Document:

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                                                                    EXHIBIT 4.14
                                                               EXECUTION VERSION

                           TECHNICAL OLYMPIC USA, INC.

                                  $100,000,000

                            9% Senior Notes Due 2010

                          REGISTRATION RIGHTS AGREEMENT

                                                              New York, New York
                                                                February 3, 2003

Salomon Smith Barney Inc.
Deutsche Bank Securities Inc.
Fleet Securities, Inc.
As Representatives of the Initial Purchasers
c/o Salomon Smith Barney Inc.
388 Greenwich Street
New York, New York 10013

Dear Sirs:

                  Technical Olympic USA, Inc., a corporation organized under the
laws of the State of Delaware (the "Company"), proposes to issue and sell to
certain purchasers (the "Initial Purchasers"), upon the terms set forth in a
purchase agreement, dated January 29, 2003 (the "Purchase Agreement"),
$100,000,000 aggregate principal amount of its 9% Senior Notes due 2010 (the
"Notes") relating to the initial placement of the Notes (the "Initial
Placement"). The Notes will be unconditionally guaranteed (the "Guarantees" and
together with the Notes, the "Securities") on a senior basis by each of the
Company's direct and indirect domestic subsidiaries set forth on the signature
page hereto (the "Guarantors"). To induce the Initial Purchasers to enter into
the Purchase Agreement and to satisfy a condition of your obligations
thereunder, the Company and the Guarantors agree with you for your benefit and
the benefit of the holders from time to time of the Securities (including the
Initial Purchasers) and the New Securities (as defined herein) (each a "Holder"
and, together, the "Holders"), as follows:

                  1.       Definitions. Capitalized terms used herein without
definition shall have their respective meanings set forth in the Purchase
Agreement. As used in this Agreement, the following capitalized defined terms
shall have the following meanings:

                  "Act" shall mean the Securities Act of 1933, as amended, and
the rules and regulations of the Commission promulgated thereunder.

                  "Affiliate" of any specified Person shall mean any other
Person that, directly or indirectly, is in control of, is controlled by, or is
under common control with, such specified Person. For purposes of this
definition, control of a Person shall mean the power, direct or

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indirect, to direct or cause the direction of the management and policies of
such Person whether by contract or otherwise; and the terms "controlling" and
"controlled" shall have meanings correlative to the foregoing.

                  "Broker-Dealer" shall mean any broker or dealer registered as
such under the Exchange Act.

                  "Business Day" shall mean any day other than a Saturday, a
Sunday or a legal holiday or a day on which banking institutions or trust
companies are authorized or obligated by law to close in New York City.

                  "Commission" shall mean the Securities and Exchange
Commission.

                  "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended, and the rules and regulations of the Commission promulgated
thereunder.

                  "Exchange Offer Registration Period" shall mean the 180-day
period following the consummation of the Registered Exchange Offer, exclusive of
any period during which any stop order shall be in effect suspending the
effectiveness of the Exchange Offer Registration Statement, or such shorter
period as will terminate when all New Securities held by Exchanging Dealers or
Initial Purchasers have been sold pursuant thereto.

                  "Exchange Offer Registration Statement" shall mean a
registration statement of the Company and the Guarantors on an appropriate form
under the Act with respect to the Registered Exchange Offer, all amendments and
supplements to such registration statement, including post-effective amendments
thereto, in each case including the Prospectus contained therein, all exhibits
thereto and all material incorporated by reference therein.

                  "Exchanging Dealer" shall mean any Holder (which may include
any Initial Purchaser) that is a Broker-Dealer and elects to exchange for New
Securities any Securities that it acquired for its own account as a result of
market-making activities or other trading activities (but not directly from the
Company or any Affiliate of the Company).

                  "Final Memorandum" shall have the meaning set forth in the
Purchase Agreement.

                  "Holder" shall have the meaning set forth in the preamble
hereto.

                  "Indenture" shall mean the Indenture relating to the
Securities, dated as of February 3, 2003, between the Company, the Guarantors
and Wells Fargo Bank Minnesota, National Association, as trustee, as the same
may be amended from time to time in accordance with the terms thereof.

                  "Initial Placement" shall have the meaning set forth in the
preamble hereto.

                  "Initial Purchasers" shall have the meaning set forth in the
preamble hereto.

                  "Losses" shall have the meaning set forth in Section 7(d)
hereof.

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                  "Majority Holders" shall mean the Holders of a majority of the
aggregate principal amount of Securities and/or New Securities, as applicable,
registered under a Registration Statement.

                  "Managing Underwriters" shall mean the investment banker or
investment bankers and manager or managers that shall administer an underwritten
offering.

                  "New Notes" shall mean debt securities of the Company,
guaranteed by the Guarantors, identical in all material respects to the Notes
(except that the cash interest and interest rate step-up provisions and the
transfer restrictions shall be modified or eliminated, as appropriate) and to be
issued under the Indenture or the New Securities Indenture.

                  "New Securities" shall mean debt securities of the Company and
the related guarantees of the Guarantors, identical in all material respects to
the Securities (except that the cash interest and interest rate step-up
provisions and the transfer restrictions shall be modified or eliminated, as
appropriate) and to be issued under the Indenture or the New Securities
Indenture.

                  "New Securities Indenture" shall mean an indenture between the
Company, the Guarantors and the New Securities Trustee, identical in all
material respects to the Indenture (except that the cash interest and interest
rate step-up provisions will be modified or eliminated, as appropriate).

                  "New Securities Trustee" shall mean a bank or trust company
reasonably satisfactory to the Initial Purchasers, as trustee with respect to
the New Securities under the New Securities Indenture.

                  "Prospectus" shall mean the prospectus included in any
Registration Statement (including, without limitation, a prospectus that
discloses information previously omitted from a prospectus filed as part of an
effective registration statement in reliance upon Rule 430A under the Act), as
amended or supplemented by any prospectus supplement, with respect to the terms
of the offering of any portion of the Securities or the New Securities covered
by such Registration Statement, and all amendments and supplements thereto and
all material incorporated by reference therein.

                  "Purchase Agreement" shall have the meaning set forth in the
preamble hereto.

                  "Registered Exchange Offer" shall mean the proposed offer of
the Company to issue and deliver to the Holders of the Securities that are not
prohibited by any law or policy of the Commission from participating in such
offer, in exchange for the Securities, a like aggregate principal amount of the
New Notes and Related Guarantees.

                  "Registration Statement" shall mean any Exchange Offer
Registration Statement or Shelf Registration Statement that covers any of the
Securities or the New Securities pursuant to the provisions of this Agreement,
any amendments and supplements to such registration statement, including
post-effective amendments (in each case including the Prospectus contained
therein), all exhibits thereto and all material incorporated by reference
therein.

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                  "Related Guarantees" shall mean the guarantees of the
Guarantors to be issued under the Indenture or the New Securities Indenture in
respect of New Notes.

                  "Securities" shall have the meaning set forth in the preamble
hereto.

                  "Shelf Registration" shall mean a registration effected
pursuant to Section 3 hereof.

                  "Shelf Registration Period" has the meaning set forth in
Section 3(b) hereof.

                  "Shelf Registration Statement" shall mean a "shelf"
registration statement of the Company and the Guarantors pursuant to the
provisions of Section 3 hereof which covers some or all of the Securities and/or
New Securities, as applicable, on an appropriate form under Rule 415 under the
Act, or any similar rule that may be adopted by the Commission, amendments and
supplements to such registration statement, including post-effective amendments,
in each case including the Prospectus contained therein, all exhibits thereto
and all material incorporated by reference therein.

                  "Trustee" shall mean the trustee with respect to the
Securities and New Securities under the Indenture.

                  "Underwriter" shall mean any underwriter of Securities or New
Securities in connection with an offering thereof under a Registration
Statement.

                  2.       Registered Exchange Offer.

                           (a)      The Company and the Guarantors shall
         prepare, at their cost, and, not later than 90 days following the date
         of the original issuance of the Securities (or if such 90th day is not
         a Business Day, the next succeeding Business Day), shall file with the
         Commission the Exchange Offer Registration Statement with respect to
         the Registered Exchange Offer. The Company and the Guarantors shall use
         their best efforts to cause the Exchange Offer Registration Statement
         to become effective under the Act not later than 180 days following the
         date of the original issuance of the Securities (or if such 180th day
         is not a Business Day, the next succeeding Business Day).

                           (b)      Upon the effectiveness of the Exchange Offer
         Registration Statement, the Company and the Guarantors shall promptly
         commence the Registered Exchange Offer, it being the objective of such
         Registered Exchange Offer to enable each Holder electing to exchange
         Securities for New Securities (assuming that such Holder is not an
         Affiliate of the Company, acquires the New Securities in the ordinary
         course of such Holder's business, has no arrangements with any Person
         to participate in the distribution of the New Securities and is not
         prohibited by any law or policy of the Commission from participating in
         the Registered Exchange Offer) and to trade such New Securities from
         and after their receipt without any limitations or restrictions under
         the Act and without material restrictions under the securities laws of
         a substantial proportion of the several states of the United States.

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                           (c)      In connection with the Registered Exchange
         Offer, the Company and the Guarantors shall:

                                    (i)      mail to each Holder a copy of the
                  Prospectus forming part of the Exchange Offer Registration
                  Statement, together with an appropriate letter of transmittal
                  and related documents;

                                    (ii)     keep the Registered Exchange Offer
                  open for not less than 20 business days and not more than 45
                  days after the date notice thereof is mailed to the Holders
                  (or, in each case, longer if required by applicable law);

                                    (iii)    use their best efforts to keep the
                  Exchange Offer Registration Statement continuously effective
                  under the Act, supplemented and amended as required, under the
                  Act to ensure that it is available for sales of New Securities
                  by Exchanging Dealers or the Initial Purchasers during the
                  Exchange Offer Registration Period;

                                    (iv)     utilize the services of a
                  depositary for the Registered Exchange Offer with an address
                  in the Borough of Manhattan in New York City, which may be the
                  Trustee, the New Securities Trustee or an Affiliate of either
                  of them;

                                    (v)      permit Holders to withdraw tendered
                  Securities at any time prior to the close of business, New
                  York time, on the last Business Day on which the Registered
                  Exchange Offer is open;

                                    (vi)     prior to effectiveness of the
                  Exchange Offer Registration Statement, provide a supplemental
                  letter to the Commission (A) stating that the Company and the
                  Guarantors are conducting the Registered Exchange Offer in
                  reliance on the position of the Commission in Exxon Capital
                  Holdings Corporation (pub. avail. May 13, 1988), Morgan
                  Stanley and Co., Inc. (pub. avail. June 5, 1991); and
                  (B) including a representation that the Company and the
                  Guarantors have not entered into any arrangement or
                  understanding with any Person to distribute the New Securities
                  to be received in the Registered Exchange Offer and that, to
                  the best of their information and belief, each Holder
                  participating in the Registered Exchange Offer is acquiring
                  the New Securities in the ordinary course of business and has
                  no arrangement or understanding with any Person to participate
                  in the distribution of the New Securities; and

                                    (vii)    comply in all material respects
                  with all applicable laws.

                           (d)      As soon as practicable after the close of
         the Registered Exchange Offer, the Company and the Guarantors shall:

                                    (i)      accept for exchange all Notes
                  tendered and not validly withdrawn pursuant to the Registered
                  Exchange Offer;

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                                    (ii)     deliver to the Trustee for
                  cancellation in accordance with Section 5(s) all Notes so
                  accepted for exchange; and

                                    (iii)    cause the Trustee or New Securities
                  Trustee, as the case may be, promptly to authenticate and
                  deliver to each Holder of Securities a principal amount of New
                  Notes equal to the principal amount of the Notes of such
                  Holder so accepted for exchange.

                           (e)      Each Holder hereby acknowledges and agrees
         that any Broker-Dealer and any such Holder using the Registered
         Exchange Offer to participate in a distribution of the New Securities
         (x) could not under Commission policy as in effect on the date of this
         Agreement rely on the position of the Commission in Morgan Stanley and
         Co., Inc. (pub. avail. June 5, 1991) and Exxon Capital Holdings
         Corporation (pub. avail. May 13, 1988), as interpreted in the
         Commission's letter to Shearman & Sterling dated July 2, 1993 and
         similar no-action letters; and (y) must comply with the registration
         and prospectus delivery requirements of the Act in connection with any
         secondary resale transaction which must be covered by an effective
         registration statement containing the selling security holder
         information required by Item 507 or 508, as applicable, of Regulation
         S-K under the Act if the resales are of New Securities obtained by such
         Holder in exchange for Securities acquired by such Holder directly from
         the Company or one of its Affiliates. Accordingly, each Holder
         participating in the Registered Exchange Offer shall be required to
         represent to the Company and the Guarantors that, at the time of the
         consummation of the Registered Exchange Offer:

                                    (i)      any New Securities received by such
                  Holder will be acquired in the ordinary course of business;

                                    (ii)     such Holder will have no
                  arrangement or understanding with any Person to participate in
                  the distribution of the Securities or the New Securities
                  within the meaning of the Act;

                                    (iii)    such Holder is not an Affiliate of
                  the Company or any of the Guarantors or if it is an Affiliate,
                  such Holder will comply with the registration and prospectus
                  delivery requirements of the Act to the extent applicable;

                                    (iv)     if such Holder is not a
                  Broker-Dealer, that it is not engaged in, and does not intend
                  to engage in, the distribution of the New Securities; and

                                    (v)      if such Holder is a Broker-Dealer,
                  that it will receive New Securities for its own account in
                  exchange for Securities that were acquired as a result of
                  market-making activities or other trading activities and that
                  it will deliver a prospectus in connection with any resale of
                  such New Securities.

                           (f)      If any Initial Purchaser determines that it
         is not eligible to participate in the Registered Exchange Offer with
         respect to the exchange of Securities constituting any portion of an
         unsold allotment, at the request of such Initial Purchaser, the Company
         and the Guarantors shall issue and deliver to such Initial Purchaser or
         the

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         Person purchasing New Securities registered under a Shelf Registration
         Statement as contemplated by Section 3 hereof from such Initial
         Purchaser, in exchange for such Securities, a like principal amount of
         New Notes and Related Guarantees. The Company and the Guarantors shall
         use their reasonable efforts to cause the CUSIP Service Bureau to issue
         the same CUSIP number for such New Securities as for New Securities
         issued pursuant to the Registered Exchange Offer.

                  3.       Shelf Registration.

                           (a)      If (i) due to any change in law or
         applicable interpretations thereof by the Commission's staff, the
         Company determines upon advice of its outside counsel that it is not
         permitted to effect the Registered Exchange Offer as contemplated by
         Section 2 hereof; (ii) for any other reason the Exchange Offer
         Registration Statement is not declared effective within 180 days
         following the date of the original issuance of the Securities or the
         Registered Exchange Offer is not consummated within 45 days following
         the date that is 180 days following the date of the original issuance;
         (iii) any Initial Purchaser so requests with respect to Securities that
         are not eligible to be exchanged for New Securities in the Registered
         Exchange Offer and that are held by it following consummation of the
         Registered Exchange Offer; (iv) any Holder (other than an Initial
         Purchaser) is not eligible to participate in the Registered Exchange
         Offer or does not receive freely tradeable New Securities in the
         Registered Exchange Offer other than by reason of such Holder being an
         Affiliate of the Company (it being understood that the requirement that
         a participating Broker-Dealer deliver the prospectus contained in the
         Exchange Offer Registration Statement in connection with sales of New
         Securities shall not result in such New Securities being not "freely
         tradeable"); or (v) in the case of any Initial Purchaser that
         participates in the Registered Exchange Offer or acquires New
         Securities pursuant to Section 2(f) hereof, such Initial Purchaser does
         not receive freely tradeable New Securities in exchange for Securities
         constituting any portion of an unsold allotment (it being understood
         that (x) the requirement that an Initial Purchaser deliver a Prospectus
         containing the information required by Item 507 or 508 of Regulation
         S-K under the Act in connection with sales of New Securities acquired
         in exchange for such Securities shall result in such New Securities
         being not "freely tradeable;" and (y) the requirement that an
         Exchanging Dealer deliver a Prospectus in connection with sales of New
         Securities acquired in the Registered Exchange Offer in exchange for
         Securities acquired as a result of market-making activities or other
         trading activities shall not result in such New Securities being not
         "freely tradeable") the Company and the Guarantors shall effect a Shelf
         Registration Statement in accordance with subsection (b) below.

