##### 



EXHIBIT
10.49




---



##### 



PageARTICLE IDEFINITIONS, INTERPRETATION AND ACCOUNTING TERMSSection 1.1 Defined Terms
    
    
    1Section 1.2 Computation of Time Periods
    
    
    39Section 1.3 Accounting Terms and Principles
    
    
    40Section 1.4 Certain Terms
    
    
    40ARTICLE IITHE FACILITYSection 2.1 The Term Loan Commitments
    
    
    41Section 2.2 Borrowing Procedures
    
    
    41Section 2.3 [Reserved]
    
    
    42Section 2.4 [Reserved]
    
    
    42Section 2.5 Reduction and Termination of the Term Loan Commitments
    
    
    42Section 2.6 Repayment of Term Loans
    
    
    42Section 2.7 Evidence of Debt
    
    
    42Section 2.8 Prepayments
    
    
    43Section 2.9 Interest
    
    
    46Section 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
    
    
    60
 i




---



##### 



PageSection 4.2 Power; Authorization; Enforceable Obligations
    
    
    61Section 4.3 Ownership of Subsidiaries
    
    
    62Section 4.4 Financial Statements
    
    
    62Section 4.5 Material Adverse Change
    
    
    63Section 4.6 Litigation
    
    
    63Section 4.7 Taxes
    
    
    63Section 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
    
    
    65Section 4.13 Insurance
    
    
    65Section 4.14 Labor Matters
    
    
    66Section 4.15 ERISA
    
    
    66Section 4.16 Environmental Matters
    
    
    66Section 4.17 Intellectual Property
    
    
    67Section 4.18 Title; Real Property
    
    
    67Section 4.19 Anti-Terrorism Laws
    
    
    68Section 4.20 Solvency
    
    
    69Section 4.21 Collateral Documents
    
    
    69Section 4.22 Related Documents
    
    
    69Section 4.23 Subordinated Indebtedness
    
    
    70ARTICLE VFINANCIAL COVENANTSSection 5.1 Maximum Secured Indebtedness
    
    
    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
    
    
    71Section 5.6 Maximum Land Supply
    
    
    72ARTICLE VIAFFIRMATIVE COVENANTSSection 6.1 Reporting Requirements
    
    
    72Section 6.2 Preservation of Corporate Existence, Etc
    
    
    76Section 6.3 Compliance with Laws, Etc
    
    
    76Section 6.4 Conduct of Business
    
    
    76Section 6.5 Payment of Taxes, Etc
    
    
    77Section 6.6 Maintenance of Insurance
    
    
    77Section 6.7 Asset Sales
    
    
    77Section 6.8 Access
    
    
    78
 ii




---



##### 



PageSection 6.9 Keeping of Books
    
    
    78Section 6.10 Maintenance of Properties, Etc.
    
    
    78Section 6.11 Application of Proceeds
    
    
    79Section 6.12 Environmental
    
    
    79Section 6.13 Additional Subsidiary Borrowers; Additional Collateral
    
    
    79Section 6.14 Security Interests; Further Assurances
    
    
    81Section 6.15 Information Regarding Collateral
    
    
    81Section 6.16 Designation of Restricted and Unrestricted Subsidiaries
    
    
    82Section 6.17 Mortgage Requirements
    
    
    84Section 6.18 Release of Mortgaged Property; Subordination; Consent
    
    
    86Section 6.19 [Reserved]
    
    
    87Section 6.20 Designated Account Deposits
    
    
    87Section 6.21 Maintenance of Ratings
    
    
    88Section 6.22 Post-Closing Requirements
    
    
    88ARTICLE VIINEGATIVE COVENANTSSection 7.1 Liens, Etc
    
    
    88Section 7.2 Investments
    
    
    90Section 7.3 Restricted Payments
    
    
    93Section 7.4 Limitation on Indebtedness
    
    
    93Section 7.5 Restriction on Fundamental Changes
    
    
    95Section 7.6 Change in Nature of Business
    
    
    95Section 7.7 Transactions with Affiliates
    
    
    96Section 7.8 Restrictions on Subsidiary Distributions; No New Negative Pledge
    
    
    96Section 7.9 Sale/Leasebacks
    
    
    97Section 7.10 Compliance with ERISA
    
    
    97Section 7.11 Environmental
    
    
    97Section 7.12 Designated Account Proceeds
    
    
    97Section 7.13 Limitation on Issuance of Stock
    
    
    98Section 7.14 Prepayments of Revolving Loans and First Lien Loans; Modifications of
Constituent Documents and Other Documents
    
