Exhibit 10.1
FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT
THIS FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT (this “Amendment”) is made as
of the 26th day of June, 2008, by and among D.R. HORTON, INC., a Delaware
corporation (the “Borrower”), the lenders listed on the signature pages hereof
(collectively referred to herein as the “Lenders”), the Guarantors listed on
Schedule 1 attached hereto (each a “Guarantor” and collectively, the
“Guarantors”), WACHOVIA BANK, NATIONAL ASSOCIATION, as Administrative Agent for
the Lenders (the “Administrative Agent”), Swingline Lender and a Letter of
Credit Issuer.
R E C I T A L S:
The Borrower, the Administrative Agent and the Lenders have entered into that
certain Revolving Credit Agreement dated as of December 16, 2005 (the “Original
Credit Agreement”) and the Borrower, the Administrative Agent and certain of the
Lenders have entered into that certain First Amendment to Revolving Credit
Agreement dated as of November 1, 2006 (the “First Amendment”), that certain
Second Amendment to Revolving Credit Agreement dated as of March 14, 2007 (the
“Second Amendment”), that certain Third Amendment to Revolving Credit Agreement
dated as of July 6, 2007 (the “Third Amendment”), and that certain Fourth
Amendment to Revolving Credit Agreement dated as of January 4, 2008 (the “Fourth
Amendment”; the Original Credit Agreement, as amended by the First Amendment,
the Second Amendment, the Third Amendment, and the Fourth Amendment, is
hereinafter referred to as the “Credit Agreement”). Capitalized terms used in
this Amendment which are not otherwise defined in this Amendment shall have the
respective meanings assigned to them in the Credit Agreement.
The Borrower, the Administrative Agent and the Lenders desire to amend the
Credit Agreement in certain respects.
NOW, THEREFORE, in consideration of the Recitals and the mutual promises
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Borrower, the Guarantors, the
Administrative Agent and the Lenders, intending to be legally bound hereby,
agree as follows:
SECTION 1. Recitals. The Recitals are incorporated herein by reference and shall
be deemed to be a part of this Amendment.

 

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SECTION 2. Amendments.
(a) The first table in the definition of “Applicable Margin” in Section 1.1 of
the Credit Agreement is hereby amended and restated in its entirety to read as
follows:

                                                              Eurodollar        
                            Senior   Rate or                     Unused  
Pricing   Leverage       Unsecured   LIBOR     Base     Letters of    
Commitment   Level   Ratio       Debt Rating   Rate     Rate     Credit     Fee
 
1
  Less than or equal       BBB/Baa2     1.05 %     0.00 %     0.925 %     0.15 %
 
  to 0.30 to 1                                        
2
  Greater than 0.30       BBB-/Baa3     1.25 %     0.00 %     1.125 %     0.15 %
 
  to 1 but less than                                        
 
  or equal to 0.40 to 1                                        
3
  Greater than 0.40       BB+/Ba1     1.45 %     0.00 %     1.325 %     0.20 %
 
  to 1 but less than                                        
 
  or equal to 0.50 to 1                                        
4
  Greater than 0.50       BB/Ba2     1.70 %     0.00 %     1.575 %     0.20 %
 
  to 1 but less than                                        
 
  .55 to 1                                        
5
  Equal to or greater       BB-/Ba3     2.00 %     0.00 %     1.875 %     0.25 %
 
  than 0.55 to 1                                        

(b) The definition of “Net Funded Notes Payable” in Section 1.1 of the Credit
Agreement is hereby amended and restated in its entirety to read as follows:
“Net Funded Notes Payable” means, for Borrower and its Restricted Subsidiaries
as of any date, (a) the aggregate amount of all Indebtedness (including the pro
rata portion of Indebtedness of a joint venture in which Borrower or a
Restricted Subsidiary holds an equity interest, based on Borrower’s or such
Restricted Subsidiary’s equity interest in such joint venture) minus
(b) unrestricted cash and cash equivalents, net of outstanding cash borrowings
under this Agreement, in excess of $50,000,000 based upon the average of the
month-end balances of unrestricted cash, cash equivalents and outstanding cash
borrowings under the Credit Agreement for the fiscal quarter most recently
ended.

 

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(c) The definition of “Tangible Net Worth” in Section 1.1 of the Credit
Agreement is hereby amended and restated in its entirety to read as follows:
“Tangible Net Worth” means, with respect to Borrower and its Restricted
Subsidiaries, the sum of (i) the net worth of Borrower and its Restricted
Subsidiaries, as defined under GAAP, plus (ii) to the extent not otherwise
included in clause (i), amounts reflected on the consolidated balance sheet of
the Borrower and its Restricted Subsidiaries attributable to capital stock that
does not constitute Indebtedness, less (iii) all “intangible assets”, but
excluding any non-cash gain or loss resulting from any mark-to-market
adjustments made directly to the net worth of Borrower and its Restricted
Subsidiaries on a consolidated basis as a result of fluctuations in the value of
financial instruments owned by Borrower or any such Restricted Subsidiaries as
mandated under SFAS 133.
(d) Section 1.1 of the Credit Agreement is hereby amended by adding the
following definitions in alphabetical order:
“Deferred Tax Valuation Allowance” means any valuation allowance applied to
deferred tax assets as determined in accordance with GAAP and included in the
financial statements of the Borrower.
“Net Book Value of Land and Lots” means the net book value determined in
accordance with GAAP of Developed Lots, Lots Under Development, and Land Parcels
as of the date of determination.
(e) The definition of “Total Revolving Credit Commitment” in Section 1.1 of the
Credit Agreement is hereby amended and restated in its entirety to read as
follows:
“Total Revolving Credit Commitment” means, as of any date of determination, the
sum of all Revolving Credit Commitments for all Lenders then in effect, which
sum shall not exceed $1,650,000,000 unless the Total Revolving Credit Commitment
is increased pursuant to Section 2.10(b).
(f) Section 6.8 of the Credit Agreement is hereby amended and restated in its
entirety to read as follows:
Financial and Inventory Covenants. Until the Obligations are repaid in full and
the expiration or termination of all Letters of Credit and the Total Revolving
Credit Commitment, Borrower shall adhere to the following financial covenants,
all on a consolidated basis with the Restricted Subsidiaries and determined as
of the last day of each fiscal quarter of Borrower:
(a) Borrower shall maintain at all times a Leverage Ratio of not more than
0.55 to 1;
(b) If the Borrower shall fail to maintain for any two consecutive fiscal
quarters ending on and after December 31, 2007 an Interest Coverage Ratio equal
to or greater than 1.50 to 1.00 for the period of four consecutive fiscal
quarters then ended, then as of the end of such second consecutive fiscal
quarter and as of the end of all fiscal quarters thereafter until the Interest
Coverage Ratio is greater than or equal to 1.50 to 1.00, the Borrower shall
either maintain (i) a ratio of (A) Adjusted Cash Flow from Operations to (B)
Interest Incurred of greater than or equal to 1.50 to 1.00 or (ii) a sum of
(y) Loan Funding Availability plus (z) unrestricted cash and cash equivalents,
to the extent such unrestricted cash and cash equivalents are not included in
calculating Loan Funding Availability, equal to or greater than $500,000,000.

