Document:

Exhibit 10.1 - Amended and Restated Senior Management Agreement By and Between
      Huron Consulting Group Inc. and Gary E. Holdren

    Exhibit
      10.1

     

    

      AMENDED
        AND RESTATED

       

      SENIOR
        MANAGEMENT AGREEMENT

       

      BY
        AND BETWEEN

       

      HURON
        CONSULTING GROUP INC.

       

      AND

       

      GARY
        E. HOLDREN

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    

      

        
          	
                  1.

                   

                	
                  EMPLOYMENT

                   

                	
                  1

                   

                
	 	
                  1.1

                   

                	
                  Title
                    and Duties

                   

                	
                  1

                   

                
	 	
                  1.2

                   

                	
                  Outside
                    Activity

                   

                	
                  2

                   

                
	 	
                  1.3

                   

                	
                  Employment
                    Period

                   

                	
                  2

                   

                
	 	
                  1.4

                   

                	
                  Termination
                    Upon Death

                   

                	
                  2

                   

                
	 	
                  1.5

                   

                	
                  Termination
                    by the Company.

                   

                	
                  2

                   

                
	 	
                  1.6

                   

                	
                  Resignation
                    by the Executive

                   

                	
                  3

                   

                
	
                  2.

                   

                	
                  COMPENSATION

                   

                	
                  4

                   

                
	 	
                  2.1

                   

                	
                  Base
                    Salary

                   

                	
                  4

                   

                
	 	
                  2.2

                   

                	
                  Annual
                    Bonus

                   

                	
                  5

                   

                
	 	
                  2.3

                   

                	
                  Equity
                    Awards

                   

                	
                  5

                   

                
	
                  3.

                   

                	
                  RESTRICTED
                    STOCK UNIT AWARD

                   

                	
                  5

                   

                
	
                  4.

                   

                	
                  REPRESENTATIONS
                    AND COVENANTS OF THE EXECUTIVE

                   

                	
                  5

                   

                
	 	
                  4.1

                   

                	
                  Enforceability
                    of Agreement

                   

                	
                  5

                   

                
	 	
                  4.2

                   

                	
                  Restrictions
                    on Sales

                   

                	
                  5

                   

                
	
                  5.

                   

                	
                  BENEFITS
                    AND EXPENSES

                   

                	
                  6

                   

                
	 	
                  5.1

                   

                	
                  Benefit
                    Plans

                   

                	
                  6

                   

                
	 	
                  5.2

                   

                	
                  Retiree
                    Medical

                   

                	
                  6

                   

                
	 	
                  5.3

                   

                	
                  Life
                    Insurance

                   

                	
                  6

                   

                
	 	
                  5.4

                   

                	
                  Expenses

                   

                	
                  6

                   

                
	
                  6.

                   

                	
                  COMPENSATION
                    AFTER TERMINATION

                   

                	
                  7

                   

                
	 	
                  6.1

                   

                	
                  Termination
                    for Cause; Resign without Good Reason

                   

                	
                  7

                   

                
	 	
                  6.2

                   

                	
                  Severance

                   

                	
                  7

                   

                
	 	
                  6.3

                   

                	
                  Death
                    or Disability

                   

                	
                  7

                   

                
	 	
                  6.4

                   

                	
                  Change
                    of Control

                   

                	
                  8

                   

                
	 	
                  6.5

                   

                	
                  Rights
                    Following Termination

                   

                	
                  11

                   

                
	
                  7.

                   

                	
                  RESTRICTIVE
                    COVENANTS

                   

                	
                  11

                   

                
	 	
                  7.1

                   

                	
                  The
                    Executive’s Acknowledgment

                   

                	
                  11

                   

                
	 	
                  7.2

                   

                	
                  Confidential
                    Information

                   

                	
                  12

                   

                
	 	
                  7.3

                   

                	
                  Non-Disclosure

                   

                	
                  12

                   

                
	 	
                  7.4

                   

                	
                  Non-Solicitation
                    of Clients

                   

                	
                  12

                   

                
	 	
                  7.5

                   

                	
                  Non-Interference
                    with Relationships

                   

                	
                  13

                   

                
	
                   

                   

                	
                  7.6

                   

                	
                  Noncompetition

                   

                	
                  13

                   

                
	 	
                  7.7

                   

                	
                  Modification

                   

                	
                  13

                   

                
	 	
                  7.8

                   

                	
                  Duty
                    of Loyalty

                   

                	
                  13

                   

                
	
                  8.

                   

                	
                  EFFECT
                    ON TERMINATION

                   

                	
                  13

                   

                
	
                  9.

                   

                	
                  REMEDIES.

                   

                	
                  14

                   

                
	 	
                  9.1

                   

                	
                  Non-Exclusive
                    Remedy for Restrictive Covenants

                   

                	
                  14

                   

                
	 	
                  9.2

                   

                	
                  Arbitration

                   

                	
                  14

                   

                
	 	
                  9.3

                   

                	
                  Legal
                    Fees

                   

                	
                  14

                   

                
	 	
                  9.4

                   

                	
                  Interest

                   

                	
                  14

                   

                
	
                  10.

                   

                	
                  MISCELLANEOUS

                   

                	
                  15

                   

                
	 	
                  10.1

                   

                	
                  General
                    Release

                   

                	
                  15

                   

                
	 	
                  10.2

                   

                	
                  Assignment

                   

                	
                  15

                   

                
	 	
                  10.3

                   

                	
                  Severability

                   

                	
                  15

                   

                
	 	
                  10.4

                   

                	
                  Counterparts

                   

                	
                  15

                   

                
	 	
                  10.5

                   

                	
                  Descriptive
                    Headings; Interpretation

                   

                	
                  15

                   

                
	 	
                  10.6

                   

                	
                  Notices

                   

                	
                  15

                   

                
	 	
                  10.7

                   

                	
                  Indemnification

                   

                	
                  16

                   

                
	 	
                  10.8

                   

                	
                  Liability
                    Insurance

                   

                	
                  16

                   

                
	 	
                  10.9

                   

                	
                  Preamble;
                    Preliminary Recitals

                   

                	
                  16

                   

                
	 	
                  10.10

                   

                	
                  Taxes

                   

                	
                  16

                   

                
	 	
                  10.11

                   

                	
                  Entire
                    Agreement

                   

                	
                  16

                   

                
	 	
                  10.12

                   

                	
                  Governing
                    Law

                   

                	
                  16

                   

                
	 	
                  10.13

                   

                	
                  No
                    Strict Construction

                   

                	
                  17

                   

                
	 	
                  10.14

                   

                	
                  Amendment
                    and Waivers

                   

                	
                  17

                   

                
	 	
                  10.15

                   

                	
                  Code
                    Section 409A

                   

                	
                  17

                   

                
	
                  Exhibit A
                    - 

                   

                	
                  Restricted
                    Stock Award

                   

                	
                  A-1

                   

                

        

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

     

    

    AMENDED
      AND RESTATED

    SENIOR
      MANAGEMENT AGREEMENT

     

    AMENDED
      AND RESTATED SENIOR MANAGEMENT AGREEMENT (the “Agreement”),
      effective as of January 29, 2007 (the “Effective
      Date”),
      by
      and between Huron Consulting Group Inc., a Delaware corporation (the
“Company”),
      and
      Gary E. Holdren (the “Executive”).
      

     

    Preliminary
      Recitals

     

    A. WHEREAS,
      the Company and its affiliates are engaged in the business of providing
      diversified business consulting services, including financial and operational
      consulting services (the “Business”)
      and

     

    B. WHEREAS,
      Huron Consulting Services LLC (formerly known as Huron Consulting Group LLC
      (“Consulting”))
      and
      the Executive previously entered into a Senior Management Agreement effective
      as
      of May 13, 2002, as amended by a First Amendment to Senior Management
      Agreement effective as of January 1, 2004 and subsequently amended by a
      Second Amendment to Senior Management Agreement effective as of the closing
      of
      the Company’s initial public offering (collectively, such Senior Management
      Agreement, First Amendment and Second Amendment are referred to as the
“Prior
      Agreement”);

     

    C. WHEREAS,
      the Company currently employs the Executive and desires to continue to employ
      the Executive from and after the Effective Date, and the Executive desires
      to
      continue to be so employed by the Company, as set forth herein. 

     

    NOW,
      THEREFORE, in consideration of the premises, the mutual covenants of the parties
      hereinafter set forth and other good and valuable consideration, the receipt
      and
      sufficiency of which are hereby acknowledged, the parties hereto hereby agree
      as
      follows: 

     

    1.  Employment.

     

    1.1  Title
      and Duties.
      The
      Company agrees to continue to employ the Executive, and the Executive agrees
      to
      accept such continuing employment with the Company, as its Chief Executive
      Officer and President, for the Employment Period (defined below), in accordance
      with the terms and conditions of this Agreement. The Executive shall also serve
      as Chief Executive Officer and President of Consulting during the Employment
      Period, in accordance with the terms and conditions of this Agreement. During
      the Employment Period, the Executive shall (a) have such responsibilities,
      duties and authorities as are customarily assigned to such positions and shall
      render such services or act in such capacity for the Company and its affiliates
      as the Board of Directors of the Company (the “Board”)
      shall
      from time to time direct, and (b) shall report to the Board. The Executive
      shall perform the duties and carry out the responsibilities assigned to him,
      to
      the best of his ability, in a trustworthy and businesslike manner for the
      purpose of advancing the business of the Company and its affiliates. The
      Executive shall engage in travel as reasonably required in the performance
      of
      the Executive’s duties. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      1.2  Outside
        Activity.
        During
        the Employment Period, and excluding any periods of vacation and sick leave,
        the
        Executive shall devote substantially all of his business time and attention
        to
        the business and affairs of the Company and its affiliates. It shall not
        be a
        violation of this Agreement for the Executive (a)  with the consent of the
        Board, which consent shall not be unreasonably withheld, to serve on corporate,
        civic or charitable boards or committees, (b) to deliver lectures, fulfill
        speaking engagements or teach occasional courses or seminars at educational
        institutions, or (c) to manage personal investments, so long as such
        activities under clauses (a), (b) and (c) do not interfere, in any substantial
        respect, with the Executive’s responsibilities hereunder. 

       

      1.3  Employment
        Period.
        The
        employment of the Executive under this Agreement shall continue from the
        Effective Date and shall continue through the fifth (5th) anniversary of
        the
        Effective Date (the “Initial
        Period”).
        Commencing on the fifth (5th) anniversary of the Effective Date and on each
        anniversary thereafter (each a “Renewal
        Date”),
        the
        employment of the Executive under this Agreement shall automatically renew
        and
        extend for an additional year, unless one of the parties shall deliver to
        the
        other advance written notice of the cessation of such automatic renewal
        (“Nonrenewal
        Notice”)
        at
        least sixty (60) days prior to such Renewal Date. “Employment
        Period”
shall
        mean the Initial Period and any automatic extensions of the Executive’s
        employment under this Agreement. Notwithstanding anything to the contrary
        contained herein, the Employment Period shall terminate on the date the
        Executive’s employment with the Company and its affiliates terminates pursuant
        to and in accordance with the terms of Section 1.4,
        1.5
        or
1.6.
        

       

      1.4  Termination
        Upon Death.
        If the
        Executive dies during the Employment Period, the Executive’s employment shall
        automatically terminate on the date of the Executive’s death. 

       

      1.5  Termination
        by the Company.
        

       

      (a)  The
        Company may terminate the Executive’s employment hereunder upon written notice
        to the Executive (i) due to the Permanent Disability of the Executive,
        (ii) for Cause, or (iii) without Cause for any or no reason. Such
        termination shall be effective upon the date of service of such notice pursuant
        to Section 10.6
        or such
        later date specified in the notice (which later date shall not be more than
        sixty (60) days following the date on which the notice is provided).

       

      (b)  Definition
        of Cause.

       

      (i)  For
        the
        purpose of this Agreement, “Cause”
means
        the occurrence of any of the following events: 

       

      (1)  the
        Executive’s conviction of any felony or of a misdemeanor involving fraud,
        dishonesty, or moral turpitude; 

       

      (2)  the
        Executive’s material breach, material non-performance or material non-observance
        of any of the terms of the Agreement or any other written agreement to which
        the
        Executive and the Company or any of its affiliates are parties, if such breach,
        non-performance or non-observance shall continue beyond a period of twenty
        (20)
        days immediately after written notice thereof by the Company to the Executive
        or
        if such breach, non-performance or non-observance results in financial detriment
        to the Company or its affiliates or a detrimental effect on the business
        or
        reputation of the Company or its affiliates; 

       

      
        
          
          

        

        
          B-2

          
            

          

        

        
          
          

        

      

       

      (3)  the
        Executive’s misconduct that results in material financial detriment to the
        Company or its affiliates or a material detrimental effect on the business
        or
        reputation of the Company or its affiliates; or 

       

      (4)  any
        breach, non-performance or non-observance of Section 7.2,
        7.3,
        7.4,
        7.5,
        or
7.6
        of this
        Agreement.

       

      (ii)  Cause
        shall be determined by the affirmative vote of at least 75% of the members
        of
        the Board (excluding the Executive, if a Board member, and excluding any
        member
        of the Board involved in events leading to the Board’s consideration of
        terminating the Executive for Cause). The Executive shall be given twenty
        (20)
        days written notice of the Board meeting at which Cause shall be decided
        (which
        notice shall be deemed to be notice of the existence of Cause if Cause is
        found
        to exist by the Board), and shall be given an opportunity prior to the vote
        on
        Cause to appear before the Board, with or without counsel, at the Executive’s
        election, to present arguments on his own behalf. The notice to the Executive
        of
        the Board meeting shall include a description of the specific reasons for
        such
        consideration of Cause. The pendency of the notice period described herein
        shall
        not prevent or delay the Company’s ability to enforce the restrictive covenants
        contained herein. 

       

      (c)  The
        Executive shall be deemed to have a “Permanent
        Disability”
for
        purposes of this Agreement if the Executive has any medically determinable
        physical or mental impairment that has lasted for a period of not less than
        six
        (6) months in any 12 month period and that renders the Executive unable to
        perform the duties required under the Agreement. Such determination shall
        be
        made by written certification (“Certification”)
        of the
        Executive’s Permanent Disability by a physician jointly selected by the Company
        and the Executive; provided that if the Company and the Executive cannot
        reach
        agreement on the physician, the Certification shall be by a panel of physicians
        consisting of one physician selected by the Company, one physician selected
        by
        the Executive and a third physician jointly selected by those two physicians.
        

       

      1.6  Resignation
        by the Executive.

       

      (a)  The
        Executive shall give sixty (60) days written notice to the Company prior
        to the
        effectiveness of any resignation of his employment with the Company.

       

      (b)  The
        Executive’s resignation shall be a resignation for “Good
        Reason”
if:
        (1) an event or condition occurs which constitutes any of (c)(i) through
        (v) below; (2) the Executive provides the Company with written notice
        pursuant to Section 10.6
        that he
        intends to resign for Good Reason and such written notice includes (A) a
        designation of at least one of (c)(i) through (v) below (the “Designated
        Section”)
        and
        (B) specifically describes the events or conditions the Executive is
        relying upon to satisfy the requirements of the Designated Section(s);
        (3) as of the twentieth (20th) day following the Company’s receipt of such
        written notice from the Executive, such events or conditions have not been
        corrected in all material respects; and (4) the Executive’s resignation is
        effective within sixty (60) days after the date on which the Executive first
        has
        actual knowledge of the occurrence of the first event or condition upon which
        the Executive relies upon to satisfy any of the Designated Section(s).

       

      
        
          
          

        

        
          B-3

          
            

          

        

        
          
          

        

      

      (c)  “Good
        Reason”
shall
        mean the occurrence of any of the following without the express written consent
        of the Executive: 

       

      (i)  any
        material breach of the Agreement by the Company; 

       

      (ii)  any
        material adverse change in status, position or responsibilities described
        in
        Section 1.1 or any reduction in Base Salary (as defined below) of the Executive
        (it being understood and agreed that, (1) following a Change of Control (as
        defined below), the fact that the Executive is not named as Chief the Executive
        Officer of the ultimate parent entity surviving the Change of Control shall
        constitute Good Reason, (2) the appointment of a lead director of the Board
        shall not constitute Good Reason (provided that Executive continues to report
        to
        the full Board), and (3) a reduction in Base Salary in accordance with Section
        2.1 shall not constitute Good Reason); 

       

      (iii)  assignment
        of duties to the Executive that are materially inconsistent with the Executive’s
        position and responsibilities described in this Agreement;

       

      (iv)  the
        failure of the Company to assign this Agreement to a successor to the Company
        or
        failure of a successor to the Company to explicitly assume and agree to be
        bound
        by this Agreement; or

       

      (v)  requiring
        the Executive to be principally based at any office or location more than
        fifty
        (50) miles from the current offices of the Company in Chicago,
        Illinois.