    
    98Section 7.15 Fiscal Year
    
    
    98ARTICLE VIIIEVENTS OF DEFAULTSection 8.1 Events of Default
    
    
    98Section 8.2 Remedies
    
    
    101Section 8.3 [Reserved]
    
    
    101Section 8.4 Rescission
    
    
    101
 iii




---



##### 



PageARTICLE IXTHE ADMINISTRATIVE AGENTSection 9.1 Authorization and Action
    
    
    102Section 9.2 Administrative Agents Reliance, Etc
    
    
    102Section 9.3 The Administrative Agent Individually
    
    
    103Section 9.4 Lender Credit Decision
    
    
    104Section 9.5 Indemnification
    
    
    105Section 9.6 Successor Administrative Agent
    
    
    106ARTICLE XMISCELLANEOUSSection 10.1 Amendments, Waivers, Etc. by Lenders
    
    
    107Section 10.2 Assignments and Participations
    
    
    109Section 10.3 Costs and Expenses
    
    
    111Section 10.4 Indemnities
    
    
    112Section 10.5 Limitation of Liability
    
    
    114Section 10.6 Right of Set-off
    
    
    114Section 10.7 Sharing of Payments, Etc
    
    
    114Section 10.8 Notices, Etc
    
    
    115Section 10.9 No Waiver; Remedies
    
    
    116Section 10.10 Binding Effect
    
    
    117Section 10.11 Governing Law
    
    
    117Section 10.12 Submission to Jurisdiction; Service of Process
    
    
    117Section 10.13 Waiver of Jury Trial
    
    
    118Section 10.14 Section Titles
    
    
    118Section 10.15 Execution in Counterparts
    
    
    118Section 10.16 Entire Agreement
    
    
    118Section 10.17 Confidentiality
    
    
    118Section 10.18 USA Patriot Act
    
    
    119Section 10.19 Agent Communications
    
    
    119Section 10.20 Joint and Several Liability
    
    
    121Section 10.21 Administrative Borrower
    
    
    123Section 10.22 Intercreditor Agreement
    
    
    123
 iv




---



##### 



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
    
    -
    
    ConsentsSchedule 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
    
    [Reserved]Exhibit 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
    
    Form of Security AgreementExhibit L
    
    Form of Compliance CertificateExhibit M
    
    Form of Deposit Account Security Agreement
 v




---



##### 



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
 AHYDO Catch-Up Payment Section
2.8(b)
 Anti-Terrorism Laws Section
4.19(a)
 Applicable Lending Office
 -1-




---



##### 



Applicable Margin Section 2.9(d)
 Appraised Value multiplied by
 Appraised Value Percentage Section 6.19
 Appraiser
 Approved Fund
 Arranger
 Asset Sale Section 7.1(b) clause
(a) (b)
 Assignment and Acceptance Exhibit A
 -2-




---



##### 



Assumption Agreement Exhibit B
 Bankruptcy Code
 Base Rate plus
 Base Rate Loan
 Board of Directors
 Borrower Borrowers
 Borrowing
 Borrowing Base
 Borrowing Base Certificate
 Business Day
 Capital Assets
 Capital Expenditures
 -3-




---



##### 



Capital Lease
 Capital Lease Obligations
 Cash Equivalents
    clause (a) clause (b)
 clauses (a) (b) (c) (d)
 provided however clauses (a) (b) (c) (d)
 Cash Interest Incurred less
 Casualty Event -4-
        Change of Control
      clauses (a) (b) -5-
        Citibank
 CNAI
 Code
 Collateral
 Collateral Documents
 Communications Section 10.19(a)
 Completed Unsold Homes
 Compliance Certificate Section
6.1(c)
 Confidential Information Memorandum
 -6-




---



##### 



Consolidated
 Consolidated Current Assets plus provided
 Consolidated Current Liabilities plus provided
 Consolidated Net Income
 Constituent Documents
 Contaminant
 Contract for Sale
 Contractual Obligation
 -7-




