Document:

EX-10.2 Amendment No. 1 to Credit Agreement

 

Exhibit 10.2

Execution Version

Amendment No. 1 to Credit Agreement

          Amendment No. 1 to Credit Agreement (this “Amendment”), dated as of October 23,
2006, among Technical Olympic USA, Inc., a Delaware corporation (the “Borrower”), each
person executing this Amendment as a Guarantor, each Person executing this Amendment as a Lender,
each Person executing this Amendment as an Issuer, and Citicorp North America, Inc., as
Administrative Agent.

PRELIMINARY STATEMENTS

          (1) The Borrower, the Lenders (or their predecessors in interest), the Issuer, the
Administrative Agent and certain other financial institutions in other agent capacities are parties
to the Credit Agreement, dated as of March 9, 2006 (as amended, supplemented or otherwise modified
from time to time through the date of this Amendment, the “March 2006 Credit Agreement”), under
which the Lenders provided a Facility in the aggregate principal amount of $800,000,000 for the
making of Revolving Loans and Swing Loans and the Issuance of Letters of Credit.

          (2) The Borrower acknowledges that a Material Adverse Change has occurred with respect to
TOUSA Homes, L.P. as a result of matters disclosed by the Borrower in its current reports on Form
8-K filed with the SEC on September 27, 2006 and October 2, 2006 relating to EH/Transeastern, LLC
(the “Transeastern Events”). As a result, the Borrower is no longer able to satisfy all of the
conditions precedent under the March 2006 Credit Agreement required to receive Loans or to obtain
the Issuance of Letters of Credit for the benefit of the Borrower.

          (3) The Borrower, the Guarantors, the Lenders and the Issuers party hereto, and the
Administrative Agent desire to (i) amend the March 2006 Credit Agreement in certain respects,
including, inter alia, the definition of a Material Adverse Change and (ii) provide collateral by
the Borrower and its Restricted Subsidiaries to secure their respective obligations under the March
2006 Credit Agreement and the other Loan Documents.

          NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this
Amendment, and for other good and valuable consideration, the receipt and sufficiency of which
hereby are acknowledged, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

          Section 1.01. Definitions. Capitalized terms used and not otherwise specifically defined in
this Amendment shall have the meanings given to such terms in the March 2006 Credit Agreement.

 

 

          Section 1.02. UCC. Unless otherwise defined herein or in the March 2006 Credit Agreement or in
any other Loan Document, terms used in this Amendment that are defined in the UCC shall have the
meanings given to such terms in the UCC.

          Section 1.03. Certain Terms.

          (a) The words “herein,” “hereof” and “hereunder” and similar words in
this Amendment refer to this Amendment as a whole, and not to any particular Article, Section,
subsection or clause in, this Amendment.

          (b) Unless otherwise expressly indicated in this Amendment, references in this Amendment to an
Exhibit, Schedule, Article, Section, subsection or clause refer to the appropriate Exhibit or
Schedule to, or Article, Section, subsection or clause in this Amendment.

          (c) References in this Amendment to any statute shall be to such statute as amended or
modified and in effect at the time any such reference is operative.

          (d) The term “including” when used in this Amendment means “including without
limitation” except when used in the computation of time periods.

          (e) In this Amendment, in the computation of periods of time from a specified date to a later
specified date, the word “from” means “from and including” and the words
“to” and “until” each mean “to but excluding” and the word
“through” means “to and including”.

          Section 1.04. No Presumption Against any Party. Neither this Amendment nor any uncertainty or
ambiguity herein shall be construed or resolved against any party hereto, whether under any rule of
construction or otherwise. This Amendment has been reviewed by each of the parties and their
counsel and shall be construed and interpreted according to the ordinary meaning of the words used
so as to fairly accomplish the purposes and intentions of all parties hereto.

          Section 1.05. Section Titles. The section titles contained in this Amendment are and shall be
without substantive meaning or content of any kind whatsoever and are not a part of the agreement
among the parties hereto.

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ARTICLE II

AMENDMENTS TO CREDIT AGREEMENT

          Section 2.01. Amendments to Exhibits and Schedules.

          (a) The March 2006 Credit Agreement is hereby amended by adding the Deposit Account Control
Agreement attached hereto as Exhibit A as a new Exhibit I to the March 2006 Credit Agreement.

          (b) The March 2006 Credit Agreement is hereby amended by adding the Security Agreement
attached hereto as Exhibit B as a new Exhibit J to the March 2006 Credit Agreement.

          (c) The form of Borrowing Base Certificate attached to the March 2006 Credit Agreement as
Exhibit E thereto is hereby amended and restated in its entirety by inserting in its place the form
of Exhibit C.

          (d) Schedules 2.4, 4.3, 4.7 and 7.1 attached to the March 2006 Credit Agreement are hereby
amended and restated in their entirety by inserting in their place the respective Schedules 2.4,
4.3, 4.7 and 7.1 attached hereto as Exhibit D.

          Section 2.02. Additional Definitions. Section 1.1 of the March 2006 Credit Agreement is hereby
amended by inserting the following new definitions in their appropriate alphabetical order:

     “Affiliated Title Company” means Universal Land Title, Inc., a Florida
corporation, and any of its Subsidiaries or Affiliates authorized under applicable
Requirement of Law to conduct business as an agent for a title insurance company.

     “Borrower” has the meaning assigned to such term in the preamble to this
Agreement.

     “Collateral” means all “Collateral” and “Mortgaged Property” referred to in
the Collateral Documents and all other property that is or is intended to be subject to any
Lien in favor of the Administrative Agent for the benefit of the Secured Parties and will
include, without limitation, all Borrowing Base Assets.

     “Collateral Documents” means the Security Agreement, the Deposit Account
Control Agreements, the Mortgages, the Pledge Agreements, and any other agreement that
creates or purports to create a Lien in favor of the Administrative Agent for the benefit
of the Secured Parties.

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     “Deposit Account Control Agreement” means an agreement among the bank
maintaining a Designated Account, the Borrower or a Restricted Subsidiary that is the owner
of such Designated Account and such bank’s customer, and the Administrative Agent as
secured party, substantially in the form of Exhibit I or otherwise in form and
substance reasonably satisfactory to the Administrative Agent.

     “Designated Account” means a deposit account maintained with a bank and owned
by the Borrower or a Restricted Subsidiary to the extent such deposit account is subject to
the first priority perfected security interest created under the Security Agreement.

     “Finished Lots Advance Rate” means a percentage, expressed as a decimal,
mutually agreed upon in writing between the Borrower and the Requisite Lenders and
designated as the Finished Lots Advance Rate.

     “FIRREA” means the Financial Institutions Reform, Recovery and Enforcement Act
of 1989.

     “Land/Lots Under Development Advance Rate” means a percentage, expressed as a
decimal, mutually agreed upon in writing between the Borrower and the Requisite Lenders and
designated as the Land/Lots Under Development Advance Rate.

     “Mortgage” means a mortgage, deed of trust, trust deed or similar instrument
in form and substance reasonably satisfactory to the Administrative Agent creating a Lien
on any Completed Unsold Home, Unsold Home Under Construction, Finished Lots, Land/Lots
Under Development or Unimproved Land in a principal amount of at least the applicable
appraised value determined in accordance with the Mortgage Requirements.

     “Mortgage Requirements” has the meaning assigned to such term in Section
6.15(d).

     “Pledge Agreement” means a pledge agreement in form and substance reasonably
satisfactory to the Administrative Agent, executed by the Restricted Subsidiary owning the
equity interest in the applicable Unaffiliated Joint Venture or Unaffiliated Unrestricted
Subsidiary, pursuant to which shall be pledged to the Administrative Agent all of such
Restricted Subsidiary’s equity ownership interest in such Unaffiliated Joint Venture or
Unaffiliated Unrestricted Subsidiary.