       

      2.  Compensation.

       

      2.1  Base
        Salary.
        As
        consideration for the services of the Executive hereunder, from January 1,
        2007
        and continuing during the Employment Period, the Company shall pay the Executive
        an annual base salary of one million one hundred thousand dollars ($1,100,000)
        (the “Base
        Salary”),
        payable in accordance with the Company’s customary payroll practices as in
        effect from time to time. For each of the calendar years beginning on January
        1,
        2008 through January 1, 2011, the Base Salary shall be increased in increments
        of $50,000. In addition, the Board shall perform an annual review of the
        Executive’s compensation based on the Executive’s performance of his duties and
        the Company’s other compensation policies, provided that the Executive’s Base
        Salary, as increased from time to time, shall not be reduced without the
        Executive’s written consent unless such reduction is part of a comparable
        overall reduction for members of senior management. The term “Base
        Salary”
        shall
        include any changes to the Base Salary from time to time.

       

      
        
          
          

        

        
          B-4

          
            

          

        

        
          
          

        

      

      2.2  Annual
        Bonus.
        For
        each calendar year during the Employment Period beginning with the calendar
        year
        commencing on January 1, 2007, the Executive shall be eligible for an annual
        bonus in an amount determined by the Board, in accordance with the applicable
        annual bonus plan in effect from time to time, based on the Executive’s
        performance of his duties and the Company’s other compensation policies (the
“Annual
        Bonus”).
        The
        target annual bonus for the Executive’s Annual Bonus shall be 100% of Base
        Salary (the “Target
        Amount”)
        per
        year. The Executive’s right to any Annual Bonus payable pursuant to this
Section 2.2
        shall be
        contingent upon the Executive being employed by the Company on the last day
        of
        the performance period to which the bonus relates. For each performance period
        commencing on or after the Effective Date, the amount of the Annual Bonus
        target
        will be established by the Board as set forth above and shall be payable
        based
        upon the Executive’s achieving certain performance goals, with such performance
        goals, each to be set and approved by the Board no later than the ninetieth
        (90th) day of the performance period to which such Annual Bonus
        relates.

       

      2.3  Equity
        Awards.
        The
        Board and the Executive shall discuss periodic grants of Company equity to
        the
        Executive upon the achievement of certain defined
        corporate milestones.

       

      3.  Restricted
        Stock Unit Award.
        Subject
        to the terms of that certain restricted stock unit agreement between the
        Executive and the Company dated of even date herewith (the “Restricted
        Stock Unit Agreement”)
        and
        attached hereto as Exhibit A (which Restricted Stock Unit Agreement has been
        approved by the Compensation Committee of the Board), and subject to the
        terms
        of the Huron Consulting Group Inc. 2004 Omnibus Stock Plan, the Executive
        has
        been granted, effective as of the Effective Date, two hundred fifty thousand
        (250,000) restricted share units (the “Units”).
        As a
        condition to receipt of the Units, the Executive shall complete and execute
        such
        documents as the Company may require. 

       

      4.  Representations
        and Covenants of the Executive.
        

       

      4.1  Enforceability
        of Agreement.
        This
        Agreement constitutes the legal, valid and binding obligation of the Executive
        enforceable in accordance with its terms, and the execution, delivery and
        performance of this Agreement by the Executive and all other agreements
        contemplated hereby to which he is a party, and the fulfillment and compliance
        with the respective terms hereof and thereof, do not and shall not conflict
        with, violate or cause a breach of the terms, conditions or provisions of,
        or
        require the consent of any other person under, any agreement, non-compete
        provision, contract or instrument to which the Executive is a party or any
        judgment, order, decree or other obligation to which the Executive is subject.
        

       

      4.2  Restrictions
        on Sales.
        Except
        as otherwise agreed by the Company in writing, the Executive agrees that
        he will
        sell, distribute, or otherwise transfer any shares of Company common stock
        owned
        by him only in accordance with the provisions of Rule 144 under the Securities
        Act of 1933 whether or not such provision is applicable to the Executive.
        This
        Section 4(b) shall survive termination of this Agreement.

       

      
        
          
          

        

        
          B-5

          
            

          

        

        
          
          

        

      

      5.  Benefits
        and Expenses.

       

      5.1  Benefit
        Plans.
        During
        the Employment Period, the Executive shall be eligible to participate in
        the
        various health and welfare benefit plans and other generally applicable programs
        and policies maintained by the Company for its key management employees from
        time to time.

       

      5.2  Retiree
        Medical.
        If the
        Executive is continuously employed through the fifth anniversary of the
        Effective Date, or if his employment terminates prior to that date due to
        the
        Executive’s death, Permanent Disability of Executive, by the Company without
        Cause or by the Executive for Good Reason, he and/or his spouse (determined
        as
        of the Effective Date) shall be eligible to continue (beyond any period of
        continuation of coverage otherwise provided under this Agreement) medical,
        dental and vision coverage made available by the Company, from time to time,
        to
        other senior executives of the Company until they each attain age
        65.
        As an
        alternative to the foregoing, the Company, in its sole discretion, may make
        any
        or all of such coverages available to the Executive and and/or his spouse
        through the purchase of one or more insurance policies which provide coverage
        that is comparable to the applicable coverages provided by the Company to
        its
        senior executives. The Executive and/or his spouse shall be required to pay
        the
        full cost of any such coverages that are continued pursuant to this Section
        5.2.
        To the extent applicable and to the extent permitted by law, any continuing
        coverages provided to the Executive and/or his spouse pursuant to this Section
        5.2 shall be considered part of, and not in addition to, any coverage required
        under section 4980B of the Internal Revenue Code of 1986, as amended (the
        “Code”),
        or
        sections 601-607 of the Employee Retirement Income Security Act of 1974,
        as
        amended, commonly referred to as “COBRA”.
        

       

      5.3  Life
        Insurance.
        The
        Company shall use its commercially reasonable efforts to obtain, and pay
        the
        premium on, a policy of life insurance on the life of the Executive (the
        “Life
        Policy”).
        The
        Life Policy shall provide benefits in the event that the Executive’s employment
        with the Company terminates during the Employment Period due to death in
        an
        amount equal to the sum of the Executive’s (a) Base Salary as in effect for the
        year of his death and (b) then-prevailing Target Amount for the year of the
        termination (the “Target
        Bonus”).
        Any
        death benefits payable under the Life Policy shall be payable to the Executive’s
        beneficiary, as designated from time to time by the Executive. The Executive
        agrees to cooperate with the Company in obtaining the Life Policy and in
        keeping
        the Life Policy in force during the Employment Period. 

       

      5.4  Expenses.
        During
        the Employment Period, the Company shall reimburse the Executive for all
        ordinary, necessary and reasonable travel and other business expenses incurred
        by the Executive in connection with the performance of his duties hereunder,
        in
        accordance with the Company policy. Such reimbursement shall be made upon
        presentation of itemized expense statements and such other supporting
        documentation as the Company may reasonably require. 

       

      
        
          
          

        

        
          B-6

          
            

          

        

        
          
          

        

      

      6.  Compensation
        After Termination.
        

       

      6.1  Termination
        for Cause; Resign without Good Reason.
        If the
        Executive’s employment is terminated by the Company for Cause or if the
        Executive resigns other than for Good Reason, then, except as required by
        law,
        the Company shall pay the Executive, within thirty (30) days following
        termination, the Executive’s Base Salary accrued through the date of said
        termination and his earned but unpaid bonus, if any. 

       

      6.2  Severance.

       

      (a)  If,
        during the Employment Period, the Executive’s employment is terminated by the
        Company without Cause or if the Executive resigns for Good Reason, then:
        

       

      (i)  the
        Executive will be entitled to receive as severance pay, an amount in cash
        equal
        to the sum of the Executive’s (1) Base Salary as in effect for the year in which
        the termination occurs and (2) Target Bonus, payable
        in substantially equal installments pursuant to the Company’s normal payroll
        schedule for the Executive during the twelve (12) month period commencing
        with
        the date of termination, 

       

      (ii)  the
        vesting of all of the Executive’s outstanding equity grants shall accelerate, if
        needed, so that one hundred percent (100%) of such equity shall be
        vested,

       

      (iii)  the
        Executive shall be entitled to receive continuation of medical and dental
        benefits during the twelve (12)-month period beginning on the Executive’s
        termination date upon substantially the same terms and conditions as in effect
        immediately prior to the termination of employment, which benefits shall
        be
        considered part of, and not in addition to, any coverage required under COBRA,
        and

       

      (iv)  all
        other
        benefits and perquisites shall be subject to the terms of the plan or program
        through which the benefit or perquisite is provided to the Executive.

       

      (b)  For
        the
        avoidance of doubt, the parties hereto agree that delivery by the Company
        of a
        Notice of Nonrenewal shall not be considered an event of Good Reason or a
        termination by the Company for Cause. 

       

      (c)  The
        compensation and benefits described in this Section 6.2
        shall be
        in lieu of compensation and benefits provided otherwise for a termination
        under
        any other plan or agreement of the Company (other than Section 6.3 or 6.4
        hereof, if applicable), whether adopted before or after the date hereof,
        which
        provides severance or termination payments or benefits.

       

      6.3  Death
        or Disability.
        If the
        Executive’s employment is terminated due to the Executive’s Permanent Disability
        or the Executive’s death, then: 

       

      
        
          
          

        

        
          B-7

          
            

          

        

        
          
          

        

      

      (a)  if
        the
        Executive’s termination of employment occurs on account of Permanent Disability,
        the Executive shall be entitled to receive as severance pay an amount in
        cash
        equal to the sum of the Executive’s (i) Base Salary as in effect for the year in
        which the termination occurs and (ii) Target Bonus, payable
        in substantially equal installments pursuant to the Company’s normal payroll
        schedule for the Executive during the twelve (12) month period commencing
        with
        the date of termination, 

       

      (b)  the
        vesting of all of the Executive’s outstanding equity shall accelerate, if
        needed, so that one hundred percent (100%) of such equity shall be vested,
        

       

      (c)  the
        Executive shall be entitled to receive continuation of medical benefits upon
        substantially the same terms and conditions as in effect immediately prior
        to
        the termination of employment for the six (6) month period immediately following
        the termination of employment, which benefits shall be considered part of,
        and
        not in addition to, any coverage required under COBRA, and 

       

      (d)  all
        other
        benefits and perquisites shall be subject to the terms of the plan or program
        through which the benefit or perquisite is provided to the Executive.

       

      6.4  Change
        of Control.

       

      (a)  The
        provisions of Section 
        6.2 
        hereof to the contrary notwithstanding, if (i) the Executive’s employment
        is terminated by the Company without Cause or the Executive resigns for Good
        Reason in either case during the period commencing on a Change of Control
        (defined below) and ending on the second anniversary of the Change of Control
        (such two-year period being the “Protection
        Period”
        hereunder), or (ii) the Executive reasonably demonstrates that the
        Company’s termination of the Executive’s employment (or event which, had it
        occurred following a Change of Control, would have constituted Good Reason)
        prior to a Change of Control was at the request of a third party who was
        taking
        steps reasonably calculated to effect a Change of Control (or otherwise in
        contemplation of a Change of Control) and a Change of Control actually occurs,
        (each a “Qualifying
        Termination”),
        then
        the Executive shall be entitled to receive: (A) an amount in cash equal to
        the Executive’s Target Bonus multiplied by a fraction, the numerator of which is
        the number of completed days (including the date of termination) during the
        year
        of termination and the denominator of which is 365, (B) an amount in cash
        equal to three (3) times the sum of the Executive’s Base Salary as in effect for
        the year of termination and his Target Bonus, and (C) continuation of
        medical benefits until
        the
        third anniversary of the date of such termination (or such earlier date on
        which
        the Executive or his covered dependent(s) obtain other medical coverage)
        upon
        substantially the same terms in effect for the Executive immediately prior
        to
        the termination date, which benefits shall be considered part of, and not
        in
        addition to, any coverage required under COBRA. 

       

      (b)  Payments
        and benefits under Section
        6.4(a)
        shall
        not be subject to mitigation or offset. 

       

      
        
          
          

        

        
          B-8

          
            

          

        

        
          
          

        

      

      (c)  All
        of
        the Executive’s outstanding equity grants that were awarded at any time shall
        fully vest upon the occurrence of a Qualifying Termination. 

       

      (d)  The
        compensation and benefits described in Section 6.4(a)
        and
6.4(b)
        shall be
        in lieu of compensation and benefits provided otherwise for a termination
        under
Section 6.2
        of this
        Agreement and any other plan or agreement of the Company, whether adopted
        before
        or after the date hereof, which provides severance payments or benefits.
        

       

      (e)  If
        it is
        determined that any amount, right or benefit paid or payable (or otherwise
        provided or to be provided) to the Executive by the Company or any of its
        affiliates under this Agreement or any other plan, program or arrangement
        under
        which the Executive participates or is a party, other than amounts payable
        under
        this Section 6.4(e)
        (collectively, the “Payments”),
        would
        constitute an “excess
        parachute payment”
within
        the meaning of Section 280G of the Code, subject to the excise tax imposed
        by
        Section 4999 of the Code, as amended from time to time (the “Excise
        Tax”),
        then
        the Executive shall be entitled to receive an additional payment from the
        Company (a “Gross-Up
        Payment”)
        in an
        amount such that, after payment by the Executive of all taxes (including
        any
        interest or penalties imposed with respect to such taxes), including, without
        limitation, any income and employment taxes (and any interest and penalties
        imposed with respect thereto) and Excise Tax imposed upon the Gross-Up Payment
        (and any interest and penalties imposed with respect thereto), the Executive
        retains an amount of the Gross-Up Payment equal to the Excise Tax (including
        any
        interest and penalties imposed with respect thereto) imposed upon the Payments.
        

       

      All
        determinations required to be made under this Section 6.4(e),
        including whether and when a Gross-Up Payment is required, the amount of
        such
        Gross-Up Payment and the assumptions to be utilized in arriving at such
        determination, shall be made by an independent, nationally recognized accounting
        firm mutually acceptable to the Company and the Executive (the “Auditor”).
        The
        Auditor shall promptly provide detailed supporting calculations to both the
        Company and the Executive following any determination that a Gross-Up Payment
        is
        necessary. All fees and expenses of the Auditor shall be paid by the Company.
        Any Gross-Up Payment, as determined pursuant to this Section 6.4(e),
        shall
        be paid by the Company to the Executive within 5 days of the receipt of the
        Auditor’s determination. All determinations made by the Auditor shall be binding
        upon the Company and the Executive; provided that if, notwithstanding the
        Auditor’s initial determination, the Internal Revenue Service (or other
        applicable taxing authority) determines that an additional Excise Tax is
        due
        with respect to the Payments, then the Auditor shall recalculate the amount
        of
        the Gross-Up Payment based upon the determinations made by the Internal Revenue
        Service (or other applicable taxing authority) after taking into account
        any
        additional interest and penalties (the “Recalculated
        Amount”)
        and
        the Company shall pay to the Executive the excess of the Recalculated Amount
        over the Gross-Up Payment initially paid to the Executive within 5 days of
        the
        receipt of the Auditor’s recalculation of the Gross-Up Payment. 