 

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(c) Borrower shall maintain at all times Tangible Net Worth of not less than the
sum of (i) $2,000,000,000, plus (ii) fifty percent (50%) of annual net profits
(with no deduction for any annual net loss and excluding the effect on annual
net profits of any reversal in any Deferred Tax Valuation Allowance) for each
fiscal year ending after September 30, 2007, plus (iii) fifty percent (50%) of
the aggregate increase in shareholders’ equity of Borrower after September 30,
2007 exceeding $500,000,000, by reason of the issuance of capital stock of
Borrower (including upon conversion of Indebtedness into such capital stock but
excluding (x) stock issued in connection with an employee stock ownership plan,
an employee stock option plan, or an employee stock purchase plan, and (y) any
portion of such increase in shareholders’ equity attributable to goodwill
recognized in connection with an Acquisition), plus (iv) 100% of the effect on
annual net profits for each fiscal year ending after September 30, 2007 of any
reversal in any Deferred Tax Valuation Allowance as of the date of
determination;
(d) The total number of Speculative Lots owned by Borrower and its Restricted
Subsidiaries at any given time shall not exceed forty percent (40%) of all
Closed Sales during the immediately preceding twelve (12) calendar months.
Models shall not be considered “Speculative Lots” for purposes of this
Section 6.8(d); and
(e) The Net Book Value of Land and Lots shall not exceed at any time (i) one
hundred fifty percent (150%) of the Adjusted Tangible Net Worth when the Net
Book Value of Land and Lots exceeds $4,740,000,000; and (ii) two hundred percent
(200%) of the Adjusted Tangible Net Worth when the Net Book Value of Land and
Lots is equal to or less than $4,740,000,000;
provided, however, that the limitations set forth in the preceding subsections
(d) and (e) shall not be operative during any period in which Borrower maintains
an Investment Grade Rating by at least two (2) of Moody’s, S&P, and Fitch.
(g) Exhibit D to the Credit Agreement is hereby amended and restated in its
entirety to read as Exhibit D attached hereto.

 

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(h) The Borrower’s notice address in Schedule 2.1 to the Credit Agreement is
hereby amended and restated in its entirety to read as follows:

      BORROWER:   ADDRESS
 
   
D.R. Horton, Inc.
  301 Commerce Street
 
  Suite 500
 
  Fort Worth, Texas 76102
 
  Attn: Bill W. Wheat
 
 
Stacey H. Dwyer
 
  Tel: 817-390-8200
 
  Fax: 972-620-6813 (Mr. Wheat)
 
  Fax: 817-390-1715 (Ms. Dwyer)
 
 
E-mail: bwheat@drhorton.com
 
 
    sdwyer@drhorton.com
 
   
 
  With a copy to:
 
   
 
  301 Commerce Street
 
  Suite 500
 
  Fort Worth, Texas 76102
 
  Attn: Ted I. Harbour, Esq.
 
  Tel: 817-390-8200
 
  Fax: 972-620-6863
 
  E-mail: tharbour@drhorton.com

SECTION 3. Reduction of Aggregate Commitment. At the request of the Borrower,
the amount of the Total Revolving Credit Commitment is hereby reduced to
$1,650,000,000 and such reduction shall be allocated to each Lender’s Revolving
Credit Commitment ratably in accordance with its Commitment Ratio. The Borrower
represents, warrants and certifies that this reduction in the Total Revolving
Credit Commitment is in accordance with Section 2.14 of the Credit Agreement.
SECTION 4. Conditions to Effectiveness. The effectiveness of this Amendment and
the obligations of the Lenders hereunder are subject to satisfaction of the
following conditions, and upon satisfaction of the following conditions, this
Amendment shall be effective as of the day and year first above written:
(a) receipt by the Administrative Agent from the Borrower, the Guarantors, the
Administrative Agent and the Lenders constituting Required Lenders (as defined
in the Credit Agreement) of a duly executed counterpart of this Amendment;
(b) the fact that the representations and warranties of the Borrower and each
Guarantor contained in Article 5 of the Credit Agreement and Section 6 of this
Amendment shall be true on and as of the date hereof;
(c) payment by the Borrower to the Administrative Agent of an amendment fee of
.20% of each Lender’s Revolving Credit Commitment for each Lender approving this
Amendment after giving effect to the reduction of the Total Revolving Credit
Commitment in Section 3 of this Amendment and all other fees and expenses
(including without limitation the fees and expenses of counsel to the
Administrative Agent and fees related to the reduction of the Total Revolving
Credit Commitment in accordance with Section 2.14 of the Credit Agreement and
Section 3 of this Amendment) payable on the date of this Amendment to the
applicable Lenders and the Administrative Agent;

 

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(d) payment by the Borrower of all other fees and expenses (including without
limitation the fees and expenses of counsel to the Administrative Agent) payable
on the date of this Amendment in connection herewith; and
(e) receipt of such other documents that the Administrative Agent may reasonably
require.
SECTION 5. No Other Amendment. Except for the amendments set forth herein, the
text of the Credit Agreement shall remain unchanged and in full force and
effect. This Amendment is not intended to effect, nor shall it be construed as,
a novation. The Credit Agreement and this Amendment shall be construed together
as a single agreement. Nothing herein contained shall waive, annul, vary or
affect any provision, condition, covenant or agreement contained in the Credit
Agreement, except as herein amended or waived, nor affect or impair any rights,
powers or remedies under the Credit Agreement as hereby amended. The Lenders and
the Administrative Agent do hereby reserve all of their rights and remedies
against all parties who may be or may hereafter become secondarily liable for
the repayment of the Obligations. The Borrower promises and agrees to perform
all of the requirements, conditions, agreements and obligations under the terms
of the Credit Agreement, as heretofore and hereby amended, the Credit Agreement,
as amended, being hereby ratified and affirmed. The Borrower hereby expressly
agrees that the Credit Agreement, as amended, is in full force and effect.
SECTION 6. Representations and Warranties. The Borrower and each Guarantor
hereby represents and warrants to the Administrative Agent and the Lenders as
follows:
(a) No Default or Event of Default under the Credit Agreement has occurred and
is continuing on the date hereof.
(b) The Borrower and each Guarantor each has the power and authority to enter
into this Amendment and to do all acts and things as are required or
contemplated hereunder, or thereunder, to be done, observed and performed by it.
(c) The execution, delivery and performance by each of the Borrower and each
Guarantor of this Amendment and each Loan Document to which such Person is a
party that is being delivered in connection with this Amendment have been duly
authorized by all necessary corporate or other organizational action, and do not
and will not (i) contravene the terms of any of such Person’s Organizational
Documents or Authority Documents, (ii) conflict with or result in any breach or
contravention of, or the creation of any Lien under, any contractual obligation
to which such Person is party or another order, injunction, writ or decree of
any Governmental Authority to which such Person or its property is subject, or
(iii) violate any Applicable Law.
(d) This Amendment and each Loan Document being delivered in connection with
this Amendment have each been duly executed and delivered by the Borrower and
each Guarantor that is party hereto and thereto. This Amendment and each such
Loan Document each constitutes the legal, valid and binding obligation of the
Borrower and each Guarantor that is a party thereto, enforceable against the
Borrower and each Guarantor in accordance with its terms, except as
enforceability may be limited by applicable Debtor Relief Laws and general
principles of equity.