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     “Secured Parties” means the Administrative Agent, the Lenders and the Issuers.

     “Security Agreement” means the security agreement substantially in the form of
Exhibit J between the Borrower and the Guarantors, as grantors, and the
Administrative Agent, as secured party, pursuant to which the Borrower has granted security
interest over the interest of the Borrower in the Collateral described therein as security
for the Obligations and each Guarantor has granted a security interest over the interest of
such Guarantor in the Collateral described therein as security for the obligations of such
Guarantor under its respective Guaranty and any other Loan Document to which such Guarantor
is a party.

     “Transeastern Events” means the matters disclosed by the Borrower in its
reports on Form 8-K filed with the SEC on September 27, 2006 and October 2, 2006 relating
to EH/Transeastern, LLC.

     “Unimproved Land Advance Rate” means a percentage, expressed as a decimal,
mutually agreed upon in writing between the Borrower and the Requisite Lenders and
designated as the Unimproved Land Advance Rate.

          Section 2.03. Amendments to Existing Definitions.

          (a) The definition of “Borrowing Base” in Section 1.1 of the March 2006 Credit Agreement is
hereby amended and restated in its entirety to read as follows:

     “Borrowing Base” means, at any time, the sum of:

     (a) the product of (x) 0.90 and (y) the sum of (i) Escrow Proceeds Receivables
and (ii) Unrestricted Cash, to the extent such Escrow Proceeds Receivables or
Unrestricted Cash, as the case may be, constitute Borrowing Base Assets;

     (b) the product of (x) 0.90 and (y) Sold Homes owned by the Borrower or any
Restricted Subsidiary to the extent such Sold Homes constitute Borrowing Base
Assets;

     (c) the product of (x) 0.75 and (y) the Completed Unsold Homes owned by the
Borrower or any Restricted Subsidiary to the extent such Completed Unsold Homes
constitute Borrowing Base Assets;

     (d) the product of (x) 0.70 and (y) Unsold Homes Under Construction owned by
the Borrower or any Restricted Subsidiary to the

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extent such Unsold Homes Under Construction constitute Borrowing Base Assets;

     (e) the product of (x) the Finished Lots Advance Rate and (y) the Finished
Lots owned by the Borrower or any Restricted Subsidiary to the extent such Finished
Lots constitute Borrowing Base Assets;

     (f) the product of (x) the Land/Lots Under Development Advance Rate and (y)
the Land/Lots Under Development owned by the Borrower or any Restricted Subsidiary
to the extent such Land/Lots Under Development constitute Borrowing Base Assets;

     (g) the product of (x) the Unimproved Land Advance Rate and (y) the Unimproved
Land owned by the Borrower or any Restricted Subsidiary to the extent such
Unimproved Land constitutes Borrowing Base Assets.

Notwithstanding the foregoing, the total aggregate amount of Loans and Letters of Credit
outstanding based upon Finished Lots, Land/Lots Under Development and Unimproved Land shall
not exceed $50,000,000 at any time.

          (b) The definition of “Borrowing Base Assets” in Section 1.1 of the March 2006 Credit
Agreement is hereby amended and restated in its entirety to read as follows:

          “Borrowing Base Assets” means the following assets to the extent satisfying
the following terms and conditions and included in the calculation of the Borrowing Base:

          (a) (i) Escrow Proceeds Receivables but only to the extent that (A) such
Escrow Proceeds Receivables are held by any Affiliated Title Company, such
Affiliated Title Company has entered into a written agreement with the
Administrative Agent acknowledging the security interests granted under the
Security Agreement and agreeing that any Escrow Proceeds Receivables released or
paid by such Affiliated Title Company shall be paid solely to a Designated Account
and (B) such Escrow Proceeds Receivables are held by any title
insurance company, title agent, escrow company or similar entity authorized under
applicable Requirement of Law to conduct business as an agent for a title insurance
company that is not an Affiliated Title Company, the Borrower or applicable
Guarantor has instructed such entity in writing to pay any Escrow Proceeds
Receivables to be released or paid to the Borrower or

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such Guarantor solely to a Designated Account maintained by
Wachovia Bank, National Association and (ii) Unrestricted Cash but only to the
extent on deposit in a Designated Account;

          (b) Sold Homes owned by the Borrower or any Restricted Subsidiary but only to
the extent the Contract for Sale for such Sold Home and related rights are subject
to a first priority perfected security interest under the Security Agreement;
provided however, that no Contracts for Sale entered into by Lorton South
Condominiums, LLC, a Delaware limited liability company, Engle Homes Commercial
Construction, LLC, a Delaware limited liability company, or TOUSA Mid-Atlantic
Investment, LLC, a Delaware limited liability company, shall be included as
Borrowing Base Assets prior to the satisfaction of the covenant contained in
Section 6.17 [Lien Searches] with respect to UCC searches covering such entities;

          (c) Completed Unsold Homes owned by the Borrower or any Restricted Subsidiary
but only to the extent that (i) each Completed Unsold Home is subject to a Mortgage
and, except as provided in Section 6.15, all Mortgage Requirements with respect to
such Mortgage have been satisfied, (ii) the value of any Completed Unsold Home in
the Borrowing Base does not exceed the appraised value for such Completed Unsold
Home determined in accordance with the Mortgage Requirements, and (iii) no
Completed Unsold Home has been “completed” (within the meaning of the definition of
Completed Unsold Home) for more than six months other than a Completed Unsold Home
being used as a Model Home;

          (d) Unsold Homes Under Construction owned by the Borrower or any Restricted
Subsidiary but only to the extent that (i) such Unsold Homes Under Construction are
subject to a Mortgage and, except as provided in Section 6.15, all Mortgage
Requirements with respect to such Mortgage have been satisfied, and (ii) the value
of any Completed Unsold Home in the Borrowing Base does not exceed the appraised
value for such Completed Unsold Home determined in accordance with the Mortgage
Requirements;

          (e) Finished Lots owned by the Borrower or any Restricted Subsidiary but only
to the extent that such Finished Lots are subject to a Mortgage and all Mortgage
Requirements with respect to such Mortgage have been satisfied;

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          (f) Land/Lots Under Development owned by the Borrower or any Restricted
Subsidiary but only to the extent that such Land/Lots Under Development are subject
to a Mortgage and all Mortgage Requirements with respect to such Mortgage have been
satisfied;

          (g) Unimproved Land owned by the Borrower or any Restricted Subsidiary but
only to the extent that such Unimproved Land is subject to a Mortgage and all
Mortgage Requirements with respect to such Mortgage have been satisfied.

          (c) The definition of “Borrowing Base Certificate” in Section 1.1 of the March 2006 Credit
Agreement is hereby amended and restated in its entirety to read as follows:

          “Borrowing Base Certificate” means a certificate of the Borrower substantially
in the form of Exhibit E.

          (d) The definition of “Completed Unsold Homes” in Section 1.1 of the March 2006 Credit
Agreement is hereby amended by deleting the phrase “the value of which is determined in conformity
with GAAP” at the end of the first sentence thereof and inserting the following in lieu of such
phrase:

“the value of which is the lesser of (x) value determined in conformity with GAAP and (y)
the appraised value determined in accordance with the Mortgage Requirements”.

          (e) The definition of “Finished Lots” in Section 1.1 of the March 2006 Credit Agreement is
hereby amended by deleting the phrase “the value of which is determined in conformity with GAAP” at
the end thereof and inserting the following in lieu of such phrase:

“the value of which is the lesser of (x) value determined in conformity with GAAP and (y)
the appraised value determined in accordance with the Mortgage Requirements”.