                           (b)      If required pursuant to subsection (a)
         above,

                                    (i)      the Company and the Guarantors, at
                  their cost, shall as promptly as practicable, file with the
                  Commission and thereafter shall use their best efforts to
                  cause to be declared effective under the Act a Shelf
                  Registration Statement relating to the offer and sale of the
                  Securities or the New Securities, as applicable, by the
                  Holders thereof from time to time in accordance with the
                  methods of distribution elected by such Holders and set forth
                  in such Shelf Registration Statement; provided, however, that
                  no Holder (other than an Initial

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                  Purchaser) shall be entitled to have the Securities or New
                  Securities held by it covered by such Shelf Registration
                  Statement unless such Holder agrees in writing to be bound by
                  all of the provisions of this Agreement applicable to such
                  Holder; and provided further, that with respect to New
                  Securities received by an Initial Purchaser in exchange for
                  Securities constituting any portion of an unsold allotment,
                  the Company and the Guarantors may, if permitted by current
                  interpretations by the Commission's staff, file a
                  post-effective amendment to the Exchange Offer Registration
                  Statement containing the information required by Item 507 or
                  508 of Regulation S-K, as applicable, in satisfaction of their
                  obligations under this subsection with respect thereto, and
                  any such Exchange Offer Registration Statement, as so amended,
                  shall be referred to herein as, and governed by the provisions
                  herein applicable to, a Shelf Registration Statement.

                                    (ii)     the Company and the Guarantors
                  shall use their best efforts to keep the Shelf Registration
                  Statement continuously effective, supplemented and amended as
                  required by the Act, in order to permit the Prospectus forming
                  part thereof to be usable by Holders for a period the earlier
                  of (A) the time when all of the Securities or New Securities,
                  as applicable, covered by the Shelf Registration Statement can
                  be sold pursuant to Rule 144 without limitation under clauses
                  (c), (e), (f) and (h) of Rule 144, (B) the date on which all
                  the Securities or New Securities, as applicable, covered by
                  the Shelf Registration Statement have been sold pursuant to
                  the Shelf Registration Statement, and (C) the date two years
                  from the date the Shelf Registration Statement is declared
                  effective by the Commission (in any such case, such period
                  being called the "Shelf Registration Period"). The Company and
                  the Guarantors shall be deemed not to have used their best
                  efforts to keep the Shelf Registration Statement effective
                  during the requisite period if they voluntarily take any
                  action that would result in Holders of Securities or New
                  Securities covered thereby not being able to offer and sell
                  such Securities or New Securities during that period, unless
                  (A) such action is required by applicable law; or (B) such
                  action is taken by the Company and the Guarantors in good
                  faith and for valid business reasons (not including avoidance
                  of the Company's and the Guarantors' obligations hereunder),
                  including the acquisition or divestiture of assets, so long as
                  the Company and the Guarantors promptly thereafter comply with
                  the requirements of Section 5(k) hereof, if applicable.

                                    (iii)    the Company and the Guarantors
                  shall cause the Shelf Registration Statement and the related
                  Prospectus and any amendment or supplement thereto, as of the
                  effective date of the Shelf Registration Statement or such
                  amendment or supplement, (A) to comply in all material
                  respects with the applicable requirements of the Securities
                  Act and the rules and regulations of the Commission; and (B)
                  not to contain any untrue statement of a material fact or omit
                  to state a material fact required to be stated therein or
                  necessary in order to make the statements therein, in the
                  light of the circumstances under which they were made, not
                  misleading.

                  4.       Special Interest. If (a) on or prior to the 90th day
         following the original issue date of the Securities, neither the
         Exchange Offer Registration Statement nor the Shelf

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         Registration Statement has been filed with the Commission, (b) on or
         prior to the 180th day following the original issue date of the
         Securities, neither the Exchange Offer Registration Statement nor the
         Shelf Registration Statement has been declared effective, (c) on or
         prior to the [30]th day following the date the Exchange Offer
         Registration Statement is first declared effective, neither the
         Registered Exchange Offer has been consummated nor the Shelf
         Registration Statement has been declared effective, or (d) after either
         the Exchange Offer Registration Statement or the Shelf Registration
         Statement has been declared effective, such Registration Statement
         thereafter ceases to be effective or usable in connection with resales
         of Securities or New Securities in accordance with and during the
         periods specified in this Agreement (each such event referred to in
         clauses (a) through (d), a ("Registration Default"), interest ("Special
         Interest") will accrue on the principal amount of the Securities and
         the New Securities (in addition to the stated interest on the
         Securities and New Securities) from and including the date on which any
         such Registration Default shall occur to but excluding the date on
         which all Registration Defaults have been cured. Special Interest will
         accrue at a rate of 0.25% per annum during the 90-day period
         immediately following the occurrence of such Registration Default and
         shall increase by 0.25% per annum at the end of each subsequent 90-day
         period, but in no event shall such rate exceed 1.00% per annum.

                  All obligations of the Company and the Guarantors set forth in
         the preceding paragraph that are outstanding with respect to any
         Security at the time such Security is exchanged for a New Security
         shall survive until such time as all such obligations with respect to
         such Security have been satisfied in full.

                  5.       Additional Registration Procedures. In connection
         with any Shelf Registration Statement and, to the extent applicable,
         any Exchange Offer Registration Statement, the following provisions
         shall apply.

                           (a)      The Company and the Guarantors shall:

                                    (i)      furnish to you, not less than five
                  Business Days prior to the filing thereof with the Commission,
                  a copy of any Exchange Offer Registration Statement and any
                  Shelf Registration Statement, and each amendment thereof and
                  each amendment or supplement, if any, to the Prospectus
                  included therein (including all documents incorporated by
                  reference therein after the initial filing) and shall use
                  their commercially reasonable best efforts to reflect in each
                  such document, when so filed with the Commission, such
                  comments as you reasonably propose;

                                    (ii)     include the information set forth
                  in Annex A hereto on the facing page of the Exchange Offer
                  Registration Statement, in Annex B hereto in the forepart of
                  the Exchange Offer Registration Statement in a section setting
                  forth details of the Exchange Offer, in Annex C hereto in the
                  underwriting or plan of distribution section of the Prospectus
                  contained in the Exchange Offer Registration Statement, and in
                  Annex D hereto in the letter of transmittal delivered pursuant
                  to the Registered Exchange Offer;

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                                    (iii)    if requested by an Initial
                  Purchaser, include the information required by Item 507 or 508
                  of Regulation S-K, as applicable, in the Prospectus contained
                  in the Exchange Offer Registration Statement; and

                                    (iv)     in the case of a Shelf Registration
                  Statement, include the names of the Holders that propose to
                  sell Securities or New Securities, as applicable, pursuant to
                  the Shelf Registration Statement as selling security holders.

                           (b)      The Company and the Guarantors shall ensure
         that:

                                    (i)      any Registration Statement and any
                  amendment thereto and any Prospectus forming part thereof and
                  any amendment or supplement thereto complies in all material
                  respects with the Act and the rules and regulations
                  thereunder; and

                                    (ii)     any Registration Statement and any
                  amendment thereto does not, when it becomes effective, contain
                  an untrue statement of a material fact or omit to state a
                  material fact required to be stated therein or necessary to
                  make the statements therein not misleading.

                           (c)      The Company and the Guarantors shall advise
         you, the Holders of Securities or New Securities covered by any Shelf
         Registration Statement and any Exchanging Dealer or Initial Purchaser
         under any Exchange Offer Registration Statement that has provided in
         writing to the Company and the Guarantors a telephone or facsimile
         number and address for notices, and, if requested by you or any such
         Holder, Exchanging Dealer or Initial Purchaser, shall confirm such
         advice in writing (which notice pursuant to clauses (ii)-(v) hereof
         shall be accompanied by an instruction to suspend the use of the
         Prospectus until the Company and the Guarantors shall have remedied the
         basis for such suspension):

                                    (i)      when a Registration Statement and
                  any amendment thereto has been filed with the Commission and
                  when the Registration Statement or any post-effective
                  amendment thereto has become effective;

                                    (ii)     of any request by the Commission
                  for any amendment or supplement to the Registration Statement
                  or the Prospectus or for additional information;

                                    (iii)    of the issuance by the Commission
                  of any stop order suspending the effectiveness of the
                  Registration Statement or the initiation of any proceedings
                  for that purpose;

                                    (iv)     of the receipt by the Company and
                  the Guarantors of any notification with respect to the
                  suspension of the qualification of the Securities or New
                  Securities included therein for sale in any jurisdiction or
                  the initiation of any proceeding for such purpose; and

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                                    (v)      of the happening of any event that
                  requires any change in the Registration Statement or the
                  Prospectus so that, as of such date, the statements therein
                  are not misleading and do not omit to state a material fact
                  required to be stated therein or necessary to make the
                  statements therein (in the case of the Prospectus, in the
                  light of the circumstances under which they were made) not
                  misleading.

                           (d)      The Company and the Guarantors shall use
         their best efforts to obtain the withdrawal of any order suspending the
         effectiveness of any Registration Statement or the qualification of the
         Securities or New Securities therein for sale in any jurisdiction at
         the earliest possible time.

                           (e)      The Company and the Guarantors shall furnish
         to each Holder of Securities or New Securities covered by any Shelf
         Registration Statement, without charge, at least one copy of such Shelf
         Registration Statement and any post-effective amendment thereto,
         including all material incorporated therein by reference, and, if the
         Holder so requests in writing, all exhibits thereto (including exhibits
         incorporated by reference therein).

                           (f)      The Company and the Guarantors shall, during
         the Shelf Registration Period, deliver to each Holder of Securities or
         New Securities covered by any Shelf Registration Statement, without
         charge, as many copies of the Prospectus (including each preliminary
         Prospectus) included in such Shelf Registration Statement and any
         amendment or supplement thereto as such Holder may reasonably request.
         The Company and the Guarantors consent to the use of the Prospectus or
         any amendment or supplement thereto by each of the selling Holders of
         Securities or New Securities in connection with the offering and sale
         of the Securities or New Securities covered by the Prospectus, or any
         amendment or supplement thereto, included in the Shelf Registration
         Statement.

                           (g)      The Company and the Guarantors shall furnish
         to each Exchanging Dealer or Initial Purchaser which so requests,
         without charge, at least one copy of the Exchange Offer Registration
         Statement and any post-effective amendment thereto, including all
         material incorporated by reference therein, and, if the Exchanging
         Dealer so requests in writing, all exhibits thereto (including exhibits
         incorporated by reference therein).

                           (h)      The Company and the Guarantors shall
         promptly deliver to each Initial Purchaser, each Exchanging Dealer and
         each other Person required to deliver a Prospectus during the Exchange
         Offer Registration Period, without charge, as many copies of the
         Prospectus included in such Exchange Offer Registration Statement and
         any amendment or supplement thereto as any such Person may reasonably
         request. The Company and the Guarantors consent to the use of the
         Prospectus or any amendment or supplement thereto by any Initial
         Purchaser, any Exchanging Dealer and any such other Person that may be
         required to deliver a Prospectus following the Registered Exchange
         Offer in connection with the offering and sale of the New Securities
         covered by the

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         Prospectus, or any amendment or supplement thereto, included in the
         Exchange Offer Registration Statement.

                           (i)      Prior to the Registered Exchange Offer or
         any other offering of Securities or New Securities pursuant to any
         Registration Statement, the Company and the Guarantors shall arrange,
         if necessary, for the qualification of the Securities or the New
         Securities for sale under the laws of such jurisdictions as any Holder
         shall reasonably request and will maintain such qualification in effect
         so long as required; provided that in no event shall the Company and
         the Guarantors be obligated to qualify to do business in any
         jurisdiction where they are not then so qualified or to take any action
         that would subject them to service of process in suits or taxation,
         other than those arising out of the Initial Placement, the Registered
         Exchange Offer or any offering pursuant to a Shelf Registration
         Statement, in any such jurisdiction where they are not then so subject.

                           (j)      The Company and the Guarantors shall
         cooperate with the Holders of Securities and New Securities to
         facilitate the timely preparation and delivery of certificates
         representing New Securities or Securities to be issued or sold pursuant
         to any Registration Statement free of any restrictive legends and in
         such denominations and registered in such names as Holders may request.

                           (k)      Upon the occurrence of any event
         contemplated by subsections (c)(ii) through (v) above, the Company and
         the Guarantors shall promptly prepare a post-effective amendment to the
         applicable Registration Statement or an amendment or supplement to the
         related Prospectus or file any other required document so that, as
         thereafter delivered to Initial Purchasers or Exchanging Dealers, the
         Prospectus will not include an untrue statement of a material fact or
         omit to state any material fact necessary to make the statements
         therein, in the light of the circumstances under which they were made,
         not misleading. In such circumstances, the period of effectiveness of
         the Exchange Offer Registration Statement provided for in Section 2 and
         the Shelf Registration Statement provided for in Section 3(b) shall
         each be extended by the number of days from and including the date of
         the giving of a notice of suspension pursuant to Section 5(c) to and
         including the date when the Initial Purchasers, the Holders of the
         Securities or New Securities and any known Exchanging Dealer shall have
         received such amended or supplemented Prospectus pursuant to this
         Section.

                           (l)      Not later than the effective date of any
         Registration Statement, the Company and the Guarantors shall provide a
         CUSIP number for the Securities or the New Securities, as the case may
         be, registered under such Registration Statement and provide the
         Trustee with printed certificates for such Securities or New
         Securities, in a form eligible for deposit with The Depository Trust
         Company.

                           (m)      The Company and the Guarantors shall comply
         with all applicable rules and regulations of the Commission and shall
         make generally available to their security holders as soon as
         practicable after the effective date of the applicable Registration
         Statement an earnings statement satisfying the provisions of Section
         11(a) of the Act.

                                       12

<PAGE>

                           (n)      The Company and the Guarantors shall cause
         the Indenture or the New Securities Indenture, as the case may be, to
         be qualified under the Trust Indenture Act in a timely manner.

                           (o)      The Company and the Guarantors may require
         each Holder of Securities or New Securities to be sold pursuant to any
         Shelf Registration Statement to furnish to the Company and the
         Guarantors such information regarding the Holder and the distribution
         of such Securities as the Company and the Guarantors may from time to
         time reasonably require for inclusion in such Registration Statement.
         The Company and the Guarantors may exclude from such Shelf Registration
         Statement the Securities or New Securities of any Holder that fails to
         furnish such information within a reasonable time after receiving such
         request.

                           (p)      In the case of any Shelf Registration
         Statement, the Company and the Guarantors shall enter into such
         agreements and take all other appropriate actions (including if
         requested an underwriting agreement in customary form) in order to
         expedite or facilitate the registration or the disposition of the
         Securities or New Securities, and in connection therewith, if an
         underwriting agreement is entered into, cause the same to contain
         indemnification provisions and procedures no less favorable than those
         set forth in Section 7 (or such other provisions and procedures
         acceptable to the Majority Holders and the Managing Underwriters, if
         any, with respect to all parties to be indemnified pursuant to Section
         7).

                           (q)      In the case of any Shelf Registration
         Statement, the Company and the Guarantors shall:

                                    (i)      make reasonably available for
                  inspection by the Holders of Securities or New Securities to
                  be registered thereunder, any Underwriter participating in any
                  disposition pursuant to such Registration Statement, and any
                  attorney, accountant or other agent retained by the Holders or
                  any such Underwriter all relevant financial and other records,
                  pertinent corporate documents and properties of the Company
                  and its subsidiaries;

                                    (ii)     cause the Company's officers,
                  directors and employees to supply all relevant information
                  reasonably requested by the Holders or any such Underwriter,
                  attorney, accountant or agent in connection with any such
                  Registration Statement as is customary for similar due
                  diligence examinations; provided, however, that any
                  information that is designated in writing by the Company, in
                  good faith, as confidential at the time of delivery of such
                  information shall be kept confidential by the Holders or any
                  such Underwriter, attorney, accountant or agent, unless such
                  disclosure is made in connection with a court proceeding or
                  required by law, or such information becomes available to the
                  public generally or through a third party without an
                  accompanying obligation of confidentiality;

                                    (iii)    make such representations and
                  warranties to the Holders of Securities or New Securities
                  registered thereunder and the Underwriters, if any, in

                                       13

<PAGE>

                  form, substance and scope as are customarily made by issuers
                  to Underwriters in primary underwritten offerings and covering
                  matters including, but not limited to, those set forth in the
                  Purchase Agreement;

                                    (iv)     obtain opinions of counsel to the
                  Company and the Guarantors and updates thereof (which counsel
                  and opinions (in form, scope and substance) shall be
                  reasonably satisfactory to the Managing Underwriters, if any)
                  addressed to each selling Holder and the Underwriters, if any,
                  covering such matters as are customarily covered in opinions
                  requested in underwritten offerings and such other matters as
                  may be reasonably requested by such Holders and Underwriters;

                                    (v)      obtain "cold comfort" letters and
                  updates thereof from the independent certified public
                  accountants of the Company (and, if necessary, any other
                  independent certified public accountants of any subsidiary of
                  the Company or of any business acquired by the Company for
                  which financial statements and financial data are, or are
                  required to be, included in the Registration Statement),
                  addressed to each selling Holder of Securities or New
                  Securities registered thereunder and the Underwriters, if any,
                  in customary form and covering matters of the type customarily
                  covered in "cold comfort" letters in connection with primary
                  underwritten offerings; and

                                    (vi)     deliver such documents and
                  certificates as may be reasonably requested by the Majority
                  Holders and the Managing Underwriters, if any, including those
                  to evidence compliance with Section 5(k) and with any
                  customary conditions contained in the underwriting agreement
                  or other agreement entered into by the Company and the
                  Guarantors.