 

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SECTION 7. Counterparts. This Amendment may be executed in multiple
counterparts, each of which shall be deemed to be an original and all of which,
taken together, shall constitute one and the same agreement.
SECTION 8. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NORTH CAROLINA; PROVIDED THAT THE
ADMINISTRATIVE AGENT, LETTER OF CREDIT ISSUERS AND LENDERS SHALL RETAIN ALL
RIGHTS ARISING UNDER FEDERAL LAW.
SECTION 9. Consent by Guarantors. The Guarantors consent to this Amendment. Each
Guarantor promises and agrees to perform all of the requirements, conditions,
agreements and obligations under the terms of the Subsidiary Guaranty to which
it is a party, such Subsidiary Guaranty being hereby ratified and affirmed. Each
Guarantor hereby expressly agrees that the Subsidiary Guaranty to which it is a
party is in full force and effect.
[Signature Pages Follow]

 

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IN WITNESS WHEREOF, the parties hereto have executed and delivered, or have
caused their respective duly authorized officers or representatives to execute
and deliver, this Amendment as of the day and year first above written.

            BORROWER:

D.R. HORTON, INC., a Delaware corporation
      By:   /s/ Bill W. Wheat         Name:   Bill W. Wheat        Title:   EVP,
CFO   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            GUARANTORS:
      By:   /s/ Bill W. Wheat         Bill W. Wheat, in the capacities described
and on behalf of the entities set forth in        Exhibit A   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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EXHIBIT A
INITIAL GUARANTORS as of December 16, 2005
C. Richard Dobson Builders, Inc., a Virginia corporation, by Bill W. Wheat in
his capacity as Chief Financial Officer
CH Investments of Texas, Inc., a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
CHI Construction Company, an Arizona corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
CHTEX of Texas, Inc., a Delaware corporation, by Bill W. Wheat in his capacity
as Chief Financial Officer
Continental Homes of Texas, L.P., a Texas limited partnership, by CHTEX of
Texas, Inc., its General Partner, by Bill W. Wheat in his capacity as Chief
Financial Officer
Continental Homes, Inc., a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
Continental Residential, Inc., a California corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
D. R. Horton, Inc. — Fresno, a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
D.R. Horton — Emerald, Ltd., a Texas limited partnership, by Meadows I, Ltd.,
its General Partner, by Bill W. Wheat in his capacity as Chief Financial Officer
D.R. Horton — Texas, Ltd., a Texas limited partnership, by Meadows I, Ltd., its
General Partner, by Bill W. Wheat in his capacity as Chief Financial Officer
D.R. Horton LA North, Inc. (f/k/a DRH Regrem X, Inc.), a Delaware corporation,
by Bill W. Wheat in his capacity as Chief Financial Officer
D.R. Horton Los Angeles Holding Company, Inc., a California corporation, by Bill
W. Wheat in his capacity as Chief Financial Officer
D.R. Horton Management Company, Ltd., a Texas limited partnership, by Meadows I,
Ltd., its General Partner, by Bill W. Wheat in his capacity as Chief Financial
Officer
D.R. Horton Materials, Inc., a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
D.R. Horton OCI, Inc., (f/k/a D.R. Horton Orange County, Inc.), a Delaware
corporation, by Bill W. Wheat in his capacity as Chief Financial Officer
SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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D.R. Horton VEN, Inc. (f/k/a D.R. Horton San Diego Holding Company, Inc.), a
California corporation, by Bill W. Wheat in his capacity as Chief Financial
Officer
D.R. Horton, Inc. — Birmingham, an Alabama corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
D.R. Horton, Inc. — Chicago, a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
D.R. Horton, Inc. — Denver, a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
D.R. Horton, Inc. — Dietz-Crane, a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
D.R. Horton, Inc. — Greensboro, a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
D.R. Horton, Inc. — Gulf Coast, a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
D.R. Horton, Inc. — Jacksonville, a Delaware corporation, by Bill W. Wheat in
his capacity as Chief Financial Officer
D.R. Horton, Inc. — Louisville, a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
D.R. Horton, Inc. — Minnesota, a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
D.R. Horton, Inc. — New Jersey, a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
D.R. Horton, Inc. — Portland, a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
D.R. Horton, Inc. — Sacramento, a California corporation, by Bill W. Wheat in
his capacity as Chief Financial Officer
D.R. Horton, Inc. — Torrey, a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
D.R. Horton-Schuler Homes, LLC, a Delaware limited liability company, by
Vertical Construction Corporation, a manager, by Bill W. Wheat in his capacity
as Chief Financial Officer
DRH Cambridge Homes, Inc., a California corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
DRH Cambridge Homes, LLC, a Delaware limited liability company, by D.R. Horton,
Inc. — Chicago, a managing member, by Bill W. Wheat in his capacity as Chief
Financial Officer
SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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DRH Construction, Inc., a Delaware corporation, by Bill W. Wheat in his capacity
as Chief Financial Officer
DRH Regrem VII, LP, a Texas limited partnership, by Meadows I, Ltd., its General
Partner, by Bill W. Wheat in his capacity as Chief Financial Officer
DRH Regrem VIII, LLC, a Delaware limited liability company, by D.R. Horton, Inc.
— Chicago, a managing member, by Bill W. Wheat in his capacity as Chief
Financial Officer
DRH Regrem XI, Inc. a Delaware corporation, by Bill W. Wheat in his capacity as
Chief Financial Officer
DRH Regrem XII, LP, a Texas limited partnership, by Meadows I, Ltd., its General
Partner, by Bill W. Wheat in his capacity as Chief Financial Officer
DRH Southwest Construction, Inc., a California corporation, by Bill W. Wheat in
his capacity as Chief Financial Officer
DRH Tucson Construction, Inc., a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
DRHI, Inc., a Delaware corporation, by Bill W. Wheat in his capacity as Chief
Financial Officer
HPH Homebuilders 2000, L.P., a California limited partnership, by Western
Pacific Housing Management, Inc., a General Partner, by Bill W. Wheat in his
capacity as Chief Financial Officer
KDB Homes, Inc., a Delaware corporation, by Bill W. Wheat in his capacity as
Chief Financial Officer
Meadows I, Ltd., a Delaware corporation, by Bill W. Wheat in his capacity as
Chief Financial Officer
Meadows II, Ltd., a Delaware corporation, by Bill W. Wheat in his capacity as
Chief Financial Officer
Meadows IX, Inc., a New Jersey corporation, by Bill W. Wheat in his capacity as
Chief Financial Officer
Meadows VIII, Ltd., a Delaware corporation, by Bill W. Wheat in his capacity as
Chief Financial Officer
Meadows X, Inc., a New Jersey corporation, by Bill W. Wheat in his capacity as
Chief Financial Officer
Melmort Co., a Colorado corporation, by Bill W. Wheat in his capacity as Chief
Financial Officer
Melody Homes, Inc., a Delaware corporation, by Bill W. Wheat in his capacity as
Chief Financial Officer
SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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Schuler Homes of Arizona LLC, a Delaware limited liability company, by SRHI LLC,
a managing member, by Bill W. Wheat in his capacity as Chief Financial Officer
Schuler Homes of California, Inc., a California corporation, by Bill W. Wheat in
his capacity as Chief Financial Officer
Schuler Homes of Oregon, Inc., an Oregon corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
Schuler Homes of Washington, Inc., a Washington corporation, by Bill W. Wheat in
his capacity as Chief Financial Officer
Schuler Mortgage, Inc., a Delaware corporation, by Bill W. Wheat in his capacity
as Chief Financial Officer
Schuler Realty Hawaii, Inc., a Hawaii corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
SGS Communities at Grande Quay, LLC, a New Jersey limited liability company, by
Meadows IX, Inc., a managing member, by Bill W. Wheat in his capacity as Chief
Financial Officer
SHA Construction LLC, a Delaware limited liability company, by SRHI, LLC, a
managing member, by Bill W. Wheat in his capacity as Chief Financial Officer
SHLR of California, Inc., a California corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
SHLR of Colorado, Inc., a Colorado corporation, by Bill W. Wheat in his capacity
as Chief Financial Officer
SHLR of Nevada, Inc., a Nevada corporation, by Bill W. Wheat in his capacity as
Chief Financial Officer
SHLR of Utah, Inc., a Utah corporation, by Bill W. Wheat in his capacity as
Chief Financial Officer
SHLR of Washington, Inc., a Washington corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
SRHI LLC, a Delaware limited liability company, by SHLR of Nevada, Inc., a
managing member, by Bill W. Wheat in his capacity as Chief Financial Officer
SSHI LLC, a Delaware limited liability company, by SHLR of Washington, a
managing member, by Bill W. Wheat in his capacity as Chief Financial Officer
Vertical Construction Corporation, a Delaware corporation, by Bill W. Wheat in
his capacity as Chief Financial Officer
Western Pacific Funding, Inc., a California corporation, by Bill W. Wheat in his
capacity as Executive Vice President
SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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Western Pacific Housing — Aviara, L.P., a California limited partnership, by
Western Pacific Housing Management, Inc., its General Partner, by Bill W. Wheat
in his capacity as Chief Financial Officer
Western Pacific Housing — Oso, L.P., a California limited partnership, by
Western Pacific Housing Management, Inc., its General Partner, by Bill W. Wheat
in his capacity as Chief Financial Officer
Western Pacific Housing — Scripps, L.P., a California limited partnership, by
Western Pacific Housing Management, Inc., its General Partner, by Bill W. Wheat
in his capacity as Chief Financial Officer
Western Pacific Housing — Seacove, L.P., a California limited partnership, by