          (f) The definition of “Land/Lots Under Development” in Section 1.1 of the March 2006 Credit
Agreement is hereby amended by deleting the phrase “the value of which is determined in conformity
with GAAP” at the end thereof and inserting the following in lieu of such phrase:

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“the value of which is the lesser of (x) value determined in conformity with GAAP and (y)
the appraised value determined in accordance with the Mortgage Requirements”.

          (g) The definition of “Loan Documents” in Section 1.1 of the March 2006 Credit Agreement is
hereby amended and restated in its entirety to read as follows:

          “Loan Documents” means, collectively, this Agreement, the Revolving Credit
Notes (if any), the Guaranty, each agreement pursuant to which a Lender or an Affiliate of
a Lender provides cash management services to a Loan Party, the Collateral Documents, and
each certificate, agreement or document executed by a Loan Party and delivered to the
Administrative Agent or any Lender in connection with or pursuant to any of the foregoing.

          (h) The definition of “Material Adverse Change” in Section 1.1 of the March 2006 Credit
Agreement is hereby amended and restated in its entirety to read as follows:

          “Material Adverse Change” means a material adverse change in the business,
condition (financial or otherwise), performance, properties, prospects or operations of the
Borrower and the other Loan Parties, taken as a whole; provided, however, that in the
absence of a Recourse Event no Material Adverse Change will exist arising solely from the
Transeastern Events. For the purposes of this definition, the term “Recourse Event” means
either (i) the written acknowledgment by any Loan Party of obligations under the
Transeastern Guaranties in excess of $25,000,000 in the aggregate, (ii) a determination by
a court of competent jurisdiction or arbitration panel that the Loan Parties are obligated
to make payments under the Transeastern Guaranties in excess of $25,000,000 in the
aggregate, or (iii) payment by the Loan Parties of more than $10,000,000 in the aggregate
on account of the Transeastern Guaranties. For the purposes of this definition
“Transeastern Guaranties” means any guarantee or indemnity given by a Loan Party in
connection with any credit agreement entered into by EH/Transeastern, LLC.

          (i) The definition of “Material Adverse Effect” in Section 1.1 of the March 2006 Credit
Agreement is hereby amended and restated in its entirety to read as follows:

          “Material Adverse Effect” means a material adverse effect on any of (a) the
business, condition (financial or otherwise), performance, properties, prospects or
operations of the Borrower and the other Loan Parties, taken as a whole, or (b) the ability
of the Borrower and the other Loan Parties, taken as a

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whole, to pay the Obligations or (c) the validity or enforceability of any of the Loan
Documents or the rights or remedies of the Administrative Agent or the Lenders thereunder;
provided, however, that in the absence of a Recourse Event (as defined in
the definition of Material Adverse Change) no Material Adverse Effect will exist arising
solely from the Transeastern Events.

          (j) The definition of “Maximum Credit” in Section 1.1 of the March 2006 Credit Agreement is
hereby amended and restated in its entirety to read as follows:

          “Maximum Credit” means, at any time, the lesser of (a) the Revolving Credit
Commitments in effect at such time and (b) the Borrowing Base.

          (k) The definition of “Senior Leverage Ratio” in Section 1.1 of the March 2006 Credit
Agreement is hereby amended and restated in its entirety to read as follows:

          “Senior Leverage Ratio” means for each four quarter fiscal period ending on
the last day of each fiscal quarter, the ratio of (a) Senior Unsecured Indebtedness plus
the outstanding Revolving Loans and Swing Loans, and any undrawn Letters of Credit issued,
under the Loan Documents at such time to (b) EBITDA for such period.

          (l) The definition of “Senior Notes” in Section 1.1 of the March 2006 Credit Agreement is
hereby amended and restated in its entirety to read as follows:

          “Senior Notes” means (i) the 9% Senior Notes due 2010 issued by the Borrower
pursuant to the Indenture dated as of February 3, 2003 between the Borrower and Wells Fargo
Bank, N.A. (as successor by consolidation to Wells Fargo Bank Minnesota, National
Association), as trustee and the Indenture dated as of June 25, 2002, between the Borrower
and Wells Fargo Bank, N.A. (as successor by consolidation to Wells Fargo Bank Minnesota,
National Association), as trustee and (ii) the 8 1/4% Senior Notes due 2011 issued by the
Borrower pursuant to the Indenture dated as of April 12, 2006 between the Borrower and
Wells Fargo Bank, N.A., as trustee.

          (m) The definition of “Senior Unsecured Indebtedness” in Section 1.1 of the March 2006 Credit
Agreement is hereby amended and restated in its entirety to read as follows:

          “Senior Unsecured Indebtedness” means at any time, the Indebtedness of the
Borrower and its Subsidiaries comprised of (a) the

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outstanding principal amount of the Senior Notes and the January 2003 Senior Notes
outstanding at such time and (b) the outstanding principal amount of all other unsecured
Indebtedness which is pari passu to the Senior Notes other than trade payables that are not
more than 90 days past the original invoice date thereof.

          (n) The definition of “Unrestricted Cash” in Section 1.1 of the March 2006 Credit Agreement is
hereby amended and restated in its entirety to read as follows:

          “Unrestricted Cash” means all cash and Cash Equivalents of the Borrower and
its Restricted Subsidiaries that is not subject to a Lien or other restriction (including,
without limitation, any escrow in connection with Contracts for Sale) other than Liens in
favor of the Administrative Agent, any Lender, any Issuer, any Affiliate of any of them or
any Indemnitee.

          (o) The definition of “Unsold Homes Under Construction” in Section 1.1 of the March 2006
Credit Agreement is hereby amended by deleting the phrase “the value of which is determined in
conformity with GAAP” at the end thereof and inserting the following in lieu of such phrase:

“the value of which is the lesser of (x) value determined in conformity with GAAP and (y)
the appraised value determined in accordance with the Mortgage Requirements”.

          Section 2.04. Certain Terms. Section 1.4 of the March 2006 Credit Agreement is hereby amended
by inserting the following as a new subsection (h):

          (h) Unless otherwise defined herein or in any other Loan Document, terms used in this
Agreement that are defined in the UCC shall have the meanings given to such terms in the
UCC.

          Section 2.05. Amendments to Letters of Credit Provisions.

          (a) Section 2.4(a) of the March 2006 Credit Agreement is hereby amended by inserting the
following as a new clause (vii):

          (vii) such Letter of Credit does not provide that any beneficiary under such Letter of
Credit is prohibited from waiving any rights of subrogation against the Borrower or any of
its Subsidiaries for whose benefit such Letter of Credit was issued.

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          (b) Section 2.4(d) of the March 2006 Credit Agreement is hereby amended by inserting the
following new sentence after the first sentence in Section 2.4(d):

If the Person for whose benefit the requested Letter of Credit is to be issued is not a
Guarantor, the Borrower shall cause such Person to be a co-applicant with the Borrower with
respect to such Letter of Credit.

          Section 2.06. New Sections in Article II.

          (a) New Sections 2.19 and 2.20 are hereby added to the March 2006 Credit Agreement as follows:

          SECTION 2.19 Certain Accounts.

          Notwithstanding anything to the contrary contained herein or in any of the other Loan
Documents, the Borrower and the Guarantors shall not be required to cause any of the
following deposit accounts to be subject to a Deposit Account Control Agreement: (i) Engel
Delaware, US Bank, 6728003659; (ii) TOUSA Delaware, US Bank, 6728020649; (iii) TOUSA
Funding, US Bank, 6728020426; (iv) Tousa Homes, Inc., (Colorado) — Wells Fargo, 1018055059;
(v) Tousa Homes, Inc., (Arizona) Wells Fargo, 5153062145; and (vi) Tousa Homes, Inc., (Las
Vegas)  — Wells Fargo, 5153062152; provided that each of such deposit accounts are subject
to a Deposit Account Control Agreement perfecting the Administrative Agent’s security
interest in such deposit account no later than November 6, 2006 (or if the Administrative
Agent agrees in its sole discretion no later than November 22, 2006).