The actions set forth in clauses (iii), (iv), (v) and (vi) of this Section shall
be performed at (A) the effectiveness of such Registration Statement and each
post-effective amendment thereto; and (B) each closing under any underwriting or
similar agreement as and to the extent required thereunder.

                           (r)      In the case of any Exchange Offer
         Registration Statement, the Company and the Guarantors shall upon the
         request of an Exchanging Dealer:

                                    (i)      make reasonably available for
                  inspection by such Initial Purchaser or Exchanging Dealer, and
                  any attorney, accountant or other agent retained by such
                  Initial Purchaser or Exchanging Dealer, all relevant financial
                  and other records, pertinent corporate documents and
                  properties of the Company and its subsidiaries;

                                    (ii)     cause the Company's officers,
                  directors and employees to supply all relevant information
                  reasonably requested by such Initial Purchaser or Exchanging
                  Dealer or any such attorney, accountant or agent in connection
                  with any such Registration Statement as is customary for
                  similar due diligence examinations; Provided, However, that
                  any information that is designated in

                                       14

<PAGE>

                  writing by the Company, in good faith, as confidential at the
                  time of delivery of such information shall be kept
                  confidential by such Initial Purchaser or Exchanging Dealer or
                  any such attorney, accountant or agent, unless such disclosure
                  is made in connection with a court proceeding or required by
                  law, or such information becomes available to the public
                  generally or through a third party without an accompanying
                  obligation of confidentiality;

                                    (iii)    make such representations and
                  warranties to such Initial Purchaser or Exchanging Dealer, in
                  form, substance and scope as are customarily made by issuers
                  to Underwriters in primary underwritten offerings and covering
                  matters including, but not limited to, those set forth in the
                  Purchase Agreement;

                                    (iv)     obtain opinions of counsel to the
                  Company and the Guarantors and updates thereof (which counsel
                  and opinions (in form, scope and substance) shall be
                  reasonably satisfactory to such Initial Purchaser or
                  Exchanging Dealer and their respective counsel, addressed to
                  such Initial Purchaser or Exchanging Dealer, covering such
                  matters as are customarily covered in opinions requested in
                  underwritten offerings and such other matters as may be
                  reasonably requested by such Initial Purchaser or Exchanging
                  Dealer or their respective counsel;

                                    (v)      obtain "cold comfort" letters and
                  updates thereof from the independent certified public
                  accountants of the Company (and, if necessary, any other
                  independent certified public accountants of any subsidiary of
                  the Company or of any business acquired by the Company for
                  which financial statements and financial data are, or are
                  required to be, included in the Registration Statement),
                  addressed to such Initial Purchaser or Exchanging Dealer, in
                  customary form and covering matters of the type customarily
                  covered in "cold comfort" letters in connection with primary
                  underwritten offerings, or if requested by such Initial
                  Purchaser or Exchanging Dealer or their respective counsel in
                  lieu of a "cold comfort" letter, an agreed-upon procedures
                  letter under Statement on Auditing Standards No. 35, covering
                  matters requested by such Initial Purchaser or Exchanging
                  Dealer or their respective counsel; and

                                    (vi)     deliver such documents and
                  certificates as may be reasonably requested by such Initial
                  Purchaser or Exchanging Dealer or their respective counsel,
                  including those to evidence compliance with Section 5(k) and
                  with conditions customarily contained in underwriting
                  agreements.

The foregoing actions set forth in clauses (iii), (iv), (v), and (vi) of this
Section if so requested shall be performed at close of the Registered Exchange
Offer and the effective date of any post-effective amendment to the Exchange
Offer Registration Statement.

                           (s)      If a Registered Exchange Offer is to be
         consummated, upon delivery of the Securities by Holders to the Company
         (or to such other Person as directed by the Company) in exchange for
         the New Securities, the Company shall mark, or caused to be marked, on
         the Securities so exchanged that such Securities are being canceled in

                                       15

<PAGE>

         exchange for the New Securities. In no event shall the Securities be
         marked as paid or otherwise satisfied.

                           (t)      The Company and the Guarantors will use
         their commercially reasonable best efforts to confirm the ratings of
         the Securities will apply to the Securities or the New Securities, as
         the case may be, covered by a Shelf Registration Statement.

                           (u)      In the event that any Broker-Dealer shall
         underwrite any Securities or New Securities or participate as a member
         of an underwriting syndicate or selling group or "assist in the
         distribution" (within the meaning of the Rules of Fair Practice and the
         By-Laws of the National Association of Securities Dealers, Inc.)
         thereof, whether as a Holder of such Securities or New Securities or as
         an Underwriter, a placement or sales agent or a broker or dealer in
         respect thereof, or otherwise, assist such Broker-Dealer in complying
         with the requirements of such Rules and By-Laws, including, without
         limitation, by:

                                    (i)      if such Rules or By-Laws shall so
                  require, engaging a "qualified independent underwriter" (as
                  defined in such Rules) to participate in the preparation of
                  the Registration Statement, to exercise usual standards of due
                  diligence with respect thereto and, if any portion of the
                  offering contemplated by such Registration Statement is an
                  underwritten offering or is made through a placement or sales
                  agent, to recommend the yield of such Securities or New
                  Securities;

                                    (ii)     indemnifying any such qualified
                  independent underwriter to the extent of the indemnification
                  of Underwriters provided in Section 6 hereof; and

                                    (iii)    providing such information to such
                  Broker-Dealer as may be required in order for such
                  Broker-Dealer to comply with the requirements of such Rules.

                           (v)      The Company and the Guarantors shall use
         their commercially reasonable best efforts to take all other steps
         necessary to effect the registration of the Securities or the New
         Securities, as the case may be, covered by a Registration Statement.

                  6.       Registration Expenses. The Company and the Guarantors
         shall bear all expenses incurred in connection with the performance of
         their obligations under Sections 2, 3 and 5 hereof and, in the event of
         any Shelf Registration Statement, will reimburse the Holders for the
         reasonable fees and disbursements of one firm or counsel designated by
         the Majority Holders to act as counsel for the Holders in connection
         therewith, and, in the case of any Exchange Offer Registration
         Statement, will reimburse the Initial Purchasers for the reasonable
         fees and disbursements of counsel acting in connection therewith if
         such Initial Purchasers shall resell Securities or New Securities
         pursuant to the prospectus contained such Exchange Offer Registration
         Statement.

                                       16

<PAGE>

                  7.       Indemnification and Contribution.

                           (a)      The Company and the Guarantors, jointly and
         severally, agree to indemnify and hold harmless each Holder of
         Securities or New Securities, as the case may be, covered by any
         Registration Statement (including each Initial Purchaser and, with
         respect to any Prospectus delivery as contemplated in Section 5(h)
         hereof, each Exchanging Dealer), the directors, officers, employees and
         agents of each such Holder and each Person who controls any such Holder
         within the meaning of either the Act or the Exchange Act against any
         and all Losses, joint or several, to which they or any of them may
         become subject under the Act, the Exchange Act or other Federal or
         state statutory law or regulation, at common law or otherwise, insofar
         as such Losses arise out of or are based upon any untrue statement or
         alleged untrue statement of a material fact contained in the
         Registration Statement as originally filed or in any amendment thereof,
         or in any preliminary Prospectus or the Prospectus, or in any amendment
         thereof or supplement thereto, or arise out of or are based upon the
         omission or alleged omission to state therein a material fact required
         to be stated therein or necessary to make the statements therein not
         misleading, and agrees to reimburse each such indemnified party, as
         incurred, for any legal or other expenses reasonably incurred by them
         in connection with investigating or defending any such loss, claim,
         damage, liability or action; provided, however, that the Company and
         the Guarantors will not be liable in any case to the extent that any
         such loss, claim, damage or liability arises out of or is based upon
         any such untrue statement or alleged untrue statement or omission or
         alleged omission made therein in reliance upon and in conformity with
         written information furnished to the Company and the Guarantors by or
         on behalf of any such Holder specifically for inclusion therein. This
         indemnity agreement will be in addition to any liability which the
         Company and the Guarantors may otherwise have.

                  The Company and the Guarantors also, jointly and severally,
agree to indemnify or contribute as provided in Section 7(d) to Losses of any
Underwriter of Securities or New Securities, as the case may be, registered
under a Shelf Registration Statement, their directors, officers, employees or
agents and each Person who controls such Underwriter on substantially the same
basis as that of the indemnification of the Initial Purchasers and the selling
Holders provided in this Section 7(a) and shall, if requested by any Holder,
enter into an underwriting agreement reflecting such agreement, as provided in
Section 5(p) hereof.

                           (b)      Each Holder of Securities or New Securities
         covered by a Registration Statement (including each Initial Purchaser
         and, with respect to any Prospectus delivery as contemplated in Section
         5(h) hereof, each Exchanging Dealer) severally agrees to indemnify and
         hold harmless the Company and the Guarantors, each of their directors,
         officers, employees and agents and each Person who controls the Company
         or any of the Guarantors within the meaning of either the Act or the
         Exchange Act, to the same extent as the foregoing indemnity from the
         Company and the Guarantors to each such Holder, but only with reference
         to written information relating to such Holder furnished to the Company
         and the Guarantors by or on behalf of such Holder specifically for
         inclusion in the documents referred to in the foregoing indemnity. This
         indemnity agreement will be in addition to any liability which any such
         Holder may otherwise have.

                                       17

<PAGE>

                           (c)      Promptly after receipt by an indemnified
         party under this Section 7 of notice of the commencement of any action,
         such indemnified party will, if a claim in respect thereof is to be
         made against the indemnifying party under this Section, notify the
         indemnifying party in writing of the commencement thereof; but the
         failure so to notify the indemnifying party (i) will not relieve it
         from liability under paragraph (a) or (b) above unless and to the
         extent it did not otherwise learn of such action and such failure
         results in the forfeiture by the indemnifying party of substantial
         rights and defenses; and (ii) will not, in any event, relieve the
         indemnifying party from any obligations to any indemnified party other
         than the indemnification obligation provided in paragraph (a) or (b)
         above. The indemnifying party shall be entitled to appoint counsel of
         the indemnifying party's choice at the indemnifying party's expense to
         represent the indemnified party in any action for which indemnification
         is sought (in which case the indemnifying party shall not thereafter be
         responsible for the fees and expenses of any separate counsel retained
         by the indemnified party or parties except as set forth below);
         provided, however, that such counsel shall be satisfactory to the
         indemnified party. Notwithstanding the indemnifying party's election to
         appoint counsel to represent the indemnified party in an action, the
         indemnified party shall have the right to employ separate counsel
         (including local counsel), and the indemnifying party shall bear the
         reasonable fees, costs and expenses of such separate counsel if (i) the
         use of counsel chosen by the indemnifying party to represent the
         indemnified party would present such counsel with a conflict of
         interest; (ii) the actual or potential defendants in, or targets of,
         any such action include both the indemnified party and the indemnifying
         party and the indemnified party shall have reasonably concluded that
         there may be legal defenses available to it and/or other indemnified
         parties which are different from or additional to those available to
         the indemnifying party; (iii) the indemnifying party shall not have
         employed counsel satisfactory to the indemnified party to represent the
         indemnified party within a reasonable time after notice of the
         institution of such action; or (iv) the indemnifying party shall
         authorize the indemnified party to employ separate counsel at the
         expense of the indemnifying party. An indemnifying party will not,
         without the prior written consent of the indemnified parties, settle or
         compromise or consent to the entry of any judgment with respect to any
         pending or threatened claim, action, suit or proceeding in respect of
         which indemnification or contribution may be sought hereunder (whether
         or not the indemnified parties are actual or potential parties to such
         claim or action) unless such settlement, compromise or consent includes
         an unconditional release of each indemnified party from all liability
         arising out of such claim, action, suit or proceeding. An indemnifying
         party shall not be liable under this Section 7 to any indemnified party
         regarding any settlement or compromise or consent to the entry of any
         judgment with respect to any pending or threatened claim, action, suit
         or proceeding in respect of which indemnification or contribution may
         be sought hereunder (whether or not the indemnified parties are actual
         or potential parties to such claim or action) unless such settlement,
         compromise or consent is consented to by such indemnifying party, which
         consent shall not be unreasonably withheld.

                           (d)      In the event that the indemnity provided in
         paragraph (a) or (b) of this Section is unavailable to or insufficient
         to hold harmless an indemnified party for any reason, then each
         applicable indemnifying party shall have a joint and several obligation
         to contribute to the aggregate losses, claims, damages and liabilities
         (including legal or

                                       18

<PAGE>

         other expenses reasonably incurred in connection with investigating or
         defending the same) (collectively "Losses") to which such indemnified
         party may be subject in such proportion as is appropriate to reflect
         the relative benefits received by such indemnifying party, on the one
         hand, and such indemnified party, on the other hand, from the Initial
         Placement and the Registration Statement which resulted in such Losses;
         provided, however, that in no case shall any Initial Purchaser or any
         subsequent Holder of any Security or New Security be responsible, in
         the aggregate, for any amount in excess of the purchase discount or
         commission applicable to such Security, or in the case of a New
         Security, applicable to the Security that was exchangeable into such
         New Security, as set forth on the cover page of the Final Memorandum,
         nor shall any Underwriter be responsible for any amount in excess of
         the underwriting discount or commission applicable to the securities
         purchased by such Underwriter under the Registration Statement which
         resulted in such Losses. If the allocation provided by the immediately
         preceding sentence is unavailable for any reason, the indemnifying
         party and the indemnified party shall contribute in such proportion as
         is appropriate to reflect not only such relative benefits but also the
         relative fault of such indemnifying party, on the one hand, and such
         indemnified party, on the other hand, in connection with the statements
         or omissions which resulted in such Losses as well as any other
         relevant equitable considerations. Benefits received by the Company and
         the Guarantors shall be deemed to be equal to the sum of (x) the total
         net proceeds from the Initial Placement (before deducting expenses) as
         set forth on the cover page of the Final Memorandum and (y) the total
         amount of additional interest that the Company and the Guarantors were
         not required to pay as a result of registering the Securities or New
         Securities covered by the Registration Statement which resulted in such
         Losses. Benefits received by the Initial Purchasers shall be deemed to
         be equal to the total purchase discounts and commissions as set forth
         on the cover page of the Final Memorandum, and benefits received by any
         other Holders shall be deemed to be equal to the value of receiving
         Securities or New Securities, as applicable, registered under the Act.
         Benefits received by any Underwriter shall be deemed to be equal to the
         total underwriting discounts and commissions, as set forth on the cover
         page of the Prospectus forming a part of the Registration Statement
         which resulted in such Losses. Relative fault shall be determined by
         reference to, among other things, whether any alleged untrue statement
         or omission relates to information provided by the indemnifying party,
         on the one hand, or by the indemnified party, on the other hand, the
         intent of the parties and their relative knowledge, access to
         information and opportunity to correct or prevent such untrue statement
         or omission. The parties agree that it would not be just and equitable
         if contribution were determined by pro rata allocation (even if the
         Holders were treated as one entity for such purpose) or any other
         method of allocation which does not take account of the equitable
         considerations referred to above. Notwithstanding the provisions of
         this paragraph (d), no Person guilty of fraudulent misrepresentation
         (within the meaning of Section 11(f) of the Act) shall be entitled to
         contribution from any Person who was not guilty of such fraudulent
         misrepresentation. For purposes of this Section, each Person who
         controls a Holder within the meaning of either the Act or the Exchange
         Act and each director, officer, employee and agent of such Holder shall
         have the same rights to contribution as such Holder, and each Person
         who controls the Company or any of the Guarantors within the meaning of
         either the Act or the Exchange Act and each officer, employee, agent or

                                       19

<PAGE>

         director of the Company or any of the Guarantors who would be entitled
         to indemnity under this Agreement shall have the same rights to
         contribution as the Company, subject in each case to the applicable
         terms and conditions of this paragraph (d).