       

      
        
          
          

        

        
          B-9

          
            

          

        

        
          
          

        

      

      (f)  For
        the
        purposes of this Section 6.4,
        the
        term “Change
        of Control”
shall
        be deemed to have occurred upon the first to occur of any event set forth
        in any
        one of the following paragraphs of this Section 6.4(f):
        

       

      (i)  any
        Person becomes the Beneficial Owner, directly or indirectly, of common stock
        or
        voting securities of the Company (not including in the amounts beneficially
        owned by such Person any common stock or voting securities acquired directly
        from the Company or its Affiliates representing 40% or more of the combined
        voting power of the Company’s then outstanding securities; or 

       

      (ii)  there
        is
        consummated a merger or consolidation of the Company or any direct or indirect
        subsidiary of the Company with any Person, other than (a) a merger or
        consolidation which would result in the voting securities of the Company
        outstanding immediately prior to such merger or consolidation continuing
        to
        represent (either by remaining outstanding or by being converted into voting
        securities of the surviving entity or any parent thereof) at least 50% of
        the
        combined voting power of the securities of the Company or such surviving
        entity
        or any parent thereof outstanding immediately after such merger or
        consolidation, (b) a merger or consolidation effected to implement a
        recapitalization of the Company (or similar transaction) in which no Person
        other than existing security holders is or becomes the Beneficial Owner,
        directly or indirectly, of securities of the Company (not including in the
        amount Beneficially Owned by such Person any common stock or voting securities
        acquired directly from the Company or its Affiliates) representing 50% or
        more
        of the combined voting power of the Company’s then outstanding securities, or
        (c) a merger or consolidation of a subsidiary of the Company that does not
        represent a sale of all or substantially all of the assets of the Company;
        or

       

      (iii)  the
        shareholders of the Company approve a plan of complete liquidation or
        dissolution of the Company (except for a plan of liquidation or dissolution
        effected to implement a recapitalization of the Company addressed in (ii)
        above); or 

       

      (iv)  there
        is
        consummated an agreement for the sale or disposition of all or substantially
        all
        of the assets of the Company to a Person, other than a sale or disposition
        by
        the Company of all or substantially all of the assets of the Company to an
        entity, at least 50% of the combined voting power of the voting securities
        of
        which are owned by shareholders of the Company. 

       

      Notwithstanding
        the foregoing, a “Change of Control” shall not be deemed to have occurred
 by virtue of the consummation of any transaction or series of integrated
        transactions immediately following which the record holders of the common
        stock
        of the Company immediately prior to such transaction or series of transactions
        continue to have substantially the same proportionate ownership in an entity
        which owns all or substantially all of the assets of the Company immediately
        following such transaction or series of transactions.

       

      
        
          
          

        

        
          B-10

          
            

          

        

        
          
          

        

      

      For
        purposes of this Change of Control definition, (A) “Beneficial
        Owner”
shall
        have the meaning set forth in Rule 13d-3 under the Exchange Act,
        (B) “Exchange
        Act”
shall
        mean the Securities Exchange Act of 1934, as amended from time to time,
        (C) “Person”
shall
        have the meaning given in Section 3(a)(9) of the Exchange Act, as modified
        and used in Sections 13(d) and 14(d) thereof, except that such term shall
        not include (1)the Company or any of the Company’s direct or indirect
        subsidiaries, (2) a trustee or other fiduciary holding securities under an
        employee benefit plan of the Company or the Company or any of their Affiliates,
        (3) an underwriter temporarily holding securities pursuant to an offering
        of such securities, or (4) a corporation owned, directly or indirectly, by
        the stockholders of the Company in substantially the same proportions as
        their
        ownership of stock of the Company and (D) “Affiliate”
shall
        have the meaning set forth in Rule 12b-2 promulgated under Section 12 of
        the Exchange Act. 

       

      6.5  Rights
        Following Termination.
        Following any termination described in this Section 6,
        the
        Company shall continue to have all other rights available hereunder (including,
        without limitation, all rights under the Restrictive Covenants contained
        in
        Section 7 of this Agreement and any restrictive covenants set forth in any
        plan,
        award and agreement applicable to the Executive, at law or in
        equity).

       

      7.  Restrictive
        Covenants.
        

       

      7.1  The
        Executive’s Acknowledgment.
        The
        Executive agrees and acknowledges that in order to assure the Company that
        it
        will retain its value and that of the Company and its affiliates as a going
        concern, it is necessary that the Executive not utilize special knowledge
        of the
        Company and its affiliates and their relationships with customers to compete
        with the Company and its affiliates. The Executive further acknowledges that:
        

       

      (a)  the
        Company and its affiliates are and will be engaged in the Business during
        the
        Employment Period and thereafter; 

       

      (b)  the
        Executive will occupy a position of trust and confidence with the Company
        and
        its affiliates, and during the Employment Period (and during any period of
        continued employment or service after the Employment Period), the Executive
        will
        become familiar with the trade secrets of the Company and its affiliates
        and
        with other proprietary and Confidential Information (defined below) concerning
        the Company, its affiliates and the Business and any other businesses in
        which
        the Company or its affiliates engage during the Executive’s employment with the
        Company (the “Covered
        Businesses”);
        

       

      (c)  the
        agreements and covenants contained in Sections 7,
        8
        and
9
        are
        essential to protect the Company and its affiliates and the goodwill of the
        Covered Businesses and compliance with such agreements and covenants will
        not
        impair the Executive’s ability to procure subsequent and comparable employment;
        and 

       

      (d)  the
        Executive’s employment with the Company has special, unique and extraordinary
        value to the Company and the Company and its affiliates would be irreparably
        damaged if the Executive were to provide services to any person or entity
        in
        violation of the provisions of this Agreement. 

       

      
        
          
          

        

        
          B-11

          
            

          

        

        
          
          

        

      

      7.2  Confidential
        Information.
        As used
        in this Section 7,
        “Confidential
        Information”
shall
        mean the trade secrets of the Company and its affiliates and other non-public
        information relating to the Company, its affiliates or the Covered Businesses,
        including, without limitation, information relating to financial statements,
        customer identities, potential customers, employees, suppliers, acquisition
        targets, servicing methods, equipment, programs, strategies and information,
        analyses, marketing plans and strategies, profit margins and other information
        developed or used by the Company or its affiliates in connection with the
        Covered Businesses that is not known generally to the public or the industry
        and
        that gives the Company or its affiliates an advantage in the marketplace.
        Confidential Information shall not include any information that is in the
        public
        domain or becomes known in the public domain through no wrongful act on the
        part
        of the Executive. The Executive agrees to deliver to the Company at the
        termination of the Executive’s employment (whether at the end of the Employment
        Period or thereafter), or at any other time the Company may request, all
        memoranda, notes, plans, records, reports and other documents (and copies
        thereof) relating to the Covered Businesses, the Company or its affiliates
        or
        other forms of Confidential Information which the Executive may then possess
        or
        have under his control. 

       

      7.3  Non-Disclosure.
        The
        Executive agrees that during employment with the Company (including employment
        following the Employment Period) and thereafter, the Executive shall not
        reveal
        to any competitor or other person or entity (other than current employees
        of the
        Company) any Confidential Information regarding Clients (as defined herein)
        that
        the Executive obtains while performing services for the Company or its
        affiliates. The Executive further agrees that the Executive will not use
        or
        disclose any Confidential Information, other than in connection with the
        Executive’s work for the Company, until such information becomes generally known
        in the industry through no fault of the Executive. 

       

      7.4  Non-Solicitation
        of Clients.
         The
        Executive acknowledges that the Executive will learn and develop Confidential
        Information relating to the Clients and relating to the Company’s servicing of
        those Clients. The Executive recognizes that the relationships of the Company
        and its affiliates with the Clients are extremely valuable to them and that
        the
        protection of the relationships of the Company and its affiliates with the
        Clients is essential. 

       

      Accordingly,
        and in consideration of the Company’s employment of the Executive and the
        various benefits and payments provided in conjunction therewith, the Executive
        agrees that while he is employed by the Company and for a period of twenty-four
        (24) months following termination of employment with the Company (whether
        at the
        end of the Employment Period or thereafter) unless otherwise mutually agreed
        in
        writing by the Executive and the Company, the Executive will not, whether
        or not
        the Executive is then self-employed or employed by another, directly or through
        another, provide services that are the same or similar to those services
        offered
        for sale and/or under any stage of development by the Company at the time
        of the
        Executive’s termination, to any Client.

       

      “Client”
shall
        mean those persons or firms for whom the Company or any of its affiliates
        has
        either directly or indirectly provided services within the twenty-four
        (24)-month period immediately preceding termination of the Executive’s
        employment (whether at the end of the Employment Period or thereafter) and
        therefore includes both the referral source or entity that consults with
        the
        Company or any of its affiliates and the entity to which the consultation
        related. “Client”
also
        includes those persons or firms to whom the Company or any of its affiliates
        has
        submitted a proposal (or assisted in the submission of a proposal) to perform
        services during the six (6) month period immediately preceding termination
        of
        the Executive’s employment. 

       

      
        
          
          

        

        
          B-12

          
            

          

        

        
          
          

        

      

      7.5  Non-Interference
        with Relationships.
        The
        Executive shall not directly or indirectly solicit, induce or encourage
        (a) any executive or employee of the Company or any of its affiliates, or
        (b) any customer, Client, supplier, lender, professional advisor or other
        business relation of the Company or any of its affiliates to leave, alter
        or
        cease his or her relationship with the Company or any of its affiliates,
        for any
        reason whatsoever, for (1) thirty six (36) months (in the case of clause
        (a)) and (2) twenty-four (24) months (in the case of clause (b)) after the
        Executive’s termination of employment with the Company (whether at the end of
        the Employment Period or thereafter) for any reason. The Executive shall
        not
        hire or assist in the hiring of any executive or employee of the Company
        or any
        of its affiliates for that same time period, whether or not the Executive
        is
        then self-employed or employed by another business. The Executive shall not
        directly or indirectly make disparaging remarks about the Company, any of
        its
        affiliates or any executive or employee of the Company or any of its affiliates,
        or any customer, client, supplier, lender, professional advisor or other
        business relation of the Company or any of its affiliates. 

       

      7.6  Noncompetition.
        While
        the Executive is employed by the Company, and for a period of twenty-four
        (24)
        months after the Executive’s termination of employment with the Company (whether
        at the end of the Employment Period or thereafter) for any reason, the Executive
        agrees that he will not directly or indirectly engage in, assist, perform
        services for, establish or open, or have any equity interest (other than
        ownership of 5% or less of the outstanding stock of any corporation listed
        on
        any securities exchange) in any person, firm, corporation, or business entity
        (whether as an employee, officer, director, agent, security holder, creditor,
        consultant, or otherwise) that engages in the Covered Businesses; provided,
        however, that for any periods after the Executive’s termination of employment
        with the Company, the Covered Businesses shall include only those businesses
        that were Covered Businesses at the time of the Executive’s termination of
        employment.

       

      7.7  Modification.
        If any
        court of competent jurisdiction shall at any time deem that the term of any
        Restrictive Covenant is too lengthy, or the scope or subject matter of any
        Restrictive Covenant exceeds the limitations imposed by applicable law, the
        parties agree that provisions of Sections 7.3,
        7.4,
        7.5
        and
7.6
        shall
        be amended to the minimum extent necessary such that the provision is
        enforceable or permissible by such applicable law and be enforced as amended.
        The provisions of this Section 7
        shall
        survive the end of the Employment Period and the termination of this Agreement.
        

       

      7.8  Duty
        of Loyalty.
        Nothing
        in this Section
        7
        shall be
        construed as limiting the Executive’s duty of loyalty to the Company while he is
        employed by the Company, or any other duty he may otherwise have to the Company
        while he is employed by the Company.

       

      8.  Effect
        on Termination.
        If, for
        any reason, the Executive’s employment with the Company shall terminate or the
        Agreement is not renewed pursuant to Section 1.3
        above,
        then, the Agreement (and the Employment Period) shall terminate; provided,
        however, notwithstanding such termination, the provisions contained in
Sections  7,
        9,
        and
10
        hereof
        shall remain in full force and effect in accordance with their terms.

       

      
        
          
          

        

        
          B-13

          
            

          

        

        
          
          

        

      

      9.  Remedies.
        

       

      9.1  Non-Exclusive
        Remedy for Restrictive Covenants.
        The
        Executive acknowledges and agrees that the covenants set forth in Section 7
        of this
        Agreement (collectively, the “Restrictive
        Covenants”)
        are
        reasonable and necessary for the protection of the business interests of
        the
        Company and its affiliates, that irreparable injury will result to the Company
        and its affiliates if the Executive breaches any of the terms of the Restrictive
        Covenants, and that in the event of the Executive’s actual or threatened breach
        of any such Restrictive Covenants, the Company and its affiliates will have
        no
        adequate remedy at law. The Executive accordingly agrees that in the event
        of
        any actual or threatened breach by him of any of the Restrictive Covenants,
        the
        Company and/or its affiliates shall be entitled to immediate temporary
        injunctive and other equitable relief, without the necessity of showing actual
        monetary damages or the posting of a bond. Nothing contained herein shall
        be
        construed as prohibiting the Company or any of its affiliates from pursuing
        any
        other remedies available to it for such breach or threatened breach, including
        the recovery of damages. 

       

      9.2  Arbitration.
        Except
        as set forth in Section 9.1,
        any
        controversy or claim arising out of or related to (i) this Agreement,
        (ii) the breach thereof, (iii) the Executive’s employment with the
        Company or the termination of such employment, or (iv) Employment
        Discrimination, shall be settled by arbitration in Chicago, Illinois before
        a
        single arbitrator administered by the American Arbitration Association
        (“AAA”)
        under
        its Commercial Arbitration Rules and Mediation Procedures, amended as of
        September 15, 2005 (the “Employment
        Rules”),
        and
        judgment on the award rendered by the arbitrator may be entered in any court
        having jurisdiction thereof. References herein to any arbitration rule(s)
        shall
        be construed as referring to such rule(s) as amended or renumbered from time
        to
        time and to any successor rules. References to the AAA include any successor
        organization. “Employment
        Discrimination”
means
        any discrimination against or harassment of the Executive in connection with
        the
        Executive’s employment with the Company or the termination of such employment,
        including any discrimination or harassment prohibited under federal, state
        or
        local statute or other applicable law, including the Age Discrimination in
        Employment Act, Title VII of the Civil Rights Act of 1964, the Employee
        Retirement Income Security Act of 1974, the Americans with Disability Act,
        the
        Family and Medical Leave Act, the Fair Labor Standards Act, or any similar
        federal, state or local statute. 

       

      9.3  Legal
        Fees.
        The
        Company shall reimburse the Executive for attorney fees incurred by the
        Executive in connection with the negotiations of this Agreement and related
        agreements in an amount not to exceed $30,000, which reimbursement shall
        upon
        presentation by the Executive of documentation of such expenses and such
        reimbursement shall occur no later than March 15, 2008. 

       

      9.4  Interest.
        If, in
        breach of this Agreement, the Company does not pay any amount that becomes
        due
        to the Executive under this Agreement within five business days after written
        notice that such amount is due and owing, interest shall accrue on such amount
        from the date it became due and owing until the date of payment at an annual
        rate equal to the prime rate as publicly announced by The Northern Trust
        Company
        or its successor in effect from time to time during the period of such
        nonpayment.

       

      
        
          
          

        

        
          B-14

          
            

          

        

        
          
          

        

      

      10.  Miscellaneous.

       

      10.1  General
        Release.
        The
        Executive acknowledges and agrees that the Executive’s right to receive
        severance pay and other benefits pursuant to Sections 6.2,
        6.3
        and
6.4
        of this
        Agreement is contingent upon the Executive’s compliance with the covenants set
        forth in Section 7
        of this
        Agreement and the Executive’s execution and acceptance of the terms and
        conditions of, and the effectiveness of, a general release in the standard
        form
        used by the Company at the time of the Executive’s termination of employment.
        (the “Release”).
        If the
        Executive fails to comply with the covenants set forth in Section 7
        or if
        the Executive fails to execute the Release or revokes the Release during
        the
        seven (7)-day period following his execution of the Release, then the Executive
        shall not be entitled to any severance payments or other benefits to which
        the
        Executive would otherwise be entitled under Section 6.2,
        6.3
        or
6.4
        (collectively, the“Severance
        Benefits”). 

       

      10.2  Assignment.
        The
        Executive may not assign any of his rights or obligations hereunder without
        the
        written consent of the Company. Except as otherwise expressly provided herein,
        all covenants and agreements contained in this Agreement by or on behalf
        of any
        of the parties hereto shall bind and inure to the benefit of the respective
        successors and assigns of the parties hereto whether so expressed or not.
        

       

      10.3  Severability.
        Whenever possible, each provision of this Agreement shall be interpreted
        in such
        manner as to be effective and valid under applicable law, but if any provision
        of this Agreement is held to be prohibited by or invalid under applicable
        law,
        such provision shall be ineffective only to the extent of such prohibition
        or
        invalidity and without invalidating the remainder of this Agreement.

       

      10.4  Counterparts.
        This
        Agreement may be executed in multiple counterparts, each of which shall be
        deemed an original, but all of which taken together shall constitute one
        and the
        same Agreement. 

       

      10.5  Descriptive
        Headings; Interpretation.
        The
        descriptive headings in this Agreement are inserted for convenience of reference
        only and are not intended to be part of or to affect the meaning or
        interpretation of this Agreement. The use of the word “including”
in
        this
        Agreement shall be by way of example rather than by limitation. 

