##### 



EXHIBIT
10.48




---



##### 



PageARTICLE IDEFINITIONS, INTERPRETATION AND ACCOUNTING TERMSSection 1.1 Defined Terms
    
    
    1Section 1.2 Computation of Time Periods
    
    
    41Section 1.3 Accounting Terms and Principles
    
    
    41Section 1.4 Certain Terms
    
    
    41ARTICLE IITHE FACILITYSection 2.1 The Term Loan Commitments
    
    
    42Section 2.2 Borrowing Procedures
    
    
    42Section 2.3 [Reserved]
    
    
    43Section 2.4 [Reserved]
    
    
    43Section 2.5 Reduction and Termination of the Term Loan Commitments
    
    
    43Section 2.6 Repayment of Term Loans
    
    
    44Section 2.7 Evidence of Debt
    
    
    44Section 2.8 Prepayments
    
    
    44Section 2.9 Interest
    
    
    47Section 2.10 Conversion/Continuation Option
    
    
    48Section 2.11 Fees
    
    
    49Section 2.12 Payments and Computations
    
    
    49Section 2.13 Special Provisions Governing Eurodollar Rate Loans
    
    
    51Section 2.14 Capital Adequacy
    
    
    53Section 2.15 Taxes
    
    
    53Section 2.16 Substitution of Lenders
    
    
    55Section 2.17 Certain Accounts
    
    
    56ARTICLE IIICONDITIONS TO TERM LOANSSection 3.1 Conditions Precedent to the Effectiveness of This Agreement
    
    
    56ARTICLE IVREPRESENTATIONS AND WARRANTIESSection 4.1 Existence; Compliance with Law
    
    
    61Section 4.2 Power; Authorization; Enforceable Obligations
    
    
    61




---



##### 



PageSection 4.3 Ownership of Subsidiaries
    
    
    62Section 4.4 Financial Statements
    
    
    62Section 4.5 Material Adverse Change
    
    
    63Section 4.6 Litigation
    
    
    64Section 4.7 Taxes
    
    
    64Section 4.8 Full Disclosure
    
    
    64Section 4.9 Margin Regulations
    
    
    65Section 4.10 No Burdensome Restrictions; No Defaults
    
    
    65Section 4.11 Investment Company Act
    
    
    65Section 4.12 Use of Proceeds
    
    
    66Section 4.13 Insurance
    
    
    66Section 4.14 Labor Matters
    
    
    66Section 4.15 ERISA
    
    
    66Section 4.16 Environmental Matters
    
    
    67Section 4.17 Intellectual Property
    
    
    67Section 4.18 Title; Real Property
    
    
    68Section 4.19 Anti-Terrorism Laws
    
    
    68Section 4.20 Solvency
    
    
    69Section 4.21 Collateral Documents
    
    
    69Section 4.22 Related Documents
    
    
    70Section 4.23 Subordinated Indebtedness
    
    
    70ARTICLE VFINANCIAL COVENANTSSection 5.1 [Reserved.]
    
