a Delaware Corporation (the &#147;<U>Company</U>&#148;), JEN I, L.P. (&#147;<U>JEN
I</U>&#148;) and JEN Residential LP (&#147;<U>JEN Res</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company and certain of the Shareholders&#146; Affiliates are parties to a Master Transaction
Agreement dated as of October&nbsp;25, 2010 (the &#147;<U>Master Agreement</U>&#148;) and various other
agreements entered into in connection therewith. In order to induce the Shareholders&#146; Affiliates
to enter into the Master Agreement and the other Operative Documents (as defined in the Master
Agreement), the Company has agreed to provide the registration rights set forth in this Agreement.
The execution and delivery of this Agreement is a condition to the consummation of the transactions
under the Master Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
to this Agreement hereby agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;1.</U> <U>Definitions</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise set forth below or elsewhere in this Agreement, other capitalized terms
contained herein have the meanings set forth in the Master Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Agreement</U>&#148; has the meaning set forth in the preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Day</U>&#148; means any day that is not a Saturday, Sunday or other day on which
banks are required or authorized by law to be closed in New York City.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Commencement Date</U>&#148; means October&nbsp;25, 2012.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company</U>&#148; has the meaning set forth in the preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company-Paid Demand Registration</U>&#148; has the meaning set forth in <U> Section
2(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Demand Registration</U>&#148; has the meaning set forth in <U> Section&nbsp;2(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exchange Act</U>&#148; means the Securities Exchange Act of 1934, as amended from time to
time, or any successor federal law then in force, together with all rules and regulations
promulgated thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>FINRA</U>&#148; means the Financial Industry Regulatory Authority, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Free Writing Prospectus</U>&#148; means a free-writing prospectus, as defined in Rule&nbsp;405.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Holdback Extension</U>&#148; has the meaning set forth in <U> Section&nbsp;4(a)(ii)</U>.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Holdback Period</U>&#148; has the meaning set forth in <U> Section&nbsp;4(a)(i)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Indemnified Parties</U>&#148; has the meaning set forth in <U> Section&nbsp;7(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>JEN I</U>&#148; has the meaning set forth in the preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>JEN Res</U>&#148; has the meaning set forth in the preamble.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Lockup Agreement</U>&#148; means the agreement attached as <U>Exhibit&nbsp;E</U> to the Master
Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Majority Holders</U>&#148; means, at any time, Shareholders holding a majority of the
Registrable Securities at such time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Person</U>&#148; means an individual, a partnership, a corporation, a limited liability
company, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization or a governmental entity or any department, agency or political subdivision thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Piggyback Registration</U>&#148; has the meaning set forth in <U> Section&nbsp;3(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Public Offering</U>&#148; means any sale or distribution to the public of any capital stock of
the Company pursuant to a public offering registered under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Master Agreement</U>&#148; has the meaning set forth in the recitals.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registrable Securities</U>&#148; means (i)&nbsp;any Common Stock received by the Shareholders
pursuant to the Master Agreement, (ii)&nbsp;any Common Stock received by the Shareholders pursuant to
the Earnout Agreement, dated as of October&nbsp;25, 2010, among the Company and the Shareholders, and
(iii)&nbsp;any common capital stock of the Company issued or issuable with respect to the securities
referred to in <U>clauses (i)</U> or <U>(ii)</U> above by way of dividend, distribution, split or
combination of securities, or any recapitalization, merger, consolidation or other reorganization.
As to any particular Registrable Securities, such securities shall cease to be Registrable
Securities upon the earliest to occur of: (a)&nbsp;the date on which such Registrable Securities are
sold or distributed pursuant to an effective registration statement under the Securities Act, (b)
the date on which such Registrable Securities are sold in compliance with Rule&nbsp;144, and (c)&nbsp;the
date on which such Registrable Securities are repurchased by the Company or a Subsidiary of the
Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Registration Expenses</U>&#148; has the meaning set forth in <U> Section&nbsp;6(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Rule&nbsp;144</U>,&#148; &#147;<U>Rule&nbsp;145</U>,&#148; &#147;<U>Rule&nbsp;158</U>,&#148; and &#147;<U>Rule&nbsp;405</U>,&#148; mean, in
each case, such rule promulgated under the Securities Act (or any successor provision) by the
Securities and Exchange Commission, as the same shall be amended from time to time, or any
successor rule then in force.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Sale Transaction</U>&#148; has the meaning set forth in <U> Section&nbsp;4(a)(i)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities</U>&#148; has the meaning set forth in <U> Section&nbsp;4(a)(i)</U>.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Securities Act</U>&#148; means the Securities Act of 1933, as amended, or any successor
federal law then in force, together with all rules and regulations promulgated thereunder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Shareholders</U>&#148; means (i)&nbsp;JEN I and JEN Res, and (ii)&nbsp;in connection with a transfer
from JEN I or JEN Res pursuant to a pro rata distribution of all or a portion of their assets to
their partners, Reuben Leibowitz and Allen Anderson and/or their controlled Affiliates;
<U>provided</U>, <U>however</U>, that in the case of (ii), in order to become a Shareholder, such
Person must (A)&nbsp;hold Registrable Securities, and (B)&nbsp;deliver a written instrument to the Company,
in form and substance reasonably satisfactory to the Company, confirming that such Person is
subject to and bound by the obligations of this Agreement as a Shareholder.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Subsidiary</U>&#148; means, with respect to the Company, any corporation, limited liability
company, partnership, association or other business entity of which (i)&nbsp;if a corporation, a
majority of the total voting power of shares of stock entitled (without regard to the occurrence of