       

      10.6  Notices.

       

      All
        notices, demands or other communications to be given or delivered under or
        by
        reason of the provisions of this Agreement shall be in writing and shall
        be
        deemed to have been duly given if (a) delivered personally to the
        recipient, (b) sent to the recipient by reputable express courier service
        (charges prepaid) or mailed to the recipient by certified or registered mail,
        return receipt requested and postage prepaid, or (c) transmitted by
        telecopy to the recipient with a confirmation copy to follow the next day
        to be
        delivered by overnight carrier. Such notices, demands and other communications
        shall be sent to the addresses indicated below: 

       

      
        
          
          

        

        
          B-15

          
            

          

        

        
          
          

        

      

      
         

      

       

      
        
          	 To the Company:	 Huron Consulting Group
                  Inc.
	 	 550 W. Van Buren
	 	 Chicago, IL 60607
	 	 Attention: General Counsel
	 	 Facsimile:
                  (312) 880-3250
	 	 
	 To the Executive:	 Gary E. Holdren
	 	 At the current home address and/or
                  current home
	 	 facsimile number for the Executive
                  in
                  the Company’s records.

        

      

       

      or
        to
        such other address or to the attention of such other person as the recipient
        party shall have specified by prior written notice to the sending party.
        Date of
        service of such notice shall be (w) the date such notice is personally
        delivered, (x) three days after the date of mailing if sent by certified or
        registered mail, (y) one day after the date of delivery to the overnight
        courier if sent by overnight courier or (z) the next business day after the
        date of transmittal by telecopy. 

       

      10.7  Indemnification.
        The
        Company hereby agrees to indemnify the Executive and hold him harmless, to
        the
        fullest lawful extent permitted by, and subject to the limitations and
        conditions set forth in, the Company's Third Amended and Restated Certificate
        of
        Incorporation and bylaws, as such exist on the date hereof and regardless
        of any
        subsequently enacted bylaw or amendment.

       

      10.8  Liability
        Insurance.
        The
        Company shall cover the Executive, while employed by the Company and during
        the
        six (6) year period commencing with the Executive’s date of termination, under
        directors and officers liability insurance in the same amount and to the
        same
        extent as the Company covers any other officer or director of the Company,
        provided that the Company shall not be required to provide such coverage
        following termination of the Executive’s employment if providing such coverage
        to the Executive would cause the Company’s cost of directors and officers
        liability insurance to be increased by more than 15% and provided further
        that,
        the Company shall not be required to provide such coverage in the event that
        the
        Executive’s employment is terminated for Cause or if, prior to the third
        anniversary of the Effective Date, the Executive terminates his employment
        without Good Reason.

       

      10.9  Preamble;
        Preliminary Recitals.
        The
        Preliminary Recitals set forth in the Preamble hereto are hereby incorporated
        and made part of this Agreement. 

       

      10.10  Taxes.
        All
        compensation payable to the Executive from the Company shall be subject to
        all
        applicable withholding taxes, normal payroll withholding and any other amounts
        required by law to be withheld. 

       

      10.11  Entire
        Agreement.
        Except
        as otherwise expressly set forth herein, this Agreement sets forth the entire
        understanding of the parties, and supersedes and preempts all prior oral
        or
        written understandings and agreements with respect to the subject matter
        hereof,
        including, without limitation, the Prior Agreement.

       

      10.12  Governing
        Law.
        This
        Agreement shall be construed and enforced in accordance with, and all questions
        concerning the construction, validity, interpretation and performance of
        this
        Agreement shall be governed by, the laws of the State of Illinois without
        giving
        effect to provisions thereof regarding conflict of laws. 

       

      
        
          
          

        

        
          B-16

          
            

          

        

        
          
          

        

      

      10.13  No
        Strict Construction.
        The
        language used in this Agreement will be deemed to be the language chosen
        by the
        parties hereto to express their mutual intent, and no rule of strict
        construction will be applied against any party hereto. Neither the Executive
        nor
        the Board shall be entitled to any presumption in connection with any
        determination made hereunder in connection with any arbitration, judicial
        or
        administrative proceeding relating to or arising under this Agreement.

       

      10.14  Amendment
        and Waivers.
        Any
        provisions of the Agreement may be amended or waived only with the prior
        written
        consent of the Company and the Executive.

       

      10.15  Code
        Section 409A.
        Notwithstanding anything in this Agreement to the contrary, the Company shall
        administer and construe this Agreement in accordance with Code Section 409A,
        the
        regulations promulgated thereunder, and any other published interpretive
        authority, as issued or amended from time to time, so as not to subject the
        Executive to the additional tax and interest imposed under Code Section 409A.
        To
        the extent that the Company and/or the Executive reasonably determine that
        any
        amount payable under this Agreement would trigger the additional tax imposed
        by
        Section 409A, the Company and the Executive shall promptly agree in good
        faith
        on appropriate modifications to the Agreement (including delaying or
        restructuring payments) to avoid such additional tax yet preserve (to the
        nearest extent reasonably possible) the intended benefit payable to the
        Executive.

       

      SIGNATURE
        PAGE FOLLOWS. 

    

    
 

    
      
        
          
          

        

        
          B-17

          
            

          

        

        
          
          

        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
      dates
      written below. 

     

     

    
      	 Date:	 January
              29, 2007	 	 THE
              COMPANY:	 
	 	 	 	 HURON
              CONSULTING GROUP INC.	 
	 	 	 	 	 
	 	 	 	 /s/
              John S. Moody	 
	 	 	 	 By: 
              John S. Moody	 
	 	 	 	 Its: 
              Chairperson of the Compensation	 
	 	 	 	        
              Committee of the Board of Directors	 
	 	 	 	 	 
	 	 	 	 EXECUTIVE	 
	 	 	 	 /s/ 
              Gary E. Holdren	 
	 	 	 	 Gary
              E. Holdren	 

    

     

     

    
      
        
        

      

      
        B-18

        
          

        

      

      
        
        

      

    

    Exhibit
      A

     

    

      HURON
        CONSULTING GROUP INC.

      2004
        OMNIBUS STOCK PLAN

      RESTRICTED
        STOCK UNIT AGREEMENT

      

      

      This
        RESTRICTED STOCK UNIT AGREEMENT (this “Restricted
        Stock Unit Agreement")
        is
        made and entered into as of January 29, 2007 (the “Date
        of Grant”),
        by
        and between Huron Consulting Group Inc., a Delaware corporation (the
“Company”)
        and
        Gary E. Holdren (the “Recipient”).
        

      

      WHEREAS,
        the Company and the Recipient are parties to that certain Amended and Restated
        Senior Management Agreement dated as of even date herewith (the “SMA”);
        and

      

      WHEREAS,
        the Compensation Committee of the Board of Directors of the Company has approved
        the grant of Restricted Stock Units pursuant to the Huron Consulting Group
        Inc.
        2004 Omnibus Stock Plan (the “Plan”)
        to the
        Recipient as set forth below (which award shall constitute a grant of Phantom
        Stock within the meaning of the Plan);

      

      NOW,
        THEREFORE, in consideration of the covenants and agreements herein contained,
        and intending to be legally bound hereby, the parties agree as
        follows:

      

      1.  Definitions.
        Capitalized terms which are not defined herein shall have the meaning set
        forth
        in the Plan.

       

      2.  Grant
        of Restricted StockUnits.
        The
        Company hereby grants to the Recipient 250,000 restricted stock units (the
        “Restricted
        Stock Units”),
        subject to all of the terms and conditions of this Restricted Stock Unit
        Agreement. The Recipient’s grant details, including the number of Restricted
        Stock Units granted, vesting schedule and expiration date, are reflected
        in the
        Recipient’s UBS Financial Services Inc. stock account. 

       

      3.  Vesting
        and Forfeiture of Units.
        All
        Restricted Stock Units shall be unvested unless and until they become vested
        and
        nonforfeitable in accordance with this Section 3. Except as otherwise provided
        below, if the Recipient is employed by the Company or any of its affiliates
        (collectively, “Huron”)
        as of
        the applicable “Anniversary
        Date”
set
        forth below, the Restricted Stock Units shall become vested and nonforfeitable
        according to the percentage set forth opposite such date:

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      
        	
                Anniversary
                  Date

              	
                Cumulative
                  Percentage Vested

              
	
                February
                  1, 2008

                January
                  1, 2009

                January
                  1, 2010

                January
                  1, 2011

                January
                  1, 2012

              	
                20%

                40%

                60%

                80%

                100%

              

      

      

      Notwithstanding
        the foregoing provisions of this Section 3, all of the Restricted Stock Units
        that have not otherwise vested in accordance with the foregoing provisions
        of
        this Section 3 shall become vested and nonforfeitable in accordance with
        the
        following:

       

      
        	(a)  	
                Death
                  or Permanent Disability.
                  The
                  Restricted Stock Units shall become fully vested if the Recipient’s
                  employment with Huron terminates on account of his death or Permanent
                  Disability (as defined in the SMA).

              

      

       

      
        	(b)  	
                Certain
                  Terminations.
                  The
                  Restricted Stock Units shall become fully vested and nonforfeitable
                  if the
                  Recipient’s employment with Huron is terminated by Huron for reasons other
                  than for “Cause” (as defined in the SMA) or by the Recipient for “Good
                  Reason” (as defined in the SMA).

              

      

       

      
        	(c)  	
                Change
                  of Control.
                  The
                  Restricted Stock Units shall become fully vested and nonforfeitable
                  upon a
                  Change of Control (as defined in the
                  SMA).

              

      

       

      Any
        Restricted Stock Units that are not otherwise vested and nonforfeitable upon
        the
        Recipient’s termination of employment with Huron shall be immediately forfeited
        and the Recipient shall have no further rights to, under or with respect
        to such
        Restricted Stock Units. 

       

      4.  Settlement.
        Restricted Stock Units that have become vested in accordance with Section
        3
        shall be settled as of the “Settlement
        Date”
which
        shall be the latest of (a) the date on which the Recipient’s employment with
        Huron terminates for any reason, (b) the earliest date following the Recipient’s
        termination of employment on which settlement can occur without violating
        the
        requirements of section 409A of the Code, or (c) the earliest date on which
        the
        Company reasonably anticipates that its deduction with respect to the
        Recipient’s compensation from the settlement will not be limited or eliminated
        by application of section 162(m) of the Code. Settlement of the vested
        Restricted Stock Units on the Settlement Date shall be made in the form of
        shares of Company Stock (with one share of Company Stock

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      distributed
        for each vested Restricted Stock Unit)
        registered in the name of the Recipient. The shares of Company Stock distributed
        in settlement of the Restricted Stock Units may, at the request of the
        Recipient, may be evidenced by stock certificates which shall be delivered
        to
        Recipient within five (5) business days of such request. 

       

      5.  Restrictions
        on Transfer.
        The
        Recipient may not sell, assign, pledge or transfer, other than by the laws
        of
        descent or distribution, his Restricted Stock Units or any rights under or
        with
        respect to the Restricted Stock Units and the rights of the Recipient with
        respect to the Restricted Stock Units shall not be subject to the claims
        of
        creditors of the Recipient other than the Company.

       

      6.  Rights
        as a Stockholder.
        The
        Recipient shall not be a stockholder of the Company until the shares of Company
        Stock issued in settlement of the Restricted Stock Units are registered in
        his
        name in accordance with the terms of this Restricted Stock Unit
        Agreement.

       

      7.  Notices.
        Any
        notice required or permitted under this Restricted Stock Unit Agreement shall
        be
        deemed given when delivered personally, or when deposited in a United States
        Post Office, postage prepaid, addressed, as appropriate, to the Company at
        its
        principal offices, to the Recipient at the Recipient’s address as last known by
        the Company or, in either case, such other address as one party may designate
        in
        writing to the other.

       

      8.  Securities
        Laws Requirements.
        The
        Company may require as a condition of distribution of any shares of Company
        Stock in settlement of the Restricted Stock Units that the Recipient furnish
        a
        written representation that he or she is holding the shares of Company Stock
        for
        investment and not with a view to resale or distribution to the public.

       

      9.  Protections
        Against Violations of Restricted Stock Unit Agreement.
        No
        purported sale, assignment, mortgage, hypothecation, transfer, pledge,
        encumbrance, gift, transfer in trust (voting or other) or other disposition
        of,
        or creation of a security interest in or lien on, any of the Restricted Stock
        Units by any holder thereof in violation of the provisions of this Restricted
        Stock Unit Agreement shall be valid. The Restricted Share Units do not
        constitute shares of Company Stock unless and until the shares of Company
        Stock
        issued in settlement of the Restricted Stock Units are registered in his
        name in
        accordance with the terms of this Restricted Stock Unit Agreement and the
        Recipient shall not, as a result of this Restricted Stock Unit Agreement,
        be a
        stockholder of the Company. The foregoing restrictions are in addition to
        and
        not in lieu of any other remedies, legal or equitable, available to enforce
        said
        provisions.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      10.  Taxes.
        The
        Recipient understands that he or she (and not the Company) shall be responsible
        for any tax obligations that may arise as a result of the transactions
        contemplated by this Restricted Stock Unit Agreement and shall pay to the
        Company the amount determined by the Company to be such tax obligation at
        the
        time such tax obligation arises. If the Recipient fails to make such payment,
        the number of shares of Company Stock necessary to satisfy the tax obligations
        shall be withheld from any distribution in settlement of Restricted Stock
        Units
        and shall be used to satisfy the Recipient’s tax obligations. Without limiting
        the generality of the foregoing, (a) the Company has the right to withhold
        any
        shares of Company Stock to satisfy any applicable withholding taxes required
        by
        law, to the extent that the Company determines it is required to do so by
        law,
        and (b) the Recipient agrees to pay to the Company (and hereby authorizes
        the
        Company to withhold from other amounts that are otherwise payable to him
        from
        the Company if he fails to make such payment), the amount of the Recipient’s
        portion of any required employment taxes (e.g., FICA and Medicare taxes)
        that
        are due upon the vesting of all or any portion of the Restricted Stock Units,
        which payment shall be made at such time specified by the Company in order
        to
        enable the Company to meet its legal obligations with respect to such payments.
        

       

      11.  
        Failure to Enforce Not a Waiver.
        The
        failure of the Company to enforce at any time any provision of this Restricted
        Stock Unit Agreement shall in no way be construed to be a waiver of such
        provision or of any other provision hereof.

       

      12.  Governing
        Law.
        This
        Restricted Stock Unit Agreement shall be governed by and construed according
        to
        the laws of the State of Delaware without regard to its principles of conflict
        of laws.

       

      13.  Amendments.
        Except
        as provided in Section 17, this Restricted Stock Unit Agreement may be amended
        or modified at any time only by an instrument in writing signed by each of
        the
        parties hereto.

       

      14.  Survival
        of Terms.
        This
        Restricted Stock Unit Agreement shall apply to and bind the Recipient and
        the
        Company and their respective permitted assignees and transferees, heirs,
        legatees, executors, administrators and legal successors.

       

      15.  Agreement
        Not a Contract for Services.
        Neither
        the grant of Restricted Stock Units, this Restricted Stock Unit Agreement
        nor
        any other action taken pursuant to this Restricted Stock Unit Agreement shall
        constitute or be evidence of any agreement or understanding, express or implied,
        that the Recipient has a right to continue to provide services as an officer,
        director, employee or consultant of the Company for any period of time or
        at any
        specific rate of compensation.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      16.  Severability.
        If a
        provision of this Restricted Stock Unit Agreement is held invalid by a court
        of
        competent jurisdiction, the remaining provisions will nonetheless be enforceable
        according to their terms. Further, if any provision is held to be over broad
        as
        written, that provision shall be amended to narrow its application to the
        extent
        necessary to make the provision enforceable according to applicable law and
        enforced as amended.

       

      17.  Plan.
        The
        Restricted Stock Units are granted pursuant to the Plan, and the Restricted
        Stock Units and this Restricted Stock Unit Agreement are in all respects
        governed by the Plan and subject to all of the terms and provisions thereof,
        whether such terms and provisions are incorporated in this Restricted Stock
        Unit
        Agreement by reference or are expressly cited.

       

      18.  Execution
        of Award Agreement.
        The
        Restricted Stock Units granted to Recipient pursuant to this Restricted Stock
        Unit Agreement shall be subject to Recipient’s execution and return of this
        Restricted Stock Unit Agreement to the Company or its designee (including
        by
        electronic means).