---



##### 



Credit Agreement Supplement Exhibit G
 Customary Permitted Liens
         -8-




---



##### 



Debt Issuance Section 7.4
 Debt Service
 Default
 Deposit Account
 Deposit Account Control Agreement
 Deposit Account Security Agreement Exhibit M
 Designated Account
 Disclosure Documents clause (ii)
 Disqualified Capital Stock -9-
       provided however
 Disqualified Capital Stock Issuance
 Dollars $
 Domestic Lending Office Schedule II
 Domestic Subsidiary
 Early Maturity Date 1 2 1 4 3 8
 EBITDA plus -10-
       provided
  Effective Date Section 3.1
 Election Section 2.9(d)(i)
 Eligible Assignee -11-
        Entitled Land
 Environmental Laws
 Environmental Lien
 Equity Issuance provided however Section 7.3(c)
 Equity Pledge Agreement
 ERISA
 ERISA Affiliate
 ERISA Event -12-
        Escrow Proceeds Receivables
 Eurocurrency Liabilities
 Eurodollar Base Rate
 Eurodollar Lending Office Schedule II
 Eurodollar Rate minus -13-
        Eurodollar Rate Loan
 Event of Default Section 8.1
 Excess Cash Flow minus
   provided
     -14-




---



##### 



provided provided further
 plus
  -15-




---



##### 



clause (c) clause
(c)
    Excess Cash Flow Period
 Exchange Act
 Excluded Real Property
 Excluded Taxes -16-
       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
 Federal Reserve Board
 -17-




---



##### 



Financial Statements Sections 4.4 6.1
 FIRREA
 First Lien Term Loan Secured Parties
 First Lien Term Loan Administrative Agent
 First Lien Term Loan Commitments
 First Lien Term Loan Credit Agreement
 First Lien Term Loan Documents
 First Lien Term Loan Obligations
 First Lien Term Loans
 First Priority Obligations Payment Date
 -18-




---



##### 



Five Year Projections
 Foreign Subsidiary
 Full PIK Payment Section
2.9(d)(i)
 Fund
 GAAP provided
 Governmental Authority
 Guarantor
 Guaranty Exhibit
H
 Hedging Contracts
 Hedging Obligations
 Indebtedness -19-
       clauses (a) (f) (h) (j)
 Indebtedness Associated with Assets Not Owned clause (g)
 Indemnified Matter Section 10.4
 Indemnified Taxes
 Indemnitees Section 10.4
 Intercreditor Agreement Section 3.1(a)(vi) Exhibit J
 -20-




---



##### 



Interest Coverage Ratio
 Interest Expense
  Interest Incurred
  -21-




---



##### 



Interest Period Section 2.2 2.10 Section 2.10 Section 2.10 provided however
      Interest Rate Contracts
 Internally Generated Funds
 -22-




---



##### 



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
 -23-




---



##### 



Land Supply Ratio provided Schedule
1.1(b)
 Lender
 Lien
 Linked Deposit Accounts
 Loan Documents
 Loan Party
 Management Services Agreement provided
 Material Adverse Change
 -24-




---



##### 



Material Adverse Effect
 Model Homes
 Moodys
 Mortgage
 Mortgaged Property
 Mortgage Requirements
 provided
  provided
 -25-




---



##### 



Multiemployer Plan
 Net Cash Proceeds
 provided provided
  -26-




---



##### 



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
 OID Section 2.8(b)
 Original Effective Date
 -27-




---



##### 



Other Taxes Section 2.15(b)
 Partial PIK Payment Section
2.9(d)(i)
 PBGC
 Performance Letters of Credit
 Permit
 Permitted Acquisition Target Acquisition provided
 Permitted Holders
 Permitted Markets
 Permitted Refinancing Indebtedness Refinance provided -28-
        Person
 PIK Payment Section
2.9(d)(i)
 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
 -29-




---



##### 



Register Section 10.2(c)
 Release
 Remedial Action
 Required Title Insurance Amount
 Requirement of Law
 Requisite Lenders
 Responsible Officer
 Restricted Payment
 Restricted Subsidiary Section 6.16
 -30-