any contingency) to vote in the election of directors, managers or trustees thereof is at the time
owned or controlled, directly or indirectly, by the Company or one or more of the other
Subsidiaries of the Company or a combination thereof, or (ii)&nbsp;if a limited liability company,
partnership, association or other business entity, a majority of the limited liability company,
partnership or other similar ownership interest thereof is at the time owned or controlled,
directly or indirectly, by the Company or one or more Subsidiaries of the Company or a combination
thereof. For purposes hereof, a Person or Persons shall be deemed to have a majority ownership
interest in a limited liability company, partnership, association or other business entity if such
Person or Persons shall be allocated a majority of limited liability company, partnership,
association or other business entity gains or losses or shall be or control the managing director
or general partner of such limited liability company, partnership, association or other business
entity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Suspension Period</U>&#148; has the meaning set forth in <U>Section&nbsp;5(a)(vi)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Violation</U>&#148; has the meaning set forth in <U>Section&nbsp;7(a).</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;2</U>. <U>Demand Registration</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Requests for Registration</U>. Subject to the terms and conditions of this Agreement,
at any time after the Commencement Date (or, if earlier, the date on which the Shareholders&#146;
obligations under <U>Section&nbsp;1.3</U> of the Lockup Agreement are terminated) until such time as
the Shareholders collectively hold less than 5% of the Common Stock of the Company, the Majority
Holders may request registration under the Securities Act of all or any portion of their
Registrable Securities on Form S-1, S-3 or any similar registration statement. Any registrations
requested pursuant to this <U> Section&nbsp;2(a)</U> shall be referred to herein as a
&#147;<U>Demand Registration</U>.&#148; Each request for a Demand Registration shall specify the
approximate number of Registrable Securities requested to be registered and the intended method of
distribution. Subject to the terms of <U> Section&nbsp;2(d)</U>, the Company shall include
in such Demand Registration (and in all related registrations and qualifications under state blue
sky laws and in any related underwriting) all Registrable
Securities with respect to which the Company has received written requests for inclusion
therein within 15&nbsp;days after the receipt of such written requests.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Demand Registration</U>. Following the Commencement Date, the Majority Holders shall
be entitled to request one Demand Registration in which the Company shall pay all Registration
Expenses (&#147;<U>Company-Paid Demand Registration</U>&#148;); <U>provided</U> that the aggregate offering
value of the Registrable Securities requested to be registered in any Demand Registration must
equal at least $5,000,000. A registration shall not count as a Demand Registration until it has
become effective. No Company-Paid Demand Registration shall count as a Demand Registration unless
the Shareholders are able to register and sell at least 75% of the Registrable Securities requested
to be included in such registration; <U>provided</U> that in any event the Company shall pay all
Registration Expenses in connection with any registration initiated as a Company-Paid Demand
Registration whether or not it has become effective and whether or not such registration has
counted as a Company-Paid Demand Registration.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Shelf Registrations</U>. The Company shall use its commercially reasonable efforts to
maintain a shelf registration statement for the sale of Registrable Securities until the fourth
anniversary of the Commencement Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Priority on Demand Registration</U>. If a Demand Registration is an underwritten
offering and the managing underwriters advise the Company in writing that in their opinion the
number of Registrable Securities and, if permitted hereunder, other securities requested to be
included in such offering exceeds the number of Registrable Securities and other securities, if
any, which can be sold therein without adversely affecting the marketability, proposed offering
price, timing or method of distribution of the offering, the Company shall include in such
registration prior to the inclusion of any securities which are not Registrable Securities the
number of Registrable Securities requested to be included which, in the opinion of such
underwriters, can be sold, without any such adverse effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Restrictions on Demand Registration</U>. The Company shall not be obligated to effect
any Demand Registration within 180&nbsp;days after the effective date of a previous registration in
which Registrable Securities were included pursuant to <U> Section&nbsp;3</U>. The Company
may postpone, for up to 90&nbsp;days from the date of the request, the filing or the effectiveness of a
registration statement for a Demand Registration if the Company&#146;s board of directors determines in
its reasonable good faith judgment that such Demand Registration would reasonably be expected to
have a material adverse effect on any proposal or plan by the Company or any Subsidiary to engage
in any material acquisition of assets or stock (other than in the ordinary course of business) or
any material merger, consolidation, tender offer, recapitalization, reorganization or similar
transaction or would require the Company to disclose any material nonpublic information which would
reasonably be likely to be materially detrimental to the Company and its Subsidiaries;
<U>provided</U> that in such
event, the Majority Holders shall be entitled to withdraw such request, and if such request is
withdrawn, such Demand Registration shall not count as a Demand Registration hereunder and the
Company shall pay all Registration Expenses in connection with such registration. The Company may
delay a Demand Registration hereunder only once in any twelve-month period.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Selection of Underwriters</U>. The Company shall have the right to select the
investment banker(s) and manager(s) to administer the offering, subject to consultation with and
the approval of the Majority Holders, which approval shall not be unreasonably withheld or delayed.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>Other Registration Rights</U>. The Company represents and warrants that it is not a
party to, or otherwise subject to, any other agreement granting registration rights to any other
Person with respect to any securities of the Company.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;3.</U> <U>Piggyback Registrations</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Right to Piggyback</U>. Following the Commencement Date, whenever the Company
proposes to register any of its securities under the Securities Act (other than (i)&nbsp;pursuant to a
Demand Registration, (ii)&nbsp;in connection with registrations on Form S-4 or S-8 promulgated by the