       

      19.  Section
        409A of the Code.
        Notwithstanding anything in this Restricted Stock Unit Agreement to the
        contrary, the Company shall administer and construe this Agreement in good
        faith
        in accordance with section 409A of the Code, the regulations promulgated
        thereunder, and any other published interpretive authority, as issued or
        amended
        from time to time, so as not to subject the Recipient to the additional tax
        and
        interest imposed under section 409A of the Code. To the extent that the Company
        and/or the Recipient reasonably determine that any amount payable under this
        Restricted Stock Unit Agreement would trigger the additional tax imposed
        by
        Section 409A, the Company and the Recipient shall promptly agree in good
        faith
        on appropriate modifications to this Restricted Stock Unit Agreement (including
        delaying or restructuring payments) to avoid such additional tax yet preserve
        (to the nearest extent reasonably possible) the intended benefit payable
        to the
        Executive.
        Notwithstanding the foregoing, the Company does not guarantee any tax treatment
        of payments made pursuant to the provisions of this Restricted Stock Unit
        Agreement.

       

      IN
        WITNESS WHEREOF, the parties hereto have executed and delivered this Restricted
        Stock Unit Agreement on January 29, 2007.

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	Date:	 January
              29, 2007	 	 THE
              COMPANY:	 
	 	 	 	 HURON
              CONSULTING GROUP INC.	 
	 	 	 	 	 
	 	 	 	 /s/
              John S. Moody	 
	 	 	 	 By: 
              John S. Moody	 
	 	 	 	 Its: 
              Chairperson of the Compensation	 
	 	 	 	        
              Committee of the Board of Directors	 
	 	 	 	 	 
	 	 	 	 EXECUTIVE	 
	 	 	 	 /s/ 
              Gary E. Holdren	 
	 	 	 	 Gary
              E. Holdren	 

    

     

     

    
      
        
        

      

      
        6EX-10.1

$800,000,000

AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of January 30, 2007

among

Technical Olympic USA, Inc. and the other Borrowers Party Hereto,

as Borrowers

and

The Lenders and Issuers Party Hereto

and

Citicorp North America, Inc.,

as Administrative Agent,

Deutsche Bank Securities Inc.,

as Syndication Agent,

J.P. Morgan Chase Bank, N.A., and

Wachovia Capital Markets, LLC

as Co-Documentation Agents,

and

Citigroup Global Markets Inc.

and

Deutsche Bank Securities Inc.

1

as Joint Lead Arrangers and Joint Book ManagersTABLE OF CONTENTS

Page

ARTICLE I

DEFINITIONS, INTERPRETATION AND ACCOUNTING TERMS

	 	 	 
	Section 1.1

Section 1.2

Section 1.3

Section 1.4

	 	Defined Terms.

Computation of Time Periods.

Accounting Terms and Principles.

Certain Terms.

ARTICLE II

THE FACILITY

	 	 	 
	Section 2.1

Section 2.2

Section 2.3

Section 2.4

Section 2.5

Section 2.6

Section 2.7

Section 2.8

Section 2.9

Section 2.10

Section 2.11

Section 2.12

Section 2.13

Section 2.14

Section 2.15

Section 2.16

Section 2.17

Section 2.18

Section 2.19

	 	The Revolving Credit Commitments.

Borrowing Procedures.

Swing Loans.

Letters of Credit.

Reduction and Termination of the Revolving Credit Commitments.

Repayment of Loans.

Evidence of Debt.

Prepayments.

Interest.

Conversion/Continuation Option.

Fees.

Payments and Computations.

Special Provisions Governing Eurodollar Rate Loans.

Capital Adequacy.

Taxes.

Substitution of Lenders.

Facility Extension.

Facility Increase.

Certain Accounts.

ARTICLE III

CONDITIONS TO LOANS AND LETTERS OF CREDIT

	 	 	 
	Section 3.1

Section 3.2

Section 3.3

	 	Conditions Precedent to the Effectiveness of this Agreement.

Conditions Precedent to Each Loan and Letter of Credit.

Determinations of Effective Date Conditions.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

	 	 	 
	Section 4.1

Section 4.2

Section 4.3

Section 4.4

Section 4.5

Section 4.6

Section 4.7

Section 4.8

Section 4.9

Section 4.10

Section 4.11

Section 4.12

Section 4.13

Section 4.14

Section 4.15

Section 4.16

Section 4.17

Section 4.18

Section 4.19

	 	Corporate Existence; Compliance with Law.

Corporate Power; Authorization; Enforceable Obligations.

Ownership of Subsidiaries.

Financial Statements.

Material Adverse Change.

Litigation.

Taxes.

Full Disclosure.

Margin Regulations.

No Burdensome Restrictions; No Defaults.

Investment Company Act.

Use of Proceeds.

Insurance.

Labor Matters.

ERISA.

Environmental Matters.

Intellectual Property.

Title; Real Property.

Anti-Terrorism Laws.

ARTICLE V

FINANCIAL COVENANTS

	 	 	 
	Section 5.1

Section 5.2

Section 5.3

Section 5.4

Section 5.5

	 	Adjusted Consolidated Tangible Net Worth.

Maximum Indebtedness to Adjusted Consolidated Tangible Net Worth Ratio.

Minimum Interest Coverage Ratio.

Unsold Land to Adjusted Consolidated Tangible Net Worth.

Unsold Units to Units Closed.

ARTICLE VI

AFFIRMATIVE COVENANTS

	 	 	 
	Section 6.1

Section 6.2

Section 6.3

Section 6.4

Section 6.5

Section 6.6

Section 6.7

Section 6.8

Section 6.9

Section 6.10

Section 6.11

Section 6.12

Section 6.13

Section 6.14

Section 6.15

Section 6.16

Section 6.17

	 	Reporting Requirements.

Preservation of Corporate Existence, Etc.

Compliance with Laws, Etc.

Conduct of Business.

Payment of Taxes, Etc.

Maintenance of Insurance.

Transactions with Affiliates.

Access.

Keeping of Books.

Maintenance of Properties, Etc.

Application of Proceeds.

Environmental.

Additional Subsidiary Borrowers.

Designation of Restricted and Unrestricted Subsidiaries.

Mortgage Requirements.

Designated Account Deposits.

Equity Pledge Agreement.

ARTICLE VII

NEGATIVE COVENANTS

	 	 	 
	Section 7.1

Section 7.2

Section 7.3

Section 7.4

Section 7.5

Section 7.6

Section 7.7

Section 7.8

Section 7.9

Section 7.10

Section 7.11

	 	Liens, Etc.

Investments.

Restricted Payments.

Restriction on Fundamental Changes.

Change in Nature of Business.

Transactions with Affiliates.

Restrictions on Subsidiary Distributions; No New Negative Pledge.

Sale/Leasebacks.

Compliance with ERISA.

Environmental.

Designated Account Proceeds.

ARTICLE VIII

EVENTS OF DEFAULT

	 	 	 
	Section 8.1

Section 8.2

Section 8.3

Section 8.4

	 	Events of Default.

Remedies.

Actions in Respect of Letters of Credit.

Rescission.

ARTICLE IX

THE ADMINISTRATIVE AGENT

	 	 	 
	Section 9.1

Section 9.2

Section 9.3

Section 9.4

Section 9.5

Section 9.6

	 	Authorization and Action.

Administrative Agent’s Reliance, Etc.

The Administrative Agent Individually.

Lender Credit Decision.

Indemnification.

Successor Administrative Agent.

ARTICLE X

MISCELLANEOUS

	 	 	 
	Section 10.1

Section 10.2

Section 10.3

Section 10.4

Section 10.5

Section 10.6

Section 10.7

Section 10.8

Section 10.9

Section 10.10

Section 10.11

Section 10.12

Section 10.13

Section 10.14

Section 10.15

Section 10.16

Section 10.17

Section 10.18

Section 10.19

Section 10.20

Section 10.21

Section 10.22

	 	Amendments, Waivers, Etc.

Assignments and Participations.

Costs and Expenses.

Indemnities.

Limitation of Liability.

Right of Set-off.

Sharing of Payments, Etc.

Notices, Etc.

No Waiver; Remedies.

Binding Effect.

Governing Law.

Submission to Jurisdiction; Service of Process.

Waiver of Jury Trial.

Section Titles.

Execution in Counterparts.

Entire Agreement.

Confidentiality.

USA Patriot Act.

Agent Communications.

Joint and Several Liability.

Administrative Borrower.

No Release.

	 	 	 	 	 
	Schedules
	Schedule I

	 	-
	 	Revolving Credit Commitments
	 
	 	 	 	 
	Schedule II

	 	-
	 	Applicable Lending Offices and Addresses for Notices
	 
	 	 	 	 
	Schedule 2.4

	 	-
	 	Existing Letters of Credit
	 
	 	 	 	 
	Schedule 4.2

	 	-
	 	Consents
	 
	 	 	 	 
	Schedule 4.3

	 	-
	 	Ownership of Subsidiaries
	 
	 	 	 	 
	Schedule 4.4

	 	-
	 	Material Obligations
	 
	 	 	 	 
	Schedule 4.6

	 	-
	 	Litigation
	 
	 	 	 	 
	Schedule 4.7

	 	-
	 	Taxes
	 
	 	 	 	 
	Schedule 4.13

	 	-
	 	Insurance
	 
	 	 	 	 
	Schedule 7.1

	 	-
	 	Existing Liens
	 
	 	 	 	 
	Schedule 7.2

	 	-
	 	Existing Investments
	 
	 	 	 	 
	Schedule 7.7

	 	-
	 	Restrictions on Subsidiary Distributions

	 	 	 	 	 
	Exhibits
	Exhibit A

	 	-
	 	Form of Assignment and Acceptance
	 
	 	 	 	 
	Exhibit B

	 	-
	 	Form of Assumption Agreement
	 
	 	 	 	 
	Exhibit C

	 	-
	 	Form of Revolving Credit Note
	 
	 	 	 	 
	Exhibit D

	 	-
	 	Form of Notice of Borrowing
	 
	 	 	 	 
	Exhibit E

	 	-
	 	Form of Borrowing Base Certificate
	 
	 	 	 	 
	Exhibit F

	 	-
	 	Form of Notice of Conversion or Continuation
	 
	 	 	 	 
	Exhibit G

	 	-
	 	Form of Credit Agreement Supplement
	 
	 	 	 	 
	Exhibit H

	 	-
	 	Form of Guaranty

2

AMENDED AND RESTATED CREDIT AGREEMENT, dated as of January 30, 2007, among TECHNICAL
OLYMPIC USA, INC., a Delaware corporation (the “Administrative Borrower”), the subsidiaries
of the Administrative Borrower listed on the signature pages hereof as a “Subsidiary Borrower” and
any other subsidiary of the Administrative Borrower which hereafter becomes a Subsidiary Borrower
pursuant to the terms hereof (each a “Subsidiary Borrower” and collectively, the
"Subsidiary Borrowers”; together with the Administrative Borrower, each a
"Borrower” and collectively, the “Borrowers”), the Lenders (as defined below), the
Issuers (as defined below), CITICORP NORTH AMERICA, INC. (“CNAI”), as agent for the Lenders
and the Issuers (in such capacity, the “Administrative Agent”).

PRELIMINARY STATEMENTS

(1) The Administrative Borrower, the Lenders (or their predecessors in interest), the Issuer,
the Administrative Agent, the Syndication Agent and the Co-Documentation Agents are parties to the
Credit Agreement, dated as of March 9, 2006 (as amended by Amendment No. 1 to Credit Agreement
dated as of October 23, 2006 and Amendment No. 2 dated as of December 20, 2006 and as otherwise
amended, supplemented or otherwise modified from time to time through the date hereof, the
"March 2006 Credit Agreement”), under which the Lenders provided the Facility in the
aggregate principal amount of $800,000,000 for the making of Revolving Loans and Swing Loans and
the Issuance of Letters of Credit.

(2) By amendment to the March 2006 Credit Agreement, dated as of October 23, 2006, the
Administrative Borrower committed to deliver Mortgages on Completed Unsold Homes, as collateral for
the Obligations, by no later than December 31, 2006. By further amendment, pursuant to Amendment
No. 2 described above, the deadline for delivering the Mortgages on Completed Unsold Homes was
extended to January 30, 2007. The Administrative Borrower has requested a further extension of the
deadline for delivering the Mortgages on Completed Unsold Homes and an amendment to the Mortgage
requirements. The Lenders’ agreement to extend the deadline for delivering the Mortgages on
Completed Unsold Homes, amend the Mortgage requirements and continue making Loans under the
Facility is expressly conditioned upon the amendments contained herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements contained in this
Agreement, and for other good and valuable consideration, the receipt and sufficiency of which
hereby are acknowledged, the parties hereto agree to amend and restate the March 2006 Credit
Agreement as follows:

3

ARTICLE I

DEFINITIONS, INTERPRETATION AND ACCOUNTING TERMS

	 	 	 	Section 1.1 Defined Terms.

As used in this Agreement, the following terms have the following meanings (such meanings to
be equally applicable to both the singular and plural forms of the terms defined):

"Adjusted Consolidated Tangible Net Worth” means with respect to the Administrative
Borrower and its Restricted Subsidiaries on a Consolidated basis, as of any date, the sum of (a)
Tangible Net Worth, plus (b) the lesser of (i) fifty percent (50%) of the aggregate
principal amount of all then outstanding Subordinated Indebtedness of the Administrative Borrower
and its Restricted Subsidiaries having a maturity date later than one year following the Scheduled
Termination Date, (ii) twenty percent (20%) of Tangible Net Worth, and (iii) $200,000,000.

"Administrative Agent” has the meaning assigned to such term in the preamble hereto.

"Administrative Borrower” has the meaning assigned to such term in the preamble
hereto.

"Affiliate” means, with respect to any Person, any other Person which, directly or
indirectly, controls, is controlled by or is under common control with such Person, each officer,
director, general partner or joint-venturer of such Person, and each Person who is the beneficial
owner of 10% or more of any class of Voting Stock of such Person. For the purposes of this
definition, “control” means the possession of the power to direct or cause the direction of
management and policies of such Person, whether through the ownership of voting securities, by
contract or otherwise. Solely for purposes of Section 7.6, Affiliates of the Borrowers shall
include Unrestricted Subsidiaries of the Administrative Borrower and Joint Ventures.

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

"Agreement” means the March 2006 Credit Agreement as amended and restated by this
Amended and Restated Credit Agreement, except that any reference to the date of this Agreement
shall mean the date of this Amended and Restated Credit Agreement.

"Anti-Terrorism Laws” has the meaning assigned to such term in Section 4.19.

"Applicable Lending Office” means, with respect to each Lender, its Domestic Lending
Office in the case of a Base Rate Loan, and its Eurodollar Lending Office in the case of a
Eurodollar Rate Loan.

Applicable Margin” means, as of any date of determination, a per annum
rate equal to the rate set forth below for the applicable type of Loan or Letters of Credit and the
Leverage Ratio and Ratings set forth below for each such date of determination:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Eurodollar Rate	 	 	 	 
	Level	 	Leverage Ratio	 	Ratings	 	Loans	 	Base Rate Loans	 	Letters of Credit
	 
	 	Less than or equal
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1
	 	to 1.0
	 	Ba1/BB+ or higher
	 	 	1.25	%	 	 	-0-	 	 	 	1.05	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Greater than 1.0
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	but less than or
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	equal to 1.25
	 	Ba2/BB
	 	 	1.35	%	 	 	-0-	 	 	 	1.15	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Greater than 1.25
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	but less than or
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	equal to 1.50
	 	Ba3/BB-
	 	 	1.45	%	 	 	-0-	 	 	 	1.30	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Greater than 1.50
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	but less than or
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4
	 	equal to 1.75
	 	 	B1/B+	 	 	 	1.65	%	 	 	0.15	%	 	 	1.50	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5
	 	Greater than 1.75
	 	B2/B or lower	 	 	2.00	%	 	 	0.50	%	 	 	1.70	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

For purposes of the above grid, “Ratings” means (i) at any time at which Moody’s,
S&P and Fitch all publicly announce ratings of the Administrative Borrower’s senior unsecured
non-credit enhanced long-term debt, the second highest of such three ratings and (ii) at any time
at which Moody’s and S&P publicly announce ratings of the Administrative Borrower’s senior
unsecured non-credit enhanced long-term debt but Fitch does not, the higher of such two ratings
(i.e., lower pricing). “Leverage Ratio” means, for the Administrative Borrower and its
Restricted Subsidiaries, as of the last day of each fiscal quarter, the ratio of (a) the difference
between (i) the aggregate amount of all Indebtedness of the Administrative Borrower and its
Restricted Subsidiaries and (ii) Unrestricted Cash in excess of $10,000,000 and (b) the Adjusted
Consolidated Tangible Net Worth of the Administrative Borrower and its Restricted Subsidiaries.