                           (e)      The provisions of this Section will remain
         in full force and effect, regardless of any investigation made by or on
         behalf of any Holder or the Company and the Guarantors or any of the
         officers, directors or controlling Persons referred to in this Section
         hereof, and will survive the sale by a Holder of Securities or New
         Securities covered by a Registration Statement.

                  8.       Underwritten Registrations.

                           (a)      If any of the Securities or New Securities,
         as the case may be, covered by any Shelf Registration Statement are to
         be sold in an underwritten offering, the Managing Underwriters shall be
         selected by the Majority Holders.

                           (b)      No Person may participate in any
         underwritten offering pursuant to any Shelf Registration Statement,
         unless such Person (i) agrees to sell such Person's Securities or New
         Securities, as the case may be, on the basis reasonably provided in any
         underwriting arrangements approved by the Persons entitled hereunder to
         approve such arrangements; and (ii) completes and executes all
         questionnaires, powers of attorney, indemnities, underwriting
         agreements and other documents reasonably required under the terms of
         such underwriting arrangements.

                  9.       No Inconsistent Agreements. The Company has not, as
of the date hereof, entered into, nor shall it, on or after the date hereof,
enter into, any agreement with respect to its securities that is inconsistent
with the rights granted to the Holders herein or otherwise conflicts with the
provisions hereof.

                  10.      Amendments and Waivers. The provisions of this
Agreement, including the provisions of this sentence, may not be amended,
qualified, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, unless the Company has obtained the
written consent of the Majority Holders (or, after the consummation of any
Registered Exchange Offer in accordance with Section 2 hereof, of New
Securities); provided that, with respect to any matter that directly or
indirectly affects the rights of any Initial Purchaser hereunder, the Company
shall obtain the written consent of each such Initial Purchaser against which
such amendment, qualification, supplement, waiver or consent is to be effective.
Notwithstanding the foregoing (except the foregoing proviso), a waiver or
consent to departure from the provisions hereof with respect to a matter that
relates exclusively to the rights of Holders whose Securities or New Securities,
as the case may be, are being sold pursuant to a Registration Statement and that
does not directly or indirectly affect the rights of other Holders may be given
by the Majority Holders, determined on the basis of Securities or New
Securities, as the case may be, being sold rather than registered under such
Registration Statement.

                  11.      Notices. All notices and other communications
provided for or permitted hereunder shall be made in writing by hand-delivery,
first-class mail, telex, telecopier or air courier guaranteeing overnight
delivery:

                                       20

<PAGE>

                           (a)      if to a Holder, at the most current address
         given by such holder to the Company in accordance with the provisions
         of this Section, which address initially is, with respect to each
         Holder, the address of such Holder maintained by the registrar under
         the Indenture, with a copy in like manner to Salomon Smith Barney Inc;

                           (b)      if to you, initially at the [respective
         addresses] set forth in the Purchase Agreement; and

                           (c)      if to the Company or the Guarantors,
         initially at its or their address set forth in the Purchase Agreement.

                  All such notices and communications shall be deemed to have
been duly given when received.

                  The Initial Purchasers or the Company by notice to the other
parties may designate additional or different addresses for subsequent notices
or communications.

                  12.      Successors. This Agreement shall inure to the benefit
of and be binding upon the successors and assigns of each of the parties,
including, without the need for an express assignment or any consent by the
Company thereto, subsequent Holders of Securities or New Securities. The Company
hereby agrees to extend the benefits of this Agreement to any Holder of
Securities and the New Securities, and any such Holder may specifically enforce
the provisions of this Agreement as if an original party hereto.

                  13.      Counterparts. This Agreement may be in signed
counterparts, each of which shall be an original and all of which together shall
constitute one and the same agreement.

                  14.      Headings. The headings used herein are for
convenience only and shall not affect the construction hereof.

                  15.      Applicable Law. This Agreement shall be governed by
and construed in accordance with the laws of the State of New York applicable to
contracts made and to be performed in the State of New York.

                  16.      Severability. In the event that any one of more of
the provisions contained herein, or the application thereof in any
circumstances, is held invalid, illegal or unenforceable in any respect for any
reason, the validity, legality and enforceability of any such provision in every
other respect and of the remaining provisions hereof shall not be in any way
impaired or affected thereby, it being intended that all of the rights and
privileges of the parties shall be enforceable to the fullest extent permitted
by law.

                  17.      Securities Held by the Company, etc. Whenever the
consent or approval of Holders of a specified percentage of principal amount of
Securities or New Securities is required hereunder, Securities or New
Securities, as applicable, held by the Company or its Affiliates (other than
subsequent Holders of Securities or New Securities if such subsequent Holders
are deemed to be Affiliates solely by reason of their holdings of such
Securities or New Securities) shall not be counted in determining whether such
consent or approval was given by the Holders of such required percentage.

                                       21

<PAGE>

                  18.      Agent for Service; Submission to Jurisdiction; Waiver
of Immunities. By the execution and delivery of this Agreement, each of the
Company and the Guarantors (i) acknowledges that it has, by separate written
instrument, irrevocably designated and CT Corp. (and any successor entity), as
its authorized agent upon which process may be served in any suit or proceeding
arising out of or relating to this Agreement that may be instituted in any
federal or state court in the State of New York or brought under federal or
state securities laws, and acknowledges that CT Corp. has accepted such
designation, (ii) submits to the nonexclusive jurisdiction of any such court in
any such suit or proceeding, and (iii) agrees that service of process upon CT
Corp. and written notice of said service to the Company shall be deemed in every
respect effective service of process upon it in any such suit or proceeding. The
Company further agrees to take any and all action, including the execution and
filing of any and all such documents and instruments, as may be necessary to
continue such designation and appointment of CT Corp. in full force and effect
so long as any of the Securities shall be outstanding.

                                       22

<PAGE>

                  If the foregoing is in accordance with your understanding of
our agreement, please sign and return to us the enclosed duplicate hereof,
whereupon this Agreement and your acceptance shall represent a binding agreement
among the Company, the Guarantors and the several Initial Purchasers.

                                   Very truly yours,

                                   TECHNICAL OLYMPIC USA, INC.

                                   By: /s/ Tommy L. McAden
                                       --------------------------------
                                       Name:  Tommy L. McAden
                                       Title: Vice President - Finance and
                                              Administration and Chief Financial
                                              Officer

The foregoing Agreement is hereby
confirmed and accepted as of the
date first above written.

SALOMON SMITH BARNEY INC.
DEUTSCHE BANK SECURITIES INC.
FLEET SECURITIES, INC.
CREDIT LYONNAIS SECURITIES (USA) INC.
By:   SALOMON SMITH BARNEY INC.

By: /s/ Stephen Cunningham
    __________________________
    Name: Stephen Cunningham
    Title: Director

                                       23

<PAGE>

                          SUBSIDIARY GUARANTORS:

                          ADLER REALTY CO.
                          ADRO CONST., INC.
                          ALLIANCE INSURANCE AND INFORMATION SERVICES,
                                 LLC
                          ENGLE HOMES DELAWARE, INC.
                          ENGLE HOMES FINANCING, INC.
                          ENGLE HOMES/ARIZONA CONSTRUCTION, INC.
                          ENGLE HOMES/ARIZONA, INC.
                          ENGLE HOMES/BROWARD, INC.
                          ENGLE HOMES/COLORADO, INC.
                          ENGLE HOMES/VIRGINIA, INC.
                          NEWMARK FINANCE AFFILIATE, LTD.
                          NEWMARK FINANCE CORPORATION
                          NEWMARK HOME CORPORATION
                          NEWMARK HOMES L.P.
                          NEWMARK HOMES PURCHASING, L.P.
                          NHC HOMES, INC.
                          NMH INVESTMENTS, INC.
                          PACIFIC UNITED DEVELOPMENT CORP.
                          PACIFIC UNITED L.P.
                          PEMBROKE FALLS REALTY, INC.
                          PREFERRED BUILDERS REALTY, INC.
                          PREFERRED HOME MORTGAGE COMPANY
                          PRESTIGE ABSTRACT & TITLE, LLC
                          PROFESSIONAL ADVANTAGE TITLE, LTD.
                          PUDC, INC.
                          SILVERLAKE INTERESTS, L.C.
                          TAP ACQUISITION CO.
                          TECHNICAL MORTGAGE, L.P.
                          THE ADLER COMPANIES, INC.
                          TM INVESTMENTS, L.L.C.
                          TOUSA ASSOCIATES SERVICES COMPANY
                          TOUSA FINANCING, INC.
                          TOUSA HOMES, INC.
                          TOUSA SHARED SERVICES, LLC
                          UNIVERSAL LAND TITLE AGENCY, INC.
                          UNIVERSAL LAND TITLE, INC.
                          UNIVERSAL LAND TITLE INVESTMENT #1, L.L.C.
                          UNIVERSAL LAND TITLE INVESTMENT #2, L.L.C.
                          UNIVERSAL LAND TITLE INVESTMENT #3, L.L.C.
                          UNIVERSAL LAND TITLE INVESTMENT #4, L.L.C.
                          UNIVERSAL LAND TITLE OF SOUTH FLORIDA, LTD.
                          UNIVERSAL LAND TITLE OF TEXAS, INC.

                                       24

<PAGE>

                                      UNIVERSAL LAND TITLE OF THE PALM BEACHES,
                                             LTD.
                                      UNIVERSAL LAND TITLE OF VIRGINIA, INC.

                                      By: /s/ Tommy L. McAden
                                          ______________________________________
                                          Name:  Tommy L. McAden
                                          Title: Vice President - Finance and
                                                 Administration

                                      NEWMARK HOMES BUSINESS TRUST

                                      By: /s/ Terry White
                                          ______________________________________
                                          Name:  Terry White
                                          Title: Managing Trustee

                                       25

<PAGE>

                                                                         ANNEX A

                  Each Broker-Dealer that receives New Securities for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such New Securities. The Letter of
Transmittal states that by so acknowledging and by delivering a prospectus, a
Broker-Dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act. This Prospectus, as it may be amended or
supplemented from time to time, may be used by a Broker-Dealer in connection
with resales of New Securities received in exchange for Securities where such
Securities were acquired by such Broker-Dealer as a result of market-making
activities or other trading activities. The Company has agreed that, [for the
180-day period following the consummation of the Registered Exchange Offer], or
such shorter period as will terminate when all New Securities held by Exchanging
Dealers or Initial Purchasers have been sold pursuant hereto, it will make this
Prospectus available to any Broker-Dealer for use in connection with any such
resale. See "Plan of Distribution."

                                       26

<PAGE>

                                                                         ANNEX B

                  Each Broker-Dealer that receives New Securities for its own
account in exchange for Securities, where such Securities were acquired by such
Broker-Dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such New Securities. See "Plan of Distribution."

                                       27

<PAGE>

                                                                         ANNEX C

                              PLAN OF DISTRIBUTION

                  Each Broker-Dealer that receives New Securities for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such New Securities. This
Prospectus, as it may be amended or supplemented from time to time, may be used
by a Broker-Dealer in connection with resales of New Securities received in
exchange for Securities where such Securities were acquired as a result of
market-making activities or other trading activities. The Company and the
Guarantors have agreed that, [for the 180-day period following the consummation
of the Registered Exchange Offer], or such shorter period as will terminate when
all New Securities held by Exchanging Dealers or Initial Purchasers have been
sold pursuant hereto, it will make this Prospectus, as amended or supplemented,
available to any Broker-Dealer for use in connection with any such resale. In
addition, until __________, 200__, all dealers effecting transactions in the New
Securities may be required to deliver a prospectus.

                  The Company will not receive any proceeds from any sale of New
Securities by brokers-dealers. New Securities received by Broker-Dealers for
their own account pursuant to the Exchange Offer may be sold from time to time
in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the New Securities or a
combination of such methods of resale, at market prices prevailing at the time
of resale, at prices related to such prevailing market prices or negotiated
prices. Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such Broker-Dealer and/or the purchasers of any such New
Securities. Any Broker-Dealer that resells New Securities that were received by
it for its own account pursuant to the Exchange Offer and any broker or dealer
that participates in a distribution of such New Securities may be deemed to be
an "underwriter" within the meaning of the Securities Act and any profit of any
such resale of New Securities and any commissions or concessions received by any
such Persons may be deemed to be underwriting compensation under the Securities
Act. The Letter of Transmittal states that by acknowledging that it will deliver
and by delivering a prospectus, a Broker-Dealer will not be deemed to admit that
it is an "underwriter" within the meaning of the Securities Act.

                  [For the 180-day period following the consummation of the
Registered Exchange Offer], or such shorter period as will terminate when all
New Securities held by Exchanging Dealers or Initial Purchasers have been sold
pursuant hereto, the Company and the Guarantors will promptly send additional
copies of this Prospectus and any amendment or supplement to this Prospectus to
any Broker-Dealer that requests such documents in the Letter of Transmittal. The
Company has agreed to pay all expenses incident to the Exchange Offer (including
the expenses of one counsel for the holder of the Securities) other than
commissions or concessions of any brokers or dealers and will indemnify the
holders of the Securities (including any Broker-Dealers) against certain
liabilities, including liabilities under the Securities Act.

                  [If applicable, add information required by Regulation S-K
Items 507 and/or 508.]

                                       28

<PAGE>

                                                                         ANNEX D

Rider A

                  CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10
                  ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY
                  AMENDMENTS OR SUPPLEMENTS THERETO.

                  Name:    ______________________________________
                  Address: ______________________________________
                           ______________________________________

Rider B

If the undersigned is not a Broker-Dealer, the undersigned represents that it
acquired the New Securities in the ordinary course of its business, it is not
engaged in, and does not intend to engage in, a distribution of New Securities
and it has no arrangements or understandings with any Person to participate in a
distribution of the New Securities. If the undersigned is a Broker-Dealer that
will receive New Securities for its own account in exchange for Securities, it
represents that the Securities to be exchanged for New Securities were acquired
by it as a result of market-making activities or other trading activities and
acknowledges that it will deliver a prospectus in connection with any resale of
such New Securities; however, by so acknowledging and by delivering a
prospectus, the undersigned will not be deemed to admit that it is an
"underwriter" within the meaning of the Securities Act.

                                       29<PAGE>
                                                                   EXHIBIT 10.11

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (this "Agreement") is made as of January 1,
2003 (the "Effective Date"), by and between Technical Olympic USA, Inc., a
Delaware corporation (the "Employer"), and Ioannis (Yannis) Delikanakis (the
"Employee").

         WHEREAS, the Employee currently serves as a member of the Employer's
Board of Directors and also provides additional and substantial services for the
Employer beyond the scope of his Board membership, which additional services are
presently provided by Employee to Employer without compensation;

         WHEREAS, the Employer seeks to expand the range of services to be
provided by Employee to Employer and to compensate Employee for the provision of
these services through an incentive compensation package;

         WHEREAS, the parties desire to enter into this Agreement setting forth
the terms and conditions of the employment relationship of the Employee with the
Employer;

         NOW, THEREFORE, IN CONSIDERATION of the mutual premises, covenants and
agreements set forth below, it is hereby agreed as follows:

         1.       DEFINITIONS. For the purposes of this Agreement, terms have
the meanings defined herein or on Exhibit A attached hereto unless the context
otherwise requires.

         2.       EMPLOYMENT, TERM AND DUTIES.

                  2.1      EMPLOYMENT TERM. The Employer hereby employs the
         Employee, and the Employee hereby accepts employment by the Employer,
         upon the terms and conditions set forth herein for an initial period to
         begin on the Effective Date and end on the fifth (5) anniversary
         thereof, unless terminated earlier in accordance with the provisions of
         Section 4.

                  2.2      DUTIES. The Employee will serve as Executive Vice
         President of the Employer during the Employment Period and will have
         such duties and responsibilities as are reasonably consistent with such
         position as described on Exhibit B attached hereto and shall perform
         such special assignments as may be assigned or delegated to the
         Employee from time to time by the Chief Executive Officer or the Board
         of Directors of the Employer. In the performance of his duties
         hereunder, the Employee shall report solely to the Chief Executive
         Officer of the Employer. The Employee shall perform work as assigned by
         the Chief Executive Officer, and shall work with the senior management
         of the Employer in the advancement of the best interests of the
         Employer.