---



##### 



Revolving Credit Administrative Agent
 Revolving Credit Agreement clauses
(i) (ii)
 Revolving Credit Commitments
 Revolving Credit Loan Documents
 Revolving Credit Outstandings plus plus
 Revolving Credit Secured Parties
 Revolving Loans
 S&P
 Scheduled Termination Date
 SEC
 -31-




---



##### 



Secured Hedging Contract
 Secured Parties
 Security
 Securities Account
 Security Agreement
 Selling Lender Section 10.7(a)
 Senior Notes 1 4 clause (i) (ii)
 Senior Unsecured Indebtedness pari passu
 Settlement Documents clause (ii)
 -32-




---



##### 



Falcone Ritchie Falcone
Settlement Agreement
   DBSI Action
  Settlement Preferred Stock
 Settlement Subordinated Debt
 -33-




---



##### 





Sold Homes


Stock


Stock Equivalents


Subordinated Indebtedness


Subordinated Notes 3 8 1 2 1 2 clauses (i) (ii) (iii)


Subsidiary


Subsidiary Borrower Subsidiary Borrowers


Tangible Net Worth


-34-



---



##### 







Tax Affiliate


Tax Allocation Agreement provided


Tax Return Section 4.7(a)


Taxes


Term Loan Section 2.1


Term Loan Commitment Schedule I


Term Loan Note Exhibit C


Term Loan Termination Date Section 8.2


Title IV Plan


TOSA


TOSI


-35-



---



##### 



Total Assets minus
 Total Land
 Total Leverage Ratio
  Transactions Schedule 1.1(a)
 Transeastern Credit Agreement Senior Debt EHT TE/TOUSA
Senior Deutsche Bank
 -36-




---



##### 



Transeastern Events
 Transeastern Junior Mezzanine Credit Agreement Junior Mezz
Debt TE/TOUSA
Mezz Two
 Transeastern JV Credit Agreements
 Transeastern JV Entities
 Transeastern Senior Mezzanine Credit Agreement Senior
Mezz Debt
 Type
 UCC
 Unaffiliated
 Unimproved Land
 Unit
 -37-




---



##### 



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
 Voting Stock
 Warrants Section 3.1(c)(v)
 Wholly-Owned Subsidiary
 Computation of Time Periods
  -38-




---



##### 



Accounting Terms and Principles
  Certain Terms
   Article I
    Section
9.6 Section 9.3
   -39-




---



##### 



The Term Loan Commitments
 Section 2.9 Term Loan Schedule I
 Borrowing Procedures
 Exhibit D Notice of Borrowing Section 2.13
 Section
2.13(a) Section 10.8 Section 3.1 Section 3.2
 -40-
       Section 2.2
 Non-Funding Lender
   Reduction and Termination of the Term Loan Commitments
 Repayment of Term Loans
 Evidence of Debt
  -41-
        clauses (a) (b) Section 2.7 provided however
  Prepayments
 Optional Prepayments of Term Loans Section 2.8(j) (k) provided however Section 2.8(j) Section 2.13(e)
 Mandatory Prepayment of Term Loans ( OID AHYDO
Catch-Up Payment
 -42-




---



##### 



Asset Sales Section
6.1(i)(ii) Section 2.8(k) 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 Section 2.8(k) Sections 2.8(h) (i)
 Equity Issuance Section 2.8(k) Sections 2.8(h) (i) provided Section 2.8(e) Section 6.1(a) (b)
 Casualty Events Section 2.8(k) Sections 2.8(h) (i) provided
 -43-




---



##### 



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) clause (h) Section 2.12(f)
 Notice of Prepayment
 -44-




---



##### 



Prepayment Premium Section 2.8
 Compliance with Revolving Credit Agreement and First Lien Term Loan Credit
Agreement Section 2.8
 Section 2.8(a) Section 2.8(g)
 Section 2.8(c) (d) (e) (f)
 Section 2.8(c) (d) (e) (f) (g) Section 2.8(c) (d) (e) (f) (g)
 Interest
 Rate of Interest Section 2.9(c)
 -45-




---



##### 



plus
 plus
 Interest Payments
 Default Interest Section
2.9(a) clause (a)(i) (a)(ii) clause (a)(i)
 PIK Election
 Election Full PIK Payment Partial PIK Payment PIK
Payments provided
 -46-




---



##### 



Conversion/Continuation Option
 provided however Exhibit F Notice of Conversion or Continuation
 Section 2.13 Section 2.10
 -47-