Securities and Exchange Commission or any successor or similar forms, (iii)&nbsp;in connection with a
Rule&nbsp;145 transaction, or (iv)&nbsp;in connection with registrations on any registration form that does
not permit secondary sales or does not include substantially the same information as would be
required to be included in a registration statement covering the sale of Registrable Securities)
and the registration form to be used may be used for the registration of Registrable Securities (a
&#147;<U>Piggyback Registration</U>&#148;), the Company shall give prompt written notice to the Shareholders
of its intention to effect such Piggyback Registration and, subject to the terms of
<U> Section&nbsp;3(c)</U> and <U> Section&nbsp;3(d)</U>, shall include in such
Piggyback Registration (and in all related registrations or qualifications under blue sky laws and
in any related underwriting) all Registrable Securities with respect to which the Company has
received written requests for inclusion therein within 20&nbsp;days after delivery of the Company&#146;s
notice; <U>provided</U>, that the Shareholders shall not be entitled to have Registrable
Securities included in more than four Piggyback Registrations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Piggyback Expenses</U>. The Registration Expenses of the Shareholders shall be paid
by the Company in all Piggyback Registrations, whether or not any such registration became
effective.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Priority on Primary Registrations</U>. If a Piggyback Registration is an underwritten
primary registration on behalf of the Company, and the managing underwriters advise the Company in
writing that in their
opinion the number of securities requested to be included in such registration exceeds the
number which can be sold in such offering without adversely affecting the marketability, proposed
offering price, timing or method of distribution of the offering, the Company shall include in such
registration (i)&nbsp;first, the securities the Company proposes to sell, (ii)&nbsp;second, the Registrable
Securities requested to be included in such registration which, in the opinion of the underwriters,
can be sold without any such adverse effect, and (iii)&nbsp;third, other securities requested to be
included in such registration which, in the opinion of the underwriters, can be sold without any
such adverse effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Priority on Secondary Registrations</U>. If a Piggyback Registration is an
underwritten secondary registration on behalf of holders of the Company&#146;s securities, and the
managing underwriters advise the Company in writing that in their opinion the number of securities
requested to be included in such registration exceeds the number which can be sold in such offering
without adversely affecting the marketability, proposed offering price, timing or method of
distribution of the offering, the Company shall include in such registration (i)&nbsp;first, the
securities requested to be included therein by the holders requesting such registration, (ii)
second, the number of Registrable Securities requested to be included in such registration which,
in the opinion of the underwriters, can be sold without any such adverse effect, pro rata among
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the
holders of such securities on the basis of the number of securities so requested to be included
therein, and (iii)&nbsp;third, other securities requested to be included in such registration which, in
the opinion of the underwriters, can be sold without any such adverse effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Right to Terminate Registration</U>. Subject to the terms of this Agreement, the
Company shall have the right to terminate or withdraw any registration initiated by it under this
<U> Section&nbsp;3</U> whether or not the Shareholders have elected to include securities in
such registration. The Registration Expenses of such withdrawn registration shall be borne by the
Company in accordance with <U> Section&nbsp;6</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;4.</U> <U>Holdback Agreements</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>The Shareholders</U>. If requested by the Company, the Shareholders shall enter into
lock-up agreements with the managing underwriter(s) of an underwritten Public Offering in such form
as agreed to by the Shareholders. In the absence of any such lock-up agreement, the Shareholders
agree as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in connection with all underwritten Public Offerings with respect to which the
Company has complied with its obligations hereunder, each Shareholder agrees, if and to the
extent (i)&nbsp;requested by the managing underwriter of such underwritten offering and (ii)
notwithstanding <U> Section&nbsp;4(b)</U>, all of the Company&#146;s named executive
officers and directors execute agreements identical to those referred to in this
<U>Section&nbsp;4(a)</U>, that they shall not (A)&nbsp;offer, sell, contract to sell,
pledge or otherwise
dispose of (including sales pursuant to Rule&nbsp;144), directly or indirectly, any capital
stock of the Company (including capital stock of the Company that may be deemed to be owned
beneficially by the Shareholders in accordance with the rules and regulations of the
Securities and Exchange Commission) (collectively, &#147;<U>Securities</U>&#148;), (B)&nbsp;enter into a
transaction which would have the same effect as described in clause (A)&nbsp;above, (C)&nbsp;enter
into any swap, hedge or other arrangement that transfers, in whole or in part, any of the
economic consequences or ownership of any Securities, whether such transaction is to be
settled by delivery of such Securities, in cash or otherwise (each of (A), (B)&nbsp;and (C)
above, a &#147;<U>Sale Transaction</U>&#148;), or (D)&nbsp;publicly disclose the intention to enter into
any Sale Transaction, from the date on which the Company gives notice to the Shareholders of
the circulation of a preliminary or final prospectus for such Public Offering (which date
must be no earlier than 14&nbsp;days prior to the date such Public Offering is expected to
commence) to the date that is 90&nbsp;days following the date of the final prospectus for such
Public Offering (a &#147;<U>Holdback Period</U>&#148;), unless the underwriters managing such Public
Offering otherwise agree in writing; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the event that (A)&nbsp;the Company issues an earnings release or discloses other
material information or a material event relating to the Company and its Subsidiaries occurs
during the last 17&nbsp;days of the Holdback Period or (B)&nbsp;prior to the expiration of the
Holdback Period, the Company announces that it will release earnings results during the
16-day period beginning upon the expiration of such period, then to the extent necessary for
a managing or co-managing underwriter of a registered offering hereunder to comply with
FINRA Rule&nbsp;2711(f)(4), the Holdback Period shall be extended until 18&nbsp;days after the
earnings release or disclosure of other material
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">information or the occurrence of the
material event, as the case may be (a &#147;<U>Holdback Extension</U>&#148;).