         It is acknowledged that the Employee is a member of the Board of
         Directors and that his activities as a director shall not materially
         interfere with his duties and responsibilities under this Agreement. If
         the Employee is appointed or elected an officer or director of any
         subsidiary of the Employer, the Employee will fulfill his duties as
         such officer or director without additional compensation due from the
         Employer or such subsidiary; however, any such appointment or election
         may not be made without the Employee's

<PAGE>

         prior consent. Upon termination of his employment with the Employer,
         the Employee hereby automatically resigns as of such date as an officer
         of the Employer and as an officer and director of each subsidiary of
         the Employer of which he is an officer or director, if any.

                  2.3      LOCATION. Employee's place of employment hereunder
         shall be in the greater Athens, Greece metropolitan area, unless the
         Employee consents otherwise in writing; provided, however, that the
         Employee shall travel as reasonably necessary to perform his
         obligations and duties to the Employer.

         3.       COMPENSATION AND BENEFITS.

                  3.1      BASE SALARY. The Employee shall receive a base salary
         at the annual rate of $75,000, payable in installments consistent with
         the Employer's normal payroll schedule, and subject to applicable
         withholding and other taxes.

                  3.2      STOCK OPTIONS, BONUSES AND BENEFITS. The stock
         options granted to the Employee with respect to 900,000 shares of
         Employer stock, attached hereto as Exhibit C (the "Options"), in
         addition to the base salary, shall constitute the only consideration to
         be paid to the Employee for all services to be rendered by the Employee
         under this Agreement. The Employee shall not receive any bonuses or any
         other compensation, except the Options, for services rendered under
         this Agreement, unless approved by the Board of Directors.

         The Employee has agreed to waive the right to participate in any
         employee benefit plan of the Employer (to the extent possible without
         causing any plan that is intended to qualify under any provision of the
         Internal Revenue Code to fail to qualify or to become disqualified).
         The Employee hereby acknowledges that his waiver is knowing and
         voluntary, and is an integral part of the compensation package
         negotiated by the Employee with the Employer and contained in this
         Agreement.

                  3.3      BUSINESS EXPENSES. In accordance with the rules and
          policies that the Employer may establish from time to time for its
          executives, the Employer shall reimburse the Employee for business
          expenses reasonably incurred by him in the performance of his duties
          hereunder. Requests for reimbursement must be accompanied by
          appropriate documentation.

                  3.4      VACATION. The Employee shall be entitled to four (4)
         weeks vacation per calendar year (prorated for less than a full year).
         Unused vacation in excess of an aggregate of two (2) weeks for all
         prior years shall not be accumulated or carried over from year to year,
         and the Employee shall not be entitled to compensation for unused
         vacation time except as provided in Section 4.

                  3.5      OFFICE AND SUPPORT STAFF. During the Employment
         Period, the Employee shall be entitled to an office or offices of a
         size and with furnishings and other appointments, and to secretarial
         and other assistance, as provided at any time with respect to other
         comparable executives of the Employer and its subsidiaries and/or as

                                      -2-

<PAGE>

         reasonably necessary to perform the Employee's duties and obligations
         as set forth herein.

         4.       TERMINATION.

                  4.1      DEATH. This Agreement will terminate automatically
         upon the death of the Employee.

                  4.2      TERMINATION NOTICE. Any other termination of the
         Employee's employment shall be by written notice to the other party,
         indicating the specific reason therefor and the date of the Employee's
         termination of employment; provided, however, that such date may not be
         earlier than thirty (30) days from the date of notice, unless waived by
         the parties, or such termination is due to Cause, Good Reason or a
         Change of Control, as defined in the Option agreements.

                  4.3      TERMINATION PAY. Upon termination of the Employee's
         employment, the Employer will be obligated to pay the Employee or the
         Employee's estate, as the case may be, only the Accrued Obligations,
         payable via wire transfer to an account designated by the Employee or
         the Employee's legal representative in a lump sum in cash within thirty
         (30) Business Days of the date of termination. The Options shall be
         governed separately by the terms of their grant agreements as attached
         hereto as Exhibit C.

                  4.4      NO MITIGATION; NO OFFSET. In the event of any
         termination of the Employee's employment under this Agreement, the
         Employee shall be under no obligation to seek other employment, and
         there shall be no offset against amounts due under this Agreement on
         account of any remuneration attributable to any subsequent employment
         that the Employee may obtain. The Employer's obligation to perform its
         obligations hereunder shall not be affected by any set-off,
         counterclaim, recoupment, defense or other claim, right or action which
         the Employer or any Affiliate may have against the Employee or others.

                  4.5      CERTAIN ADDITIONAL PAYMENTS BY THE EMPLOYER.

                  (a)      Anything in this Agreement to the contrary
         notwithstanding, in the event it shall be determined that any payment
         or distribution by the Employer to or for the benefit of the Employee
         (whether paid or payable or distributed or distributable pursuant to
         the terms of this Agreement, the Options or otherwise, but determined
         without regard to any additional payments required under this Section
         4.5) (a "Payment") would be subject to the excise tax imposed by
         Section 4999 of the Internal Revenue Code or any interest or penalties
         are incurred by the Employee with respect to such excise tax (such
         excise tax, together with any such interest and penalties, are
         hereinafter collectively referred to as the "Excise Tax"), then the
         Employee shall be entitled to receive an additional payment (a
         "Gross-Up Payment") in an amount such that after payment by the
         Employee of all taxes (including any interest or penalties imposed with
         respect to such taxes), including, without limitation, any income taxes
         (and any interest or penalties imposed with respect thereto) and Excise
         Tax imposed upon the Gross-Up Payment, the Employee retains an amount
         of the Gross-Up Payment equal to the Excise Tax imposed upon the
         Payments.

                                      -3-

<PAGE>

                  (b)      Subject to the provisions of Section 4.5(c), all
         determinations required to be made under this Section 4.5, including
         whether and when a Gross-Up Payment is required and the amount of such
         Gross-Up Payment and the assumptions to be utilized in arriving at such
         determination, shall be made by the Employer's independent certified
         accountant or such other certified public accounting firm as may be
         designated by the Employee (the "Accounting Firm") which shall provide
         detailed supporting calculations both to the Employer and the Employee
         within fifteen (15) Business Days of the receipt of notice from the
         Employee that there has been a Payment, or such earlier time as is
         requested by the Employer. In the event that the Accounting Firm is
         serving as accountant or auditor for the individual, entity or group
         effecting a change of control, the Employee shall appoint another
         nationally recognized accounting firm to make the determinations
         required hereunder (which accounting firm shall then be referred to as
         the Accounting Firm hereunder). All fees and expenses of the Accounting
         Firm shall be borne solely by the Employer. Any Gross-Up Payment, as
         determined pursuant to this Section 4.5, shall be paid by the Employer
         to the Employee within five (5) Business Days of the receipt of the
         Accounting Firm's determination. Any determination by the Accounting
         Firm shall be binding upon the Employer and the Employee. As a result
         of the uncertainty in the application of Section 4999 of the Code at
         the time of the initial determination by the Accounting Firm hereunder,
         it is possible that Gross-Up Payments which will not have been made by
         the Employer should have been made ("Underpayment"), consistent with
         the calculations required to be made hereunder. In the event that the
         Employer exhausts its remedies pursuant to Section 4.5(c) and the
         Employee thereafter is required to make a payment of any Excise Tax,
         the Accounting Firm shall determine the amount of the Underpayment that
         has occurred and any such Underpayment shall be promptly paid by the
         Employer to or for the benefit of the Employee.

                  (c)      The Employee shall notify the Employer in writing of
         any claim by the Internal Revenue Service, that, if successful, would
         require the payment by the Employer of the Gross-Up Payment. Such
         notification shall be given as soon as practicable but no later than
         ten (10) Business Days after the Employee is informed in writing of
         such claim and shall apprise the Employer of the nature of such claim
         and the date on which such claim is requested to be paid. The Employer
         shall not pay such claim prior to the expiration of the 30-day period
         following the date on which it gives such notice to the Employer (or
         such shorter period ending on the date that any payment of taxes with
         respect to such claim is due). If the Employer notifies the Employee in
         writing prior to the expiration of such period that it desires to
         contest such claim, the Employee shall:

                           (i)      give the Employer any information reasonably
                  requested by the Employer relating to such claim;

                           (ii)     take such action in connection with
                  contesting such claim as the Employer shall reasonably request
                  in writing from time to time, including, without limitation,
                  accepting legal representation with respect to such claim by
                  an attorney reasonably selected by the Employer;

                                      -4-

<PAGE>

                           (iii)    cooperate with the Employer in good faith in
                  order effectively to contest such claim; and

                           (iv)     permit the Employer to participate in any
                  proceedings relating to such claim;

         provided, however, that the Employer shall bear and pay directly all
         costs and expenses (including additional interest and penalties)
         incurred in connection with such contest and shall indemnify and hold
         the Employee harmless, on an after-tax basis, for any Excise Tax or
         income tax (including interest and penalties with respect thereto)
         imposed as a result of such representation and payment of costs and
         expenses. Without limitation of the foregoing provisions of this
         Section 4.5(c), the Employer shall control all proceedings taken in
         connection with such contest and, at its sole option, may pursue or
         forgo any and all administrative appeals, proceedings, hearings and
         conferences with the taxing authority in respect of such claim and may,
         at its sole option, either direct the Employee to pay the tax claimed
         and sue for a refund or contest the claim in any permissible manner,
         and the Employee agrees to prosecute such contest to a determination
         before any administrative tribunal, in a court of initial jurisdiction
         and in one or more appellate courts, as the Employer shall determine;
         provided, however, that if the Employer directs the Employee to pay
         such claim and sue for a refund, the Employer shall, to the extent
         permitted by law, advance the amount of such payment to the Employee on
         an interest-free basis and shall indemnify and hold the Employee
         harmless, on an after-tax basis, from any Excise Tax or income tax
         (including interest or penalties with respect thereto) imposed with
         respect to such advance or with respect to any imputed income with
         respect to such advance; and further provided that any extension of the
         statute of limitations relating to payment of taxes for the taxable
         year of the Employee with respect to which such contested amount is
         claimed to be due is limited solely to such contested amount.
         Furthermore, the Employer's control of the contest shall be limited to
         issues with respect to which a Gross-Up Payment would be payable
         hereunder and the Employee shall be entitled to settle or contest, as
         the case may be, any other issue raised by the Internal Revenue Service
         or any other taxing authority.

                  (d)      If, after the receipt by the Employee of an amount
         advanced by the Employer pursuant to Section 4.5(c), the Employee
         becomes entitled to receive any refund with respect to such claim, the
         Employee shall (subject to the Employer's complying with the
         requirements of Section 4.5(c)) promptly pay to the Employer the amount
         of such refund (together with any interest paid or credited thereon
         after taxes applicable thereto). If, after the receipt by the Employee
         of an amount advanced by the Employer pursuant to Section 4.5(c), a
         determination is made that the Employee shall not be entitled to any
         refund with respect to such claim and the Employer does not notify the
         Employee in writing of its intent to contest such denial of refund
         prior to the expiration of thirty (30) days after such determination,
         then such advance shall be forgiven and shall not be required to be
         repaid and the amount of such advance shall offset, to the extent
         thereof, the amount of Gross-Up Payment required to be paid.

                                      -5-

<PAGE>

         5.        NON-COMPETITION AND NON-INTERFERENCE.

                  5.1      ACKNOWLEDGMENTS. The Employer acknowledges that it is
         providing the Employee with Confidential Information in order for the
         Employee to perform his duties under this Agreement. The Employee
         acknowledges that (a) the services to be performed by him under this
         Agreement are of a special, unique, unusual, extraordinary, and
         intellectual character, and (b) the provisions of this Section 5 are
         reasonable and necessary to protect the Confidential Information,
         goodwill and other business interests of the Employer.

                  5.2      COVENANTS OF THE EMPLOYEE. The Employee covenants
         that he will not, directly or indirectly:

                  (a)      during the Noncompete Period, without the express
         prior written consent of the Board of Directors, as owner, officer,
         director, employee, stockholder, principal, consultant, agent, lender,
         guarantor, cosigner, investor or trustee of any corporation,
         partnership, proprietorship, joint venture, association or any other
         entity of any nature, engage, directly or indirectly, in the Business
         in (i) any county in any state, or any county contiguous with a county,
         in which the Employer or any of its Affiliates is conducting Business
         activities or has conducted such Business activities during the prior
         twelve (12) months, and (ii) any county in which the Employer or any of
         its Affiliates is conducting other business; provided, however, that
         the Employee may purchase or otherwise acquire for passive investment
         up to 3% of any class of securities of any such enterprise if such
         securities are listed on any national or regional securities exchange
         or have been registered under Section 12(g) of the Securities Exchange
         Act of 1934;

                  (b)      whether for the Employee's own account or for the
         account of any other person, at any time during his employment with the
         Employer or its Affiliates (except for the account of the Employer and
         its Affiliates) and the Non-Compete Period, solicit Business of the
         same or similar type being carried on by the Employer or its
         Affiliates, from any person known by the Employee to be a customer of
         the Employer or its Affiliates, whether or not the Employee had
         personal contact with such person during the Employee's employment with
         the Employer;

                  (c)      whether for the Employee's own account or the account
         of any other person and at any time during his employment with the
         Employer or its Affiliates and the Non-Compete Period, (i) solicit,
         employ, or otherwise engage as an employee, independent contractor, or
         otherwise, any person who is an employee of the Employer or an
         Affiliate, or in any manner induce, or attempt to induce, any employee
         of the Employer or its Affiliate to terminate his employment with the
         Employer or its Affiliate; or (ii) interfere with the Employer's or its
         Affiliate's relationship with any person who at any time during the
         Employment Period, was an employee, contractor, supplier, or customer
         of the Employer or its Affiliate; or

                  (d)      at any time after the termination of his employment,
         disparage the Employer or its Affiliates or any shareholders,
         directors, officers, employees, or agents of the Employer or any of its
         Affiliates, so long as the Employer does not disparage the

                                      -6-

<PAGE>

         Employee; provided, however, that notwithstanding the foregoing,
         paragraphs (a) and (b) above shall not apply if the Employee's
         employment is terminated by the Employer without Cause, by the Employee
         for Good Reason or upon a Change of Control. If any covenant in this
         Section 5.2 is held to be unreasonable, arbitrary, or against public
         policy, such covenant will be considered to be divisible with respect
         to scope, time, and geographic area, and such lesser scope, time, or
         geographic area, or all of them, as a court of competent jurisdiction
         may determine to be reasonable, not arbitrary, and not against public
         policy, will be effective, binding, and enforceable against the
         Employee. The Employee hereby agrees that this covenant is a material
         and substantial part of this Agreement and that: (i) the geographic
         limitations are reasonable; (ii) the term of the covenant is
         reasonable; and (iii) the covenant is not made for the purpose of
         limiting competition per se and is reasonably related to a protectable
         business interest of the Employer. The period of time applicable to any
         covenant in this Section 5.2 will be extended by the duration of any
         violation by the Employee of such covenant.

         6.       NON-DISCLOSURE COVENANT.

                  6.1      ACKNOWLEDGMENTS BY THE EMPLOYEE. The Employee
         acknowledges that (a) during the Employment Period, the Employee will
         be afforded access to Confidential Information; (b) public disclosure
         of such Confidential Information could have an adverse effect on the
         Employer and its business; and (c) the provisions of this Section 6 are
         reasonable and necessary to prevent the improper use or disclosure of
         Confidential Information.

                  6.2      COVENANTS OF THE EMPLOYEE.  The Employee covenants as
         follows:

                  (a)      CONFIDENTIALITY. During and after his employment with
         the Employer and its Affiliates, the Employee will hold in confidence
         the Confidential Information and will not disclose it to any person
         other than in connection with the performance of his duties and
         obligations hereunder, except with the specific prior written consent
         of the Board of Directors or the Chief Executive Officer; provided,
         however, that the parties agree that this Agreement does not prohibit
         the disclosure of Confidential Information where applicable law
         requires, including, but not limited to, in response of subpoenas
         and/or orders of a governmental agency or court of competent
         jurisdiction. In the event that the Employee is requested or becomes
         legally compelled under the terms of a subpoena or order issued by a
         court of competent jurisdiction or by a governmental body to make any
         disclosure of Confidential Information, the Employee agrees that he
         will (i) immediately provide the Employer with written notice of the
         existence, terms and circumstances, surrounding such request(s) so that
         the Employer may seek an appropriate protective order or other
         appropriate remedy, (ii) cooperate with the Employer in its efforts to
         decline, resist or narrow such requests and (iii) if disclosure of such
         Confidential Information is required in the opinion of counsel,
         exercise reasonable efforts to obtain an order or other reliable
         assurance that confidential treatment will be accorded to such
         disclosed information.