Western Pacific Housing Management, Inc., its General Partner, by Bill W. Wheat
in his capacity as Chief Financial Officer
Western Pacific Housing — Windflower, L.P., a California limited partnership, by
Western Pacific Housing Management, Inc., its General Partner, by Bill W. Wheat
in his capacity as Chief Financial Officer
Western Pacific Housing Co., a California limited partnership, by Western
Pacific Housing Management, Inc., its General Partner, by Bill W. Wheat in his
capacity as Chief Financial Officer
Western Pacific Housing Management, Inc., a California corporation, by Bill W.
Wheat in his capacity as Chief Financial Officer
Western Pacific Housing, Inc., a Delaware corporation, by Bill W. Wheat in his
capacity as Chief Financial Officer
Western Pacific Housing-Antigua, LLC, a Delaware limited liability company, by
Western Pacific Housing Management, Inc., its managing member, by Bill W. Wheat
in his capacity as Chief Financial Officer
Western Pacific Housing-Boardwalk, LLC, a Delaware limited liability company, by
Western Pacific Housing Management, Inc., its manager, by Bill W. Wheat in his
capacity as Chief Financial Officer
Western Pacific Housing-Broadway, LLC, a Delaware limited liability company, by
Western Pacific Housing Management, Inc., its manager member, by Bill W. Wheat
in his capacity as Chief Financial Officer
Western Pacific Housing-Canyon Park, LLC, a Delaware limited liability company,
by Western Pacific Housing Management, Inc., its managing member, by Bill W.
Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-Carmel, LLC, a Delaware limited liability company, by
Western Pacific Housing Management, Inc., its managing member, by Bill W. Wheat
in his capacity as Chief Financial Officer
SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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Western Pacific Housing-Carrillo, LLC, a Delaware limited liability company, by
Western Pacific Housing Management, Inc., its managing member, by Bill W. Wheat
in his capacity as Chief Financial Officer
Western Pacific Housing-Communications Hill, LLC, a Delaware limited liability
company, by Western Pacific Housing Management, Inc., its managing member, by
Bill W. Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-Copper Canyon, LLC, a Delaware limited liability
company, by Western Pacific Housing Management, Inc., its managing member, by
Bill W. Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-Creekside, LLC, a Delaware limited liability company, by
Western Pacific Housing Management, Inc., its managing member, by Bill W. Wheat
in his capacity as Chief Financial Officer
Western Pacific Housing-Culver City, L.P., a California limited partnership, by
Western Pacific Housing Management, Inc., its General Partner, by Bill W. Wheat
in his capacity as Chief Financial Officer
Western Pacific Housing-Del Valle, LLC, a Delaware limited liability company, by
Western Pacific Housing Management, Inc., its managing member, by Bill W. Wheat
in his capacity as Chief Financial Officer
Western Pacific Housing-Lomas Verdes, LLC, a Delaware limited liability company,
by Western Pacific Housing Management, Inc., its managing member, by Bill W.
Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-Lost Hills Park, LLC, a Delaware limited liability
company, by Western Pacific Housing Management, Inc., its managing member, by
Bill W. Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-McGonigle Canyon, LLC, a Delaware limited liability
company, by Western Pacific Housing Management, Inc., its managing member, by
Bill W. Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-Mountaingate, L.P. a California limited partnership, by
Western Pacific Housing Management, Inc., its General Partner, by Bill W. Wheat
in his capacity as Chief Financial Officer
Western Pacific Housing-Norco Estates, LLC, a Delaware limited liability
company, by Western Pacific Housing Management, Inc., its managing member, by
Bill W. Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-Pacific Park II, LLC, a Delaware limited liability
company, by Western Pacific Housing Management, Inc., its managing member, by
Bill W. Wheat in his capacity as Chief Financial Officer
SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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Western Pacific Housing-Park Avenue East, LLC, a Delaware limited liability
company, by Western Pacific Housing Management, Inc., its manager, by Bill W.
Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-Park Avenue West, LLC, a Delaware limited liability
company, by Western Pacific Housing Management, Inc., its manager, by Bill W.
Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-Playa Vista, LLC, a Delaware limited liability company,
by Western Pacific Housing Management, Inc., its manager, by Bill W. Wheat in
his capacity as Chief Financial Officer
Western Pacific Housing-Poinsettia, L.P., a California limited partnership, by
Western Pacific Housing Management, Inc., its General Partner, by Bill W. Wheat
in his capacity as Chief Financial Officer
Western Pacific Housing-River Ridge, LLC, a Delaware limited liability company,
by Western Pacific Housing Management, Inc., its manager, by Bill W. Wheat in
his capacity as Chief Financial Officer
Western Pacific Housing-Robinhood Ridge, LLC, a Delaware limited liability
company, by Western Pacific Housing Management, Inc., its managing member, by
Bill W. Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-Santa Fe, LLC, a Delaware limited liability company, by
Western Pacific Housing Management, Inc., its managing member, by Bill W. Wheat
in his capacity as Chief Financial Officer
Western Pacific Housing-Scripps II, LLC, a Delaware limited liability company,
by Western Pacific Housing Management, Inc., its managing member, by Bill W.
Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-Studio 528, LLC, a Delaware limited liability company,
by Western Pacific Housing Management, Inc., its manager, by Bill W. Wheat in
his capacity as Chief Financial Officer
Western Pacific Housing-Terra Bay Duets, LLC, a Delaware limited liability
company, by Western Pacific Housing Management, Inc., its manager, by Bill W.
Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-Torrance, LLC, a Delaware limited liability company, by
Western Pacific Housing Management, Inc., its manager, by Bill W. Wheat in his
capacity as Chief Financial Officer
Western Pacific Housing-Torrey Commercial, LLC, a Delaware limited liability
company, by Western Pacific Housing Management, Inc., its managing member, by
Bill W. Wheat in his capacity as Chief Financial Officer
SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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Western Pacific Housing-Torrey Meadows, LLC, a Delaware limited liability
company, by Western Pacific Housing Management, Inc., its manager, by Bill W.
Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-Torrey Multi-Family, LLC, a Delaware limited liability
company, by Western Pacific Housing Management, Inc., its managing member, by
Bill W. Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-Torrey Village Center, LLC, a Delaware limited liability
company, by Western Pacific Housing Management, Inc., its managing member, by
Bill W. Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-Vineyard Terrace, LLC, a Delaware limited liability
company, by Western Pacific Housing Management, Inc., its managing member, by
Bill W. Wheat in his capacity as Chief Financial Officer
Western Pacific Housing-Windemere, LLC, a Delaware limited liability company, by
Western Pacific Housing Management, Inc., its manager, by Bill W. Wheat in his
capacity as Chief Financial Officer
WPH-Camino Ruiz, LLC, a Delaware limited liability company, by Western Pacific
Housing Management, Inc., its managing member, by Bill W. Wheat in his capacity
as Chief Financial Officer
ADDITIONAL GUARANTORS as of June 13, 2006
DRH Regrem XIII, Inc., a Delaware corporation, by Bill W. Wheat in his capacity
as Executive Vice President and Chief Financial Officer
DRH Regrem XIV, Inc., a Delaware corporation, by Bill W. Wheat in his capacity
as Executive Vice President and Chief Financial Officer
DRH Regrem XV, Inc., a Delaware corporation, by Bill W. Wheat in his capacity as
Executive Vice President and Chief Financial Officer
DRH Regrem XVI, Inc., a Delaware corporation, by Bill W. Wheat in his capacity
as Executive Vice President and Chief Financial Officer
DRH Regrem XVII, Inc., a Delaware corporation, by Bill W. Wheat in his capacity
as Executive Vice President and Chief Financial Officer
DRH Regrem XVIII, Inc., a Delaware corporation, by Bill W. Wheat in his capacity
as Executive Vice President and Chief Financial Officer
DRH Regrem XIX, Inc., a Delaware corporation, by Bill W. Wheat in his capacity
as Executive Vice President and Chief Financial Officer
DRH Regrem XX, Inc., a Delaware corporation, by Bill W. Wheat in his capacity as
Executive Vice President and Chief Financial Officer
SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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DRH Regrem XXI, Inc., a Delaware corporation, by Bill W. Wheat in his capacity
as Executive Vice President and Chief Financial Officer
DRH Regrem XXII, Inc., a Delaware corporation, by Bill W. Wheat in his capacity
as Executive Vice President and Chief Financial Officer
DRH Regrem XXIII, Inc., a Delaware corporation, by Bill W. Wheat in his capacity
as Executive Vice President and Chief Financial Officer
DRH Regrem XXIV, Inc., a Delaware corporation, by Bill W. Wheat in his capacity
as Executive Vice President and Chief Financial Officer
DRH Regrem XXV, Inc. (f/k/a D.R. Horton, Inc. — Los Angeles), a Delaware
corporation, by Bill W. Wheat in his capacity as Executive Vice President and
Chief Financial Officer
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            WACHOVIA BANK, NATIONAL ASSOCIATION, as Administrative Agent
      By:   /s/ R. Scott Holtzapple         Name:   R. Scott Holtzapple       
Title:   Director   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            WACHOVIA BANK, NATIONAL ASSOCIATION, as a Lender,
Swingline Lender and a Letter of Credit Issuer
      By:   /s/ R. Scott Holtzapple         Name:   R. Scott Holtzapple       
Title:   Director   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            THE ROYAL BANK OF SCOTLAND, PLC,
as a Lender         By:   /s/ Timothy McNaught         Name:   Timothy McNaught 
      Title:   Managing Director   