    
    70Section 5.2 Maximum Total Leverage Ratio
    
    
    70Section 5.3 Minimum Interest Coverage Ratio
    
    
    71Section 5.4 Total Land to Adjusted Consolidated Tangible Net Worth
    
    
    71Section 5.5 Unsold Units to Units Closed
    
    
    72Section 5.6 Maximum Land Supply
    
    
    72ARTICLE VIAFFIRMATIVE COVENANTSSection 6.1 Reporting Requirements
    
    
    72Section 6.2 Preservation of Corporate Existence, Etc
    
    
    77Section 6.3 Compliance with Laws, Etc
    
    
    77Section 6.4 Conduct of Business
    
    
    77Section 6.5 Payment of Taxes, Etc
    
    
    78Section 6.6 Maintenance of Insurance
    
    
    78Section 6.7 Asset Sales
    
    
    78Section 6.8 Access
    
    
    78Section 6.9 Keeping of Books
    
    
    79




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##### 



PageSection 6.10 Maintenance of Properties, Etc
    
    
    79Section 6.11 Application of Proceeds
    
    
    79Section 6.12 Environmental
    
    
    80Section 6.13 Additional Subsidiary Borrowers; Additional Collateral
    
    
    80Section 6.14 Security Interests; Further Assurances
    
    
    81Section 6.15 Information Regarding Collateral
    
    
    82Section 6.16 Designation of Restricted and Unrestricted Subsidiaries
    
    
    83Section 6.17 Mortgage Requirements
    
    
    84Section 6.18 Release of Mortgaged Property; Subordination; Consent
    
    
    86Section 6.19 Appraised Value Percentage
    
    
    88Section 6.20 Designated Account Deposits
    
    
    89Section 6.21 Maintenance of Ratings
    
    
    89Section 6.22 Post-Closing Requirements
    
    
    89ARTICLE VIINEGATIVE COVENANTSSection 7.1 Liens, Etc
    
    
    90Section 7.2 Investments
    
    
    92Section 7.3 Restricted Payments
    
    
    94Section 7.4 Limitation on Indebtedness
    
    
    95Section 7.5 Restriction on Fundamental Changes
    
    
    97Section 7.6 Change in Nature of Business
    
    
    97Section 7.7 Transactions with Affiliates
    
    
    97Section 7.8 Restrictions on Subsidiary Distributions; No New Negative Pledge
    
    
    98Section 7.9 Sale/Leasebacks
    
    
    98Section 7.10 Compliance with ERISA
    
    
    99Section 7.11 Environmental
    
    
    99Section 7.12 Designated Account Proceeds
    
    
    99Section 7.13 Limitation on Issuance of Stock
    
    
    100Section 7.14 Prepayments of Revolving Loans and Second Lien Loans; Modifications ofConstituent Documents and Other Documents

    
    100Section 7.15 Fiscal Year
    
    
    100ARTICLE VIIIEVENTS OF DEFAULTSection 8.1 Events of Default
    
    
    101Section 8.2 Remedies
    
    
    103Section 8.3 [Reserved]
    
    
    103Section 8.4 Rescission
    
    
    103




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##### 



PageARTICLE IXTHE ADMINISTRATIVE AGENTSection 9.1 Authorization and Action
    
    
    104Section 9.2 Administrative Agents Reliance, Etc
    
    
    104Section 9.3 The Administrative Agent Individually
    
    
    105Section 9.4 Lender Credit Decision
    
    
    106Section 9.5 Indemnification
    
    
    107Section 9.6 Successor Administrative Agent
    
    
    108ARTICLE XMISCELLANEOUSSection 10.1 Amendments, Waivers, Etc. by Lenders
    
    
    109Section 10.2 Assignments and Participations
    
    
    111Section 10.3 Costs and Expenses
    
    
    113Section 10.4 Indemnities
    
    
    114Section 10.5 Limitation of Liability
    
    
    116Section 10.6 Right of Set-off
    
    
    116Section 10.7 Sharing of Payments, Etc
    
    
    116Section 10.8 Notices, Etc
    
    
    117Section 10.9 No Waiver; Remedies
    
    
    118Section 10.10 Binding Effect
    
    
    118Section 10.11 Governing Law
    
    
    119Section 10.12 Submission to Jurisdiction; Service of Process
    
    
    119Section 10.13 Waiver of Jury Trial
    
    
    119Section 10.14 Section Titles
    
    
    120Section 10.15 Execution in Counterparts
    
    
    120Section 10.16 Entire Agreement
    
    
    120Section 10.17 Confidentiality
    
    
    120Section 10.18 USA Patriot Act
    
    
    121Section 10.19 Agent Communications
    
    
    121Section 10.20 Joint and Several Liability
    
    
    122Section 10.21 Administrative Borrower
    
    
    125Section 10.22 Intercreditor Agreement
    
    
    125
 SchedulesSchedule I
    
    -
    
    Term Loan CommitmentsSchedule II
    
    -
    
    Applicable Lending Offices and Addresses for NoticesSchedule 1.1(a)
    
    -
    
    Refinancing Indebtedness to be RepaidSchedule 1.1(b)
    
    -
    
    Land Supply Ratio AdjustmentsSchedule 3.1(a)(vii)
    
    -
    
    Local CounselSchedule 4.2
    
    -
    
    Consents




---



##### 



Schedule 4.3
    
    -
    
    Ownership of Subsidiaries; InvestmentsSchedule 4.4
    
    -
    
    Material ObligationsSchedule 4.6
    
    -
    
    LitigationSchedule 4.7
    
    -
    
    TaxesSchedule 4.13(a)
    
    -
    
    InsuranceSchedule 4.13(b)
    
    -
    
    InsuranceSchedule 6.22
    
    -
    
    Bank Accounts of the Transeastern JV EntitiesSchedule 7.1
    
    -
    
    Existing LiensSchedule 7.2
    
    -
    
    Existing InvestmentsSchedule 7.4(b)
    
    -
    
    Existing IndebtednessSchedule 7.8
    
    -
    
    Restrictions on Subsidiary Distributions
 ExhibitsExhibit A
    
    Form of Assignment and AcceptanceExhibit B
    
    Form of Assumption AgreementExhibit C
    
    Form of Term Loan NoteExhibit D
    
    Form of Notice of BorrowingExhibit E
    
    Form of Borrowing Base CertificateExhibit F
    
    Form of Notice of Conversion or ContinuationExhibit G
    
    Form of Credit Agreement SupplementExhibit H
    
    Form of GuarantyExhibit I
    
    Form of Solvency CertificateExhibit J
    
    Form of Intercreditor AgreementExhibit K 
Exhibit L
    
    Form of Security Agreement 
Form of Compliance CertificateExhibit M
    
    Form of Deposit Account Security Agreement




---



##### 



Administrative Borrower Subsidiary Borrower Subsidiary Borrowers Borrower Borrowers CNAI Administrative Agent
  January 2007
Credit Agreement
     Defined Terms
  Acquisition Schedule 1.1(a)