          SECTION 2.20 Interim Limit on Facility.

          Notwithstanding anything to the contrary in this Agreement, until the Borrower shall
have satisfied the covenant set forth in Section 6.17 [Lien Searches] with respect to UCC
searches covering each of the Borrower, Tousa Homes, Inc, a Florida corporation, and
Newmark Homes, L.P., a Texas limited partnership, the Lenders shall not be obligated to
make Loans and the Issuers shall not be obligated to issue any Letter of Credit that would
cause the Revolving Credit Outstandings to be in excess of the greater of (x) from the
period from the Amendment Effective Date to November 6, 2006, $403,414,735, and after
November 6, 2006, $453,414,735 and (y) the amount otherwise permitted by this Agreement
determined based on the Borrowing Base adjusted to remove the value of Sold Homes owned by
a Restricted Subsidiary with respect to which the

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Administrative Agent has not received a UCC search in compliance with Section 6.17.

          Section 2.07. Amendment to Representations and Warranties.

          (a) Section 4.2(a) of the March 2006 Credit Agreement is hereby amended by inserting the
following at the end of subclause (iii):

     (other than any Lien securing the Obligations)

          (b) Clause (b) of Section 4.12 of the March 2006 Credit Agreement is hereby amended and
restated in its entirety to read as follows:

(b) on and after the Effective Date, for (i) current operating obligations of the Borrower,
TOUSA Homes, Inc. and Newmark Homes, L.P. incurred in the ordinary course of business as
currently conducted and (ii) Investments permitted by Section 7.2(i).

          Section 2.08. Amendments to Reporting Requirements.

          (a) The first sentence of Section 6.1(i)(i) of the March 2006 Credit Agreement is hereby
amended and restated in its entirety to read as follows:

No later than 15 days after the last day of each calendar month or more frequently as
requested by the Administrative Agent, the Borrower shall provide a Borrowing Base
Certificate as of the first day of such month executed by a Responsible Officer of the
Borrower.

          (b) Section 6.1 of the March 2006 Credit Agreement is hereby amended by renumbering Section
6.1(j) to Section 6.1(n) and inserting new Sections 6.1(j), 6.1(k), 6.1(l) and 6.1(m):

          (j) Cash Flow Projections.

          Together with the Borrowing Base Certificate delivered by the Borrower in the calendar
months of January, April, July and October, or more frequently as reasonably requested by
the Administrative Agent, the Borrower shall deliver to the Administrative Agent monthly
cash flow projections covering the calendar quarter in which such Borrowing Base
Certificate was delivered, each of which shall be in a form reasonably satisfactory to the
Administrative Agent; provided, however, that (i) the first such report,
covering fourth quarter 2006, shall be delivered by the Borrower no later than November 6,
2006 (or if the Administrative Agent agrees in its sole discretion no later than November
22,

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          2006), (ii) the Borrower shall not be required to deliver such reports after the
report due in January 2007, unless the Requisite Lenders notify the Administrative Agent no
later than February 1, 2007 that they will require that such reports be continued to be
provided by the Borrower.

          (k) Recourse Obligations; Joint Venture Disclosures.

          The Borrower shall deliver to the Administrative Agent no later than 45 days after the
end of each fiscal quarter, or more frequently as reasonably requested by the
Administrative Agent, (i) a schedule of recourse obligations (including contingent
obligations) of the Borrower and its Restricted Subsidiaries, with respect to Joint
Ventures or otherwise, and of Joint Ventures (including the face amount of financing
facilities for such Joint Venture), including, in each case, a description of recourse
conditions; and (ii) reports with respect to its Joint Ventures covering the subject matter
of the representations and warranties set forth in Sections 4.6, 4.10, 4.14, 4.15, 4.16 and
4.18, as applied to the Joint Ventures (with schedules of exceptions, if necessary).

          (l) Material Developments with respect to Joint Ventures.

          The Borrower shall deliver to the Administrative Agent reports with respect to its
Joint Ventures covering material developments affecting any Joint Venture that would be
required to be disclosed in a Form 8-K filing with the SEC if such Joint Venture were a
public company, such reports to be delivered promptly following such material development.

          (m) Transeastern JV.

          (i) In addition to the material to be delivered pursuant to Section 6.1(l) with
respect to EH/Transeastern, LLC, the Borrower shall report verbally to a designated
representative of the Administrative Agent, on a weekly basis or more frequently as
reasonably requested by the Administrative Agent, on (A) restructuring negotiations with
respect to restructuring of the financial obligations or capital structure of
EH/Transeastern, LLC and any obligations of the Borrower or any of its Subsidiaries with
respect thereto and (B) recourse obligations of the Borrower and TOUSA Homes, L.P. due and
owing under financing documents with respect to EH/Transeastern, LLC confirming that the
same have been fully performed (or specifying any that have not been fully performed, if
necessary).

          (ii) The Borrower shall promptly report verbally to a designated representative of the
Administrative Agent any (A) material

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development with respect to EH/Transeastern, LLC and (B) definitive agreement reached
with respect to restructuring of the financial obligations or capital structure of
EH/Transeastern, LLC and any obligations of the Borrower or any of its Subsidiaries with
respect thereto.

          (c) Section 6.8 of the March 2006 Credit Agreement is hereby amended by (i) inserting into
clauses (a), (b) and (c) of the first sentence “and Joint Ventures” after “the Borrower and each of
its Subsidiaries”, (ii) inserting at the end of clause (d) of the first sentence “and other
professionals retained by the Borrower, its Subsidiaries and Joint Ventures and hereby instructs
(on behalf of itself, its Subsidiaries and Joint Ventures) such accountants and other professionals
to cooperate with and provide information to the Administrative Agent”, (iii) inserting at
the end of the second sentence “and Joint Ventures”, and (iv) adding a new sentence to the end of
such Section 6.8 which shall read as follows: “Provisions in this Section 6.8 with respect to
Joint Ventures shall apply to Joint Ventures managed by the Borrower or any of its Subsidiaries and
in all other cases shall apply only to the extent of information received by the Borrower or any of
its Subsidiaries from the Joint Venture.”

          Section 2.09. Mortgage Requirements. A new Section 6.15 shall be added to the March 2006
Credit Agreement as follows:

          SECTION 6.15 Mortgage Requirements.

          (a) Completed Unsold Homes. The Administrative Agent shall be granted a Mortgage on
each Completed Unsold Home within 30 days of being “completed” (within the meaning of the
definition of Completed Unsold Home). A Completed Unsold Home that was previously included
in the Borrowing Base as a Sold Home may be included in the Borrowing Base upon recording
of a Mortgage without full satisfaction of the Mortgage Requirements, provided that the
Mortgage Requirements are satisfied in full within 30 days after the recording of such
Mortgage. Mortgages on Completed Unsold Homes as of the Amendment Effective Date,
including all related Mortgage Requirements, will be delivered no later than December 22,
2006.

          (b) Unsold Homes Under Construction. The Borrower and its Restricted Subsidiaries
will have the option to deliver Mortgages on Unsold Homes Under Construction to the extent
they desire to include such Unsold Homes Under Construction in the Borrowing Base. An
Unsold Home Under Construction that is included in the Borrowing Base will automatically
continue in the Borrowing Base as a Completed Unsold Home upon being “completed” (within
the meaning of the definition of Completed Unsold Home), provided that any Mortgage
Requirements for Completed Unsold Homes not then satisfied must

15

 

be satisfied within 30 days of such Unsold Home Under Construction becoming a
Completed Unsold Home in order for such Completed Unsold Home to remain in the Borrowing
Base.