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company may impose stop-transfer instructions with respect to the shares of Common Stock (or
other securities) subject to the restrictions set forth in this Section&nbsp;4 (a)
until the end of such period, including any Holdback Extension.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>The Company</U>. The Company (i)&nbsp;shall not file any registration statement for a
Public Offering or cause any such registration statement to become effective during any Holdback
Period, as extended during any Holdback Extension, and (ii)&nbsp;shall use its reasonable best efforts
to cause each of its directors and executive officers, to agree not to effect any Sale Transaction
during any Holdback Period (as extended by any Holdback Extension), except as part of such
underwritten registration, if otherwise permitted, unless the underwriters managing the Public
Offering otherwise agree in writing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;5.</U> <U>Registration Procedures</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Whenever the Shareholders have requested that any Registrable Securities be registered
pursuant to this Agreement, the Company shall use its reasonable best
efforts to effect the registration and the sale of such Registrable Securities in accordance
with the intended method of disposition thereof, and pursuant thereto the Company shall as
expeditiously as possible:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in accordance with the Securities Act and all applicable rules and regulations
promulgated thereunder, prepare and file with the Securities and Exchange Commission a
registration statement, and all amendments and supplements thereto and related prospectuses,
with respect to such Registrable Securities and use its reasonable best efforts to cause
such registration statement to become effective (provided that before filing a registration
statement or prospectus or any amendments or supplements thereto, the Company shall furnish
to the counsel selected by the Majority Holders copies of all such documents proposed to be
filed, which documents shall be subject to the review and comment of such counsel);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) notify the Shareholders of (A)&nbsp;the issuance by the Securities and Exchange
Commission of any stop order suspending the effectiveness of any registration statement or
the initiation of any proceedings for that purpose, (B)&nbsp;the receipt by the Company or its
counsel of any notification with respect to the suspension of the qualification of the
Registrable Securities for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose, and (C)&nbsp;the effectiveness of each registration statement filed
hereunder;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) prepare and file with the Securities and Exchange Commission such amendments and
supplements to such registration statement and the prospectus used in connection therewith
as may be necessary to keep such registration statement effective for a period ending when
all of the securities covered by such registration statement have been disposed of in
accordance with the intended methods of distribution by the sellers thereof set forth in
such registration statement (but not in any event before the expiration
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">of any longer period
required under the Securities Act or, if such registration statement relates to an
underwritten Public Offering, such longer period as in the opinion of counsel for the
underwriters a prospectus is required by law to be delivered in connection with sale of
Registrable Securities by an underwriter or dealer) and comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement during such period in accordance with the intended methods of
disposition by the sellers thereof set forth in such registration statement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) furnish to the Shareholders such number of copies of such registration statement,
each amendment and supplement thereto, the prospectus included in such registration
statement (including each preliminary prospectus), each Free Writing Prospectus and such
other documents as the Shareholders may reasonably request in order to facilitate the
disposition of the Registrable Securities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) use its reasonable best efforts to register or qualify such Registrable Securities
under such other securities or blue sky laws of such jurisdictions as the Shareholders
reasonably requests and do any and all other acts and things which may be reasonably
necessary or advisable to enable such seller to consummate the disposition in such
jurisdictions of the Registrable Securities (<U>provided</U> that the Company shall not be
required to (A)&nbsp;qualify generally to do business in any jurisdiction where it would not
otherwise be required to qualify but for this subparagraph or (B)&nbsp;consent to general service
of process in any such jurisdiction or (C)&nbsp;subject itself to taxation in any such
jurisdiction);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) notify the Shareholders (A)&nbsp;promptly after it receives notice thereof, of the date
and time when such registration statement and each post-effective amendment thereto has
become effective or a prospectus or supplement to any prospectus relating to a registration
statement has been filed and when any registration or qualification has become effective
under a state securities or blue sky law or any exemption thereunder has been obtained, (B)
promptly after receipt thereof, of any request by the Securities and Exchange Commission for
the amendment or supplementing of such registration statement or prospectus or for
additional information, and (C)&nbsp;at any time when a prospectus relating thereto is required
to be delivered under the Securities Act, of the happening of any event as a result of which
the prospectus included in such registration statement contains an untrue statement of a
material fact or omits any fact necessary to make the statements therein not misleading,
and, at the request of the Majority Holders, the Company shall prepare a supplement or
amendment to such prospectus so that, as thereafter delivered to the purchasers of such
Registrable Securities, such prospectus shall not contain an untrue statement of a material
fact or omit to state any fact necessary to make the statements therein not misleading;
<U>provided</U>, that at any time, upon written notice to the Shareholders and for a period
not to exceed 60&nbsp;days thereafter (the &#147;<U>Suspension Period</U>&#148;), the Company may delay
the filing or effectiveness of any registration statement or suspend the use or
effectiveness of any registration statement (and the Shareholders hereby agree not to offer
or sell any Registrable Securities pursuant to such registration statement during the
Suspension Period) if the Company reasonably believes that there is or may be in existence
material nonpublic information or events involving the Company, the failure of which to be
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">disclosed in the prospectus included in the registration statement could result in a
Violation;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) use reasonable best efforts to cause all such Registrable Securities to be listed
on each securities exchange on which similar securities issued by the Company are then
listed and, if not so listed, to be listed on a securities exchange;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) use reasonable best efforts to provide a transfer agent and registrar for all
such Registrable Securities not later than the effective date of such registration
statement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) enter into and perform such customary agreements (including underwriting
agreements in customary form) and take all such other actions as the Majority Holders or the
underwriters, if any, reasonably request in order to expedite or facilitate the disposition
of such Registrable Securities (including, without limitation, effecting a stock split,
combination of shares, recapitalization or reorganization);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) make available for inspection by the Shareholders, any underwriter participating in
any disposition pursuant to such registration statement and any attorney,
accountant or other agent retained by any such Shareholder or underwriter, all
financial and other records, pertinent corporate and business documents and properties of
the Company as shall be necessary to enable them to exercise their due diligence
responsibility, and cause the Company&#146;s officers, directors, employees, agents,
representatives and independent accountants to supply all information reasonably requested
by any such seller, underwriter, attorney, accountant or agent in connection with such
registration statement;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) take all reasonable actions to ensure that any Free-Writing Prospectus utilized in
connection with any Demand Registration or Piggyback Registration hereunder complies in all
material respects with the Securities Act, is filed in accordance with the Securities Act to
the extent required thereby, is retained in accordance with the Securities Act to the extent
required thereby and, when taken together with the related prospectus, shall not contain any
untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were made, not
misleading;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) otherwise use its reasonable best efforts to comply with all applicable rules and
regulations of the Securities and Exchange Commission, and make generally available to its
security holders, as soon as practicable, a consolidated earnings statement meeting the
requirements of Rule&nbsp;158 under the Securities Act (which need not be audited) for the
twelve-month period (A)&nbsp;commencing at the end of any fiscal quarter in which Registrable
Securities are sold to underwriters in a firm commitment or best efforts Public Offering or
(B)&nbsp;if not sold to underwriters in such an offering, beginning with the first month of the
Company&#146;s first fiscal quarter commencing after the effective date of the registration
statement;
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) permit the Shareholders (to the extent the Shareholders might be deemed to be an
underwriter or controlling persons of the Company), to consult in the preparation of such
registration or comparable statement and to consider language provided by any of the
Shareholders for insertion therein, which in the reasonable judgment of the Shareholders and
their counsel should be included; <U>provided</U> that the Company shall be entitled to
include or omit any such language from any registration or comparable statement (in its sole
discretion);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) in the event of the issuance of any stop order suspending the effectiveness of a
registration statement, or the issuance of any order suspending or preventing the use of any
related prospectus or suspending the qualification of any Common Stock included in such
registration statement for sale in any jurisdiction use reasonable best efforts promptly to
obtain the withdrawal of such order;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) use its reasonable best efforts to cause such Registrable Securities covered by
such registration statement to be registered with or approved by such other governmental
agencies or authorities as may be necessary to enable the sellers thereof to consummate the
disposition of such Registrable Securities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) cooperate with the Shareholders and the managing underwriter or agent, if any, to
facilitate the timely preparation and delivery of certificates (not bearing any restrictive
legends) representing securities to be sold under the registration statement and enable such
securities to be in such denominations and registered in such names as the managing
underwriter, or agent, if any, or the Shareholders may request;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) cooperate with the Shareholders and each underwriter or agent participating in
the disposition of such Registrable Securities and their respective counsel in connection
with any filings required to be made with FINRA;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) use its reasonable best efforts to make available the executive officers of the
Company to participate with the Shareholders and any underwriters in any &#147;road shows&#148; in
connection with the methods of distribution for the Registrable Securities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) use its reasonable best efforts to obtain one or more cold comfort letters from
the Company&#146;s independent public accountants in customary form and covering such matters of
the type customarily covered by cold comfort letters as the Majority Holders reasonably
requests; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) use its reasonable best efforts to provide a legal opinion of the Company&#146;s
outside counsel, dated the effective date of such registration statement (and, if such
registration includes an underwritten Public Offering, dated the date of the closing under
the underwriting agreement), the registration statement, each amendment and supplement
thereto, the prospectus included therein (including the preliminary prospectus) and such
other documents relating thereto in customary form and covering such matters of the type
customarily covered by legal opinions of such nature and
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">reasonably satisfactory to the
Shareholders, which opinion shall be addressed to the underwriters and the Shareholders.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Company shall not undertake any voluntary act that could be reasonably expected to
cause a Violation or result in delay or suspension under <U> Section&nbsp;5(a)(vi)</U>.