In the case of the Leverage Ratio, the Applicable Margin shall be determined upon delivery of
the Compliance Certificate pursuant to Section 6.1(c), after the end of each fiscal quarter,
commencing with the Compliance Certificate delivered for the fiscal quarter ending June 30, 2006.
The Applicable Margin shall automatically be adjusted to the rate corresponding to the Leverage
Ratio set forth in the grid above. Such automatic adjustment shall take effect on the last day
that the Compliance Certificate was required to be delivered, and shall remain in effect until
subsequently adjusted in accordance herewith upon the delivery of each such subsequent Compliance
Certificate. In the case of the Ratings, the Applicable Margin shall be determined upon any change
in such Ratings. The Applicable Margin shall automatically be adjusted to the rate corresponding
to the Ratings set forth in the grid above. Such automatic adjustment shall take effect (i) in
case of Eurodollar Rate Loans, as of the beginning of the next succeeding applicable Interest
Period for Eurodollar Loans, and (ii) in case of Base Rate Loans, as of the next Business Day
following the date of such change in the Ratings.

In the event of a difference of one level between (x) the Ratings and the Leverage Ratio
pricing levels, or (y) the Ratings, the pricing for the higher level shall apply (e.g. if the
applicable Leverage Ratio is Level 1 and the applicable Ratings are Level 2, the pricing for Level
1 shall apply). In the event such difference is of more than one level between (x) the Ratings and
the Leverage Ratio or (y) the Ratings, the pricing for the level one level lower than the higher
level pricing shall apply. The Applicable Margin was set on the Original Effective Date at Level
2.

"Applicable Unused Commitment Fee Rate” means, as of any date of determination, a
per annum rate equal to the corresponding Unused Commitment Percentage set forth
below:

	 	 	 	 	 
	Unused Commitment Percentage	 	Unused Commitment Fee Rate
	Higher than 66 2/3%

	 	 	0.300	%
	 

	 	 	 	 
	 
	 	 	 	 
	Higher than 33 1/3% and lower than or

equal to 66 2/3%

	 	

0.225%

	 

	 	 	 	 
	 
	 	 	 	 
	Lower than or equal to 33 1/3%

	 	 	0.125	%
	 

	 	 	 	 

"Approved Fund” means, with respect to any Fund that is a fund that invests in bank
loans, any other fund that invests in bank loans and is advised or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or Affiliate of an entity that administers or manages a
Lender.

"Arrangers” means Citigroup Global Markets Inc. and Deutsche Bank Securities Inc., in
their capacities as joint lead arrangers and joint book managers.

"Assignment and Acceptance” means an assignment and acceptance entered into by a
Lender and an Eligible Assignee, and accepted by the Administrative Agent, in substantially the
form of Exhibit A.

"Assumption Agreement” means an assumption agreement entered into by a Lender or an
Eligible Assignee, and accepted by the Administrative Agent, substantially in the form of
Exhibit B.

"Available Credit” means, at any time, an amount equal to (a) the Maximum Credit,
minus (b) the aggregate Revolving Credit Outstandings at such time.

"Bankruptcy Code” means Title 11, United States Code, as amended from time to time.

"Base Rate” means the greater of (i) the interest rate per annum
announced from time to time by the Administrative Agent at its Domestic Lending Office as its then
base rate, or (ii) the Federal Funds Rate plus 0.5% per annum.

"Base Rate Loan” means any Loan during any period in which it bears interest based on
the Base Rate.

"Board of Directors” means the board of directors of the Administrative Borrower or
any committee thereof authorized with respect to any particular matter to exercise the power of the
board of directors of the Administrative Borrower.

"Borrower” and “Borrowers” have the meaning assigned to such terms in the
preamble to this Agreement.

"Borrowing” means a borrowing consisting of Loans made on the same day by the Lenders
ratably according to their respective Revolving Credit Commitments.

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

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

(b) the product of (x) 0.90 and (y) the value of Sold Homes owned by a Borrower (as
determined in accordance with the definition of “Sold Homes”), to the extent such Sold Homes
constitute Borrowing Base Assets;

(c) the product of (x) 0.75 and (y) the value of Completed Unsold Homes owned by a
Borrower (as determined in accordance with the definition of “Completed Unsold Homes”), to the
extent such Completed Unsold Homes constitute Borrowing Base Assets;

(d) the product of (x) 0.70 and (y) the value of Unsold Homes Under Construction owned by
a Borrower (as determined in accordance with the definition of “Unsold Homes Under
Construction”), to the extent such Unsold Homes Under Construction constitute Borrowing Base
Assets;

(e) the product of (x) the Finished Lots Advance Rate and (y) the value of Finished Lots
owned by a Borrower (as determined in accordance with the definition of “Finished Lots”), to
the extent such Finished Lots constitute Borrowing Base Assets;

(f) the product of (x) the Land/Lots Under Development Advance Rate and (y) the value of
Land/Lots Under Development owned by a Borrower (as determined in accordance with the
definition of “Land/Lots Under Development”), to the extent such Land/Lots Under Development
constitute Borrowing Base Assets;

(g) the product of (x) the Unimproved Land Advance Rate and (y) the value of Unimproved
Land owned by a Borrower (as determined in accordance with the definition of “Unimproved
Land”), to the extent such Unimproved Land constitutes Borrowing Base Assets.

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

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

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

(b) Sold Homes owned by a Borrower but only to the extent that (i) the Contract for Sale
for such Sold Home and related rights are subject to a first priority perfected security
interest as contemplated by the Security Agreement and (ii) to the extent required under
Section 6.15, such Sold Home is subject to a Mortgage and, except as provided in Section 6.15,
all Mortgage Requirements with respect to such Mortgage have been satisfied;

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

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

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

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

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

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

"Business Day” means a day of the year on which banks are not required or authorized
to close in New York City and, if the applicable Business Day relates to notices, determinations,
fundings and payments in connection with the Eurodollar Rate or any Eurodollar Rate Loans, a day on
which dealings in Dollar deposits are also carried on in the London interbank market.

"Capital Lease” means, with respect to any Person, any lease of, or other arrangement
conveying the right to use, property by such Person as lessee that would be accounted for as a
capital lease on a balance sheet of such Person prepared in conformity with GAAP.

"Capital Lease Obligations” means, with respect to any Person, the capitalized amount
of all obligations of such Person or any of its Restricted Subsidiaries under Capital Leases, as
determined on a Consolidated basis in conformity with GAAP.

"Cash Equivalents” means

(a) securities issued or fully guaranteed or insured by the United States government or
any agency thereof,

(b) certificates of deposit, eurodollar time deposits, overnight bank deposits and
bankers’ acceptances of any commercial bank organized under the laws of the United States, any
state thereof, the District of Columbia, any foreign bank, or its branches or agencies (fully
protected against currency fluctuations) which, at the time of acquisition, are rated at least
“A-1” by S&P or “P-1” by Moody’s,

(c) commercial paper of an issuer rated at least “A-1” by S&P, “P-1” by Moody’s, or “1” by
the National Association of Investors Corporation;

(d) short term repurchase agreements, municipal trusts and obligations with a term of not
more than 30 days for underlying securities of the types described in clause (a) above entered
into with any bank meeting the qualifications specified in clause (b) above; and

(e) shares of any money market fund that (i) has at least 95% of its assets invested
continuously in the types of investments referred to in clauses (a), (b),
(c), and (d) above, (ii) has net assets of not less than $500,000,000 and
(iii) is rated at least “A-1” by S&P, “P-1” by Moody’s, or “1” by the National Association of
Investors Corporation; provided, however, that the maturities of all
obligations of the type specified in clauses (a), (b), (c) and
(d) above shall not exceed 180 days.

"Change of Control” means the occurrence of any of the following events:

(a) if any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Exchange Act or any successor provisions to either of the preceding), including any group
acting for the purpose of acquiring, holding, voting or disposing of securities within the
meaning of Rule 13d-5(b)(1) under the Exchange Act, other than any one or more of the Permitted
Holders, becomes the “beneficial owner,” directly or indirectly, of 40% or more of the total
voting power of the Voting Stock of the Administrative Borrower; or

(b) if any of the Permitted Holders or any Person controlling or under common control with
the Permitted Holders, either individually or acting together, becomes the “beneficial owner,”
directly or indirectly, of 75% or more of the total voting power of the Voting Stock of the
Administrative Borrower; or

(c) during any period of two consecutive years, individuals who at the beginning of such
period constituted the board of directors of the Administrative Borrower (together with any new
directors whose election or appointment by such board of directors or whose nomination for
election by the shareholders of the Administrative Borrower was approved by a vote of not less
than two-thirds of the directors then still in office who were either directors at the
beginning of such period or whose election or nomination for election was previously so
approved) cease for any reason to constitute a majority of the board of directors of the
Administrative Borrower then in office; or

(d) the shareholders of the Administrative Borrower shall have approved any plan of
liquidation or dissolution of the Administrative Borrower; or if the shares of the
Administrative Borrower cease to be listed on the New York Stock Exchange, American Stock
Exchange or Nasdaq National Market System for any reason; or

(e) Antonio B. Mon (or a successor approved by the Requisite Lenders) shall no longer be
the chief executive officer of the Administrative Borrower, and a successor chief executive
officer satisfactory to the Requisite Lenders shall not have (i) been appointed to such office
within 120 days of the date on which Antonio B. Mon (or his approved successor) ceased to be
the chief executive officer of the Administrative Borrower and (ii) assumed such office within
180 days of such date; or

(f) any “change of control” as defined in the indentures governing the Senior Notes or
Subordinated Notes has occurred.

For the purposes of this definition of “Change of Control,” the term “beneficial owner” shall
be as defined in Rule 13d-3 under the Exchange Act, except that a person will be deemed to have
“beneficial ownership” of all shares that any such person has the right to acquire, whether such
right is exercisable immediately or only after the passage of time. For the purposes of
clauses (a) and (b) of this definition of “Change of Control,” a person or group shall be deemed to
beneficially own any Voting Stock of a corporation held by any other corporation (the “parent
corporation”) so long as such person or group beneficially owns, directly or indirectly, in the
aggregate a majority of the total voting power of the Voting Stock of such parent corporation.

"Citibank” means Citibank, N.A., a national banking association.

"CNAI” has the meaning assigned to such term in the preamble to this Agreement.

"Code” means the Internal Revenue Code of 1986 (or any successor legislation thereto),
as amended from time to time.

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

"Collateral Documents” means the Security Agreement, the Deposit Account Control
Agreements, the Mortgages, the Pledge Agreements and any other agreement that creates or purports
to create a Lien in favor of the Administrative Agent for the benefit of the Secured Parties or
that provides or purports to provide the Administrative Agent with “control” (as defined in the
UCC) over a Deposit Account or Securities Account of a Borrower.

"Communications” has the meaning assigned to such term in Section 10.19.

"Completed Unsold Homes” means, as of any date, all Units (including all Model Homes),
for which construction has been “completed”, but for which there is in existence no written
Contract for Sale, the value of which is the lesser of (x) value determined in conformity with GAAP
and (y) the appraised value determined in accordance with the Mortgage Requirements. Construction
will be considered “completed” when a temporary certificate of occupancy, certificate of occupancy
or similar certificate has been issued by the Applicable Governmental Authority or, if the
applicable Governmental Authority does not issue such a certificate until a purchaser has been
identified or no Governmental Authority issues such a certificate with respect to such Unit, other
evidence of completion (exclusive of items of a punchlist nature) reasonably satisfactory to the
Administrative Agent.

"Compliance Certificate” has the meaning assigned to such term in Section 6.1(c).

"Consenting Lenders” has the meaning assigned to such term in Section 2.17(a)

"Consolidated” means, with respect to any Person, the consolidation of accounts of
such Person and its Subsidiaries or Restricted Subsidiaries, as the case may be, in conformity with
GAAP.

"Consolidated Net Income” means, for any Person for any period, the net income (or
loss) of such Person and its Restricted Subsidiaries for such period, determined on a Consolidated
basis in conformity with GAAP.

"Constituent Documents” means, with respect to any Person, (a) the articles of
incorporation, certificate of incorporation or certificate of formation (or the equivalent
organizational documents) of such Person, (b) the by-laws or operating agreement (or the equivalent
governing documents) of such Person and (c) any document setting forth the manner of election and
duties of the directors or managing members of such Person (if any) and the designation, amount or
relative rights, limitations and preferences of any class or series of such Person’s Stock.

"Contaminant” means any material, substance, chemical, constituent, waste, contaminant
or pollutant, including, without limitation, any petroleum or petroleum-derived substance or waste,
asbestos and polychlorinated biphenyls regulated or which can give rise to liability under any
Environmental Law.

"Contract for Sale” means a sale and purchase agreement for a Unit between the
Administrative Borrower or any of its Restricted Subsidiaries and an unrelated third party
purchaser, who has been pre-qualified by the Administrative Borrower, one of its Restricted
Subsidiaries or an institutional lender.

"Contractual Obligation” of any Person means any obligation, agreement, undertaking or
similar provision of any Security issued by such Person or of any agreement, undertaking, contract,
lease, indenture, mortgage, deed of trust or other instrument (excluding a Loan Document) to which
such Person is a party or by which it or any of its property is bound or to which any of its
property is subject.

"Credit Agreement Supplement” means a supplement to this Agreement in substantially
the form of Exhibit G, pursuant to which each subsidiary of the Administrative Borrower named
therein becomes an additional Subsidiary Borrower under this Agreement.

"Customary Permitted Liens” means, with respect to any Person, any of the following
Liens:

(a) Liens with respect to the payment of taxes, assessments, or governmental charges,
including liens securing community development district bonds or similar bonds issued by any
Governmental Authority to accomplish similar purposes, in each case that are not yet due or
that are being contested in good faith by appropriate proceedings and with respect to which
adequate reserves or other appropriate provisions are being maintained to the extent required
by GAAP;

(b) Liens of landlords arising by statute and liens of suppliers, mechanics, carriers,
materialmen, warehousemen or workmen and other liens imposed by law and/or created in the
ordinary course of business for amounts not yet due or that are being contested in good faith
by appropriate proceedings and with respect to which adequate reserves or other appropriate
provisions are being maintained to the extent required by GAAP;

(c) deposits made in the ordinary course of business in connection with workers’
compensation, unemployment insurance or other types of social security benefits;

(d) Liens or deposits to secure the performance of bids, tenders, sales, options,
contingent payments to sellers of real property, contracts (other than for the repayment of
borrowed money), participation agreements, joint development agreements, surety, stay, appeal,
customs, indemnity, performance obligations or other similar bonds or obligations (not
constituting Indebtedness), arising in the ordinary course of business;

(e) encumbrances arising by reason of zoning restrictions, easements, licenses,
reservations, covenants, rights-of-way, utility easements, building restrictions and other
similar encumbrances on the use of real property which do not materially detract from the value
of such real property or interfere with the ordinary conduct of the business conducted and
proposed to be conducted at such real property;

(f) encumbrances arising under leases or subleases of real property which do not in the
aggregate materially detract from the value of such real property or interfere with the
ordinary conduct of the business conducted and proposed to be conducted at such real property;
and

(g) financing statements with respect to a lessor’s rights in and to personal property
leased to such Person in the ordinary course of such Person’s business.

"Default” means any event that with the passing of time or the giving of notice or
both would become an Event of Default.

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

"Designated Account” means a Deposit Account or Securities Account maintained with a
bank or other financial institution and owned by a Borrower to the extent such Deposit Account or
Securities Account, as applicable, is subject to the first priority perfected security interest
contemplated by the Security Agreement.

"Disclosure Documents” means, collectively: (i) the Administrative Borrower’s annual
report on Form 10-K for the fiscal year ended December 31, 2004 as filed with the SEC on March 11,
2005, (ii) the Administrative Borrower’s quarterly report on Form 10-Q for the quarter ended
March 31, 2005 as filed with the SEC on May 4, 2005, (iii) the Administrative Borrower’s quarterly
report on Form 10-Q for the quarter ended June 30, 2005 as filed with the SEC on August 3, 2005,
(iv) the Administrative Borrower’s quarterly report on Form 10-Q for the quarter ended
September 30, 2005 as filed with the SEC on November 9, 2005 and (v) the Confidential Information
Memorandum dated January 2006 and posted electronically on Intralinks relating to the
Administrative Borrower and this Agreement.

"Dollars” and the sign “$” each mean the lawful money of the United States of America.