---



##### 



Adjusted Consolidated Tangible Net Worth plus
 Administrative Agent
 Administrative Borrower
 Affected Lender Section 2.16
 Affiliate control Section 7.7
 Affiliated Title Company
 Agreement
 Anti-Terrorism Laws Section
4.19(a)
 Applicable Lending Office
 Applicable Margin
 Applicable Person Section 6.17(a)
 -2-




---



##### 



Appraised Value multiplied by
 Appraised Value Percentage Section 6.19
 Appraiser
 Approved Fund
 Arranger
 Asset Sale Section 7.1(b)(i) clause (a) (b)
 Assignment and Acceptance Exhibit A
 Assumption Agreement Exhibit B
 -3-




---



##### 



Available Credit plus
 Available Term Credit
 Bankruptcy Code
 Base Rate plus
 Base Rate Loan
 Board of Directors
 Borrower Borrowers
 Borrowing
 Borrowing Base
    -4-




---



##### 



clause (a) clauses (b) (f)
 minus
 provided clauses (b)  (f) Section 6.19 clause (g)
 clauses
(e) (f)
  Borrowing Base Assets
  -5-




---



##### 



clause (A) provided Section 8.1(f) (g) (h) clause (B) Section 8.1(g)
      clauses (a) (f) Transeastern Property
 Borrowing Base Certificate Exhibit E
 -6-




---



##### 



Business Day
 Capital Assets
 Capital Expenditures
 Capital Lease
 Capital Lease Obligations
 Cash Equivalents
    clause (a) clause (b)
 clauses (a) (b) (c) (d)
 -7-




---



##### 



provided however clauses (a) (b) (c) (d)
 Cash Interest Incurred less
 Casualty Event
 Change of Control
     -8-




---



##### 



clauses (a) (b)
 Citibank
 CNAI
 Code
 Collateral
 Collateral Documents
 Communications Section 10.19(a)
 Completed Unsold Homes
 -9-




---



##### 



Compliance Certificate Section
6.1(c)
 Confidential Information Memorandum
 Consolidated
 Consolidated Current Assets plus provided
 Consolidated Current Liabilities plus provided
 Consolidated Net Income
 Constituent Documents
 Contaminant
 -10-




---



##### 



Contract for Sale
 Contractual Obligation
 Credit Agreement Supplement Exhibit G
 Customary Permitted Liens
      -11-




---



##### 



Debt Issuance Section 7.4
 Debt Service
 Default
 Deposit Account
 Deposit Account Control Agreement
 Deposit Account Security Agreement Exhibit M
 Designated Account
 -12-




---



##### 



Disclosure Documents clause (ii)
 Disqualified Capital Stock provided however
 Disqualified Capital Stock Issuance
 Dollars $
 Domestic Lending Office Schedule II
 Domestic Subsidiary
 Early Maturity Date 1 2 1 4 3 8
 -13-




---



##### 



EBITDA plus provided
  Effective Date Section 3.1
 -14-




---



##### 



Eligible Assignee
 Entitled Land
 Environmental Laws
 Environmental Lien
 Equity Issuance provided however Section 7.3(c)
 Equity Pledge Agreement
 ERISA
 ERISA Affiliate
 -15-




---



##### 



ERISA Event
 Escrow Proceeds Receivables
 Eurocurrency Liabilities
 Eurodollar Base Rate
 Eurodollar Lending Office Schedule II
 Eurodollar Rate minus
 -16-




---



##### 



Eurodollar Rate Loan
 Event of Default Section 8.1
 Excess Cash Flow minus
   provided
    -17-




---



##### 



provided provided further -18-
       plus
    clause (c) clause
(c)
    Excess Cash Flow Period
 Exchange Act
 Excluded Real Property
 -19-




---



##### 



Excluded Taxes clauses
(a) (c) Section 2.16 Section 2.15 Section 2.15(f)
 Executive Order Section 4.19(a)
 Existing Notes
 Facility Information Section
10.17(b)
 Fair Market Value
 Falcone Ritchie
 Falcone Settlement Agreement
 Federal Funds Rate
 -20-




---



##### 



Federal Reserve Board
 Financial Statements Sections 4.4 6.1
 FIRREA
 Five Year Projections
 Foreign Subsidiary
 Fund
 GAAP provided
 Governmental Authority
 Guarantor
 Guaranty Exhibit
H
 Hedging Contracts
 -21-