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            BANK OF AMERICA, N.A., as a Lender
      By:   /s/ Stephen B. Carlson         Name:   Stephen B. Carlson       
Title:   Vice President   

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            CALYON NEW YORK BRANCH, as a Lender
      By:   /s/ Brian Myers         Name:   Brian Myers        Title:   Managing
Director        By:   /s/ Robert S. Smith         Name:   Robert S. Smith       
Title:   Managing Director   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            CITICORP, N.A., as a Lender
      By:   /s/ Marni McManus         Name:   Marni McManus        Title:   Vice
President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            JPMORGAN CHASE BANK, N.A., as a Lender
      By:   /s/ Vanessa Chiu         Name:   Vanessa Chiu        Title:   Vice
President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            UBS LOAN FINANCE LLC, as a Lender
      By:   /s/ Irja R. Otsa         Name:   Irja R. Otsa        Title:  
Associate Director
Banking Products
Services. US            By:   /s/ Mary E. Evans         Name:   Mary E. Evans   
    Title:   Associate Director
Banking Products
Services. US   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            BNP PARIBAS, as a Lender
      By:   /s/ Alain Kasfereit         Name:   Alain Kasfereit        Title:  
Managing Director            By:   /s/ PJ de Filippis         Name:   PJ de
Filippis        Title:   Managing Director   

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            SUNTRUST BANK, as a Lender
      By:   /s/ W. John Wendler         Name:   W. John Wendler        Title:  
Senior Vice President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            WASHINGTON MUTUAL BANK, as a Lender
      By:   /s/ Gary Handcox         Name:   Gary Handcox        Title:   Senior
Vice President   

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            REGIONS BANK (successor by merger to
AmSouth Bank), as a Lender
      By:   /s/ Daniel McClurkin         Name:   Daniel McClurkin       
Title:   Assistant Vice President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            THE BANK OF NOVA SCOTIA, as a Lender
      By:   /s/ Ning Cai         Name:   Ning Cai        Title:   Director   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            SCOTIABANC INC., as a Lender
      By:   /s/ J.F. Todd         Name:   J.F. Todd        Title:   Managing
Director   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            BARCLAYS BANK PLC, as a Lender
      By:   /s/ Alicia Borys         Name:   Alicia Borys        Title:  
Manager   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            COMERICA BANK, as a Lender
      By:   /s/ Casey L. Stevenson         Name:   Casey L. Stevenson       
Title:   Vice President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            FANNIE MAE, as a Lender
      By:   /s/ Lisa F. Carlson         Name:   Lisa F. Carlson        Title:  
Vice President   