---



##### 



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
 -48-
        Section 2.12(f) Section 2.8 first second third
 clause (e) Section 8.2
 first
 second
 third
 fourth
 -49-




---



##### 



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
 Increased Costs -50-
        Illegality Section 2.13(d)
 Breakage Costs Section 2.9 Section 2.10 Section 2.13(d) -51-
        Capital Adequacy
  Taxes
 provided Section
2.15
 Other Taxes
 -52-
       Section 2.15 provided further Section 2.15 provided further
 Section 10.8
 Section 2.15
 -53-
       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 -54-
       provided provided
 Certain Accounts
    Conditions Precedent to the Effectiveness of This Agreement
 Effective Date
 Certain Documents
  Exhibit K Exhibit
M
  -55-




---



##### 



Exhibit J
 Schedule 3.1(a)(vii)
   Article IV
 -56-




---



##### 



Exhibit I
 Section 4.4
    Collateral Requirements
 Section 6.22 provided clauses (B) (D)
  -57-




---



##### 



Certain Transactions
     Warrants
  -58-




---



##### 



Fees and Expenses Paid Section 2.11
 Consents, Etc Section 10.1
 Defaults
 Section 3.1(a)(x)(B) 3.1(f)
    Existence; Compliance with Law
 -59-
        Power; Authorization; Enforceable Obligations
   Article III
 clauses (B) (C)
 Schedule 4.2
 -60-
        Ownership of Subsidiaries
 Schedule 4.3 Schedule 4.3
 Financial Statements
  Schedule 4.4 clause (a)
 -61-




---



##### 



Material Adverse Change
  Litigation
 Schedule 4.6
 Taxes
 Tax Returns -62-
       Schedule 4.7
 Schedule 4.7
  Full Disclosure
   -63-




---



##### 



Margin Regulations
  No Burdensome Restrictions; No Defaults
 Section 7.1
   Investment Company Act
  Use of Proceeds
  Insurance
 Schedule 4.13(a)
 -64-




---



##### 



Schedule 4.13(b)
 Labor Matters
   ERISA
  Environmental Matters
    -65-




---



##### 



Section 4.16
 Intellectual Property
  Title; Real Property
 Section 7.1
 -66-
         Anti-Terrorism Laws
 Anti-Terrorism Laws Executive Order USA Patriot Act
       clause (b)
 -67-




---



##### 



Solvency
  Collateral Documents
 clauses (a) (b) (c) (d) (e) (f) Section 7.1
 Related Documents
  -68-




---



##### 



Subordinated Indebtedness
     Maximum Secured Indebtedness.
 plus plus minus
 Maximum Total Leverage Ratio
  Maximum TotalFiscal Quarter Ending
    
    Leverage RatioSeptember 30, 2007 to and including
September 30, 2008
    
    3.75 to 1.0December 31, 2008 to and including
June 30, 2009
    
    3.50 to 1.0September 30, 2009
    
    3.25 to 1.0December 31, 2009
    
    3.00 to 1.0March 31, 2010 and thereafter
    
    2.40 to 1.0
 -69-




---



##### 



Minimum Interest Coverage Ratio
  Minimum InterestFiscal Quarter Ending
    
    Coverage RatioSeptember 30, 2007
    
    1.05 to 1.0December 31, 2007
    
    0.65 to 1.0March 31, 2008 to and including
June 30, 2008
    
    0.45 to 1.0September 30, 2008
    
    0.55 to 1.0December 31, 2008 to and including
March 31, 2009
    
    0.65 to 1.0June 30, 2009
    
    0.75 to 1.0September 30, 2009
    
    0.95 to 1.0December 31, 2009
    
    1.20 to 1.0March 31, 2010 and thereafter
    
    1.65 to 1.0
 Total Land to Adjusted Consolidated Tangible Net Worth
  Unsold Units to Units Closed
  -70-




---



##### 





provided


Maximum Land Supply










Reporting Requirements




Quarterly Reports clause (d)


-71-



---



##### 



clause (a)
 Annual Reports Article V clause (b)
 Compliance Certificate clauses (a) (b) Section 6.1
 Compliance Certificate Article V
 -72-