---



##### 



Hedging Obligations
 Indebtedness clauses (a) (f) (h) (j)
 Indebtedness Associated with Assets Not Owned clause (g)
 Indemnified Matter Section 10.4
 -22-




---



##### 



Indemnified Taxes
 Indemnitees Section 10.4
 Intercreditor Agreement Section 3.1(a)(vi) Exhibit J
 Interest Coverage Ratio
 Interest Expense
  Interest Incurred
 -23-




---



##### 



Interest Period Section 2.2 2.10 Section 2.10 Section 2.10 provided however
      Interest Rate Contracts
 Internally Generated Funds
 -24-




---



##### 



Investment clause (a) (b) (c) (d)
 IRS
 January 2007 Credit Agreement
 Joint Venture clause (b) (d) provided
 Joint Venture Acquisitions provided Section 6.13
 Land/Lots Under Development
 -25-




---



##### 



Land Supply Ratio provided Schedule
1.1(b)
 Lender
 Lien
 Linked Deposit Accounts
 Loan Documents
 Loan Party
 Management Services Agreement provided
 Material Adverse Change
 -26-




---



##### 



Material Adverse Effect
 Model Homes
 Moodys
 Mortgage
 Mortgaged Property
 Mortgage Requirements
 provided
  provided
 -27-




---



##### 



Multiemployer Plan
 Net Cash Proceeds
 provided provided
  -28-




---



##### 



Net Working Capital
 Non-Consenting Lender Section
10.1(c) Section 10.1A(b)
 Non-Funding Lender Section
2.2(d)
 Non-U.S. Lender
 Notice of Borrowing Section 2.2(a)
 Notice of Conversion or Continuation Section 2.10(a)
 Obligations
 Officers Certificate
 Original Effective Date
 Other Taxes Section 2.15(b)
 PBGC
 -29-




---



##### 



Performance Letters of Credit
 Permit
 Permitted Acquisition Target Acquisition provided
 Permitted Holders
 Permitted Markets
 Permitted Refinancing Indebtedness Refinance provided
 -30-




---



##### 



Person
 Platform Section 10.19(b)
 Pledge Agreement
 Proposed Change Section 10.1(c) Section 10.1A(b)
 Purchasing Lender Section 10.7(a)
 Qualified Capital Stock
 Ratable Portion ratably
 Real Property Land
 Refinanced Term Loans Section
2.8(j)
 Refinancing Section 2.8(j)
 Register Section 10.2(c)
 Release
 -31-




---



##### 



Remedial Action
 Repricing Section 2.8(j)
 Required Title Insurance Amount
 Requirement of Law
 Requisite Lenders
 Responsible Officer
 Restricted Payment
 Restricted Subsidiary Section 6.16
 -32-




---



##### 



Revolving Credit Administrative Agent
 Revolving Credit Agreement clauses
(i) (ii)
 Revolving Credit Commitments
 Revolving Credit Loan Documents
 Revolving Credit Outstandings
 Revolving Credit Secured Parties
 Revolving Loans
 S&P
 Scheduled Second Lien Term Loan Termination Date
 Scheduled Termination Date
 SEC
 Second Lien Administrative Agent
 -33-




---



##### 



Second Lien Credit Agreement clauses (i) (ii)
 Second Lien Loans
 Second Lien Loan Documents
 Second Lien Secured Parties
 Secured Hedging Contract
 Secured Parties
 Securities Account
 Security
 Security Agreement
 Selling Lender Section 10.7(a)
 -34-




---



##### 



Senior Notes 1 4 clause (i) (ii)
 Senior Unsecured Indebtedness pari passu
 Settlement Documents clause (ii)
 Falcone Ritchie Falcone
Settlement Agreement
   -35-




---



##### 



DBSI Action
  Settlement Preferred Stock
 Settlement Subordinated Debt
 Sold Homes
 Stock
 Stock Equivalents
 Subordinated Indebtedness
 Subordinated Notes 3 8 1 2
 -36-




---



##### 



1 2 clauses (i) (ii) (iii)
 Subsidiary
 Subsidiary Borrower Subsidiary Borrowers
 Tangible Net Worth
 Tax Affiliate
 Tax Allocation Agreement provided
 Tax Return Section 4.7(a)
 Taxes
 Term Loan Section 2.1
 Term Loan Commitment Schedule I
 -37-




---



##### 



Term Loan Note Exhibit C
 Term Loan Termination Date Section 8.2
 Title IV Plan
 TOSA
 TOSI
 Total Assets minus
 Total Land
 Total Leverage Ratio
  -38-




---



##### 



Transactions Schedule 1.1(a)
 Transeastern Credit Agreement Senior Debt EHT TE/TOUSA
Senior Deutsche Bank
 Transeastern Events
 Transeastern Junior Mezzanine Credit Agreement Junior Mezz
Debt TE/TOUSA
Mezz Two
 Transeastern JV Credit Agreements
 Transeastern JV Entities
 Transeastern Property
 Transeastern Senior Mezzanine Credit Agreement Senior
Mezz Debt
 -39-