                  (b)      TRADE SECRETS. Any trade secrets of the Employer will
         be entitled to all of the protections and benefits under the federal
         and state trade secret and intellectual

                                      -7-

<PAGE>

         property laws and any other applicable law. If any information that the
         Employer deems to be a trade secret is found by a court of competent
         jurisdiction not to be a trade secret for purposes of this Agreement,
         such information will, nevertheless, be considered Confidential
         Information for purposes of this Agreement, so long as it otherwise
         meets the definition of Confidential Information. The Employee hereby
         waives any requirement that the Employer submit proof of the economic
         value of any trade secret or post a bond or other security.

                  (c)      REMOVAL. The Employee will not remove from the
         Employer's premises (except to the extent such removal is for purposes
         of the performance of the Employee's duties at home or while traveling,
         or except as otherwise specifically authorized by the Employer) any
         document, record, notebook, plan, model, component, device, or computer
         software or code, whether embodied in a disk or in any other form
         belonging to the Employer or used in the Employer's business
         (collectively, the "Proprietary Items"). All of the Proprietary Items,
         whether or not developed by the Employee, are the exclusive property of
         the Employer. Upon termination of his employment, or upon the request
         of the Employer during the Employment Period, the Employee will return
         to the Employer all of the Proprietary Items and Confidential
         Information in the Employee's possession or subject to the Employee's
         control, and the Employee shall not retain any copies, abstracts,
         sketches, or other physical embodiment, including electronic or
         otherwise, of any of the Proprietary Items or Confidential Information.

         7.       GENERAL PROVISIONS OF SECTION 5 AND 6.

                  7.1      INJUNCTIVE RELIEF AND ADDITIONAL REMEDY. The Employee
         acknowledges that the injury that would be suffered by the Employer as
         a result of a breach of the provisions of Sections 5 and 6 of this
         Agreement would be irreparable and that an award of monetary damages to
         the Employer for such a breach would be an inadequate remedy.
         Consequently, the Employer will have the right, in addition to any
         other rights it may have, to obtain a temporary restraining order
         and/or injunctive relief to restrain any breach or threatened breach or
         otherwise to specifically enforce any provision of this Agreement. The
         Employee waives any requirement for the Employer's securing or posting
         of any bond in conjunction with any such remedies. The Employee further
         agrees to and hereby does submit to in personam jurisdiction before
         each and every court for that purpose.

                  7.2      COVENANTS OF SECTIONS 5 AND 6 ARE ESSENTIAL AND
          INDEPENDENT COVENANTS. The covenants of the Employee in Sections 5 and
          6 are essential elements of this Agreement, and without the Employee's
          agreement to comply with such covenants, the Employer would not have
          entered into this Agreement or continued the employment of the
          Employee. The Employer and the Employee have independently consulted
          their respective counsel and have been advised in all respects
          concerning the reasonableness and propriety of such covenants, with
          specific regard to the nature of the business conducted by the
          Employer. In addition, the Employee's covenants in Sections 5 and 6
          are independent covenants and the existence of any claim by the
          Employee against the Employer under this Agreement or otherwise will
          not excuse the Employee's breach of any covenant in Sections 5 or 6.
          Notwithstanding anything in the Agreement to the

                                      -8-

<PAGE>

         contrary, (i) the covenants and agreements of the Employee in Sections
         5 and 6 shall survive the termination of the Agreement, except as
         provided below, and (ii) the covenants and agreements in Section 5.2(a)
         shall be effective as of the Effective Date.

         8.       GENERAL PROVISIONS.

                  8.1      INDEMNIFICATION. The Employer shall indemnify and
         hold harmless the Employee to the fullest extent permitted by
         applicable law against all costs (including reasonable attorneys' fees
         and costs), judgments, penalties, fines, amounts paid in settlements,
         interest and all other liabilities incurred or paid by the Employee in
         connection or in any way associated with the investigation, defense,
         prosecution, settlement or appeal of any threatened, pending or
         completed action, suit or proceeding, whether civil, criminal,
         administrative or investigative and to which the Employee was or is a
         party or is threatened to be made a party by reason of the fact that
         the Employee is or was an officer, employee or agent of the Employer,
         or any of its subsidiaries or Affiliates, including any property owner
         or condominium association that the Employee has been asked to serve on
         by the Employer, or by reason of anything done or not done by the
         Employee in any such capacity or capacities, provided that the Employee
         acted in good faith, and in a manner the Employee reasonably believed
         to be in or not opposed to the best interests of the Employer, and,
         with respect to any criminal action or proceeding, had no reasonable
         cause to believe his conduct was unlawful. The Employer also shall pay
         any and all expenses (including attorney's fees) incurred by the
         Employee as a result of the Employee being called as a witness in
         connection with any matter involving the Employer and/or any of its
         officers or directors. Nothing herein shall limit or reduce any rights
         of indemnification to which the Employee might be entitled under the
         organizational documents of the Employer or as allowed by applicable
         law.

                  8.2      WAIVER. The rights and remedies of the parties to
         this Agreement are cumulative and not alternative. Neither the failure
         nor any delay by either party in exercising any right, power, or
         privilege under this Agreement will operate as a waiver of such right,
         power, or privilege, and no single or partial exercise of any such
         right, power, or privilege will preclude any other or further exercise
         of such right, power, or privilege or the exercise of any other right,
         power, or privilege. To the maximum extent permitted by applicable law,
         (a) no claim or right arising out of this Agreement can be discharged
         by one party, in whole or in part, by a waiver or renunciation of the
         claim or right unless in writing signed by the other party; (b) no
         waiver that may be given by a party will be applicable except in the
         specific instance for which it is given; and (c) no notice to or demand
         on one party will be deemed to be a waiver of any obligation of such
         party or of the right of the party giving such notice or demand to take
         further action without notice or demand as provided in this Agreement.

                  8.3.     SUCCESSORS.

                  (a)      This Agreement is personal to the Employee and
         without the prior written consent of the Employer shall not be
         assignable by the Employee otherwise than by will or the laws of
         descent and distribution. This Agreement shall inure to the benefit of
         and be enforceable by the Employee's legal representatives.

                                      -9-

<PAGE>

                  (b)      This Agreement shall inure to the benefit of and be
         binding upon the Employer and its successors and assigns.

                  (c)      The Employer will require any successor (whether
         direct or indirect, by purchase, merger, consolidation or otherwise) to
         all or substantially all of the business and/or assets of the Employer
         to assume expressly and agree to perform this Agreement in the same
         manner and to the same extent that the Employer would be required to
         perform it if no such succession had taken place. As used in this
         Agreement "Employer" shall mean the Employer as hereinbefore defined
         and any successor to its business and/or assets as aforesaid which
         assumes and agrees to perform this Agreement by operation of law, or
         otherwise.

                  8.4      NOTICES. All notices, consents, waivers, and other
         communications required under this Agreement must be in writing and
         will be deemed to have been duly given when (a) delivered by hand (with
         written confirmation of receipt), (b) sent by facsimile (with written
         confirmation of receipt), provided that a copy is mailed by certified
         mail, return receipt requested, the same day or the next day, or (c)
         when received by the addressee, if sent by a nationally recognized
         overnight delivery service, in each case to the appropriate addresses
         and facsimile numbers set forth below (or to such other addresses and
         facsimile numbers as a party may designate by notice to the other
         parties):

       If to the Employer:                        With a copy to:

       Technical Olympic USA, Inc.                Technical Olympic USA, Inc.
       4000 Hollywood Blvd., Suite 500-N          ______________________________
       Hollywood, Florida 33021                   ______________________________
       Attn:  Antonio B. Mon, CEO                 Attn:_________________________
       Facsimile No.:  (954) 364-4020             Facsimile No.:
                                                  Facsimile No.: (281) 243-0116

       And with a second copy to:

       Technical Olympic USA, Inc.
       20 Solomou Street
       Ana Kalamaki
       Athens 17456 Greece
       Attn:  [CONSTANTINE STENGOS]
       Facsimile No.: 3010) 995-5586

       If to the Employee:                        With a copy to:
       [--------------------]                     [--------------------]
       [--------------------]                     [--------------------]
       [--------------------]                     [--------------------]

                                      -10-

<PAGE>

                  8.5      ENTIRE AGREEMENT; SUPERSEDURE. This Agreement
         contains the entire agreement between the parties with respect to the
         subject matter hereof and hereby expressly terminates, rescinds,
         replaces and supersedes all prior and contemporaneous agreements and
         understandings, oral or written, between the parties hereto with
         respect to the subject matter hereof.

                  8.6      GOVERNING LAW; SUBMISSION TO JURISDICTION. THIS
         AGREEMENT WILL BE GOVERNED BY THE LAWS OF THE STATE OF FLORIDA WITHOUT
         REGARD TO CONFLICTS OF LAWS PRINCIPLES. EACH PARTY HEREBY IRREVOCABLY
         SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS
         IN BROWARD COUNTY, FLORIDA, FOR THE PURPOSES OF ANY PROCEEDING ARISING
         OUT OF THIS AGREEMENT.

                  8.7      SEVERABILITY. If any provision of this Agreement is
         held invalid or unenforceable by any court of competent jurisdiction,
         the other provisions of this Agreement will remain in full force and
         effect. Any provision of this Agreement held invalid or unenforceable
         only in part or degree will remain in full force and effect to the
         extent not held invalid or unenforceable.

                  8.8      TAX WITHHOLDINGS. The Employer shall withhold from
         all payments hereunder all applicable taxes that it is required to
         withhold with respect to any payments and benefits provided under this
         Agreement.

                  8.9      AMENDMENTS AND WAIVERS. No provision of this
         Agreement may be modified, waived or discharged unless such waiver,
         modification or discharge is agreed to in writing and signed by the
         Employee and a member of the Board of Directors authorized by the Board
         of Directors to execute the same. No waiver by either party hereto at
         any time of any breach by the other party hereto of, or in compliance
         with, any condition or provision of this Agreement to be performed by
         such other party shall be deemed a waiver of similar or dissimilar
         provisions or conditions at the same or at any prior or subsequent
         time.

                  8.10     SURVIVAL. The provisions of Sections 4, 5, 6, 7, and
         8 shall survive the termination of this Agreement.

                  8.11     COUNTERPARTS. This Agreement may be executed in any
          number of counterparts, by original or facsimile signatures, each of
          which shall constitute an original and all of which taken together
          shall constitute one and the same instrument.

         IN WITNESS WHEREOF, the parties have executed and delivered this
Agreement effective for all purposes as of the Effective Date.

TECHNICAL OLYMPIC USA, INC.                     EMPLOYEE

By: /s/ Antonio B. Mon                          /s/ Yannis Delikanakis
   --------------------------------             --------------------------------
Name: Antonio B. Mon                            Name:  Yannis Delikanakis
Title: Chief Executive Officer

                                      -11-

<PAGE>

                                    EXHIBIT A

                                   DEFINITIONS

"Accrued Obligations" means, at the relevant date, any unreimbursed business
expenses incurred by the Employee and payable pursuant to Section 3.3.

"Affiliate" means a person or entity who or which, (i) with respect to an
entity, directly, or indirectly through one or more intermediaries, controls, or
is controlled by, or is under common control with, such entity or (ii) with
respect to the Employee, is a parent, spouse or issue of the Employee, including
persons in an adopted or step relationship.

"Board of Directors" means the board of directors of the Employer.

"Business" means the business of developing land for, and the design and
construction of, and the promotion, marketing and sale of, single-family
residences, townhouses, and condominiums.

"Business Day" shall mean any day other than a Saturday, Sunday or bank holiday
recognized in Hollywood, Florida.

"Confidential Information" means any and all intellectual property of the
Employer (or any of its Affiliates), including but not limited to:

         (a) trade secrets concerning the business and affairs of the Employer
(or any of its Affiliates), product specifications, data, know-how, formulae,
compositions, processes, designs, sketches, photographs, graphs, drawings,
samples, inventions and ideas, past, current, and planned research and
development, current and planned manufacturing or distribution methods and
processes, customer lists, current and anticipated customer requirements, price
lists, market studies, business plans, computer software and programs (including
object code and source code), computer software and database technologies,
systems, structures, and architectures (and related formulae, compositions,
processes, improvements, devices, know-how, inventions, discoveries, concepts,
ideas, designs, methods and information), and any other information, however
documented, that is a trade secret under federal, state or other applicable law;
and

         (b) information concerning the business and affairs of the Employer (or
any of its Affiliates) (which includes historical financial statements,
financial projections and budgets, historical and projected sales, capital
spending budgets and plans, the names and backgrounds of key personnel,
personnel training and techniques and materials), however documented; and notes,
analysis, compilations, studies, summaries, and other material prepared by or
for the Employer (or any of its Affiliates) containing or based, in whole or in
part, on any information included in the foregoing.

Notwithstanding the foregoing, Confidential Information shall not include
information otherwise lawfully known generally by or readily accessible to the
trade or general public other than by the improper disclosure by the Employee.

"Employment Period" means the term of the Employee's employment under this
Agreement.

                                      -12-

<PAGE>

"Noncompete Period" means the period beginning on the Effective Date and ending
on the first anniversary of the Employee's termination of employment with the
Employer.

                                      -13-

<PAGE>

                                    EXHIBIT B

                     Summary of Duties and Responsibilities

At the direction of the Chief Executive Officer or the Board of Directors of the
Employer, Employee's duties and responsibilities as Executive Vice President
shall include, but would not be limited to, the following:

         -        Advise, counsel, and support the Employer in cultivating and
                  developing business, commercial, banking, and investor
                  relations in Europe.

         -        Advise, counsel, and support the Chief Executive Officer of
                  the Employer in the development of business plans and
                  financing options for company operations and expansions.

         -        Arrange and participate in road shows, presentations, trade
                  conferences, investor meetings, and other events anywhere in
                  the USA or Europe, and handle all matters relating to the
                  logistical details of same when such events take place in
                  Europe.

         -        Act as primary liaison between the Chief Executive Officer of
                  the Employer (and other senior officers and managers) and the
                  representatives of Employer's majority shareholder, including
                  but not limited to regular participation in conference calls,
                  meetings, and working sessions.

         -        Manage communications from representatives of Employer's
                  majority shareholder (located in Greece) and the Employer,
                  including but not limited to ensuring accuracy in language
                  translation and interpretation.

         -        Advise the Chief Executive Officer of the Employer on any and
                  all matters relating to shareholder relations.

                                      -14-

<PAGE>

                                    EXHIBIT C

                             Stock Option Agreements

                                      -15-

<PAGE>
                          TECHNICAL OLYMPIC USA, INC.
                      ANNUAL AND LONG-TERM INCENTIVE PLAN

      PERFORMANCE ACCELERATED VESTING NONQUALIFIED STOCK OPTION AGREEMENT

         AGREEMENT made as of January 1, 2003, between Technical Olympic USA,
Inc., a Delaware corporation (the "Company"), and Yannis Delikanakis (the
"Employee").

         To carry out the purposes of the Technical Olympic USA, Inc. Annual
and Long-Term Incentive Plan (the "Plan"), by affording Employee the
opportunity to purchase shares of common stock, par value $.01, ("Stock") of
Technical Olympic USA, Inc. (the "Company") in recognition of Employee's
significant duties and responsibilities as the Executive Vice-President of the
Company, the Company and Employee hereby agree as follows:

         1.       GRANT OF OPTION. The Company hereby irrevocably grants to
Employee the right and option ("Option") to purchase all or any part of an
aggregate of 243,000 shares of Stock, in three separate tranches of 81,000
shares of Stock ("Tranche 1"), 81,000 shares of Stock ("Tranche 2"), and 81,000
shares of Stock ("Tranche 3"), on the terms and conditions set forth herein and
in the Plan, which Plan is incorporated herein by reference as a part of this
Agreement. In the event of any conflict between the terms of this Agreement and
the Plan, the Plan shall control. Capitalized terms used but not defined in
this Agreement shall have the meaning attributed to such terms under the Plan,
unless the context requires otherwise.

         2.       PURCHASE PRICE. The purchase price per share of Stock
purchased pursuant to the exercise of this Option shall be $17.17.