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            LLOYDS TSB BANK PLC, as a Lender
      By:   /s/ Jonathan Smith         Name:   Jonathan Smith        Title:  
Assistant Vice President
Risk Management & Business
Support S025            By:   /s/ Nicholas J. Bruce         Name:   Nicholas J.
Bruce        Title:   Vice President & Manager
Risk Management & Business
Support B081   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            NATIXIS (fka NATEXIS BANQUES
POPULAIRES), as a Lender
      By:   /s/ Marie-Edith Dugeny         Name:   Marie-Edith Dugeny       
Title:   Managing Director            By:   /s/ Zinda Bouazzoui         Name:  
Zinda Bouazzoui        Title:   Associate Director   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            GUARANTY BANK, as a Lender
      By:   /s/ Ross Evans         Name:   Ross Evans        Title:   Vice
President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            EMIGRANT BANK, as a Lender
      By:   /s/ David J. Feingold         Name:   David J. Feingold       
Title:   Managing Director   

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            PNC BANK, NATIONAL ASSOCIATION, as a Lender
      By:   /s/ Luis Donoso         Name:   Luis Donoso        Title:   Vice
President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            THE GOVERNOR AND COMPANY OF THE
BANK OF IRELAND, as a Lender
      By:   /s/ Elaine Crowley         Name:   Elaine Crowley        Title:  
Authorised Signatory            By:   /s/ Emer Dalton         Name:   Emer
Dalton        Title:   Authorised Signatory   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            CALIFORNIA BANK & TRUST, a California
banking corporation, as a Lender
      By:   /s/ Bruce Weyers         Name:   Bruce Weyers        Title:   Vice
President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            CITY NATIONAL BANK, a national banking
association, as a Lender
      By:   /s/ Xavier Barrera         Name:   Xavier Barrera        Title:  
Vice President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            FIFTH THIRD BANK, as a Lender
      By:   /s/ Mike Mendenhall         Name:   Mike Mendenhall        Title:  
Vice President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            MIZUHO CORPORATE BANK, LTD., as a Lender
      By:   /s/ Noel Purcell         Name:   Noel Purcell        Title:  
Authorized Signatory   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            SOCIÉTÉ GÉNÉRALE, as a Lender
      By:   /s/ Milissa A. Goeden         Name:   Milissa A. Goeden       
Title:   Director   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            CHEVY CHASE BANK, F.S.B., as a Lender
      By:   /s/ Constance G. Beck         Name:   Constance G. Beck       
Title:   Vice President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            COMPASS BANK, as a Lender
      By:   /s/ Johanna Duke Paley         Name:   Johanna Duke Paley       
Title:   SVP   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            AMERICAN SAVINGS BANK FSB, as a Lender
      By:   /s/ Carl A. Morita         Name:   Carl A. Morita        Title:  
Vice President            By:           Name:           Title:      

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            BANK OF HAWAII, as a Lender
      By:   /s/ Brian H. Uemori         Name:   Brian H. Uemori        Title:  
Vice President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            FIRST HAWAIIAN BANK, as a Lender
      By:   /s/ Jon T. Fukagawa         Name:   Jon T. Fukagawa        Title:  
Vice President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            THE NORTHERN TRUST COMPANY, as a Lender
      By:   /s/ Morgan A. Lyons         Name:   Morgan A. Lyons        Title:  
Vice President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            CHANG HWA COMMERCIAL BANK, LTD.,
NEW YORK BRANCH, as a Lender
      By:   /s/ Jim C.Y. Chen         Name:   Jim C.Y. Chen        Title:   VP &
General Manager   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            MEGA INTERNATIONAL COMMERCIAL
BANK CO., LTD. NEW YORK BRANCH,
as a Lender
      By:   /s/ Tsang - Pei Hsu         Name:   Tsang - Pei Hsu        Title:  
VP & DGM   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            NATIONAL CITY BANK, as a Lender
      By:   /s/ Jerry W. Johnston         Name:   Jerry W. Johnston       
Title:   Executive Vice President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            COMMERZBANK AG, NEW YORK AND
GRAND CAYMAN BRANCHES, as a Lender
      By:   /s/ Edward C.A. Forsberg, Jr.         Name:   Edward C.A. Forsberg,
Jr.        Title:   Senior Vice President & Manager   

            By:   /s/ David A. Bennett         Name:   David A. Bennett       
Title:   Vice President   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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            CAMULOS MASTER FUND LP, as a Lender
      By:   /s/ Michael Iuliano         Name:   Michael Iuliano        Title:  
Attorney-in-Fact   

SIGNATURE PAGE TO FIFTH AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

 

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SCHEDULE 1
GUARANTORS
INITIAL GUARANTORS as of December 16, 2005
C. Richard Dobson Builders, Inc., a Virginia corporation
CH Investments of Texas, Inc., a Delaware corporation
CHI Construction Company, an Arizona corporation
CHTEX of Texas, Inc., a Delaware corporation
Continental Homes, Inc., a Delaware corporation
Continental Homes of Texas, L.P., a Texas limited partnership
Continental Residential, Inc., a California corporation
D.R. Horton — Emerald, Ltd., a Texas limited partnership
D.R. Horton, Inc. — Birmingham, an Alabama corporation
D.R. Horton, Inc. — Chicago, a Delaware corporation
D.R. Horton, Inc. — Denver, a Delaware corporation
D.R. Horton, Inc. — Dietz-Crane, a Delaware corporation
D.R. Horton, Inc. — Fresno, a Delaware corporation
D.R. Horton, Inc. — Greensboro, a Delaware corporation
D.R. Horton, Inc. — Gulf Coast, a Delaware corporation
D.R. Horton, Inc. — Jacksonville, a Delaware corporation
D.R. Horton, Inc. — Louisville, a Delaware corporation
D.R. Horton, Inc. — Minnesota, a Delaware corporation
D.R. Horton, Inc. — New Jersey, a Delaware corporation
D.R. Horton, Inc. — Portland, a Delaware corporation
D.R. Horton, Inc. — Sacramento, a California corporation
D.R. Horton, Inc. — Torrey, a Delaware corporation
D.R. Horton LA North, Inc. (f/k/a DRH Regrem X, Inc.), a Delaware corporation

 

 

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D.R. Horton Los Angeles Holding Company, Inc., a California corporation
D.R. Horton Management Company, Ltd., a Texas limited partnership
D.R. Horton Materials, Inc., a Delaware corporation
D.R. Horton OCI, Inc. (f/k/a D.R. Horton Orange County, Inc.), a Delaware
corporation
D.R. Horton VEN, Inc. (f/k/a D.R. Horton San Diego Holding Company, Inc.), a
California corporation
D.R. Horton — Texas, Ltd., a Texas limited partnership
DRH Cambridge Homes, Inc., a California corporation
DRH Cambridge Homes, LLC, a Delaware limited liability company
DRH Construction, Inc., a Delaware corporation
DRH Regrem VII, LP, a Texas limited partnership
DRH Regrem VIII, LLC, a Delaware limited liability company
DRH Southwest Construction, Inc., California corporation
DRH Tucson Construction, Inc., a Delaware corporation
DRHI, Inc., a Delaware corporation
KDB Homes, Inc., a Delaware corporation
Meadows I, Ltd., a Delaware corporation
Meadows II, Ltd., a Delaware corporation
Meadows VIII, Ltd., a Delaware corporation
Meadows IX, Inc., a New Jersey corporation
Meadows X, Inc., a New Jersey corporation
SGS Communities at Grande Quay, LLC, a New Jersey limited liability company
D.R. Horton-Schuler Homes, LLC, a Delaware limited liability company
HPH Homebuilders 2000, L.P., a California limited partnership
Melody Homes, Inc., a Delaware corporation
Melmort Co., a Colorado corporation
Schuler Homes of Arizona LLC, a Delaware limited liability company