---



##### 



Type
 UCC
 Unaffiliated
 Unimproved Land
 Unit
 Units Closed
 Unrestricted Cash
 Unrestricted Subsidiary Section 6.16
 Unsold Homes Under Construction
 Unsold Units
 USA Patriot Act Section 4.19(a)
 U.S. Bank Accounts
 -40-




---



##### 



Voting Stock
 Warrants Section 3.1(c)(v)
 Wholly-Owned Subsidiary
 Computation of Time Periods
  Accounting Terms and Principles
  Certain Terms
   Article I
  -41-




---



##### 



Section
9.6 Section 9.3
     The Term Loan Commitments
 Term Loan Schedule I provided however
 Borrowing Procedures
 Exhibit D Notice of Borrowing Section
2.13
 -42-




---



##### 



Section
2.13(a) Section 10.8 Section 3.1 Section 3.2
 Section 2.2
 Non-Funding Lender
   Reduction and Termination of the Term Loan Commitments
  -43-




---



##### 



Repayment of Term Loans
  Evidence of Debt
   clauses (a) (b) Section 2.7 provided however
  Prepayments
 Optional Prepayments of Term Loans Section 2.8(j) provided however Section 2.13(e)
 -44-




---



##### 



Mandatory Prepayments of Loans plus Section 8.3
 Asset Sales Section
6.1(i)(ii) Sections 2.8(h) (i) provided
 Section 2.8(c) provided clause (B) clause (b)
 provided Section 2.8(c)
 Debt Issuance or Disqualified Capital Stock Issuance Sections
2.8(h) (i)
 Equity Issuance Sections
2.8(h) (i) provided Section 2.8(e)
 -45-




---



##### 



Section 6.1(a) (b)
 Casualty Events Sections
2.8(h) (i) provided
  Section 2.8(f)
 Excess Cash Flow. Section 6.1(a) Sections 2.8(h) (i) minus minus minus provided clause (g)
 Application of Prepayments Section 2.8(i) clause (h) Section 2.8 Section
2.6 first second pro rata
 -46-




---



##### 



clause (h) Section 2.12(f)
 Notice of Prepayment
 Prepayment Premium Refinancing Repricing Refinanced Term Loans provided
 Interest
 Rate of Interest Section 2.9(c)
 plus
 -47-




---



##### 



plus
 Interest Payments
 Default Interest Section
2.9(a) clause (a)(i) (a)(ii) clause (a)(i)
 Conversion/Continuation Option
 provided however Exhibit F Notice of Conversion or Continuation
  -48-




---



##### 



Section 2.13 Section 2.10
 Fees.
  Payments and Computations
 Section
10.8 clauses (e) (f) Section
2.12 provided however Section 2.13(c) Section 2.13(e) Section 2.14 Section 2.15
  provided however
 -49-




---



##### 



Section 2.12(f) Section 2.8 first second third
 clause (e) Section 8.2
 first
 -50-




---



##### 



second
 third
 fourth
 fifth
 sixth
 provided however clauses (i) (vi) clauses
(i) (vi) clause (f) clauses (i) (v) clause (f) Section 2.12 Section
10.22
 Special Provisions Governing Eurodollar Rate Loans
 Determination of Interest Rate
 Interest Rate Unascertainable, Inadequate or Unfair
 -51-




---



##### 



Increased Costs
 Illegality Section 2.13(d)
 Breakage Costs Section 2.9
 -52-




---



##### 



Section 2.10 Section
2.13(d)
 Capital Adequacy
  Taxes
 provided Section
2.15
 -53-




---



##### 



Other Taxes
 Section 2.15 provided further provided further
 Section 10.8
 Section 2.15
  -54-




---



##### 



clause (a)
 Section 2.15
 Substitution of Lenders
 Section 2.13(c) Section 2.14 Section
2.13(d) Section
2.15 clause (a)(i) Affected Lender clause (a) provided however Section 2.16
 -55-




---



##### 



provided
 Certain Accounts
    Conditions Precedent to the Effectiveness of This Agreement
 Effective Date
 Certain Documents
  -56-




---



##### 



Exhibit K Exhibit
M
    Exhibit J
 Schedule 3.1(a)(vii)
   Article IV
 -57-




---



##### 



Exhibit I
 provided however
 Section 4.4
    Collateral Requirements
 Section 6.22
 -58-




---



##### 



provided clauses (B) (D)
  Certain Transactions
     -59-




---



##### 



Warrants
   Fees and Expenses Paid Section 2.11
 Consents, Etc Section 10.1
 Defaults
 Section 3.1(a)(x)(B) 3.1(f)
 -60-




---



##### 



Existence; Compliance with Law
  Power; Authorization; Enforceable Obligations
   Article III
  -61-