During any Suspension Period, and as may be extended hereunder, the Company shall use its
reasonable best efforts to correct or update any disclosure causing the Company to provide notice
of the Suspension Period and to file and cause to become effective or terminate the suspension of
use or effectiveness, as the case may be, the subject registration statement. In the event that
the Company shall exercise its right to delay or suspend the filing or effectiveness of a
registration hereunder, the applicable time period during which the registration statement is to
remain effective shall be extended by a period of time equal to the duration of the Suspension
Period. The Company may extend the Suspension Period for an additional consecutive 60&nbsp;days with
the consent of the Majority Holders, which consent shall not be unreasonably withheld. If so
directed by the Company, the Shareholders shall (i)&nbsp;not offer to sell any Registrable Securities
pursuant to the registration statement during the period in which the delay or suspension is in
effect after receiving notice of such delay or suspension and (ii)&nbsp;use its reasonable best efforts
to deliver to the Company (at the Company&#146;s expense) all copies, other than permanent file copies
then in the Shareholders&#146; possession, of the prospectus relating to such Registrable Securities
current at the time of receipt of such notice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;6.</U> <U>Registration Expenses</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>The Company&#146;s Obligation</U>. All expenses incident to the Company&#146;s performance of
or compliance with this Agreement (including, without limitation, all registration, qualification
and filing fees, fees and expenses of compliance with securities or blue sky laws, printing
expenses, messenger and delivery expenses, fees and disbursements of custodians, and fees and
disbursements of counsel for the Company and all independent certified public accountants,
underwriters (excluding underwriting discounts and commissions) and other Persons retained by the
Company) (all such expenses being herein called &#147;<U>Registration Expenses</U>&#148;), shall be borne as
provided in this Agreement, except that the Company shall, in any event, pay its internal expenses
(including, without limitation, all salaries and expenses of its officers and employees performing
legal or accounting duties), the expense of any annual audit or quarterly review, the expense of
any liability insurance and the expenses and fees for listing the securities to be registered on
each securities exchange on which similar securities issued by the Company are then listed. Each
Person that sells securities pursuant to a Demand Registration or Piggyback Registration hereunder
shall bear and pay all underwriting discounts and commissions applicable to the securities sold for
such Person&#146;s account.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Shareholders</U>. To the extent Registration Expenses are not required to be paid by
the Company, the Shareholders shall pay those Registration Expenses allocable to the registration
of the Shareholders&#146; securities included in any registration statement pro rata, and any
Registration Expenses not so allocable shall be borne by all sellers of securities included in such
registration in proportion to the aggregate selling price of the securities to be so registered.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;7.</U> <U>Indemnification and Contribution</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>By the Company</U>. The Company shall indemnify, defend and hold harmless the
Shareholders, the Shareholders&#146; officers, directors, employees, members, partners, agents and
representatives, and each Person who controls any Shareholder (within the meaning of Section&nbsp;15 of
the Securities Act or Section&nbsp;20 of the Exchange Act) (the &#147;<U>Indemnified Parties</U>&#148;) for, from
and against all losses, claims, actions, damages, liabilities and expenses (including with respect
to actions or proceedings, whether commenced or threatened, and including reasonable attorney fees
and expenses) caused by, resulting from, arising out of, based upon or related to any of the
following statements, omissions or violations (each a &#147;<U>Violation</U>&#148;) by the Company: (i)&nbsp;any
untrue statement or alleged untrue statement of material fact contained in (A)&nbsp;any registration
statement, prospectus, preliminary prospectus or Free-Writing Prospectus, or any amendment thereof
or supplement thereto or (B)&nbsp;any application or other document or communication (in this
<U> Section&nbsp;7</U>, collectively called an &#147;<U>application</U>&#148;) executed by or on
behalf of the Company or based upon
written information furnished by or on behalf of the Company filed in any jurisdiction in
order to qualify any securities covered by such registration under the securities laws thereof,
(ii)&nbsp;any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein not misleading or (iii)&nbsp;any violation or alleged violation by the
Company of the Securities Act or any other similar federal or state securities laws or any rule or
regulation promulgated thereunder applicable to the Company and relating to action or inaction
required of the Company in connection with any such registration, qualification or compliance. In
addition, the Company will reimburse such Indemnified Party for any legal or any other expenses
reasonably incurred by them in connection with investigating or defending any such losses.