          (c) Finished Lots, Land/Lots Under Development and Unimproved Land. Mortgages on
Finished Lots, Land/Lots Under Development and on Unimproved Land shall be released by the
Administrative Agent in whole or in part at the request of the Borrower without release
consideration so long as either (i) such Finished Lots, Land/Lots Under Development are
either replaced, at the Borrower’s option, by additional Finished Lots, Land/Lots Under
Development or Unimproved Land having at least equal value or (ii) such release occurs on
any date from the date of delivery of a monthly Borrowing Base Certificate to the
Administrative Agent to the calculation date of the next Borrowing Base Certificate
provided that such Borrowing Base Certificate confirms that after such release the
outstanding Loans and Letters of Credit will not exceed the updated Borrowing Base.

          (d) Mortgage Requirements. The following conditions (the “Mortgage Requirements”)
will be satisfied in connection with the granting of any Mortgage:

          (i) the Mortgage (A) will be in a principal amount equal to the appraised value of the
applicable Unit or Real Property, (B) in the case of a Mortgage on a Completed Unsold Home
or an Unsold Home Under Construction, will provide for a release price equal to the net
sales proceeds under a Contract for Sale for the applicable Unit, and (C) will otherwise be
in form and substance satisfactory to the Administrative Agent;

          (ii) determination of appraised value by a third party independent appraiser meeting
FIRREA requirements and selected by the Administrative Agent (for the account of the
Lenders) based upon FIRREA requirements, including, where appropriate, standards for mass
appraisals, and otherwise in form and substance satisfactory to the Administrative Agent;

          (iii) a Phase I environmental reports reviewed (and, as appropriate, updated) by an
independent environmental consultant retained by the Administrative Agent on behalf of the
Lenders, in form and substance satisfactory to the Administrative Agent;

          (iv) an ALTA/ACSM survey in form sufficient to remove the survey exception from the
title policy described below and showing no encumbrances other than those that do not and
will not materially impair the value

16

 

of the applicable Unit (and current construction in the case of any Unsold Home Under
Construction) and otherwise in form and substance satisfactory to the Administrative Agent
(such survey to be an as-built survey with respect to any Completed Unsold Home) but shall
not be required to show any physical improvements to the Mortgaged Property with respect to
any Unsold Home Under Construction;

          (v) a fully paid ALTA lender’s policy of title insurance in an amount equal to the
amount of the Mortgage, showing no exceptions that would materially impair the value of the
applicable Mortgaged Property, containing customary endorsements and otherwise in form and
substance satisfactory to the Administrative Agent, insuring the applicable Mortgage to be
a valid first and subsisting Lien on the applicable Mortgaged Property and containing no
exception for or affirmative insurance against mechanics’ and materialmen’s Liens;

          (vi) in the case of a Mortgage on a Completed Unsold Home or Unsold Home Under
Construction, a certificate of property insurance naming the Administrative Agent or third
party security agent as loss payee under property casualty coverages, and in all cases, a
certificate of liability insurance naming the Administrative Agent and any third party
security agent, the Lenders and the Issuers as additional insureds under liability
coverages.

          Section 2.10. Additional Affirmative Covenants.

          (a) A new Section 6.16 shall be added to the March 2006 Credit Agreement as follows:

          SECTION 6.16 Designated Account Deposits.

          (a) The Borrower shall, and shall cause each Guarantor to, cause all of its
Unrestricted Cash to be paid into and maintained in a Designated Account.

          (b) The Borrower shall, and shall cause each Guarantor to, (i) cause all payments made
to the Borrower or such Guarantor, as the case may be, to be deposited directly into a
Designated Account, (ii) cause all such payments constituting Escrow Proceeds Receivable
payable by an Affiliated Title Company to be paid by wire transfer into a Designated
Account.

          (b) A new Section 6.17 shall be added to the March 2006 Credit Agreement as follows:

17

 

          SECTION 6.17 Lien Searches

          Not later than November 30, 2006, the Borrower shall deliver to the Administrative
Agent UCC financing statement searches covering the Borrower in the office of the Secretary
of State of Delaware and covering each Guarantor in the appropriate office in its
jurisdiction of organization listed on Schedule 1 to the Security Agreement listing all
effective UCC financing statements filed in such jurisdictions naming the Borrower or such
Guarantor, as the case may be, as debtor, together with copies of all such effective UCC financing
statements.

          Section 2.11. Amendments to Negative Covenants.

          (a) Section 7.1 of the March 2006 Credit Agreement is hereby amended by amending and restating
clause (g) in its entirety and by inserting a new clause (h) as follows:

          (g) Liens securing the Obligations; and

          (h) Liens not otherwise permitted by clauses (a) through (f) above on Indebtedness not
in excess of $25,000,000;

          (b) Section 7.2(i) of the March 2006 Credit Agreement is hereby amended by inserting the
following at the end thereof:

; provided, further, that, it shall be a condition to any such
Investment that the Borrower and/or its Restricted Subsidiary acquiring such
Investment shall pledge and grant a security interest in its equity ownership
interest in such Unaffiliated Joint Venture or Unaffiliated Unrestricted Subsidiary
in favor of the Administrative Agent for the ratable benefit of the Lenders by
executing and/or delivering a Pledge Agreement, other related documents and
instruments and an opinion of legal counsel for such pledgor, each in form and
substance satisfactory to the Administrative Agent, except that the forgoing shall
not apply to such Investments of up to $25,000,000 in the aggregate if (x) the
Unaffiliated Joint Venture is one listed on Schedule 7.2 and (y) such pledge and
security interest would be prohibited by the terms of the Unaffiliated Joint
Venture or Unaffiliated Unrestricted Subsidiary operating agreement, partnership
agreement or similar ownership agreement or by any agreement to which such
Unaffiliated Joint Venture or Unaffiliated Unrestricted Subsidiary is a party;
provided, further, that no Investment shall be made in
EH/Transeastern, LLC without the consent of the Requisite Lenders.

18

 

          (c) A new Section 7.11 shall be added to the March 2006 Credit Agreement as follows:

          SECTION 7.11 Designated Account Proceeds

          The Borrower shall not, and shall not permit any Guarantor, to withdraw or to instruct
the transfer of any amounts from a Designated Account except for (i) transfers to another
Designated Account and (ii) so long as no Default or Event of Default shall have occurred
and be continuing, transfers to an account of the Borrower or any Guarantor that is not a
Designated Account solely for the purpose of paying current operating obligations of the
Borrower and the Guarantors incurred in the ordinary course of business as currently
conducted and each such transfer shall be deemed a representation by the Borrower of
compliance with such covenant.

          Section 2.12. Post-Event of Default Waterfall. Section 2.12(f) of the March 2006 Credit
Agreement is hereby amended by adding the following phrase following the words “in the following
order” and prior to the colon following such words:

(after first paying all expenses incurred by the Administrative Agent in the performance of
its duties and the enforcement of the rights of the Lenders and the Issuers under the Loan
Documents, including, without limitation, all costs and expenses of collection, reasonable
attorneys’ fees (including all allocated costs of internal counsel), court costs and other
amounts in respect of expense reimbursement and indemnities then due the Administrative
Agent in connection therewith)

          Section 2.13. Servicers. The last sentence of Section 9.1 of the March 2006 Credit Agreement
is hereby amended and restated as follows:

The Administrative Agent may perform any of its duties under any Loan Document by or
through its agents (which shall include, without limitation, any third party mortgage
servicers) or employees.

          Section 2.14. Change in Administrative Agent’s Counsel.

          (a) Section 10.3(a) of the March 2006 Credit Agreement is hereby amended by replacing
“Administrative Agent’s counsel, Cahill Gordon & Reindel LLP” with “Administrative Agent’s external
counsel”.

19

 

          (b) Section 10.8(d) of the March 2006 Credit Agreement is amended by deleting the notice
address for Cahill, Gordon & Reindel LLP and inserting the following in lieu thereof:

Chadbourne & Parke LLP

30 Rockefeller Plaza

New York, NY 10112

Attention: Andrew C. Coronios, Esq. and Joseph Smolinsky, Esq.