---



##### 



clauses (B) (C)
 Schedule 4.2
  Ownership of Subsidiaries
 Schedule 4.3 Schedule 4.3
 Financial Statements
  -62-




---



##### 



Schedule 4.4 clause (a)
   Material Adverse Change
  -63-




---



##### 



Litigation
 Schedule 4.6
 Taxes
 Tax Returns Schedule 4.7
 Schedule 4.7
  Full Disclosure
  -64-




---



##### 



Margin Regulations
  No Burdensome Restrictions; No Defaults
 Section 7.1
   Investment Company Act
  -65-




---



##### 



Use of Proceeds
  Insurance
 Schedule 4.13(a) Schedule 4.13(b)
 Labor Matters
   ERISA
  -66-




---



##### 



Environmental Matters
      Section 4.16
 Intellectual Property
  -67-




---



##### 



Title; Real Property
 Section 7.1
   Anti-Terrorism Laws
 Anti-Terrorism Laws Executive Order USA Patriot Act
     -68-




---



##### 



clause (b)
 Solvency
  Collateral Documents
  -69-




---



##### 



clauses (a) (c) (d) (e) (f) Section 7.1
 Related Documents
  Subordinated Indebtedness
     [Reserved.]
 Maximum Total Leverage Ratio.
  -70-




---



##### 



Maximum TotalFiscal Quarter Ending
    
    Leverage RatioSeptember 30, 2007 to and including
September 30, 2008
    
    3.20 to 1.0December 31, 2008
    
    3.05 to 1.0March 31, 2009 to and including
June 30, 2009
    
    3.00 to 1.0September 30, 2009
    
    2.75 to 1.0December 31, 2009
    
    2.25 to 1.0March 31, 2010 and thereafter
    
    2.00 to 1.0
 Minimum Interest Coverage Ratio
  Minimum InterestFiscal Quarter Ending
    
    Coverage RatioSeptember 30, 2007
    
    1.25 to 1.0December 31, 2007
    
    0.80 to 1.0March 31, 2008 to and including
June 30, 2008
    
    0.55 to 1.0September 30, 2008
    
    0.70 to 1.0December 31, 2008 to and including
March 31, 2009
    
    0.80 to 1.0June 30, 2009
    
    0.95 to 1.0September 30, 2009
    
    1.20 to 1.0December 31, 2009
    
    1.50 to 1.0March 31, 2010 and thereafter
    
    2.00 to 1.0
 Total Land to Adjusted Consolidated Tangible Net Worth
  -71-




---



##### 



Unsold Units to Units Closed
 provided
 Maximum Land Supply
     Reporting Requirements
  Quarterly Reports
 -72-




---



##### 



clause (d) clause (a)
 Annual Reports Article V clause (b)
 -73-




---



##### 



Compliance Certificate clauses (a) (b) Section 6.1
 Compliance Certificate Article V Section 7.2(i) clause (b) Section 6.1
  Projections/Business Plan
 Default Notices
 Notice of Litigation
 -74-




---



##### 



ERISA Matters
   Environmental Matters clause (i) (ii)
 Borrowing Base Determination
 provided
 -75-




---



##### 



Section 6.1(i)(ii)
   Cash Flow Projections
 Recourse Obligations; Joint Venture Disclosures Sections 4.5 4.6 4.10 4.14 4.15 4.16 4.17 4.18
 -76-




---



##### 



Sections 4.3 4.4
 Material Developments with Respect to Joint Ventures
 Other Information
 Preservation of Corporate Existence, Etc
 Section 7.5
 Compliance with Laws, Etc
  Conduct of Business
 provided
 -77-




---



##### 



clauses
(a) (b)
 Payment of Taxes, Etc
  Maintenance of Insurance
  Asset Sales
  Access
  -78-




---



##### 



Section 8.1(a) (b) (g) Section 6.8 provided
 Keeping of Books
  Maintenance of Properties, Etc
  Application of Proceeds
 Section 4.12
 -79-




---



##### 



Environmental
  Additional Subsidiary Borrowers; Additional Collateral
 Section 6.13
 -80-




---



##### 



Section 10.22(b) clause (a) clause (i) Section 6.13(b) clause (ii) Section 6.13(b) clause (1) (2) provided Section 6.13(b)
 Security Interests; Further Assurances
  -81-




---



##### 



Information Regarding Collateral
  -82-




---



##### 



Designation of Restricted and Unrestricted Subsidiaries
    provided however Section 7.2(i) Section 6.16
 clause
(1)
   -83-




---



##### 



Section 6.13
     Mortgage Requirements
  -84-




---



##### 



Applicable Person clause (i) clause (ii)
 Section
6.17(a)
 Section 6.17(a)
   -85-