Notwithstanding the foregoing, the Company shall not be liable in any such case to the extent that
any such losses result from, arise out of, are based upon, or relate to an untrue statement or
alleged untrue statement, or omission or alleged omission, made in such registration statement, any
such prospectus, preliminary prospectus or Free-Writing Prospectus or any amendment or supplement
thereto, or in any application, in reliance upon, and in conformity with, written information
prepared and furnished in writing to the Company by such Indemnified Party expressly for use
therein or by such Indemnified Party&#146;s failure to deliver a copy of the registration statement or
prospectus or any amendments or supplements thereto after the Company has furnished such
Indemnified Party with a sufficient number of copies of the same. In connection with an
underwritten offering, the Company shall indemnify such underwriters, their officers and directors,
and each Person who controls such underwriters (within the meaning of the Securities Act) to the
same extent as provided above with respect to the indemnification of the Indemnified Parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>By Each Shareholder</U>. In connection with any registration statement in which any
Shareholder is participating, the Shareholders shall furnish to the Company in writing such
information and affidavits as the Company reasonably requests for use in connection with any such
registration statement or prospectus and, to the extent permitted by law, shall indemnify and
defend the Company, its officers, directors, employees, agents and representatives, and each Person
who controls the Company (within the meaning of Section&nbsp;15 of the Securities Act or Section&nbsp;20 of
the Exchange Act) for, from and against any losses, claims, damages, liabilities and expenses
resulting from any untrue or alleged untrue statement of material fact contained in the
registration statement, prospectus or preliminary prospectus or any amendment thereof or supplement
thereto or any omission or alleged omission of a material fact required to be stated
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">therein or
necessary to make the statements therein not misleading, but only to the extent that such untrue
statement or omission is contained in any information or affidavit so furnished in writing by the
Shareholders; <U>provided</U> that the obligation to indemnify shall be limited to the net amount
of proceeds received by the Shareholders from the sale of Registrable Securities pursuant to such
registration statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Claim Procedure</U>. Any Person entitled to indemnification hereunder shall (i)&nbsp;give
prompt written notice to the indemnifying party of any claim with respect to which it seeks
indemnification (provided that the failure to give prompt notice shall impair any Person&#146;s right to
indemnification hereunder only to the extent such failure has prejudiced the indemnifying party)
and (ii)&nbsp;unless in
such indemnified party&#146;s reasonable judgment a conflict of interest between such indemnified
and indemnifying parties may exist with respect to such claim, permit such indemnifying party to
assume the defense of such claim with counsel reasonably satisfactory to the indemnified party. If
such defense is assumed, the indemnifying party shall not be subject to any liability for any
settlement made by the indemnified party without its consent (but such consent shall not be
unreasonably withheld, conditioned or delayed). An indemnifying party who is not entitled to, or
elects not to, assume the defense of a claim shall not be obligated to pay the fees and expenses of
more than one counsel for all parties indemnified by such indemnifying party with respect to such
claim, unless in the reasonable judgment of any indemnified party a conflict of interest may exist
between such indemnified party and any other of such indemnified parties with respect to such
claim. In such instance, the conflicted indemnified parties shall have a right to retain one
separate counsel, chosen by the holders of a majority of the Securities included in the
registration if the Shareholders are the indemnified parties, at the expense of the indemnifying
party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Contribution</U>. If the indemnification provided for in this <U> Section
7</U> is held by a court of competent jurisdiction to be unavailable to, or is insufficient to hold
harmless, an indemnified party or is otherwise unenforceable with respect to any loss, claim,
damage, liability or action referred to herein, then the indemnifying party shall contribute to the
amounts paid or payable by such indemnified party as a result of such loss, claim, damage,
liability or action in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other hand in connection
with the statements or omissions which resulted in such loss, claim, damage, liability or action as
well as any other relevant equitable considerations; <U>provided</U> that the maximum amount of
liability in respect of such contribution shall be limited, in the case of the Shareholders, to an
amount equal to the net proceeds actually received by the Shareholders from the sale of Registrable
Securities effected pursuant to such registration. The relative fault of the indemnifying party
and of the indemnified party shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission to state a material fact
relates to information supplied by the indemnifying party or by the indemnified party and the
parties&#146; relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. The parties hereto agree that it would not be just or equitable if the
contribution pursuant to this <U> Section&nbsp;7(d)</U> were to be determined by pro rata
allocation or by any other method of allocation that does not take into account such equitable
considerations. The amount paid or payable by an indemnified party as a result of the losses,
claims, damages, liabilities or expenses referred to herein shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in connection with investigating or
defending against any action or claim
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">which is the subject hereof. No person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who is not guilty of such fraudulent misrepresentation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Release</U>. No indemnifying party shall, except with the consent of the indemnified
party, consent to the entry of any judgment or enter into any settlement that does not include as
an
unconditional term thereof, the giving by the claimant or plaintiff to such indemnified party
of a release from all liability in respect to such claim or litigation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Non-exclusive Remedy; Survival</U>. The indemnification and contribution provided for
under this Agreement shall be in addition to any other rights to indemnification or contribution
that any indemnified party may have pursuant to law or contract and shall remain in full force and
effect regardless of any investigation made by or on behalf of the indemnified party or any
officer, director or controlling Person of such indemnified party and shall survive the transfer of
Registrable Securities and the termination or expiration of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;8.</U> <U>Underwritten Registrations</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Participation</U>. No Person may participate in any registration hereunder which is
underwritten unless such Person (i)&nbsp;agrees to sell such Person&#146;s securities on the basis provided
in any underwriting arrangements approved by the Person or Persons entitled hereunder to approve
such arrangements (including, without limitation, pursuant to any over-allotment or &#147;green shoe&#148;
option requested by the underwriters; <U>provided</U> that the Shareholders shall not be required
to sell more than the number of Registrable Securities the Shareholders have requested to include)
and (ii)&nbsp;completes and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting arrangements;