         3.       EXERCISE OF OPTION. This Option shall become fully vested on
the seventh anniversary of the date of grant hereof and may be immediately
exercised at any time and from time to time after the seventh anniversary of
the date of grant hereof, by written notice to the Company at its principal
executive office addressed to the attention of its Secretary (or such other
officer or employee of the Company as the Company may designate from time to
time); provided, however, that a portion or all of this Option may become
vested earlier and become exercisable as provided in Attachment B hereto or as
provided below:

                  (a)      If Employee's employment with the Company terminates
         by reason of Disability (as defined in Attachment A hereto), this
         Option, to the extent vested on the date of termination, may be
         exercised, at any time during the one-year period following such
         termination, by Employee or by Employee's guardian or legal
         representative (or by Employee's estate or the person who acquires
         this Option by will or the laws of descent and distribution or
         otherwise by reason of the death of Employee if Employee dies during
         such one-year period), but only as to the vested number of shares of
         Stock, if any, that Employee was entitled to purchase hereunder as of
         the date Employee's employment so terminates.

                  (b)      If Employee dies an employee of the Company,
         Employee's estate (or the person who acquires this Option by will or
         the laws of descent and distribution or

<PAGE>
         otherwise by reason of the death of Employee) may exercise this
         Option, to the extent vested on the date of termination, at any time
         during the one-year period following the date of Employee's death, but
         only as to the vested number of shares of Stock, if any, that Employee
         was entitled to purchase hereunder as of the date Employee's
         employment so terminates.

                  (c)      If Employee's employment with the Company is
         terminated by the Company for any reason other than due to his
         Disability or for Cause (as defined in Attachment A hereto), this
         Option shall be fully vested and may be exercised, at any time during
         the three-year period following such termination, by Employee or by
         Employee's guardian or legal representative (or by Employee's estate
         or the person who acquires this Option by will or the laws of descent
         and distribution or otherwise by reason of the death of Employee if
         Employee dies during such period).

                  (d)      If Employee terminates his employment with the
         Company for any reason other than a Good Reason (as defined in
         Attachment A hereto), or the Company terminates his employment with
         the Company for Cause, this Option, to the extent vested on the date
         of termination, may be exercised, at any time during the 90-day period
         following such termination, by Employee or by Employee's guardian or
         legal representative (or by Employee's estate or the person who
         acquires this Option by will or the laws of descent and distribution
         or otherwise by reason of the death of Employee if Employee dies
         during such 90-day period), but in each case only as to the vested
         number of shares of Stock, if any, that Employee was entitled to
         purchase hereunder as of the date Employee's employment so terminates.

                  (e)      If Employee's employment with the Company is
         terminated by Employee for Good Reason prior to a Change of Control,
         this Option shall be fully vested and may be exercised, at any time
         during the one-year period following such termination, by Employee or
         by Employee's estate (or the person who acquires this Option by will
         or the laws of descent and distribution or otherwise by reason of the
         death of Employee) if Employee dies during such period.

                  (f)      If Employee's employment with the Company is
         terminated by Employee on or following a Change of Control (as defined
         in Attachment A hereto), this Option shall be fully vested and may be
         exercised, at any time during the three-year period following such
         termination, by Employee or by Employee's guardian or legal
         representative (or by Employee's estate or the person who acquires
         this Option by will or the laws of descent and distribution or
         otherwise by reason of the death of Employee if Employee dies during
         such period).

                  (g)      Notwithstanding the foregoing, there is no minimum
         or maximum number of shares of Stock that must be purchased by
         Employee upon exercise of this Option. Instead, Employee may, at any
         time and from time to time, purchase any number of shares of Stock
         that are then vested and exercisable according to the provisions of
         this Agreement.

                                      -2-
<PAGE>
                  (h)      Notwithstanding the foregoing, this Option shall not
         be exercisable in any event after the expiration of 10 years from the
         date of grant hereof.

         The purchase price of the shares of Stock as to which this Option is
exercised shall be paid in full at the time of exercise (a) in cash (including
by check acceptable to the Company), (b) if the shares are readily tradable on
a national securities market or exchange, through a "cashless broker exercise"
procedure in accordance with a program established by the Company, or (c) any
combination of the foregoing. No fraction of a share shall be issued by the
Company upon exercise of an Option. Unless and until a certificate or
certificates representing such shares shall have been issued by the Company to
Employee, Employee (or the person permitted to exercise this Option in the
event of Employee's death) shall not be or have any of the rights or privileges
of a shareholder of the Company with respect to shares acquirable upon an
exercise of this Option.

         4.       WITHHOLDING OF TAX. To the extent that the exercise of this
Option or the disposition of shares acquired by exercise of this Option results
in wages to Employee for federal, state or local tax purposes, Employee shall
deliver to the Company at the time of such exercise or disposition such amount
of money, if any, as the Company may require to meet its minimum withholding
obligations under applicable tax laws or regulations. No exercise of this
Option shall be effective until Employee (or the person entitled to exercise
this Option, as applicable) has made arrangements approved by the Company to
satisfy all applicable minimum tax withholding requirements of the Company.

         Employee agrees that the shares which Employee may acquire by
exercising this Option will not be sold or otherwise disposed of in any manner
which would constitute a violation of any applicable federal or state
securities laws. Employee also agrees that (i) the certificates representing
the shares purchased under this Option may bear such legend or legends as the
Committee deems appropriate in order to assure compliance with applicable
securities laws, (ii) the Company may refuse to register the transfer of the
shares purchased under this Option on the stock transfer records of the Company
if such proposed transfer would in the opinion of counsel satisfactory to the
Company constitute a violation of any applicable securities law, and (iii) the
Company may give related instructions to its transfer agent, if any, to stop
registration of the transfer of the shares purchased under this Option.

         5.       BINDING EFFECT. This Agreement shall be binding upon and
inure to the benefit of any successors to the Company and all persons lawfully
claiming under Employee.

         6.       ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement of the parties with regard to the subject matter hereof, and contains
all the covenants, promises, representations, warranties and agreements between
the parties with respect to the Option granted hereby. Without limiting the
scope of the preceding sentence, all prior understandings and agreements, if
any, among the parties hereto relating to the subject matter hereof are hereby
null and void and of no further force and effect. Any modification of this
Agreement shall be effective only if it is in writing and signed by both
Employee and an authorized officer of the Company.

                                      -3-
<PAGE>
         7.       GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD
TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

         8.       ADVERSE ACTIONS OR DECISIONS. Notwithstanding any provision
of this Agreement or the Plan to the contrary, in no event shall the Company or
the Committee make any change to the Plan or take any action authorized
pursuant to the Plan which degrades or adversely affects in any manner the
rights of Employee hereunder, unless Employee consents thereto in writing.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by its duly authorized officer, and Employee has executed this
Agreement, all effective as of the day and year first above written.

                           TECHNICAL OLYMPIC USA, INC.

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

                           EMPLOYEE

                           ----------------------------------------------------
                           Yannis Delikanakis

                                      -4-
<PAGE>
                                  ATTACHMENT A

                                  DEFINITIONS

1.       "Cause" means:

         (a)      Employee's conviction of, or plea of nolo contendere to, a
felony or a misdemeanor involving moral turpitude;

         (b)      any act of fraud, misappropriation or personal dishonesty by
Employee intended to result in his substantial personal enrichment at the
expense of the Company or an affiliate; or

         (c)      Employee's a material violation of any express direction of
the Chairman of the Board or a material violation of any rule, regulation,
policy or plan established by the Board from time to time regarding the conduct
of members of the Company's management.

2.       "Change of Control" means Constantine Stengos and/or one or more
members of the "Stengos Family" ceases to "Control" the Company (or, in the
case of any merger or combination in which Company is not the surviving entity,
ceases to Control such successor entity). For purposes of this Agreement, the
term (a) "Stengos Family" shall mean Constantine Stengos, his spouse, sons,
daughters, sons-in-law, daughters-in-law, and the lineal descendants of any of
the foregoing and (b) "Control" shall mean (i) the power to elect the majority
of the board of directors or comparable governing body of an entity, or, if
there is no such body, the power to direct the management of such entity; or
(ii) the direct and/or indirect beneficial ownership of 40% or more of the
combined voting power of the then outstanding voting securities of such entity
entitled to vote in the election of directors (or comparable governing body or
management) of such entity.

3.       "Disability" means Employee's inability, for a period of six
consecutive months, or a cumulative period of 120 business days out of a period
of 12 consecutive months, to perform the essential duties of Employee's
position of Executive Vice-President of the Company, due to a mental or
physical impairment. The determination of whether Employee is suffering from a
Disability shall be made by three independent physicians, one chosen by a
representative of Employee, one chosen by the Company and one chosen by the
physicians chosen by Employee and the Company.

4.       "Good Reason" means that, without Employee's prior written consent,
the Company removes Employee from the position of Executive Vice-President of
the Company or substantially adversely changes Employee's duties as Executive
Vice-President (excluding any such removal for Cause or as a result of
Employee's death, Disability or Employee's resignation not based on the
existence of Good Reason) and within 60 business days of learning of the
occurrence of any such event, and in the absence of any circumstance that
constitutes Cause, Employee terminates his employment by written notice to the
Chairman of the Board.

                                      A-1
<PAGE>
                                  ATTACHMENT B
                            TECHNICAL OLYMPIC, INC.
                        PERFORMANCE ACCELERATED VESTING
                        NONQUALIFIED STOCK OPTION GRANT

                          ACCELERATED VESTING CRITERIA

I.       Total Return to Shareholders ("TRS")

         The vesting of an Option Tranche shall become accelerated based on the
         comparison of (i) the TRS (as defined below) of the Company's common
         stock at the end of the Performance Period applicable to such Tranche
         to (ii) the TRS of each of the various common stocks of the Peer Group
         for such Performance Period.

         "TRS" means the appreciation/depreciation in the average price of the
         applicable common stock at the end of the Performance Period, with any
         dividends paid on such stock during such Performance Period being
         deemed reinvested, over the average price of the applicable common
         stock at the beginning of the Performance Period.

         The "average price" of the Company's common stock and of the common
         stock of each of the members of the Peer Group (i) at the beginning of
         the Performance Period shall mean the average of the closing prices of
         such stock during the calendar quarter immediately preceding the
         beginning of such Performance Period and (ii) at the end of the
         Performance Period shall mean the average of the closing prices of
         such stock during the last calendar quarter of such Performance
         Period.

II.      Performance Periods

         Separate Performance Periods shall apply to each Option Tranche as
         follows:

<TABLE>
<CAPTION>
                          Option Tranche                        Performance Period

                          <S>                           <C>
                                 1                      January 1, 2002 - December 31, 2004

                                 2                      January 1, 2003 - December 31, 2005

                                 3                      January 1, 2004 - December 31, 2006
</TABLE>

III.     Accelerated Vesting

         The number of shares of Stock with respect to an Option Tranche that
         shall become vested, if any, at the end of the applicable Performance
         Period shall be determined by the percentile ranking of the Company's
         TRS for such Performance Period vs. the TRS for the Peer Group
         companies for the Performance Period, as follows:

                                      B-1
<PAGE>
<TABLE>
<CAPTION>
                                                           1         2         3          4          5          6

        <S>                                              <C>       <C>      <C>         <C>       <C>         <C>
        Company TRS Percentile Rank vs.                  <25th     25th     37.5th      50th      62.5th     >75th
        Peer Group Members' TRS                          -                                                   -
        Vested Percentage                                 0%        10%       35%        60%        85%       100%
</TABLE>

         For results between columns 2 and 3, 3 and 4, 4 and 5, and 5 and 6,
         the Vested Percentage earned shall be determined by linear
         interpolation between the two applicable vesting standards.

IV.      Peer Group

         The Peer Group shall consist of the following companies:

                  Beazer Homes USA, Inc.
                  Centex Corporation
                  D.R. Horton, INC.
                  Hovnanian Enterprises, Inc.
                  KB Home (Formerly Kaufman and Broad Home Corporation)
                  Lennar Corporation
                  M.D.C. Holdings, INC.
                  NVR, Inc.
                  Pulte Corporation
                  The Ryland Group, INC.
                  Standard Pacific Corp.
                  Toll Brothers, INC.

         The Company shall engage Compustat (or other similar firm) to annually
         rank the above peer companies for purposes of determining the
         Company's percentile ranking.

V.       Calculations

All TRS calculations under this Agreement shall be made by an independent
accounting firm or consulting expert selected by the Company. In performing
such calculations, appropriate adjustments shall be made for any change in
accounting standards required by the FASB after the beginning of a Performance
Period.

                                      B-2
<PAGE>
                          TECHNICAL OLYMPIC USA, INC.
                      ANNUAL AND LONG-TERM INCENTIVE PLAN

                 FRONT END NONQUALIFIED STOCK OPTION AGREEMENT

         AGREEMENT made as of January 1, 2003, between Technical Olympic USA,
Inc., a Delaware corporation (the "Company"), and Yannis Delikanakis (the
"Employee").

         To carry out the purposes of the Technical Olympic USA, Inc. Annual
and Long-Term Incentive Plan (the "Plan"), by affording Employee the
opportunity to purchase shares of common stock, par value $.01, ("Stock") of
Technical Olympic USA, Inc. (the "Company") in recognition of Employee's
significant duties and responsibilities as the Executive Vice-President of the
Company, the Company and Employee hereby agree as follows:

         1.       GRANT OF OPTION. The Company hereby irrevocably grants to
Employee the right and option ("Option") to purchase all or any part of an
aggregate of 540,000 shares of Stock on the terms and conditions set forth
herein and in the Plan, which Plan is incorporated herein by reference as a
part of this Agreement. In the event of any conflict between the terms of this
Agreement and the Plan, the Plan shall control. Capitalized terms used but not
defined in this Agreement shall have the meaning attributed to such terms under
the Plan, unless the context requires otherwise.

         2.       PURCHASE PRICE. The purchase price per share of Stock
purchased pursuant to the exercise of this Option shall be as follows: (i) with
respect to the first 180,000 shares of Stock (Tranche 1), $18.89; (ii) with
respect to the next 180,000 shares of Stock (Tranche 2), $20.78; and (iii) with
respect to the remaining 180,000 shares of Stock (Tranche 3), $22.86.

         3.       EXERCISE OF OPTION. This Option shall become vested and may
be exercised in accordance with the following schedule, by written notice to
the Company at its principal executive office addressed to the attention of its
Secretary (or such other officer or employee of the Company as the Company may
designate from time to time):

         (i)      with respect to Tranche 1, at any time and from time to time
                  on and after January 1, 2003;

         (ii)     with respect to Tranche 2, at any time and from time to time
                  on and after January 1, 2004; and

         (iii)    with respect to Tranche 3, at any time and from time to time
                  on and after January 1, 2005.

Notwithstanding the above schedule, upon the occurrence of the following
events, this Option shall vest and become exercisable as provided below:

                  (a)      If Employee's employment with the Company terminates
         by reason of Disability (as defined in Attachment A hereto), this
         Option, to the extent vested on the date of termination, may be
         exercised, at any time during the one-year period following

<PAGE>
         such termination, by Employee or by Employee's guardian or legal
         representative (or by Employee's estate or the person who acquires
         this Option by will or the laws of descent and distribution or
         otherwise by reason of the death of Employee if Employee dies during
         such one-year period), but only as to the vested number of shares of
         Stock, if any, that Employee was entitled to purchase hereunder as of
         the date Employee's employment so terminates.

                  (b)      If Employee dies an employee of the Company,
         Employee's estate (or the person who acquires this Option by will or
         the laws of descent and distribution or otherwise by reason of the
         death of Employee) may exercise this Option, to the extent vested on
         the date of termination, at any time during the one-year period
         following the date of Employee's death, but only as to the vested
         number of shares of Stock, if any, that Employee was entitled to
         purchase hereunder as of the date Employee's employment so terminates.

                  (c)      If Employee's employment with the Company is
         terminated by the Company for any reason other than due to his
         Disability or for Cause (as defined in Attachment A hereto), this
         Option shall be fully vested and may be exercised, at any time during
         the three-year period following such termination, by Employee or by
         Employee's guardian or legal representative (or by Employee's estate
         or the person who acquires this Option by will or the laws of descent
         and distribution or otherwise by reason of the death of Employee if
         Employee dies during such period).

                  (d)      If Employee terminates employment with the Company
         for any reason other than a Good Reason (as defined in Attachment A
         hereto), or the Company terminates his employment with the Company for
         Cause, this Option, to the extent vested on the date of termination,
         may be exercised, at any time during the 90-day period following such
         termination, by Employee or by Employee's guardian or legal
         representative (or by Employee's estate or the person who acquires
         this Option by will or the laws of descent and distribution or
         otherwise by reason of the death of Employee if Employee dies during
         such 90-day period), but in each case only as to the vested number of
         shares of Stock, if any, that Employee was entitled to purchase
         hereunder as of the date Employee's employment so terminates.