---



##### 



Section 6.17(e)
 Current Title Insurance Value
 First Mortgage Group
 First Mortgage Group Title Policies
  Release of Mortgaged Property; Subordination; Consent
 Section 6.18(a)
 -86-




---



##### 



provided
       -87-




---



##### 



Appraised Value Percentage
 Section 6.19(b)
 Section 6.19(c) clause (i) (ii) Section 6.19 (c) clause (ii)
 Section 6.19(b) Section 6.19(a)
 Section 3.1(a)(xii)
 -88-




---



##### 



Section 6.19(b)
 Designated Account Deposits
 Section 6.22
 Section 6.22
 Maintenance of Ratings
 Post-Closing Requirements
 Section 6.22(b)
 Schedule 6.22
  -89-




---



##### 



Liens, Etc
  Schedule 7.1
   Section
7.4(e) provided however clause
(d)
 clause (a) (b) (d) (e) Section 7.1
   -90-




---



##### 



-91-




---



##### 



provided clause (f) (q) (s)
 Investments
 Schedule 7.2
    provided
   plus
 -92-




---



##### 



provided clause (i) Schedule 7.2
 provided
   Section 7.4
     -93-




---



##### 



Section 7.2
    Section 2.8(g)
 provided however less
 Restricted Payments
   plus
 -94-




---



##### 



provided however clause (b) (c)(i) provided further clause (b) (c)(i) Article V
 Limitation on Indebtedness
   Schedule
7.4(b) clause (i) Section 2.18 provided
 -95-




---



##### 



provided
   provided however
    Section 7.4 provided
  Section 7.9
 provided however Section
7.4 Section 7.4(b) (h)
 -96-




---



##### 



Restriction on Fundamental Changes
 Section 7.2 Section 6.13 Section 7.2 provided provided further Section 7.5
 Change in Nature of Business
  Transactions with Affiliates
  -97-




---



##### 



provided however Section
7.7
 Restrictions on Subsidiary Distributions; No New Negative Pledge
 Schedule 7.8 clauses (a) (b)
 Sale/Leasebacks
  -98-




---



##### 



provided however
 Compliance with ERISA
  Environmental
 provided however Section 7.11
 Designated Account Proceeds
 provided however clause (ii)
 -99-




---



##### 



Limitation on Issuance of Stock
 Section 7.13(b) Section 6.13
 Prepayments of Revolving Loans and Second Lien Loans; Modifications of Constituent
Documents and Other Documents
  Section 7.4(b)
   Fiscal Year
  -100-




---



##### 



Events of Default
   clause (a)
  Article V Section 6.1(e) Section 6.1(i)(i) Section 6.2 Section 6.11 Section 6.15 Section 6.18 Article VII
   -101-




---



##### 



provided however clauses (i) (ii) (iii) clause (g)
    -102-




---



##### 



Remedies
 provided however clauses (ii) (iii) (iv) Section 8.1(g)
 [Reserved].
 Rescission.
 Section 10.1 provided however
 -103-




---



##### 



Authorization and Action
  provided however
  Administrative Agents Reliance, Etc
  -104-




---



##### 



Section 10.2 Section 10.2(c)
 The Administrative Agent Individually
  Agents Group Section 9.3 Activities
 -105-




---



##### 



Lender Credit Decision
 Related
Parties
 -106-




---



##### 



Indemnification
  -107-




---



##### 



provided however
 Successor Administrative Agent
 Article IX
 -108-




---



##### 



Amendments, Waivers, Etc. by Lenders.
 provided however
        Section 2.12(e) Section 2.12(f) Section
10.1 Section 10.1(d)
 provided further
 -109-




---



##### 



Proposed Change Section 10.1 Non-Consenting Lender provided however provided however Section
2.8(i)
 Section 10.1 -110-
        Assignments and Participations
 provided however
 Section 2.16 Section 10.1(c)
 Section 10.8 Register Section 10.2 -111-
        clause (b) Section 10.2
 Exhibit C
 Section 10.2 Section 10.1 provided however
 -112-




---



##### 



Participant Register Section 2.14 Section 2.15 Section 2.13(c) provided however Section 2.14 Section 2.15 Section
2.13(c)
 Costs and Expenses
 -113-
       Article III
 clause (i) (ii) (iii)
 Indemnities
 Article III Indemnitee -114-
       Indemnified Matters provided however Section 10.4 clauses
(i) (ii) (iii) (iv) Section 10.4
  -115-
        Section 10.4
 Limitation of Liability
  Right of Set-off
 provided however Section 10.6
 Sharing of Payments, Etc
 Section 10.3 Section 10.4 Section 2.14 Section 2.15 Section 2.16 -116-
       Purchasing Lender Selling Lender
  Section 10.7
 Notices, Etc
  (a)
    
    if to any Borrower:TOUSA, Inc.4000 Hollywood BoulevardSuite 500 N.Hollywood, Florida 33021Attention: Paul Berkowitz, Executive Vice President and Chief of StaffTelecopy no: (954) 364-4010E-Mail Address: pberkowitz@tousa.comwith a copy (which shall not constitute notice) to:Kirkland & Ellis LLPCitigroup Center153 East 53rd StreetNew York, New York 10022Attention: Jason S. KannerTelecopy no: (212) 446-4902E-Mail Address: jkanner@kirkland.com
 Schedule II
 -117-