Telecopy no. (212) 541-5369

E-Mail Address: acoronios@chadbourne.com; jsmolinsky@chadbourne.com

          Section 2.15. Waiver Relating to Transeastern Events. The Lenders, the Issuers and the
Administrative Agent hereby waive any Default or Event of Default that has occurred or may have
occurred prior to the Amendment Effective Date solely as a result of a Material Adverse Change with
respect to TOUSA Homes, L.P. as a result of the Transeastern Events.

          Section 2.16. Release. Upon the Amendment Effective Date, each of the Borrower and each
Guarantor hereby absolutely and unconditionally releases, acquits and forever discharges the
Administrative Agent, the Issuer and each Lender (other than any Non-Funding Lender) from any and
all manner of claims, demands, actions, causes of action and damages that the Borrower or any
Guarantor may have as of the Amendment Effective Date on account of or in any way arising out of
any and all damages or consequences of any act or omission related to this Amendment or the March
2006 Credit Agreement or the transactions contemplated hereby or thereby.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

          Section 3.01. Representations and Warranties.

          (a) The Borrower represents and warrants to the Administrative Agent, each Issuer and each
Lender that, as of the Amendment Effective Date, and after giving effect to this Amendment, the
representations and warranties set forth in Article IV of the March 2006 Credit Agreement and in
the other Loan Documents are true and correct on and as of the Amendment Effective Date with the
same effect as though made on and as of such date, except to the extent such representations and
warranties expressly relate to an earlier date, in which case such representation and warranties
were true and correct on and as of such earlier date.

20

 

          (b) Each Guarantor hereby represents and warrants to the Administrative Agent, each Issuer and
each Lender that, as of the Amendment Effective Date, and after giving effect to this Amendment,
the representations and warranties as to it made by the Borrower in Article IV of the March 2006
Credit Agreement are true and correct on and as of the Amendment Effective Date with the same
effect as though made on and as of such date, except to the extent such representations and
warranties expressly relate to an earlier date, in which case such representation and warranties
were true and correct on and as of such earlier date.

          (c) the
Borrower represents that as of the date hereof, after giving effect
to Loans and Letters of Credit Issuances requested on or prior to the
date of this Amendment, the sum of the property of the Borrower and
the property of the Subsidiary Guarantors, taken as a whole and at a
fair valuation, exceeds the sum of the debts of the Borrower and the
Subsidiary Guarantors, taken as a whole.

          Section 3.02. No Default. Each of the Loan Parties represents and warrants to the
Administrative Agent, each Issuer and each Lender that, as of the Amendment Effective Date, and
after giving effect to this Amendment, no Default or Event of Default has occurred and is
continuing.

ARTICLE IV

EFFECTIVENESS

          Section 4.01. Conditions to Effectiveness. This Amendment will become effective on and as of
the first date (the “Amendment Effective Date”) on which all of the following conditions precedent
shall have been first satisfied (unless waived by the Requisite Lenders), provided that the
Amendment Effective Date shall not occur later than 4:00 p.m. (New York City time) on October 23,
2006:

          (a) Certain Documents. The Administrative Agent shall have received each of the following,
each dated as of the Amendment Effective Date unless otherwise indicated or agreed to by the
Administrative Agent, in form and substance satisfactory to the Administrative Agent:

     (i) this Amendment, duly executed and delivered by the Borrower, each Guarantor, the
Administrative Agent, the Issuer and the Requisite Lenders;

     (ii) the Security Agreement, duly executed by the Borrower, each Guarantor and the
Administrative Agent;

     (iii) the Deposit Account Control Agreements with respect to the Borrower and TOUSA
Homes, Inc.;

     (iv) evidence reasonably satisfactory to the Administrative Agent that proper
financing statements have been duly filed under the UCC of all applicable jurisdictions
that the Administrative Agent may deem necessary or desirable in order to perfect and
protect the first priority security interests created under the Security Agreement,
covering the Collateral described therein;

21

 

     (v) a favorable opinion of Greenberg Traurig, LLP and Greenberg Traurig, P.A., counsel
to the Loan Parties in substantially the form of Exhibit E hereto;

     (vi) a copy of the articles or certificate of incorporation (or equivalent Constituent
Document) of each Loan Party, certified as of a recent date by the Secretary of State of
the state of organization or formation of such Loan Party, together with certificates of
such official attesting to the good standing of each such Loan Party (unless waived by the
Administrative Agent for a period of up to 30 days);

     (vii) a certificate of the Secretary or an Assistant Secretary of each Loan Party
certifying (A) the names and true signatures of each officer of such Loan Party who has
been authorized to execute and deliver any Loan Document or other document required
hereunder to be executed and delivered by or on behalf of such Loan Party, (B) the by-laws
(or equivalent Constituent Document) of such Loan Party as in effect on the date of such
certification, (C) the resolutions of such Loan Party’s Board of Directors (or equivalent
governing body) approving and authorizing the execution, delivery and performance of this
Amendment and the other Loan Documents to which it is a party and (D) that there have been
no changes in the certificate of incorporation (or equivalent Constituent Document) of such
Loan Party from the certificate of incorporation (or equivalent Constituent Document)
delivered pursuant to the immediately preceding clause vi;

     (viii) a certificate of a Responsible Officer to the effect that after giving effect
to this Amendment (A) there is no Default or Event of Default which has occurred and is
continuing under the March 2006 Credit Agreement and (B) the representations and warranties
set forth in Article IV of the March 2006 Credit Agreement, in this Amendment and in the
other Loan Documents shall be true and correct as of the Amendment Effective Date, except
to the extent such representations and warranties expressly relate to an earlier date, in
which case such representation and warranties shall have been true and correct on and as of
such earlier date;

     (ix) a Borrowing Base Certificate otherwise complying with the provisions of Section
6.1(i) calculated as of September 30, 2006; and

     (x) such other certificates, documents, agreements and information respecting any Loan
Party as any Lender that has delivered an executed counterpart of this Amendment may,
through the Administrative Agent, reasonably request.

22

 

          (b) Fee and Expenses Paid. There shall have been paid to the Administrative Agent, for the
account of the Administrative Agent and the Lenders, as applicable, all fees due and payable on or
before the Amendment Effective Date (including all such fees described in the fee letter entered
into between the Borrower and the Administrative Agent and all reasonable fees and expenses of
counsel for which invoices in reasonable detail have been presented), and all expenses due and
payable on or before the Amendment Effective Date.

          (c) Consents, Etc. Each of the Borrower and its Restricted Subsidiaries shall have received
all material consents and authorizations required pursuant to any material Contractual Obligation
with any other Person and shall have obtained all material consents and authorizations of, and
effected all notices to and filings with, any Governmental Authority, in each case, as may be
necessary to allow each of the Borrower and its Restricted Subsidiaries lawfully to execute,
deliver and perform, in all material respects, their respective obligations hereunder, and under
the Loan Documents to which each of them, respectively, is, or shall be, a party and each other
agreement or instrument to be executed and delivered by each of them, respectively, pursuant
thereto or in connection therewith.

          Section 4.02. Amendment Fee. Provided that this Amendment becomes effective no later than
October 23, 2006, the Borrower will pay to each Lender who has delivered to the Administrative
Agent an executed counterpart of this Amendment no later than Monday, October 23, 2006, a fee equal
to 5 bps (0.05%) of the Revolving Credit Commitment of such Lender. Such fees, if payable, will be
paid by the Borrower on the Business Day following the Amendment Effective Date.

          Section 4.03. Effective Date Paydown. On the Amendment Effective Date, the Borrower will
repay in full all outstanding Loans.