---



##### 



Section 7.2(i) clause (b) Section 6.1
  Projections/Business Plan
 Default Notices
 Notice of Litigation
 ERISA Matters
  -73-




---



##### 



Environmental Matters clause (i) (ii)
 Borrowing Base Determination
 Cash Flow Projections
 Recourse Obligations; Joint Venture Disclosures
 -74-




---



##### 



Sections 4.5 4.6 4.10 4.14 4.15 4.16 4.17 4.18 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
  -75-




---



##### 



provided clauses (a) (b)
 Payment of Taxes, Etc
  Maintenance of Insurance
  Asset Sales
  -76-




---



##### 



Access
 Section 8.1(a) (b) (g) Section 6.8 provided
 Keeping of Books
  Maintenance of Properties, Etc
 -77-
        Application of Proceeds
 Section 4.12
 Environmental
  Additional Subsidiary Borrowers; Additional Collateral
 -78-
       Section 6.13
 Section 10.22(b) clause (a) clause (i) Section 6.13(b) clause (ii) Section 6.13(b) clause (1) (2) provided -79-
       Section
6.13(b)
 Section 6.13 Section 6.13
 Security Interests; Further Assurances
 Section 7.1(b)
 Information Regarding Collateral
 -80-
        Designation of Restricted and Unrestricted Subsidiaries
    provided however Section 7.2(i) Section 6.16
  -81-




---



##### 



clause
(1)
       Section 6.13
 -82-




---



##### 



Mortgage Requirements
 Applicable Person clause (i) clause (ii)
 Section
6.17(a)
 Section 6.17(a)
 -83-
        Section 6.17(e)
     -84-




---



##### 



Release of Mortgaged Property; Subordination; Consent
    provided
  -85-




---



##### 



[Reserved] Designated Account Deposits
 Section 6.22
 Section 6.22
 -86-




---



##### 



Maintenance of Ratings
 Post-Closing Requirements
 Section 6.22(b)
 Schedule 6.22
     Liens, Etc
  Schedule 7.1
 -88-




---



##### 



Section
7.4(e) provided however clause
(d)
 clause (a) (b) (d) (e) Section 7.1
         -89-




---



##### 



provided clause (f) (q) (s)
 Investments
 Schedule 7.2
     -90-




---



##### 



provided
    provided clause (i) Schedule 7.2
 provided
 -91-




---



##### 



Section 7.4
       Section 7.2
    Section 2.8(g)
 -92-




---



##### 



provided however less
 Restricted Payments
  plus
   provided however clause (b) (c)(i) provided further clause (b) (c)(i)
 Limitation on Indebtedness
  Schedule
7.4(b)
 -93-




---



##### 



clause (i) Section 2.18 provided
 provided
   provided however
   -94-




---



##### 



Section 7.4 provided
  Section 7.9
 provided however Section
7.4 Section 7.4(b) (h)
 Restriction on Fundamental Changes Section 7.2 Section 6.13 Section 7.2 provided provided further Section 7.5
 Change in Nature of Business
 -95-




---



##### 



Transactions with Affiliates provided however Section 7.7
 Restrictions on Subsidiary Distributions; No New Negative Pledge Schedule 7.8 clauses (a) (b)
 -96-




---



##### 



Sale/Leasebacks provided however
 Compliance with ERISA
 Environmental provided however Section 7.11
 Designated Account Proceeds provided however clause (ii)
 -97-




---



##### 



Limitation on Issuance of Stock Section 7.13(b) Section 6.13
 Prepayments of Revolving Loans and First Lien Loans; Modifications of
Constituent Documents and Other Documents
    Fiscal Year
   Events of Default
  -98-




---



##### 



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
  provided Section 8.1(f)
 -99-




---



##### 



provided however clauses (i) (ii) (iii)
    -100-




---



##### 



Remedies
 provided however clauses (ii) (iii) (iv) Section 8.1(g)
 Reserved
 Rescission
 Section 10.1 provided however
 -101-




---



##### 



Authorization and Action
  provided however
  Administrative Agents Reliance, Etc
 Section 10.2
 -102-




---



##### 



Section 10.2(c)
 The Administrative Agent Individually
  Agents Group Section 9.3 Activities
 -103-