<U>provided</U> that the Shareholders shall not be required to make any representations or
warranties to the Company or the underwriters (other than representations and warranties regarding
the Shareholders and the Shareholders&#146; intended method of distribution) or to undertake any
indemnification obligations to the Company or the underwriters with respect thereto that are
materially more burdensome than those provided in <U> Section&nbsp;7</U>. The Shareholders
shall execute and deliver such other agreements as may be reasonably requested by the Company and
the lead managing underwriter(s) that are consistent with the Shareholders&#146; obligations under
<U> Section&nbsp;4</U>, <U> Section&nbsp;5</U> and this <U> Section&nbsp;8(a)</U>
or that are necessary to give further effect thereto. To the extent that any such agreement is
entered into pursuant to, and consistent with, <U> Section&nbsp;4</U> and this
<U> Section&nbsp;8(a)</U>, the respective rights and obligations created under such agreement
shall supersede the respective rights and obligations of the Shareholders, the Company and the
underwriters created pursuant to this <U> Section&nbsp;8(a)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Suspended Distributions</U>. Each Person that is participating in any registration
under this Agreement, upon receipt of any notice from the Company of the happening of any event of
the kind described in <U> Section&nbsp;5(a)(vi)</U>, shall immediately discontinue the
disposition of its Registrable Securities pursuant to the registration statement until such
Person&#146;s receipt of the copies of a supplemented or amended prospectus as contemplated by
<U> Section&nbsp;5(a)(vi)</U>. In the event the Company has given any such notice, the
applicable time period set forth in <U> Section&nbsp;5(a)(ii)</U> during which a Registration
Statement is to remain effective shall be extended by the number of days during the
period from and including the date of the giving of
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">such notice pursuant to this
<U> Section&nbsp;8(b)</U> to and including the date when each seller of Registrable
Securities covered by such registration statement shall have received the copies of the
supplemented or amended prospectus contemplated by <U> Section&nbsp;5(a)(vi)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;9.</U> <U>Current Public Information</U>. At all times after the date hereof,
during which Registrable Securities remain outstanding, the Company shall file all reports required
to be filed by it under the Securities Act and the Exchange Act. During any period in which the
Company is not subject to Section&nbsp;13 or 15(d) of the Exchange Act, the Company shall make available
to any Shareholder or beneficial owner of Registrable Securities in connection with any sale
thereof and any prospective purchaser of such Registrable Securities from such Shareholder or
beneficial owner, the information required by Rule&nbsp;144 under the Securities Act in order to permit
resales of such Registrable Securities pursuant to Rule&nbsp;144 under the Securities Act.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;10.</U> <U>Transfer of Registrable Securities</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Legend</U>. Each certificate evidencing any Registrable Securities and each
certificate issued in exchange for or upon the transfer of any Registrable Securities (unless such
Registrable Securities would no longer be Registrable Securities after such transfer) shall be
stamped or otherwise imprinted with a legend in substantially the following form:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
RESTRICTIONS ON TRANSFER AND OTHER PROVISIONS SET FORTH IN A
REGISTRATION RIGHTS AGREEMENT DATED AS OF OCTOBER 25, 2010 AMONG THE
ISSUER OF SUCH SECURITIES (THE &#147;COMPANY&#148;), JEN I, L.P. AND JEN
RESIDENTIAL LP. A COPY OF SUCH REGISTRATION RIGHTS AGREEMENT WILL
BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON
WRITTEN REQUEST. THE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR ANY FOREIGN OR STATE
SECURITIES LAWS AND MAY NOT BE OFFERED OR SOLD EXCEPT IN COMPLIANCE
THEREWITH.&#148;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company shall imprint such legend on certificates evidencing Registrable Securities outstanding
prior to the date hereof. The legend set forth above shall be removed from the certificates
evidencing any securities that have ceased to be Registrable Securities.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;11.</U> <U>General Provisions</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Amendments and Waivers</U>. Except as otherwise provided herein, the provisions of
this Agreement may be amended, modified or waived only with the prior written consent of the
Company and the Majority Holders. The failure or delay of any Person to enforce any of the
provisions of this Agreement shall in no way be construed as a waiver of such provisions and shall
not affect the right of such Person thereafter to enforce each and every
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">provision of this
Agreement in accordance with its terms. A waiver or consent to or of any breach or default by any
Person in the performance by that Person of his, her or its obligations under this Agreement shall
not be deemed to be a consent or waiver to or of any other breach or default in the performance by
that Person of the same or any other obligations of that Person under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Remedies</U>. The parties to this Agreement shall be entitled to enforce their rights
under this Agreement specifically (without posting a bond or other security), to recover damages
caused by reason of any breach of any provision of this Agreement and to exercise all other rights
existing in their favor. The parties hereto agree and acknowledge that a breach of this Agreement
would cause irreparable harm and money damages would not be an adequate remedy for any such breach
and that, in addition to any other rights and remedies existing hereunder, any party shall be
entitled to specific performance and/or other injunctive relief from any court of law or equity of
competent jurisdiction (without posting any bond or other security) in order to enforce or prevent
violation of the provisions of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Severability</U>. Whenever possible, each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be prohibited, invalid, illegal or unenforceable in any respect under
any applicable law or regulation in any jurisdiction, such prohibition, invalidity, illegality or
unenforceability shall not affect the validity, legality or enforceability of any other provision
of this Agreement in such jurisdiction or in any other jurisdiction, but this Agreement shall be
reformed, construed and enforced in such jurisdiction as if such prohibited, invalid, illegal or
unenforceable provision had never been contained herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Entire Agreement</U>. Except as otherwise provided herein, this Agreement contains
the complete agreement and understanding among the parties hereto with respect to the subject
matter hereof and supersedes and preempts any prior understandings, agreements or representations
by or among the parties hereto, written or oral, which may have related to the subject matter
hereof in any way.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>Successors and Assigns</U>. This Agreement shall be binding upon and inure to the benefit of the parties and their
respective successors and permitted assigns. Nothing in this Agreement shall create or be deemed
to create any third party beneficiary rights in any person or entity not a party to this Agreement.
Except as expressly permitted hereby, no assignment of this Agreement or of any rights or
obligations hereunder may be made (by operation of law or otherwise) by (a)&nbsp;the Company without the
prior written consent of the Majority Holders or (b)&nbsp;any Shareholder without the prior written
consent of the Company, and any attempted assignment without the required consents shall be void.