                  (e)      If Employee's employment with the Company is
         terminated by Employee for Good Reason prior to a Change of Control,
         this Option shall be fully vested and may be exercised, at any time
         during the one-year period following such termination, by Employee or
         by Employee's estate (or the person who acquires this Option by will
         or the laws of descent and distribution or otherwise by reason of the
         death of Employee) if Employee dies during such period.

                  (f)      If Employee's employment with the Company is
         terminated by Employee on or following a Change of Control (as defined
         in Attachment A hereto), this Option shall be fully vested and may be
         exercised, at any time during the three-year period following such
         termination, by Employee or by Employee's guardian or legal
         representative (or by Employee's estate or the person who acquires
         this Option by will or

                                      -2-
<PAGE>
         the laws of descent and distribution or otherwise by reason of the
         death of Employee if Employee dies during such period).

                  (g)      Notwithstanding the foregoing, there is no minimum
         or maximum number of shares of Stock that must be purchased by
         Employee upon exercise of this Option. Instead, Employee may, at any
         time and from time to time, purchase any number of shares of Stock
         that are then vested and exercisable according to the provisions of
         this Agreement.

                  (h)      Notwithstanding the foregoing, this Option shall not
         be exercisable in any event after the expiration of 10 years from the
         date of grant hereof.

         The purchase price of the shares of Stock as to which this Option is
exercised shall be paid in full at the time of exercise (a) in cash (including
by check acceptable to the Company), (b) if the shares are readily tradable on
a national securities market or exchange, through a "cashless broker exercise"
procedure in accordance with a program established by the Company, or (c) any
combination of the foregoing. No fraction of a share shall be issued by the
Company upon exercise of an Option. Unless and until a certificate or
certificates representing such shares shall have been issued by the Company to
Employee, Employee (or the person permitted to exercise this Option in the
event of Employee's death) shall not be or have any of the rights or privileges
of a shareholder of the Company with respect to shares acquirable upon an
exercise of this Option.

         4.       WITHHOLDING OF TAX. To the extent that the exercise of this
Option or the disposition of shares acquired by exercise of this Option results
in wages to Employee for federal, state or local tax purposes, Employee shall
deliver to the Company at the time of such exercise or disposition such amount
of money, if any, as the Company may require to meet its minimum withholding
obligations under applicable tax laws or regulations. No exercise of this
Option shall be effective until Employee (or the person entitled to exercise
this Option, as applicable) has made arrangements approved by the Company to
satisfy all applicable minimum tax withholding requirements of the Company.

         Employee agrees that the shares which Employee may acquire by
exercising this Option will not be sold or otherwise disposed of in any manner
which would constitute a violation of any applicable federal or state
securities laws. Employee also agrees that (i) the certificates representing
the shares purchased under this Option may bear such legend or legends as the
Committee deems appropriate in order to assure compliance with applicable
securities laws, (ii) the Company may refuse to register the transfer of the
shares purchased under this Option on the stock transfer records of the Company
if such proposed transfer would in the opinion of counsel satisfactory to the
Company constitute a violation of any applicable securities law, and (iii) the
Company may give related instructions to its transfer agent, if any, to stop
registration of the transfer of the shares purchased under this Option.

         5.       BINDING EFFECT. This Agreement shall be binding upon and
inure to the benefit of any successors to the Company and all persons lawfully
claiming under Employee.

                                      -3-
<PAGE>
         6.       ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement of the parties with regard to the subject matter hereof, and contains
all the covenants, promises, representations, warranties and agreements between
the parties with respect to the Option granted hereby. Without limiting the
scope of the preceding sentence, all prior understandings and agreements, if
any, among the parties hereto relating to the subject matter hereof are hereby
null and void and of no further force and effect. Any modification of this
Agreement shall be effective only if it is in writing and signed by both
Employee and an authorized officer of the Company.

         7.       GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD
TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

         8.       ADVERSE ACTIONS OR DECISIONS. Notwithstanding any provision
of this Agreement or the Plan to the contrary, in no event shall the Company or
the Committee make any change to the Plan or take any action authorized
pursuant to the Plan which degrades or adversely affects in any manner the
rights of Employee hereunder, unless Employee consents thereto in writing.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by its duly authorized officer, and Employee has executed this
Agreement, all effective as of the day and year first above written.

                           TECHNICAL OLYMPIC USA, INC.

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

                           EMPLOYEE

                           ----------------------------------------------------
                           Yannis Delikanakis

                                      -4-
<PAGE>
                                  ATTACHMENT A

                                  DEFINITIONS

1.       "Cause" means:

         (a)      Employee's conviction of, or plea of nolo contendere to, a
felony or a misdemeanor involving moral turpitude;

         (b)      any act of fraud, misappropriation or personal dishonesty by
Employee intended to result in his substantial personal enrichment at the
expense of the Company or an affiliate; or

         (c)      Employee's a material violation of any express direction of
the Chairman of the Board or a material violation of any rule, regulation,
policy or plan established by the Board from time to time regarding the conduct
of members of the Company's management.

2.       "Change of Control" means Constantine Stengos and/or one or more
members of the "Stengos Family" ceases to "Control" the Company (or, in the
case of any merger or combination in which Company is not the surviving entity,
ceases to Control such successor entity). For purposes of this Agreement, the
term (a) "Stengos Family" shall mean Constantine Stengos, his spouse, sons,
daughters, sons-in-law, daughters-in-law, and the lineal descendants of any of
the foregoing and (b) "Control" shall mean (i) the power to elect the majority
of the board of directors or comparable governing body of an entity, or, if
there is no such body, the power to direct the management of such entity; or
(ii) the direct and/or indirect beneficial ownership of 40% or more of the
combined voting power of the then outstanding voting securities of such entity
entitled to vote in the election of directors (or comparable governing body or
management) of such entity.

3.       "Disability" means Employee's inability, for a period of six
consecutive months, or a cumulative period of 120 business days out of a period
of 12 consecutive months, to perform the essential duties of Employee's
position of Executive Vice-President of the Company, due to a mental or
physical impairment. The determination of whether Employee is suffering from a
Disability shall be made by three independent physicians, one chosen by a
representative of Employee, one chosen by the Company and one chosen by the
physicians chosen by Employee and the Company.

4.       "Good Reason" means that, without Employee's prior written consent,
the Company removes Employee from the position of Executive Vice-President of
the Company or substantially adversely changes Employee's duties as Executive
Vice-President (excluding any such removal for Cause or as a result of
Employee's death, Disability or Employee's resignation not based on the
existence of Good Reason) and within 60 business days of learning of the
occurrence of any such event, and in the absence of any circumstance that
constitutes Cause, Employee terminates his employment by written notice to the
Chairman of the Board.

                                      A-1
<PAGE>
                          TECHNICAL OLYMPIC USA, INC.
                      ANNUAL AND LONG-TERM INCENTIVE PLAN

                         SIGN ON STOCK OPTION AGREEMENT

         AGREEMENT made as of January 1, 2003, between Technical Olympic USA,
Inc., a Delaware corporation (the "Company"), and Yannis Delikanakis (the
"Employee").

         To carry out the purposes of the Technical Olympic USA, Inc. Annual
and Long-Term Incentive Plan (the "Plan"), by affording Employee the
opportunity to purchase shares of common stock, par value $.01, ("Stock") of
Technical Olympic USA, Inc. (the "Company") in recognition of Employee's
significant duties and responsibilities as the Executive Vice-President of the
Company, the Company and Employee hereby agree as follows:

         1.       GRANT OF OPTION. The Company hereby irrevocably grants to
Employee the right and option ("Option") to purchase all or any part of an
aggregate of 117,000 shares of Stock on the terms and conditions set forth
herein and in the Plan, which Plan is incorporated herein by reference as a
part of this Agreement. In the event of any conflict between the terms of this
Agreement and the Plan, the Plan shall control. Capitalized terms used but not
defined in this Agreement shall have the meaning attributed to such terms under
the Plan, unless the context requires otherwise.

         2.       PURCHASE PRICE. The purchase price per share of Stock
purchased pursuant to the exercise of this Option shall be $17.17.

         3.       EXERCISE OF OPTION. This Option is immediately and fully
vested on the date hereof. This Option may be exercised, by written notice to
the Company at its principal executive office addressed to the attention of its
Secretary (or such other officer or employee of the Company as the Company may
designate from time to time), at any time and from time to time after the date
of grant hereof, subject, however, to the following provisions:

                  (a)      If Employee's employment with the Company terminates
         by reason of Disability (as defined in Attachment A hereto), this
         Option may be exercised, at any time during the one-year period
         following such termination, by Employee or by Employee's guardian or
         legal representative (or by Employee's estate or the person who
         acquires this Option by will or the laws of descent and distribution
         or otherwise by reason of the death of Employee if Employee dies
         during such one-year period).

                  (b)      If Employee dies while an employee of the Company,
         Employee's estate (or the person who acquires this Option by will or
         the laws of descent and distribution or otherwise by reason of the
         death of Employee) may exercise this Option at any time during the
         one-year period following the date of Employee's death.

                  (c)      If Employee's employment with the Company is
         terminated by the Company for any reason other than due to his
         Disability or for Cause (as defined in Attachment A hereto), this
         Option may be exercised, at any time during the three-year

<PAGE>
         period following such termination, by Employee or by Employee's
         guardian or legal representative (or by Employee's estate or the
         person who acquires this Option by will or the laws of descent and
         distribution or otherwise by reason of the death of Employee if
         Employee dies during such period).

                  (d)      If Employee terminates his employment with the
         Company for any reason other than a Good Reason (as defined in
         Attachment A hereto), or the Company terminates the Employee for
         Cause, this Option may be exercised, at any time during the 90-day
         period following such termination, by Employee or by Employee's
         guardian or legal representative (or by Employee's estate or the
         person who acquires this Option by will or the laws of descent and
         distribution or otherwise by reason of the death of Employee if
         Employee dies during such 90-day period).

                  (e)      If Employee's employment with the Company is
         terminated by Employee for Good Reason prior to a Change of Control,
         this Option may be exercised, at any time during the one-year period
         following such termination, by Employee or by Employee's estate (or
         the person who acquires this Option by will or the laws of descent and
         distribution or otherwise by reason of the death of Employee) if
         Employee dies during such period.

                  (f)      If Employee's employment with the Company is
         terminated by Employee on or following a Change of Control (as defined
         in Attachment A hereto), this Option may be exercised, at any time
         during the three-year period following such termination, by Employee
         or by Employee's guardian or legal representative (or by Employee's
         estate or the person who acquires this Option by will or the laws of
         descent and distribution or otherwise by reason of the death of
         Employee if Employee dies during such period).

                  (g)      Notwithstanding the foregoing, there is no minimum
         or maximum number of shares of Stock that must be purchased by
         Employee upon exercise of this Option. Instead, Employee may, at any
         time and from time to time, purchase any number of shares of Stock
         that are then vested and exercisable according to the provisions of
         this Agreement.

                  (h)      Notwithstanding the foregoing, this Option shall not
         be exercisable in any event after the expiration of 10 years from the
         date of grant hereof.

         The purchase price of the shares of Stock as to which this Option is
exercised shall be paid in full at the time of exercise (a) in cash (including
by check acceptable to the Company), (b) if the shares are readily tradable on
a national securities market or exchange, through a "cashless broker exercise"
procedure in accordance with a program established by the Company, or (c) any
combination of the foregoing. No fraction of a share shall be issued by the
Company upon exercise of an Option. Unless and until a certificate or
certificates representing such shares shall have been issued by the Company to
Employee, Employee (or the person permitted to exercise this Option in the
event of Employee's death) shall not be or have any of the rights or privileges
of a shareholder of the Company with respect to shares acquirable upon an
exercise of this Option.

                                      -2-
<PAGE>
         4.       WITHHOLDING OF TAX. To the extent that the exercise of this
Option or the disposition of shares acquired by exercise of this Option results
in wages to Employee for federal, state or local tax purposes, Employee shall
deliver to the Company at the time of such exercise or disposition such amount
of money, if any, as the Company may require to meet its minimum withholding
obligations under applicable tax laws or regulations. No exercise of this
Option shall be effective until Employee (or the person entitled to exercise
this Option, as applicable) has made arrangements approved by the Company to
satisfy all applicable minimum tax withholding requirements of the Company.

         Employee agrees that the shares which Employee may acquire by
exercising this Option will not be sold or otherwise disposed of in any manner
which would constitute a violation of any applicable federal or state
securities laws. Employee also agrees that (i) the certificates representing
the shares purchased under this Option may bear such legend or legends as the
Committee deems appropriate in order to assure compliance with applicable
securities laws, (ii) the Company may refuse to register the transfer of the
shares purchased under this Option on the stock transfer records of the Company
if such proposed transfer would in the opinion of counsel satisfactory to the
Company constitute a violation of any applicable securities law, and (iii) the
Company may give related instructions to its transfer agent, if any, to stop
registration of the transfer of the shares purchased under this Option.

         5.       BINDING EFFECT. This Agreement shall be binding upon and
inure to the benefit of any successors to the Company and all persons lawfully
claiming under Employee.

         6.       ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement of the parties with regard to the subject matter hereof, and contains
all the covenants, promises, representations, warranties and agreements between
the parties with respect to the Option granted hereby. Without limiting the
scope of the preceding sentence, all prior understandings and agreements, if
any, among the parties hereto relating to the subject matter hereof are hereby
null and void and of no further force and effect. Any modification of this
Agreement shall be effective only if it is in writing and signed by both
Employee and an authorized officer of the Company.

         7.       GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD
TO CONFLICTS OF LAWS PRINCIPLES THEREOF.

         8.       ADVERSE ACTIONS OR DECISIONS. Notwithstanding any provision
of this Agreement or the Plan to the contrary, in no event shall the Company or
the Committee make any change to the Plan or take any action authorized
pursuant to the Plan which degrades or adversely affects in any manner the
rights of Employee hereunder, unless Employee consents thereto in writing.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by its duly authorized officer, and Employee has executed this
Agreement, all effective as of the day and year first above written.

                                      -3-
<PAGE>
                           TECHNICAL OLYMPIC USA, INC.

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

                           EMPLOYEE

                           ----------------------------------------------------
                           Yannis Delikanakis

                                      -4-
<PAGE>
                                  ATTACHMENT A

                                  DEFINITIONS

1.       "Cause" means:

         (a)      Employee's conviction of, or plea of nolo contendere to, a
felony or a misdemeanor involving moral turpitude;

         (b)      any act of fraud, misappropriation or personal dishonesty by
Employee intended to result in his substantial personal enrichment at the
expense of the Company or an affiliate; or

         (c)      Employee's a material violation of any express direction of
the Chairman of the Board or a material violation of any rule, regulation,
policy or plan established by the Board from time to time regarding the conduct
of members of the Company's management.

2.       "Change of Control" means Constantine Stengos and/or one or more
members of the "Stengos Family" ceases to "Control" the Company (or, in the
case of any merger or combination in which Company is not the surviving entity,
ceases to Control such successor entity). For purposes of this Agreement, the
term (a) "Stengos Family" shall mean Constantine Stengos, his spouse, sons,
daughters, sons-in-law, daughters-in-law, and the lineal descendants of any of
the foregoing and (b) "Control" shall mean (i) the power to elect the majority
of the board of directors or comparable governing body of an entity, or, if
there is no such body, the power to direct the management of such entity; or
(ii) the direct and/or indirect beneficial ownership of 40% or more of the
combined voting power of the then outstanding voting securities of such entity
entitled to vote in the election of directors (or comparable governing body or
management) of such entity.

3.       "Disability" means Employee's inability, for a period of six
consecutive months, or a cumulative period of 120 business days out of a period
of 12 consecutive months, to perform the essential duties of Employee's
position of Executive Vice-President of the Company, due to a mental or
physical impairment. The determination of whether Employee is suffering from a
Disability shall be made by three independent physicians, one chosen by a
representative of Employee, one chosen by the Company and one chosen by the
physicians chosen by Employee and the Company.

4.       "Good Reason" means that, without Employee's prior written consent,
the Company removes Employee from the position of Executive Vice-President of
the Company or substantially adversely changes Employee's duties as Executive
Vice-President (excluding any such removal for Cause or as a result of
Employee's death, Disability or Employee's resignation not based on the
existence of Good Reason) and within 60 business days of learning of the
occurrence of any such event, and in the absence of any circumstance that
constitutes Cause, Employee terminates his employment by written notice to the
Chairman of the Board.

                                      A-1

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