"Domestic Lending Office” means, with respect to any Lender, the office of such Lender
specified as its “Domestic Lending Office” opposite its name on Schedule II or on the
Assignment and Acceptance by which it became a Lender or such other office of such Lender as such
Lender may from time to time specify to the Administrative Borrower and the Administrative Agent.

"Domestic Subsidiary” means any Subsidiary of a Borrower organized under the laws of
any state of the United States of America or the District of Columbia.

"EBITDA” means, for the Administrative Borrower and its Restricted Subsidiaries for
the twelve (12) month period ending on any date of determination, an amount equal to (a) the
Consolidated Net Income for such period, plus (b) cash dividends from Unrestricted
Subsidiaries paid to the Administrative Borrower during such period, minus (c) gains from
extraordinary items for such period, to the extent included in the calculation of Consolidated Net
Income for such period in conformity with GAAP, but without duplication, plus (d) the sum
of (i) any provision for income taxes for such period, (ii) Interest Expense deducted in the
calculation of Consolidated Net Income for such period in conformity with GAAP (including, without
duplication, previously capitalized Interest Expense which would be included in “cost of goods
sold” and deducted from Consolidated revenues in determining Consolidated Net Income), (iii) the
amount of depreciation and amortization for such period, (iv) any write-off of goodwill, and
(v) the amount of (x) any item of extraordinary loss not paid in cash in such period and (y) any
non-cash impairment charges in such period, in each case to the extent included in the calculation
of Consolidated Net Income for such period in conformity with GAAP, but without duplication. In
the case of any Subsidiary of the Administrative Borrower that becomes a Restricted Subsidiary
during any period of calculation, EBITDA shall, for the purposes of the foregoing calculations, be
adjusted by increasing, if positive, or decreasing, if negative, EBITDA by the EBITDA of such
Subsidiary during such period of calculation occurring prior to the date such Subsidiary became a
Restricted Subsidiary.

"Effective Date” has the meaning assigned to such term in Section 3.1.

"Eligible Assignee” means (a) a Lender or any Affiliate or Approved Fund of such
Lender; (b) a commercial bank having total assets in excess of $5,000,000,000; (c) a finance
company, insurance company, or any other financial institution or fund, in each case reasonably
acceptable to the Administrative Agent and regularly engaged in making, purchasing or investing in
loans, and having a net worth, determined in conformity with GAAP, in excess of $250,000,000 (or,
to the extent net worth is less than such amount, a finance company, insurance company, other
financial institution or fund, reasonably acceptable to the Administrative Agent) and, so long as
there is no Default or Event of Default continuing, the Administrative Borrower or (d) a savings
and loan association or savings bank organized under the laws of the United States or any State
thereof having a net worth, determined in conformity with GAAP, in excess of $250,000,000.

"Entitled Land” means all land owned by the Administrative Borrower or any of its
Restricted Subsidiaries, as part of their respective real estate development business that has all
requisite residential zoning approvals (other than approvals which are solely ministerial and
non-discretionary in nature).

"Environmental Laws” means all applicable Requirements of Law now or hereafter in
effect, as amended or supplemented from time to time, relating to pollution or the regulation and
protection of human health, safety, the environment or natural resources, including any applicable
Requirements of Law relating to the protection of areas of particular environmental concern,
including wetlands, areas inhabited by endangered species, historic sites, and areas above
protected acquifers.

"Environmental Lien” means any Lien in favor of any Governmental Authority for
environmental liabilities and costs.

"Equity Issuance” means the issue or sale of any Stock of the Administrative Borrower
or any of its Restricted Subsidiaries by the Administrative Borrower or any of its Restricted
Subsidiaries to any Person other than a Borrower.

"Equity Pledge Agreement” means the pledge agreement, in form and substance reasonably
satisfactory to the Administrative Agent, delivered by the Administrative Borrower pursuant to
Section 6.17, under which the Administrative Borrower shall pledge in favor of the Administrative
Agent the equity interests held by the Administrative Borrower in all of its presently existing and
after-acquired direct Subsidiaries (other than any Joint Ventures).

"ERISA” means the Employee Retirement Income Security Act of 1974 (or any successor
legislation thereto), as amended from time to time.

"ERISA Affiliate” means any trade or business (whether or not incorporated) under
common control or treated as a single employer with the Borrower or any of its Subsidiaries within
the meaning of Section 414(b), (c), (m) or (o) of the Code.

"ERISA Event” means (a) a reportable event described in Section 4043(b) or 4043(c)(1),
(2), (3), (5), (6), (8) or (9) of ERISA with respect to a Title IV Plan with respect to which the
notice requirement has not been waived pursuant to applicable regulations; (b) the withdrawal of
the Administrative Borrower, any of its Subsidiaries or any ERISA Affiliate from a Title IV Plan
subject to Section 4063 of ERISA during a plan year in which it was a substantial employer, as
defined in Section 4001(a)(2) of ERISA; (c) the complete or partial withdrawal of the
Administrative Borrower, any of its Subsidiaries or any ERISA Affiliate from any Multiemployer
Plan; (d) notice of reorganization or insolvency of a Multiemployer Plan; (e) the filing of a
notice of intent to terminate a Title IV Plan or the treatment of a plan amendment as a termination
under Section 4041 of ERISA; (f) the institution of proceedings to terminate a Title IV Plan by the
PBGC; (g) the failure of the Administrative Borrower, any of its Subsidiaries or any ERISA
Affiliate to make any required contribution to a Title IV Plan or Multiemployer Plan; (h) the
imposition of a lien under Section 412 of the Code or Section 302 of ERISA on the Administrative
Borrower or any of its Subsidiaries or any ERISA Affiliate; or (i) any other event or condition
which might reasonably be expected to constitute grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Title IV Plan or the imposition
of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent under
Section 4007 of ERISA.

"Escrow Proceeds Receivables” means, with respect to the Administrative Borrower and
any of its Restricted Subsidiaries, the aggregate amount of funds held in escrow by a title company
or escrow agent which are payable (without any requirement of the satisfaction or waiver of any
further condition) to the Administrative Borrower or such Restricted Subsidiary and which
constitute proceeds of sales of Units, Finished Lots, Land/Lots Under Development and Unimproved
Land.

"Eurocurrency Liabilities” has the meaning assigned to that term in Regulation D of
the Federal Reserve Board, as in effect from time to time.

"Eurodollar Base Rate” means, with respect to any Interest Period for any Eurodollar
Rate Loan, the rate determined by the Administrative Agent to be the offered rate for deposits in
Dollars for the applicable Interest Period appearing on Telerate Page 3750 as of 11:00 a.m., London
time, two Business Days prior to the first day of each Interest Period. In the event that such
rate does not appear on Telerate Page 3750 (or otherwise on the Telerate screen), the Eurodollar
Base Rate for the purposes of this definition shall be determined by reference to such other
comparable publicly available service for displaying eurodollar rates as may be selected by the
Administrative Agent.

"Eurodollar Lending Office” means, with respect to any Lender, the office of such
Lender specified as its “Eurodollar Lending Office” opposite its name on Schedule II or on
the Assignment and Acceptance by which it became a Lender (or, if no such office is specified, its
Domestic Lending Office) or such other office of such Lender as such Lender may from time to time
specify to the Administrative Borrower and the Administrative Agent.

"Eurodollar Rate” means, with respect to any Interest Period for any Eurodollar Rate
Loan, an interest rate per annum equal to the rate per annum obtained by dividing (a) the
Eurodollar Base Rate by (b) a percentage equal to 100% minus the reserve percentage applicable two
Business Days before the first day of such Interest Period under regulations issued from time to
time by the Federal Reserve Board for determining the maximum reserve requirement (including any
emergency, supplemental or other marginal reserve requirement) for a member bank of the Federal
Reserve System in New York City with respect to liabilities or assets consisting of or including
Eurocurrency Liabilities (or with respect to any other category of liabilities that includes
deposits by reference to which the Eurodollar Rate is determined) having a term equal to such
Interest Period.

"Eurodollar Rate Loan” means any Loan that, for an Interest Period, bears interest
based on the Eurodollar Rate.

"Event of Default” has the meaning assigned to such term in Section 8.1.

"Exchange Act” means the Securities Exchange Act of 1934, as amended.

"Executive Order” has the meaning assigned to such term in Section 4.19.

"Existing Letters of Credit” means each letter of credit set forth on
Schedule 2.4 that was previously issued for the account of the Administrative Borrower
under the Prior Credit Agreement that was outstanding on the Original Effective Date.

"Extending Lender” has the meaning assigned to such term in Section 2.17(a).

"Extension Request” has the meaning assigned to such term in Section 2.17(a).

"Facility” means the Revolving Credit Commitments and the provisions herein related to
the Revolving Loans, Swing Loans and Letters of Credit.

"Facility Extension” has the meaning assigned to such term in Section 2.17(a).

"Facility Increase” has the meaning assigned to such term in Section 2.18.

"Facility Increase Effective Date” has the meaning assigned to such term in
Section 2.18.

"Fair Market Value” means (a) with respect to any asset or group of assets (other than
a marketable Security) at any date, the value of the consideration obtainable in a sale of such
asset at such date assuming a sale by a willing seller to a willing purchaser dealing at arm’s
length, and (b) with respect to any marketable Security at any date, the closing sale price of such
Security on the Business Day next preceding such date, as appearing in any published list of any
national securities exchange or the Nasdaq Stock Market or, if there is no such closing sale price
of such Security, the final price for the purchase of such Security at face value quoted on such
business day by a financial institution of recognized standing which regularly deals in securities
of such type selected by the Administrative Agent.

"Federal Funds Rate” means, for any period, a fluctuating interest rate per annum
equal for each day during such period to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the next preceding Business Day)
by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is
a Business Day, the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to the Administrative Agent on such day on such transactions as determined by the
Administrative Agent.

"Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or
any successor thereto.

"Financial Statements” means the financial statements of the Administrative Borrower
and its Subsidiaries delivered in accordance with Sections 4.4 and 6.1.

"Finished Lots” means lots of Entitled Land as to which offsite construction has been
substantially completed, utilities and all major infrastructure have been completed and stubbed to
the site, and building permits for Units may be promptly pulled and construction commenced by the
Administrative Borrower or any of its Restricted Subsidiaries without the satisfaction of any
further conditions, the value of which is the lesser of (x) value determined in conformity with
GAAP and (y) the appraised value determined in accordance with the Mortgage Requirements.

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

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

"Fitch” means Fitch, Inc. or any successor to the rating agency business thereof.

"Fund” means any Person (other than a natural Person) that is or will be engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar extensions of
credit in the ordinary course of its business.

"GAAP” means generally accepted accounting principles in the United States of America
as in effect from time to time set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and the statements and
pronouncements of the Financial Accounting Standards Board, or in such other statements by such
other entity as may be in general use by significant segments of the accounting profession, which
are applicable to the circumstances as of the date of determination; provided that with
respect to determining compliance with any financial covenant (including related definitions),
“GAAP” shall be determined based upon those accounting principles referred to above as of the
Original Effective Date.

"Governmental Authority” means any nation or government, any state or other political
subdivision thereof and any entity exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to government.

"Guarantor” means each Restricted Subsidiary of the Administrative Borrower party to
the Guaranty.

"Guaranty” means the guaranty agreement substantially in the form of
Exhibit H, dated as of the Original Effective Date executed by each Restricted Subsidiary
of the Administrative Borrower named therein or that has executed a joinder to the Guaranty.

"Hedging Contracts” means all Interest Rate Contracts, foreign exchange contracts,
currency swap or option agreements, forward contracts, commodity swap, purchase or option
agreements, other commodity price hedging arrangements, and all other similar agreements or
arrangements designed to alter the risks of any Person arising from fluctuations in interest rates,
currency values or commodity prices.

"Indebtedness” of any Person means without duplication (a) all indebtedness of such
Person for borrowed money, (b) all obligations of such Person evidenced by notes, bonds, debentures
or similar instruments that bear interest (including trust preferred securities), (c) all
reimbursement and all obligations with respect to letters of credit, bankers’ acceptances, surety
bonds and performance bonds, (d) all indebtedness for the deferred purchase price of property or
services, other than trade payables incurred in the ordinary course of business that are not
overdue, (e) all indebtedness of such Person created or arising under any conditional sale or other
title retention agreement with respect to property acquired by such Person (even though the rights
and remedies of the seller or lender under such agreement in the event of default are limited to
repossession or sale of such property), (f) all Capital Lease Obligations of such Person and the
present value of future rental payments under all synthetic leases, (g) all guaranty obligations of
such Person with respect to obligations of another Person that would otherwise constitute
Indebtedness hereunder, (h) all obligations of such Person to purchase, redeem, retire, defease or
otherwise acquire for value any Stock or Stock Equivalents of such Person, valued, in the case of
redeemable preferred stock, at the greater of its voluntary liquidation preference and its
involuntary liquidation preference plus accrued and unpaid dividends, (i) all payments that
such Person would have to make in the event of an early termination on the date Indebtedness of
such Person is being determined in respect of Hedging Contracts of such Person and (j) all
Indebtedness of the type referred to above secured by (or for which the holder of such Indebtedness
has an existing right, contingent or otherwise, to be secured by) any Lien upon or in property
(including accounts and general intangibles) owned by such Person, even though such Person has not
assumed or become liable for the payment of such Indebtedness but only to the extent of the lesser
of (x) the amount of such Indebtedness and (y) the Fair Market Value of the property securing such
Indebtedness. Notwithstanding the foregoing, “Indebtedness” shall not include (x) the face amount
of any undrawn Performance Letters of Credit or the amount of any obligations in respect of surety
bonds or performance bonds, in each case to the extent unmatured, (y) Indebtedness Associated with
Assets Not Owned or (z) obligations with respect to options to purchase real property that have not
been exercised.

"Indebtedness Associated with Assets Not Owned” means any Indebtedness of any land
bank, or any other third party Indebtedness that would be required to be included on the balance
sheet or financial statements of the Administrative Borrower or any of its Subsidiaries pursuant to
any accounting rule requiring such consolidation, including Indebtedness of any Joint Venture or
Indebtedness of any Unrestricted Subsidiary, except to the extent that such Indebtedness would
otherwise fall under clause (g) of the definition of “Indebtedness” with respect to the
Administrative Borrower or a Restricted Subsidiary.

"Indebtedness to Adjusted Consolidated Tangible Net Worth Ratio” means, with respect
to the Administrative Borrower at any date of determination, the ratio of (a) all Indebtedness of
the Administrative Borrower and its Restricted Subsidiaries as of such date less Unrestricted Cash
in excess of $10,000,000 to (b) Adjusted Consolidated Tangible Net Worth of the Administrative
Borrower at such date.

"Indemnified Matter” has the meaning assigned to such term in Section 10.4.

"Indemnitees” has the meaning assigned to such term in Section 10.4.

"Interest Coverage Ratio” means, with respect to the Administrative Borrower and its
Restricted Subsidiaries for any period, the ratio of (a) EBITDA for such period to (b) the
Consolidated Interest Incurred for such period.

"Interest Expense” means, for any Person for any period, total interest expense of
such Person and its Subsidiaries for such period determined on a Consolidated basis in conformity
with GAAP. Notwithstanding that GAAP may otherwise provide, the Administrative Borrower shall not
be required to include in Interest Expense the amount of any premium paid to prepay Indebtedness.

"Interest Incurred” means for any period, the aggregate amount (without duplication
and determined in each case in conformity with GAAP) of interest incurred during such period,
whether such interest was expensed or capitalized, paid, accrued, or scheduled to be paid or
accrued by the Administrative Borrower and its Restricted Subsidiaries during such period,
including (a) original issue discount and non-cash interest payments of accruals on any
Indebtedness, (b) the interest portion of all deferred payment obligations, and (c) all
commissions, discounts, and other fees and charges owed with respect to bankers’ acceptances and
letter of credit financings and Interest Rate Contracts. For purposes of this definition,
(i) interest on any Capital Lease Obligations shall be deemed to accrue at an interest rate
reasonably determined by the Administrative Borrower to be the rate of interest implicit in such
obligations in conformity with GAAP, and (ii) interest expense attributable to any Indebtedness
represented by the guaranty of an obligation of another Person shall be deemed to be the interest
expense attributable to the Indebtedness so guaranteed.