          Section 4.04. References to Agreement. The March 2006 Credit Agreement and this Amendment
shall be read, taken and construed as one and the same instrument from and after the Amendment
Effective Date. Any references in the March 2006 Credit Agreement to “this Agreement”,
“hereunder”, “herein” or words of like import, and each reference in any other document executed in
connection with the March 2006 Credit Agreement (including without limitation, the Notes), to “the
Agreement”, “thereunder”, “therein” or words of like import, shall, from and after the Amendment
Effective Date, mean and be a reference to the March 2006 Credit Agreement as amended hereby.

          Section 4.05. Continued Effectiveness; Ratification of Loan Documents. The March 2006 Credit
Agreement and the other Loan Documents, as

23

 

           modified by this Amendment, are and shall continue to be in full force and effect and are
hereby ratified and confirmed in all respects.

          Section 4.06. Reservation of Rights. This Amendment shall be effective only in the specific
instance and for the specific purpose for which given. The Lenders, the Issuers and the
Administrative Agent expressly reserve the right to exercise any remedies they may have under the
Loan Documents at any time without notice to the Borrower or any other person or entity other than
as required in the March 2006 Credit Agreement or other Loan Document.

ARTICLE V

MISCELLANEOUS

          Section 5.01. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement. Signature pages may be detached from multiple separate counterparts and attached to a
single counterpart so that all signature pages are attached to the same document. Delivery of an
executed signature page of this Amendment by facsimile transmission shall be as effective as
delivery of a manually executed counterpart hereof. A set of the copies of this Amendment signed
by all parties shall be lodged with the Borrower and the Administrative Agent.

          Section 5.02. Fees, Costs and Expenses.

          (a) The Borrower agrees upon demand to pay, or reimburse the Administrative Agent for, all of
the Administrative Agent’s reasonable internal and external audit, legal, appraisal, valuation,
filing, lien search, document duplication and reproduction and investigation expenses and for all
other reasonable out-of-pocket costs and expenses of every type and nature (including, without
limitation, after receipt of invoice documentation, the reasonable fees, expenses and disbursements
of the Administrative Agent’s external counsel, local legal counsel, auditors, accountants,
appraisers, printers, insurance and environmental advisors, servicers of the Mortgages, and other
consultants and agents) incurred by the Administrative Agent in (i) the preparation, negotiation
and execution of this Amendment and any other Loan Documents, (ii) the filing, recording and
perfection of the Collateral Documents and (iii) in accepting any Mortgage.

          (b) The Borrower agrees to pay to the Administrative Agent all fees due and payable on or
before the Amendment Effective Date (including all such fees described in the fee letter entered
into between the Borrower and the Administrative Agent).

24

 

          Section 5.03. Loan Document. This Amendment shall be deemed to be a Loan Document.

          Section 5.04. Binding Effect. This Amendment shall become effective when it shall have been
executed by the Borrower, the Guarantors, the Administrative Agent and the Requisite Lenders and
thereafter shall be binding upon and inure to the benefit of the Borrower, the Administrative Agent
and each Lender and Issuer and, in each case, their respective successors and assigns.

          Section 5.05. Governing Law. This Amendment and the rights and obligations of the parties
hereto shall be governed by, and construed and interpreted in accordance with, the law of the State
of New York.

          Section 5.06. Submission to Jurisdiction. Any legal action or proceeding with respect to this
Amendment or any other Loan Document may be brought in the courts of the State of New York sitting
in the City of New York or of the United States of America for the Southern District of New York,
and, by execution and delivery of this Amendment, the Borrower and each Guarantor hereby accepts
for itself and in respect of its property, generally and unconditionally, the jurisdiction of the
aforesaid courts. The parties hereto hereby irrevocably waive any objection, including any
objection to the laying of venue or based on the grounds of forum non conveniens, that any of them
may now or hereafter have to the bringing of any such action or proceeding in such respective
jurisdictions.

          Section 5.07. WAIVER OF JURY TRIAL. EACH OF THE ADMINISTRATIVE AGENT, THE LENDERS, THE
ISSUERS, THE BORROWER AND EACH SUBSIDIARY IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR
PROCEEDING WITH RESPECT TO THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT.

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of
the day and year first above written.

[Remainder of Page Intentionally Left Blank; Signature Pages Follow]

25

 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	BORROWER:

TECHNICAL OLYMPIC USA, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 
	 

	 	   GUARANTORS:
	 
	 	 
	 

	 	ENGLE HOMES RESIDENTIAL CONSTRUCTION, L.L.C.
	 
	 	 
	 

	 	ENGLE/JAMES, LLC
	 
	 	 
	 

	 	MCKAY LANDING, LLC
	 
	 	 
	 

	 	NEWMARK HOMES, LLC
	 
	 	 
	 

	 	TOUSA VENTURES, LLC
	 
	 	 
	 

	 	By:   TOUSA HOMES, INC., the sole member

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Randy Kotler 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

	 	 	 
	 

	 	TOUSA HOMES, L.P.
	 
	 	 
	 

	 	TOUSA HOMES FLORIDA, L.P. F/K/A TOUSA HOMES INVESTMENT #1, L.P.
	 
	 	 
	 

	 	By:    TOUSA LLC, as General Partner

	 	 	 
	 

	 	By: TECHNICAL OLYMPIC USA, INC., 
      its sole member

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Randy Kotler 	 
	 	 	Title:  	Senior Vice President, Chief Accounting Officer, Interim Chief
Financial Officer 	 
	 

 

 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 
	 

	 	   GUARANTORS (continued):
	 
	 	 
	 

	 	TOUSA HOMES ARIZONA, LLC F/K/A TOUSA INVESTMENT #1, LLC
	 
	 	 
	 

	 	TOUSA HOMES COLORADO, LLC F/K/A TOUSA INVESTMENT #2, LLC
	 
	 	 
	 

	 	TOUSA HOMES NEVADA, LLC F/K/A TOUSA INVESTMENT #3, LLC
	 
	 	 
	 

	 	TOUSA HOMES MID-ATLANTIC HOLDING, LLC F/K/A TOUSA INVESTMENT #4, LLC
	 
	 	 
	 

	 	TOUSA HOMES MID-ATLANTIC, LLC F/K/A TOUSA INVESTMENT #5, LLC
	 
	 	 
	 

	 	TOI, LLC
	 
	 	 
	 

	 	TOUSA, LLC
	 
	 	 
	 

	 	By:    TECHNICAL OLYMPIC USA, INC., as sole member

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Randy Kotler 	 
	 	 	Title:  	Senior Vice President,

Chief Accounting Officer, Interim

Chief Financial Officer 	 
	 

 

 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 
	 

	 	   GUARANTORS (continued):
	 
	 	 
	 

	 	TOUSA HOMES, INC.
	 
	 	 
	 

	 	TOUSA HOMES INVESTMENT #1, INC.
	 
	 	 
	 

	 	TOUSA HOMES INVESTMENT #2, INC.
	 
	 	 
	 

	 	TOUSA REALTY, INC. F/K/A TOUSA INVESTMENT #1, INC.
	 
	 	 
	 

	 	TOUSA INVESTMENT #2, INC.
	 
	 	 
	 

	 	TOUSA/WEST HOLDINGS, INC.
	 
	 	 
	 

	 	TOUSA DELAWARE, INC.
	 
	 	 
	 

	 	ENGLE HOMES DELAWARE, INC.
	 
	 	 
	 

	 	PREFERRED BUILDERS REALTY, INC.
	 