Notwithstanding the foregoing, the Company shall be permitted to assign this Agreement in
connection with any consolidation or merger of the Company or Avatar Properties Inc. with or into
another Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>Notices</U>. All notices and other communications required or permitted under this
Agreement shall be in writing and shall be deemed given when delivered personally or when
telecopied, or five Business Days after deposit in the mail, if sent by registered mail, return
receipt requested, or the next Business Day after deposit with a guaranteed overnight delivery or
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-16-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">courier service, to the parties at the following addresses (or such other addresses as shall be
changed by a like notice), except as expressly provided in this Agreement:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">If to the Company, to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Avatar Holdings Inc.<BR>
201 Alhambra Circle, Suite&nbsp;1200<BR>
Coral Gables, FL 33134<BR>
Attention:&nbsp;&nbsp;&nbsp;&nbsp;General Counsel
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">With a copy to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Weil, Gotshal &#038; Manges LLP<BR>
767 Fifth Avenue<BR>
New York, New York 10153<BR>
Attention:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Simeon Gold<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Jon-Paul Bernard
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">and to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Akerman Senterfitt LLP<BR>
One Southeast Third Avenue, 25th Floor<BR>
Miami, FL 33131<BR>
Attention:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stephen K. Roddenberry
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">If to the Shareholders, to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">JEN I, L.P.<BR>
c/o JEN Partners, LLC<BR>
551 Madison Avenue, Suite&nbsp;300<BR>
New York, NY 10022<BR>
and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">JEN Residential LP<BR>
c/o JEN Partners, LLC<BR>
551 Madison Avenue, Suite&nbsp;300<BR>
New York, NY 10022
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-17-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">With a copy to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 3%; margin-top: 6pt">Jones Day<BR>
222 East 41<SUP style="FONT-size: 85%; vertical-align: text-top">st</SUP> Street<BR>
New York, New York 10017<BR>
Attention:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Steven C. Koppel<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Andrew M. Levine
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>Business Days</U>. If any time period for giving notice or taking action hereunder
expires on a day that is not a Business Day, the time period shall automatically be extended to the
Business Day immediately following such Saturday, Sunday or legal holiday.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;<U>Governing Law</U>. This Agreement and any claim, demand, dispute, controversy, action
or cause of action (i)&nbsp;arising out of or relating to this Agreement or any ancillary agreement
(including the existence, validity, interpretation or breach hereof or thereof) or (ii)&nbsp;in any way
connected with or related or incidental to the dealings of the parties hereto in respect of this
Agreement, any ancillary agreement, or any of the transactions contemplated hereby and thereby, in
each case whether now existing or hereafter arising, and whether in contract, tort, equity, statute
or otherwise (each, a &#147;<U>Dispute</U>&#148;) shall be governed by and construed in accordance with the
laws of the State of New York applicable to contracts made and performed in such state, without
regard to the principles of conflicts of laws thereof (other than Section&nbsp;5-1401 of the New York
General Obligations Law).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U>WAIVER OF JURY TRIAL</U>. THE PARTIES TO THIS AGREEMENT EACH HEREBY WAIVE, TO THE
FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE
OF ACTION (i)&nbsp;ARISING UNDER THIS AGREEMENT OR (ii)&nbsp;IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE
TRANSACTIONS RELATED HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN
CONTRACT, TORT, EQUITY, OR OTHERWISE. THE PARTIES TO THIS AGREEMENT EACH HEREBY AGREE AND CONSENT
THAT ANY SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A
JURY AND THAT THE PARTIES TO THIS AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF
THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;<U>Jurisdiction; Consent to Service of Process; Waiver</U>. The parties hereto hereby
irrevocably submit to the exclusive jurisdiction of any federal or state court located within the
State of New York over any dispute arising out of or relating to this Agreement and each party
hereby irrevocably agrees that all claims in respect of such dispute or any suit, action or
proceeding related thereto may be heard and determined in such courts. The parties hereby
irrevocably waive, to the fullest extent permitted by applicable law, any objection which they may
now or hereafter have to the laying of venue of any such dispute brought in such court or any
defense of inconvenient forum for the maintenance of such dispute. Each of the parties
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->-18-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">hereto
agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the
judgment or in any other manner provided by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;<U>Descriptive Headings; Interpretation</U>. The descriptive headings of this Agreement
are inserted for convenience only and do not constitute a part of this Agreement. The use of the
word &#147;including&#148; in this Agreement shall be by way of example rather than by limitation. Each of
the parties hereto hereby consents to process being served by any party to this Agreement in any
suit, action or proceeding by delivery of a copy thereof in accordance with the provisions of
<U> Section&nbsp;11(f)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;<U>No Strict Construction</U>. The language used in this Agreement shall be deemed to be
the language chosen by the parties hereto to express their mutual intent, and no rule of strict
construction shall be applied against any party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;<U>Counterparts</U>. This Agreement may be executed in multiple counterparts, any one of
which need not contain the signature of more than one party, but all such counterparts taken
together shall constitute one and the same agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;<U>Electronic Delivery</U>. This Agreement, the agreements referred to herein, and each
other agreement or instrument entered into in connection herewith or therewith or contemplated
hereby or thereby, and any amendments hereto or thereto, to the extent executed and delivered by
means of a photographic, photostatic, facsimile or similar reproduction of such signed writing
using a facsimile machine or electronic mail shall be treated in all manner and respects as an
original agreement or instrument and shall be considered to have the same binding legal effect as
if it were the original signed version thereof delivered in person. At the request of any party
hereto or to any such agreement or instrument, each other party hereto or thereto shall re-execute
original forms thereof and deliver them to all other parties. No party hereto or to any such
agreement or instrument shall raise the use of a facsimile machine or electronic mail to deliver a
signature or the fact that any signature or agreement or instrument was transmitted or
communicated through the use of a facsimile machine or electronic mail as a defense to the
formation or enforceability of a contract and each such party forever waives any such defense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;<U>Further Assurances</U>. In connection with this Agreement and the transactions
contemplated hereby, each party shall execute and deliver any additional documents and instruments
reasonably requested by any other party and perform any additional acts that may be reasonably
necessary or appropriate to effectuate and perform the provisions of this Agreement and the
transactions contemplated hereby.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">*****
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->-19-<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">
<B>AVATAR HOLDINGS INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Patricia Kimball Fletcher
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Patricia Kimball Fletcher&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Executive Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>JEN I, L.P.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>JEN RESIDENTIAL LP</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Reuben S. Leibowitz
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Reuben S. Leibowitz&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">Managing Member&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;REGISTRATION RIGHTS AGREEMENT&#093;
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
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