 

 

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Schuler Homes of California, Inc., a California corporation
Schuler Homes of Oregon, Inc., an Oregon corporation
Schuler Homes of Washington, Inc., a Washington corporation
Schuler Mortgage, Inc., a Delaware corporation
Schuler Realty Hawaii, Inc., a Hawaii corporation
SHA Construction LLC, a Delaware limited liability company
SHLR of California, Inc., a California corporation
SHLR of Colorado, Inc., a Colorado corporation
SHLR of Nevada, Inc., a Nevada corporation
SHLR of Utah, Inc., a Utah corporation
SHLR of Washington, Inc., a Washington corporation
SRHI LLC, a Delaware limited liability company
SSHI LLC, a Delaware limited liability company
Vertical Construction Corporation, a Delaware corporation
Western Pacific Funding, Inc., a California corporation
Western Pacific Housing Co., a California limited partnership
Western Pacific Housing Management, Inc., a California corporation
Western Pacific Housing, Inc., a Delaware corporation
Western Pacific Housing-Antigua, LLC, a Delaware limited liability company
Western Pacific Housing — Aviara, L.P., a California limited partnership
Western Pacific Housing-Boardwalk, LLC, a Delaware limited liability company
Western Pacific Housing-Broadway, LLC, a Delaware limited liability company
Western Pacific Housing-Canyon Park, LLC, a Delaware limited liability company
Western Pacific Housing-Carmel, LLC, a Delaware limited liability company
Western Pacific Housing-Carrillo, LLC, a Delaware limited liability company
Western Pacific Housing-Communications Hill, LLC, a Delaware limited liability
company

 

 

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Western Pacific Housing-Copper Canyon, LLC, a Delaware limited liability company
Western Pacific Housing-Creekside, LLC, a Delaware limited liability company
Western Pacific Housing-Culver City, L.P., a California limited partnership
Western Pacific Housing-Del Valle, LLC, a Delaware limited liability company
Western Pacific Housing-Lomas Verdes, LLC, a Delaware limited liability company
Western Pacific Housing-Lost Hills Park, LLC, a Delaware limited liability
company
Western Pacific Housing-McGonigle Canyon, LLC, a Delaware limited liability
company
Western Pacific Housing-Mountaingate, L.P. a California limited partnership
Western Pacific Housing-Norco Estates, LLC, a Delaware limited liability company
Western Pacific Housing — Oso, L.P., a California limited partnership
Western Pacific Housing-Pacific Park II, LLC, a Delaware limited liability
company
Western Pacific Housing-Park Avenue East, LLC, a Delaware limited liability
company
Western Pacific Housing-Park Avenue West, LLC, a Delaware limited liability
company
Western Pacific Housing-Playa Vista, LLC, a Delaware limited liability company
Western Pacific Housing-Poinsettia, L.P., a California limited partnership
Western Pacific Housing-River Ridge, LLC, a Delaware limited liability company
Western Pacific Housing-Robinhood Ridge, LLC, a Delaware limited liability
company
Western Pacific Housing-Santa Fe, LLC, a Delaware limited liability company
Western Pacific Housing-Scripps II, LLC, a Delaware limited liability company
Western Pacific Housing — Scripps, L.P., a California limited partnership
Western Pacific Housing — Seacove, L.P., a California limited partnership
Western Pacific Housing-Studio 528, LLC, a Delaware limited liability company
Western Pacific Housing-Terra Bay Duets, LLC, a Delaware limited liability
company
Western Pacific Housing-Torrance, LLC, a Delaware limited liability company
Western Pacific Housing-Torrey Commercial, LLC, a Delaware limited liability
company
Western Pacific Housing-Torrey Meadows, LLC, a Delaware limited liability
company

 

 

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Western Pacific Housing-Torrey Multi-Family, LLC, a Delaware limited liability
company
Western Pacific Housing-Torrey Village Center, LLC, a Delaware limited liability
company
Western Pacific Housing-Vineyard Terrace, LLC, a Delaware limited liability
company
Western Pacific Housing-Windemere, LLC, a Delaware limited liability company
Western Pacific Housing — Windflower, L.P., a California limited partnership
WPH-Camino Ruiz, LLC, a Delaware limited liability company
DRH Regrem XI, Inc. a Delaware corporation
DRH Regrem XII, LP, a Texas limited partnership
ADDITIONAL GUARANTORS as of June 13, 2006
DRH Regrem XIII, Inc., a Delaware corporation
DRH Regrem XIV, Inc., a Delaware corporation
DRH Regrem XV, Inc., a Delaware corporation
DRH Regrem XVI, Inc., a Delaware corporation
DRH Regrem XVII, Inc., a Delaware corporation
DRH Regrem XVIII, Inc., a Delaware corporation
DRH Regrem XIX, Inc., a Delaware corporation
DRH Regrem XX, Inc., a Delaware corporation
DRH Regrem XXI, Inc., a Delaware corporation
DRH Regrem XXII, Inc., a Delaware corporation
DRH Regrem XXIII, Inc., a Delaware corporation
DRH Regrem XXIV, Inc., a Delaware corporation
DRH Regrem XXV, Inc. (f/k/a D.R. Horton, Inc. — Los Angeles), a Delaware
corporation

 

 

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EXHIBIT D
FORM OF QUARTERLY COMPLIANCE CERTIFICATE
FOR                      ENDED                                         ,
DATE:                                         ,

     
ADMINISTRATIVE AGENT:
  Wachovia Bank, National Association, a national banking association
 
   
BORROWER:
  D. R. Horton, Inc., a Delaware corporation

This certificate is delivered under the Revolving Credit Agreement dated as of
December  _____, 2005 (as modified, amended, renewed, extended, supplemented, or
restated from time to time, the “Credit Agreement”), among Borrower,
Administrative Agent, the Letter of Credit Issuers defined therein, the
Swingline Lender defined therein and the Lenders defined therein. Capitalized
terms used herein shall, unless otherwise indicated, have the respective
meanings set forth in the Credit Agreement.
I certify to Administrative Agent and Lenders that:
(a) I am an Authorized Signatory of Borrower and its Restricted Subsidiaries
(for purposes hereof “Companies”) in the position(s) set forth under my
signature below;
(b) the consolidated Current Financials of Borrower and its Subsidiaries
delivered to Administrative Agent concurrently with the delivery hereof were
prepared in accordance with GAAP; present fairly in all material respects the
consolidated financial condition and results of operations of Borrower and its
Subsidiaries; and serve as the basis for the status of compliance by Borrower
with certain covenants in the Credit Agreement set forth on Annex I as of, and
for the (three, six, or nine months, or fiscal year) ended on _____, _____, (the
“Subject Period”); and
(c) the status of compliance by Borrower with Sections 6.8(a), (b), (c), (d) and
(e) of the Credit Agreement at the end of the Subject Period is as set forth on
Annex I to this certificate; provided that Sections 6.8(d) and (e) may be
labeled “not applicable” so long as Borrower has, as of the date hereof, an
Investment Grade Rating by at least two (2) of Moody’s, S&P and Fitch.