---



##### 



Lender Credit Decision
 Related
Parties
  -104-




---



##### 



Indemnification
  -105-




---



##### 



provided however
 Successor Administrative Agent
 Article IX
 -106-




---



##### 



Amendments, Waivers, Etc. by Lenders.
         Section 2.12(e) Section 2.12(f) Section
10.1 Section 10.1(d)
 provided further
 -107-




---



##### 



Proposed Change Section 10.1 Non-Consenting Lender provided however Section 2.8(j)
 Section 10.1
 -108-




---



##### 



Assignments and Participations
 provided however
 Section 2.16 Section 10.1(c)
 Section 10.8 Register Section 10.2
 -109-




---



##### 



clause (b) Section 10.2
 Exhibit C
 Section 10.2 provided however
  -110-




---



##### 



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
 Article III
 -111-




---



##### 



clause (i) (ii) (iii)
 Indemnities
 Article III Indemnitee Indemnified Matters provided however Section 10.4
 -112-




---



##### 



clauses (i) (ii) (iii) (iv) Section 10.4
   Section 10.4
 -113-




---



##### 



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 Purchasing Lender Selling Lender
 -114-




---



##### 



Section 10.7
 Notices, Etc
   pberkowitz@tousa.com
  rd     jkanner@kirkland.com
 Schedule II
 -115-




---



##### 



st
  llp       mmichetti@cahill.com amakich@cahill.com
 provided however Article II IX
 No Waiver; Remedies
  -116-




---



##### 



Binding Effect
 provided however
 Governing Law
  Submission to Jurisdiction; Service of Process
  Section 10.8
 Section 10.12
  -117-




---



##### 



Waiver of Jury Trial
  Section Titles
 provided however
 Execution in Counterparts
  Entire Agreement
  Confidentiality
 Borrower Information
 -118-




---



##### 



Section 10.17 Section 10.17
 Facility Information
 USA Patriot Act
  Agent Communications
 Communica tions
 -119-




---



##### 



Platform
 AGENT PARTIES
  -120-




---



##### 



Joint and Several Liability
  Extensions of Credit
  -121-




---



##### 



Accommodation Payment UFTA UFCA
 -122-




---



##### 



Section 10.20
 Administrative Borrower
  Intercreditor Agreement
   -123-




---



##### 



clause (b)
  -124-




---



##### 



ADMINISTRATIVE BORROWER:

TOUSA, INC.,

     as the Administrative BorrowerBy:
    /s/ Stephen WagmanName:
    Stephen WagmanTitle:
    Executive Vice President S-1




---



##### 



SUBSIDIARY BORROWERS:
ENGLE HOMES RESIDENTIAL CONSTRUCTION, L.L.C.
ENGLE HOMES COMMERCIAL CONSTRUCTION, LLC
ENGLE SIERRA VERDE P4, LLC
ENGLE/JAMES LLC
LB/TE #1, LLC
LORTON SOUTH CONDOMINIUM, LLC
MCKAY LANDING LLC
NEWMARK HOMES PURCHASING, L.P.
NEWMARK HOMES, L.L.C.
NEWMARK HOMES, L.P.
PREFERRED BUILDERS REALTY, INC.
REFLECTION KEY, LLC
SILVERLAKE INTERESTS, L.C.
TOI, LLC
TOUSA/WEST HOLDINGS, INC.
TOUSA ASSOCIATES SERVICES COMPANY
TOUSA HOMES ARIZONA, LLC
TOUSA HOMES COLORADO, LLC
TOUSA HOMES FLORIDA, L.P.
TOUSA HOMES INVESTMENT #1, INC
TOUSA HOMES INVESTMENT #2, INC.
TOUSA HOMES INVESTMENT #2, LLC
TOUSA HOMES MID-ATLANTIC HOLDING, LLC
TOUSA HOMES MID-ATLANTIC, LLC
TOUSA HOMES NEVADA, LLC
TOUSA HOMES, INC.
TOUSA HOMES, L.P.
TOUSA INVESTMENT #2, INC.
TOUSA MID-ATLANTIC INVESTMENT, LLC
TOUSA REALTY, INC.
TOUSA VENTURES, LLC
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 Trust By:
    /s/ Stephen WagmanName:
    Stephen WagmanTitle:
    Co-Managing Trustee of the Trust By:
    /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 NikovTitle: Vice President S-5