	 	 
	 

	 	TOUSA ASSOCIATES SERVICES COMPANY

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Randy Kotler 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

 

 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 
	 

	 	GUARANTORS (continued):
	 
	 	 
	 

	 	TOUSA HOMES INVESTMENT #2, LLC
	 
	 	 
	 

	 	TOUSA MID-ATLANTIC INVESTMENT, LLC
	 
	 	 
	 

	 	By:    TOUSA HOMES, L.P., as sole member

	 	 	 	 	 	 	 
	 	 	By:	 	TOUSA, LLC, its general partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	TECHNICAL OLYMPIC USA, INC., its sole member

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Randy Kotler 	 
	 	 	Title:  	Senior Vice President,
Chief Accounting Officer and Interim Chief Financial Officer 	 
	 

	 	 	 
	 

	 	TOUSA FUNDING, LLC
	 
	 	 
	 

	 	By: TOUSA /WEST Holdings, Inc., its sole member

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Randy Kotler 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

	 	 	 	 	 
	 	NEWMARK HOMES BUSINESS TRUST

 	 
	 	By:  	 	 
	 	 	Name:  	Randy Kotler 	 
	 	 	Title:  	Managing Trustee 	 
	 

 

 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 
	 

	 	GUARANTORS (continued):
	 
	 	 
	 

	 	NEWMARK HOMES PURCHASING, L.P.
	 
	 	 
	 

	 	By:    NEWMARK HOMES, L.P., as General Partner

	 	 	 
	 

	 	By: TOUSA HOMES, INC., its General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Randy Kotler 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

	 	 	 
	 

	 	SILVERLAKE INTERESTS, L.C.
	 
	 	 
	 

	 	By: TOUSA HOMES, INC., its sole manager

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Randy Kotler 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

 

 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 
	 

	 	GUARANTORS (continued):
	 
	 	 
	 

	 	NEWMARK HOMES, L.P.
	 
	 	 
	 

	 	By:    TOUSA HOMES, INC., its General Partner

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Randy Kotler 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

	 	 	 
	 

	 	LORTON SOUTH CONDOMINIUMS, LLC
	 
	 	 
	 

	 	By:    TOUSA HOMES, INC., its Sole Member

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Randy Kotler 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

	 	 	 
	 

	 	ENGLE HOMES COMMERCIAL CONSTRUCTION, LLC
	 
	 	 
	 

	 	By: TOUSA HOMES ARIZONA, LLC, its Sole Member

	 	 	 
	 

	 	By: TECHNICAL OLYMPIC USA, INC., as sole member

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Randy Kotler 	 
	 	 	Title:  	Senior Vice President, 
Chief Accounting Officer,

Interim Chief
 Financial Officer 	 
	 

 

 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	CITICORP NORTH AMERICA, INC.,

as Administrative Agent and a Lender

 	 
	 	By:  	/s/ Jeanne
M. Craig	 
	 	 	Name:  	Jeanne
M. Craig 	 
	 	 	Title:  	Vice President 	 
	 

 

 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	CITIBANK, N.A., as an Issuer

 	 
	 	By:  	/s/
Jeanne M. Craig 	 
	 	 	Name:  	Jeanne M. Craig 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

     [Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., as a Lender

 	 
	 	By:  	/s/
Michael O’Keefe 	 
	 	 	Name:  	Michael O’Keefe 	 
	 	 	Title:  	Associate 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	WACHOVIA BANK, N.A., as a Lender

 	 
	 	By:  	/s/
Bruce W. Perrine, Jr. 	 
	 	 	Name:  	Bruce W. Perrine, Jr. 	 
	 	 	Title:  	Senior Vice President 	 

	 	 	 	 	 
	 	 	 
	 	By:  	/s/
Kevin J. Cole 	 
	 	 	Name:  	Kevin J. Cole 	 
	 	 	Title:  	Assistant Vice President 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	BANK OF THE WEST, a California Banking

Corporation, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	BRANCH BANKING AND TRUST COMPANY, as a Lender

 	 
	 	By:  	/s/
Anne C. Grandy 	 
	 	 	Name:  	Anne C. Grandy 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	BANKUNITED, FSB, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	CALYON NEW YORK BRANCH, as a Lender

 	 
	 	By:  	/s/
David P. Cagle
 	 
	 	 	Name:  	David P. Cagle 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	/s/
Robert S. Smith
 	 
	 	 	Name:  	Robert S. Smith 	 
	 	 	Title:  	Managing Director 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	COMPASS BANK, an Alabama banking corporation, as

a Lender

 	 
	 	By:  	/s/
Johanna Duke Paley 	 
	 	 	Name:  	Johanna Duke Paley 	 
	 	 	Title:  	Senior Vice President 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	COMERICA BANK, as a Lender

 	 
	 	By:  	/s/
Charles Weddell 	 
	 	 	Name:  	Charles Weddell 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as a Lender

 	 
	 	By:  	/s/
Bill O’Daly 	 
	 	 	Name:  	Bill O’Daly 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	/s/
Cassandra Drogan
 	 
	 	 	Name:  	Cassandra Drogan 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	FORTIS BANK S.A./N.V., CAYMAN
ISLANDS BRANCH, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	GUARANTY BANK, as a Lender

 	 
	 	By:  	/s/
Atila Ali 	 
	 	 	Name:  	Atila Ali 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	NATEXIS BANQUES POPULAIRES, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	NATIONAL CITY BANK, as a Lender

 	 
	 	By:  	/s/
John M. Osberg 	 
	 	 	Name:  	John M. Osberg 	 
	 	 	Title:  	Senior Vice President 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	/s/
Douglas G. Paul 	 
	 	 	Name:  	Douglas G. Paul 	 
	 	 	Title:  	Senior Vice President 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	RAYMOND JAMES BANK, FSB, as a Lender

 	 
	 	By:  	/s/
William J. Hindman 	 
	 	 	Name:  	William J. Hindman 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	SOVEREIGN BANK, as a Lender

 	 
	 	By:  	/s/
T. Gregory Donohue 	 
	 	 	Name:  	T. Gregory Donohue 	 
	 	 	Title:  	Senior Vice President 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	UBS LOAN FINANCE, LLC, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

 

 

	 	 	 	 	 

[Signature Page to Amendment No. 1 to Credit Agreement]

	 	 	 	 	 
	 	WASHINGTON MUTUAL BANK, as a Lender

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:EX-10.1

 

Exhibit 10.1

Description of the Material Terms of Max & Erma’s Restaurants, Inc.’s

Fiscal 2007 Executive Compensation Program

Base Salaries for Fiscal 2007

Todd B. Barnum, Chairman and Chief Executive Officer – $380,000

Robert A. Lindeman, President – $265,000

William C. Niegsch, Jr., Executive Vice President and Chief Financial Officer – $230,000

James E. Howenstein, Chief Operating Officer – $175,000

Executive Cash Bonus Program

     The Company’s Executive Cash Bonus Program is based on the Company achieving certain objective
performance criteria. A fixed bonus (“Fixed Bonus”) will be paid to the executive officers in
accordance with the following table if the Company achieves certain targeted adjusted operating
earnings for fiscal 2007. In addition, a certain percentage of higher adjusted operating earnings
for fiscal 2007 will be assigned to a bonus pool (“Bonus Pool”), a percentage of which will be paid
to the executive officers in accordance with the following table.

	 	 	 	 	 	 	 
	Executive	 	Fixed Bonus	 	Bonus Pool
	Mr. Barnum –

	 	$	10,000	 	 	20% of the Bonus Pool
	 
	 	 	 	 	 	 
	Mr. Lindeman –

	 	$	25,000	 	 	40% of the Bonus Pool
	 
	 	 	 	 	 	 
	Mr. Niegsch –

	 	$	10,000	 	 	20% of the Bonus Pool
	 
	 	 	 	 	 	 
	Mr. Howenstein –

	 	$	10,000	 	 	10% of the Bonus Pool

Additional Cash Bonus Program

	 	 	 
	Executive	 	Bonus
	Mr. Howenstein –

	 	$25,000 bonus per each specified increment of increases
in same store sales in fiscal 2007 over fiscal 2006

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]