            D. R. HORTON, INC., a Delaware corporation
      By:           Name:           Title:      

Exhibit D

 

 

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ANNEX I TO QUARTERLY COMPLIANCE CERTIFICATE
Status of Compliance with
Sections 6.8(a), (b), (c), (d) and (e)
of the Credit Agreement
(Dollar Amounts in Millions)
[(Unless otherwise indicated, all calculations are made on a consolidated basis
for
Borrower and its Restricted Subsidiaries at the date of determination
with respect to the most recently-ended fiscal quarter)]

                                          Current                 Covenant      
  Section   Limitation/Covenant   Amount   Status, _______, 200___   Notes*
6.8(a)
  Leverage Ratio – Net Funded Notes Payable divided by Total Capitalization (Net
Funded Notes Payable plus net shareholders equity) of 0.55 to 1.0 or less    
0.55     Indebtedness   $               Less: Average of month end balances for
the 3 applicable fiscal calendar months of cash & cash equiv, net of outstanding
cash borrowings under the Credit Agreement, in excess of $50,000,000            
   
 
              Net Funded Notes Payable                 
 
              Plus: Net shareholders equity                
 
              Total Capitalization                  
 
              Leverage Ratio                 
 
                               
6.8(b)
  Ratio of EBITDA (generally income before interest expense, provision for
income taxes, depreciation and amortization, extraordinary and other non-cash
losses, etc.) for most recent 12 months to Interest Incurred for any two
consecutive fiscal quarters of at least 1.50 to 1.00 or the Borrower shall
either maintain (i) a ratio of (A) Adjusted Cash Flow from Operations to
(B) Interest Incurred of greater than or equal to 1.50 to 1.00 or (ii) a sum of
(y) Loan Funding Availability plus (z) unrestricted cash and cash equivalents,
to the extent such unrestricted cash and cash equivalents are not included in
calculating Loan Funding Availability, equal to or greater than $500,000,000.  
  1.50     EBITDA   $
 
            Interest incurred                
 
            Coverage Ratio (times)                
 
                             
 
      1.50     Adjusted Cash Flow from
Operations                
 
      $500    
Ratio of Adjusted Cash Flow from Operations to Interest Incurred
               
 
                             
 
            Sum of Loan Funding Availability                
 
           
Plus Unrestricted cash and cash equivalents

               

Annex I to Exhibit D

 

 

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                                          Current                 Covenant      
  Section   Limitation/Covenant   Amount   Status, _______, 200___   Notes*
6.8(c)
  Minimum Tangible Net Worth of at least $2,000,000,000 plus (generally) 50% of
annual net profits subsequent to September 30, 2007, (generally) 50% of
additional future equity offerings in excess of $500,000,000, and 100% of
Deferred Tax Valuation Allowance reversals for each fiscal year ended after
September 30, 2007     $2,000     Total Net Worth
Plus: capital stock not Indebtedness
Less: Intangible Assets
Less: Non-cash gain or loss from SFAS 133 Mark to Market Adjustments
Tangible Net Worth   $            
 
                               
 
   _____  /  _____  /  _____  minimum (in millions)                            
 
                               
6.8(d)1
  Speculative Lots not to exceed 40% of trailing twelve months’ unit closings
(excludes models)     40%     Speculative Lots
Trailing twelve months’ closings
Percentage                
 
                               
6.8(e)1
  Net book value of Developed Lots, Lots Under Development and Land Parcels not
to exceed or 150% (or 200% so long as net book value of such does not exceed
$4.74 billion) of Adjusted Tangible Net Worth   150% (or 200%)   Net Book Value
of Lots & Land 150% (or 200%) of Adjusted Tangible Net Worth   $
 
                  $
 
                               
 
  Applicable Margin (see grid below):           Pricing Level
Pricing Premium, if applicable Applicable Margin (bps) – Cash borrowing
Applicable Margin (bps) – Letters of Credit
Unused Commitment Fee (bps)                

      *  
See attached Calculation Worksheets, which are incorporated herein by reference.
  1.  
Not applicable when Borrower has an Investment Grade Rating by at least two
(2) of Moody’s, S&P and Fitch.

Annex I to Exhibit D

 

 

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Applicable Margin
The sum of (i) the percentage per annum set forth in the first table below, as
applicable, plus (ii)
 in the case of a Loan or a Letter of Credit, the percentage per annum set forth
under the
column “Pricing Premium” in the second table below, as applicable:

                                                                      Eurodollar
                                    Senior     Rate or                    
Unused   Pricing   Leverage     Unsecured     LIBOR     Base     Letters of    
Commitment   Level   Ratio     Debt Rating     Rate     Rate     Credit     Fee
 
1
  Less than or equal   BBB/Baa2     1.05 %     0.00 %     0.925 %     0.15 %
 
  to 0.30 to1                                        
2
  Greater than 0.30   BBB-/Baa3     1.25 %     0.00 %     1.125 %     0.15 %
 
  to 1 but less than                                        
 
  or equal to 0.40 to 1                                        
3
  Greater than 0.40   BB+/Ba1     1.45 %     0.00 %     1.325 %     0.20 %
 
  to 1 but less than                                        
 
  or equal to 0.50 to 1                                        
4
  Greater than 0.50   BB/Ba2     1.70 %     0.00 %     1.575 %     0.20 %
 
  to 1 but less than                                        
 
    .55 to 1                                          
5
  Equal to or greater   BB-/Ba3     2.00 %     0.00 %     1.875 %     0.25 %
 
  than 0.55 to 1                                        

Annex I to Exhibit D

 

 

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                  If Interest Coverage Ratio is:   AND if Leverage Ratio is:    
Pricing Premium:    
Greater than or equal to 2.0
  Not applicable     0 %
to 1.0
                 
Greater than or equal to 1.5
  Less than or equal to     .125 %
to 1.0 but less than 2.0 to 1.0
    0.50 to 1.0            
Greater than or equal to 1.5
  Greater than 0.50 to 1.0     .25 %
to 1.0 but less than 2.0 to 1.0
                 
Greater than or equal to 1.0
  Less than or equal to     .25 %
to 1.0 but less than 1.5 to 1.0
    0.475 to 1.0            
Greater than or equal to 1.0
  Greater than 0.475 to 1.0     .45 %
to 1.0 but less than 1.5 to 1.0
                 
Less than 1.0 to 1.0
  Less than or equal to     .375 %
 
    0.45 to 1.0            
Less than 1.0 to 1.0
  Greater than 0.45 to 1.0     .65 %

Annex I to Exhibit D

 

 

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SUPPLEMENT TO ANNEX I
Calculation Worksheets
[TO BE ATTACHED BY BORROWER.]
Annex I to Exhibit D