---



##### 



(c)
    
    if to the Administrative Agent:Citicorp North America, Inc.Two Penns Way, Suite 200New Castle, Delaware 19720Attention: David G. MaffettTelecopy no: (212) 994-0961E-Mail Address: david.g.maffett@citi.comCiticorp North America, Inc.388 Greenwich Street, 21st FloorNew York, New York 10013Attention: David G. MaffettTelecopy no: (212) 994-0961E-Mail Address: david.g.maffett@citi.comwith a copy (which shall not constitute notice) to:Cahill Gordon & Reindel llp80 Pine StreetNew York, NY 10005Attention: Michael E. Michetti and Ann MakichTelephone: (212) 701-3000Telecopy: (212) 269-5420E-Mail Address: mmichetti@cahill.com and amakich@cahill.com
 provided however Article II IX
 No Waiver; Remedies
  Binding Effect
  -118-




---



##### 



provided however
 Governing Law
  Submission to Jurisdiction; Service of Process
  Section 10.8
 Section 10.12
  Waiver of Jury Trial
 -119-
        Section Titles
 provided however
 Execution in Counterparts
  Entire Agreement
  Confidentiality
 Borrower Information
 -120-




---



##### 



Section
10.17 Section
10.2(f) Section 10.17
 Facility Information
 USA Patriot Act
  Agent Communications
 Communications
 -121-




---



##### 



Platform
 AGENT PARTIES
   Joint and Several Liability
  -122-




---



##### 



Extensions of Credit
 -123-
          Accommodation Payment UFTA UFCA Section 10.20
 -124-




---



##### 



Administrative Borrower
  Intercreditor Agreement
  clause (b)
  -125-




---



##### 



ADMINISTRATIVE BORROWER:TOUSA, INC.,as the Administrative BorrowerBy:
    
    /s/ Stephen WagmanName: Stephen Wagman
Title: Executive Vice President
 S-1




---



##### 



SUBSIDIARY BORROWERS:ENGLE HOMES RESIDENTIAL CONSTRUCTION, L.L.C.ENGLE HOMES COMMERCIAL CONSTRUCTION, LLCENGLE SIERRA VERDE P4, LLCENGLE/JAMES LLCLB/TE #1, LLCLORTON SOUTH CONDOMINIUM, LLCMCKAY LANDING LLCNEWMARK HOMES PURCHASING, L.P.NEWMARK HOMES, L.L.C.NEWMARK HOMES, L.P.PREFERRED BUILDERS REALTY, INC.REFLECTION KEY, LLCSILVERLAKE INTERESTS, L.C.TOI, LLCTOUSA/WEST HOLDINGS, INC.TOUSA ASSOCIATES SERVICES COMPANYTOUSA HOMES ARIZONA, LLCTOUSA HOMES COLORADO, LLCTOUSA HOMES FLORIDA, L.P.TOUSA HOMES INVESTMENT #1, INCTOUSA HOMES INVESTMENT #2, INC.TOUSA HOMES INVESTMENT #2, LLCTOUSA HOMES MID-ATLANTIC HOLDING, LLCTOUSA HOMES MID-ATLANTIC, LLCTOUSA HOMES NEVADA, LLCTOUSA HOMES, INC.TOUSA HOMES, L.P.TOUSA INVESTMENT #2, INC.TOUSA MID-ATLANTIC INVESTMENT, LLCTOUSA REALTY, INC.TOUSA, LLCBy:
    
    /s/ Stephen WagmanName: Stephen WagmanTitle: Executive Vice President
 S-2




---



##### 



NEWMARK HOMES BUSINESS TRUSTBy:
    
    /s/ Paul BerkowitzName: Paul BerkowitzTitle: Co-Managing Trustee of the TrustBy:
    
    /s/ Stephen WagmanName: Stephen WagmanTitle: Co-Managing Trustee of the TrustBy:
    
    /s/ Russell DevendorfName: Russell DevendorfTitle: Co-Managing Trustee of the Trust
 S-3




---



##### 



ENGLE HOMES DELAWARE, INC.TOUSA DELAWARE, INC.TOUSA FUNDING, LLCBy:
    
    /s/ Paul BerkowitzName: Paul BerkowitzTitle: President
 S-4




---



##### 



CITICORP NORTH AMERICA, INC.,as Administrative Agent and a LenderBy:
    
    /s/ Svetoslav NikovName: Svetoslav Nikov
Title: Vice President
 S-5