"Interest Period” means, in the case of any Eurodollar Rate Loan, (a) initially, the
period commencing on the date such Eurodollar Rate Loan is made or on the date of conversion of a
Base Rate Loan to such Eurodollar Rate Loan and ending one, two, three or six months thereafter as
selected by the Administrative Borrower in its Notice of Borrowing or Notice of Conversion or
Continuation given to the Administrative Agent pursuant to Section 2.2 or 2.10, and (b) thereafter,
if such Loan is continued, in whole or in part, as a Eurodollar Rate Loan pursuant to Section 2.10,
a period commencing on the last day of the immediately preceding Interest Period therefor and
ending one, two, three or six months thereafter as selected by the Administrative Borrower in its
Notice of Conversion or Continuation given to the Administrative Agent pursuant to Section 2.10;
provided, however, that all of the foregoing provisions relating to Interest
Periods in respect of Eurodollar Rate Loans are subject to the following:

(i) if any Interest Period would otherwise end on a day which is not a Business Day, such
Interest Period shall be extended to the next succeeding Business Day, unless the result of
such extension would be to extend such Interest Period into another calendar month, in which
event such Interest Period shall end on the immediately preceding Business Day;

(ii) any Interest Period that begins on the last Business Day of a calendar month (or on a
day for which there is no numerically corresponding day in the calendar month at the end of
such Interest Period) shall end on the last Business Day of a calendar month;

(iii) the Administrative Borrower may not select any Interest Period in respect of Loans
having an aggregate principal amount of less than $5,000,000;

(iv) there shall be outstanding at any one time no more than six Interest Periods in the
aggregate; and

(v) any Interest Period that would end after the Revolving Credit Termination Date shall
end on the Revolving Credit Termination Date and, in the case of Loans subject to Section 2.17,
any Interest Period that would end after the applicable Scheduled Maturity Date shall end on
the applicable Scheduled Maturity Date.

"Interest Rate Contracts” means all interest rate swap agreements, interest rate cap
agreements, interest rate collar agreements and interest rate insurance.

"Investment” means, with respect to any Person, (a) any purchase or other acquisition
by such Person of (i) any Security issued by, (ii) a beneficial interest in any Security issued by,
or (iii) any other equity ownership interest in, any other Person, (b) any purchase by such Person
of all or a significant part of the assets of a business conducted by another Person or all or
substantially all of the assets constituting the business of a division, branch or other unit
operation of any other Person, and (c) any loan, advance (other than deposits with financial
institutions available for withdrawal on demand, prepaid expenses, accounts receivable and similar
items made or incurred in the ordinary course of business as presently conducted), or capital
contribution by such Person to any other Person, including all Indebtedness of any other Person to
such Person arising from a sale of property by such Person other than in the ordinary course of its
business and (d) any guaranty obligation incurred by such Person in respect of Indebtedness of any
other Person.

"IRS” means the Internal Revenue Service of the United States or any successor
thereto.

"Issue” means, with respect to any Letter of Credit, to issue, extend the expiry of,
renew or increase the maximum stated amount (including by deleting or reducing any scheduled
decrease in such maximum stated amount) of, such Letter of Credit. The terms “Issued” and
"Issuance” shall have a corresponding meaning.

"Issuer” means (a) each Lender or Affiliate of a Lender that is listed on the
signature pages hereof as an “Issuer”, (b) each Lender or Affiliate of a Lender that hereafter
becomes an Issuer with the approval of the Administrative Agent and the Administrative Borrower by
agreeing pursuant to an agreement with and in form and substance satisfactory to the Administrative
Agent and the Administrative Borrower to be bound by the terms hereof applicable to Issuers or
(c) solely with respect to an Existing Letter of Credit (and any amendment, renewal or extension
thereof in accordance with this Agreement), the Lender that issued such Existing Letter of Credit.

"January 2003 Senior Notes” means the 9% Senior Notes due 2010 issued by the
Administrative Borrower pursuant to the Indenture dated as of February 3, 2003 between the
Administrative Borrower and Wells Fargo Bank, N.A. (as successor by consolidation to Wells Fargo
Bank Minnesota, National Association), as trustee.

"Joint Venture” means any Person (other than a Subsidiary) in which the Administrative
Borrower or a Restricted Subsidiary holds any Investment (other than an Investment described in
clauses (b) or (d) of the definition thereof) provided that such Joint Venture (i) is formed for
and is or will be engaged in real estate activities and (ii) shall only involve assets located in
the Permitted Markets.

"Land/Lots Under Development” means Entitled Land where physical site improvement has
commenced and is continuing, the value of which is the lesser of (x) value determined in conformity
with GAAP and (y) the appraised value determined in accordance with the Mortgage Requirements.

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

"Leases” means, with respect to any Person, all of those leasehold estates in real
property of such Person, as lessee, as such may be amended, supplemented or otherwise modified from
time to time.

"Lender” means each financial institution or other entity that (a) is listed on the
signature pages hereof as a “Lender” or (b) from time to time becomes a party hereto by execution
of an Assignment and Acceptance.

"Letter of Credit” means any letter of credit issued or deemed issued pursuant to
Section 2.4 (including any Existing Letter of Credit).

"Letter of Credit Obligations” means, at any time, the aggregate of all liabilities at
such time of the Borrowers to all Issuers with respect to Letters of Credit, whether or not any
such liability is contingent, and includes the sum of (a) the Reimbursement Obligations at such
time and (b) the Letter of Credit Undrawn Amounts at such time.

"Letter of Credit Request” has the meaning assigned to such term in Section 2.4(c).

"Letter of Credit Undrawn Amounts” means, at any time, the aggregate undrawn face
amount of all Letters of Credit outstanding at such time.

"Lien” means, with respect to any property, asset or right, any mortgage, lien,
pledge, assignment, charge, security interest, levy, execution, seizure, attachment, garnishment,
or other encumbrance of any kind in the nature of the foregoing in respect of such property, asset
or right, whether or not choate, vested or perfected.

"Linked Deposit Accounts” means the following Deposit Accounts maintained by Wachovia
Bank National Association: (a) Account No. 200003341735 in the name of Engle Homes Delaware, Inc.;
(b) Account No. 2000012137765 in the name of TOUSA Delaware Inc.; and (c) Account No. 2000029799620
in the name of TOUSA Funding LLC.

"Loan” means any loan made by any Lender pursuant to this Agreement.

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

"Loan Party” means each Borrower, each Guarantor and each other Subsidiary of the
Administrative Borrower that executes and delivers a Loan Document.

"Management Services Agreement” means the Amended and Restated Management Services
Agreement, dated as of June 13, 2003 between the Administrative Borrower and TOSI as amended,
amended and restated or otherwise modified from time to time, provided that the terms thereof are
no more adverse to the Lenders than the terms as of the Original Effective Date.

"March 2006 Credit Agreement” has the meaning assigned to such term in the preliminary
statement hereto.

"Material Adverse Change” means a material adverse change in the business, condition
(financial or otherwise), performance, properties, prospects or operations of the Administrative
Borrower and the other Loan Parties, taken as a whole; provided, however, that in the absence of a
Recourse Event, no Material Adverse Change will exist arising solely from the Transeastern Events. 
For the purposes of this definition, the term “Recourse Event” means either (i) the written
acknowledgment by any Loan Party of obligations under the Transeastern Guaranties in excess of
$25,000,000 in the aggregate, (ii) a determination by a court of competent jurisdiction or
arbitration panel that the Loan Parties are obligated to make payments under the Transeastern
Guaranties in excess of $25,000,000 in the aggregate, or (iii) payment by the Loan Parties of more
than $10,000,000 in the aggregate on account of the Transeastern Guaranties.  For the purposes of
this definition “Transeastern Guaranties” means any guarantee or indemnity given by a Loan Party in
connection with any credit agreement entered into by EH/Transeastern, LLC. For the avoidance of
doubt, guarantees of the obligations under (1) the Senior Mezzanine Credit Agreement dated as of
August 1, 2005 by and among TE/TOUSA Mezzanine, LLC, as borrower, Deutsche Bank Trust Company
Americas and the other institutions party thereto as lenders, and Deutsche Bank Trust Company
Americas, as administrative agent and (2) the Junior Mezzanine Credit Agreement dated as of August
1, 2005 by and among TE/TOUSA Mezzanine Two, LLC, as borrower, Deutsche Bank Trust Company Americas
and the other institutions party thereto as lenders, and Deutsche Bank Trust Company Americas, as
administrative agent, shall constitute Transeastern Guaranties.

"Material Adverse Effect” means a material adverse effect on any of (a) the business,
condition (financial or otherwise), performance, properties, prospects or operations of the
Administrative Borrower and the other Loan Parties, taken as a whole, or (b) the ability of the
Administrative Borrower and the other Loan Parties, taken as a whole, to pay the Obligations or (c)
the validity or enforceability of any of the Loan Documents or the rights or remedies of the
Administrative Agent or the Lenders thereunder; provided, however, that in the
absence of a Recourse Event (as defined in the definition of Material Adverse Change), no Material
Adverse Effect will exist arising solely from the Transeastern Events.

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

"Model Homes” means all Units which are used as models, sales offices, or design
centers to market a particular real estate development project and the contents therein.

"Moody’s” means Moody’s Investors Service, Inc. or any successor to the rating agency
business thereof.

"Mortgage” means a mortgage, deed of trust, trust deed or similar instrument in form
and substance reasonably satisfactory to the Administrative Agent creating a Lien on any Completed
Unsold Home, Unsold Home Under Construction, Sold Home, Finished Lots, Land/Lots Under Development
or Unimproved Land in a principal amount of at least the then aggregate Revolving Credit
Commitments.

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

"Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of
ERISA, to which the Administrative Borrower, any of its Restricted Subsidiaries or any ERISA
Affiliate has any obligation or liability, contingent or otherwise.

"Non-Consenting Lender” has the meaning assigned to such term in Section 10.1(c).

"Non-Funding Lender” has the meaning assigned to such term in Section 2.2(d).

"Non-U.S. Lender” means each Lender or Administrative Agent that is not a United
States person as defined in Section 7701(a)(30) of the Code.

"Notice of Borrowing” has the meaning assigned to such term in Section 2.2(a).

"Notice of Conversion or Continuation” has the meaning assigned to such term in
Section 2.10(a).

"Obligations” means, without duplication, the Loans, the Letter of Credit Obligations
and all other amounts owing by the Borrowers to the Administrative Agent, any Lender, any Issuer,
any Affiliate of any of them or any Indemnitee, of every type and description, present or future,
arising under this Agreement, any other Loan Document, whether direct or indirect, including all
letter of credit and other fees, interest, charges, expenses, attorneys’ fees and disbursements and
other sums chargeable to the Borrowers under this Agreement or any other Loan Document.

"One Year Projections” means those Consolidated financial projections dated
January 20, 2006 covering each fiscal quarter ending in 2006.

"Original Effective Date” means March 9, 2006.

"PBGC” means the Pension Benefit Guaranty Corporation or any successor thereto.

"Performance Letters of Credit” means any letter of credit issued (a) on behalf of a
Person in favor of a Governmental Authority, including, without limitation, any utility, water, or
sewer authority, or other similar entity, for the purpose of assuring such Governmental Authority
that such Person or an Affiliate of such Person will properly and timely complete work it has
agreed to perform for the benefit of such Governmental Authority; or (b) in lieu of other contract
performance, including, without limitation, bid and performance bonds.

"Permit” means any permit, approval, authorization, license, variance or permission
required from a Governmental Authority under an applicable Requirement of Law.

"Permitted Acquisition” means the acquisition by the Administrative Borrower or any of
its Restricted Subsidiaries of all or substantially all of the assets or Stock of any Person or of
any operating division thereof (the “Target”), or the merger of the Target with or into the
Administrative Borrower or any Restricted Subsidiary of the Administrative Borrower (with the
Administrative Borrower, in the case of a merger with the Administrative Borrower, being the
surviving corporation) (each an “Acquisition”); provided that such Acquisition shall only
involve assets located in the Permitted Markets and only for use in the lines of business of the
Administrative Borrower or its Restricted Subsidiaries existing on the Original Effective Date.

"Permitted Holders” means TOSA or any Person of which TOSA “beneficially owns” (as
defined in Rule 13d-3 under the Exchange Act), individually or collectively, at least a majority of
the total voting power of the Voting Stock of such Person.

"Permitted Markets” means housing markets located in the continental United States of
America.

"Permitted Refinancing Indebtedness” means any Indebtedness issued in exchange for, or
the net proceeds of which are used to extend, refinance, renew, replace, defease or refund
(collectively, to “Refinance”), the Indebtedness being Refinanced (or previous Refinancings
thereof constituting Permitted Refinancing Indebtedness); provided that (a) the principal
amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not
exceed the principal amount (or accreted value, if applicable) of the Indebtedness so Refinanced
(plus unpaid accrued interest and premium thereon), (b) the average life to maturity of such
Permitted Refinancing Indebtedness is greater than or equal to that of the Indebtedness being
Refinanced, (c) if the Indebtedness being Refinanced is subordinated in right of payment to the
Obligations under this Agreement, such Permitted Refinancing Indebtedness shall be subordinated in
right of payment to such Obligations on terms at least as favorable to the Lenders as those
contained in the documentation governing the Indebtedness being Refinanced, and (d) no Permitted
Refinancing Indebtedness shall have different obligors, or greater guarantees or security, than the
Indebtedness being Refinanced.

"Person” means an individual, partnership, corporation (including a business trust),
joint stock company, estate, trust, limited liability company, unincorporated association, Joint
Venture or other entity, or a Governmental Authority.

"Platform” has the meaning assigned to such term in Section 10.19(b).

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

"Prior Credit Agreement” means that certain Amended and Restated Credit Agreement
dated as of October 26, 2004 by and among the Administrative Borrower, the Lenders and issuers
party thereto, CNAI as administrative agent, which was repaid with the proceeds of the initial
borrowing under the Facility.

"Proposed Change” has the meaning assigned to such term in Section 10.1(c).

"Ratable Portion” or “ratably” means, with respect to any Lender, the
percentage obtained by dividing (a) the Revolving Credit Commitment of such Lender by (b) the
aggregate Revolving Credit Commitments of all Lenders (or, at any time after the Revolving Credit
Termination Date, the percentage obtained by dividing the aggregate outstanding principal balance
of the Revolving Credit Outstandings owing to such Lender by the aggregate outstanding principal
balance of the Revolving Credit Outstandings owing to all Lenders).

"Real Property” means all of those plots, pieces or parcels of land now owned, leased
or hereafter acquired or leased by a Borrower (the “Land”), together with the right, title
and interest of such Borrower in and to the streets, the land lying in the bed of any streets,
roads or avenues, opened or proposed, in front of, the air space and development rights pertaining
to the Land and the right to use such air space and development rights, all rights of way,
privileges, liberties, tenements, hereditaments and appurtenances belonging or in any way
appertaining thereto, all fixtures, all easements now or hereafter benefiting the Land and all
royalties and rights appertaining to the use and enjoyment of the Land necessary for the
residential development of such Land, together with all of the buildings and other improvements now
or hereafter erected on the Land, and any fixtures appurtenant thereto.

"Register” has the meaning assigned to such term in Section 10.2(c).

"Reimbursement Date” has the meaning assigned to such term in Section 2.4(g).

"Reimbursement Obligations” means all matured reimbursement or repayment obligations
of the Borrowers to any Issuer with respect to amounts drawn under Letters of Credit.

"Rejecting Lenders” has the meaning assigned to such term in Section 2.17(b).

"Release” means, with respect to any Person, any release, spill, emission, leaking,
pumping, injection, deposit, disposal, discharge, dispersal, leaching or migration, in each case,
of any Contaminant into the indoor or outdoor environment or into or out of any property owned or
operated by such Person, including the movement of Contaminants through or in the air, soil,
surface water, ground water or property.

"Remedial Action” means all actions required to (a) clean up, remove, treat or in any
other way address any Contaminant in the indoor or outdoor environment, (b) prevent the Release or
threat of Release or minimize the further Release so that a Contaminant does not migrate or
endanger or threaten to endanger public health or welfare or the indoor or outdoor environment or
(c) perform pursuant to Environmental Laws pre-remedial studies and investigations and
post-remedial monitoring and care.

"Replacement Lenders” has the meaning assigned to such term in Section 2.17(b).

"Requirement of Law” means, with respect to any Person, the common law and all
federal, state, local and foreign laws, rules and regulations, orders, judgments, decrees and other
determinations of any Governmental Authority or arbitrator, applicable to or binding upon such
Person or any of its property or to which such Person or any of its property is subject (including,
without limitation, any Environmental Law).

"Requisite Lenders” means, collectively, Lenders having a majority of the aggregate
outstanding amount of the Revolving Credit Commitments or, after the Revolving Credit Termination
Date, a majority of the aggregate Revolving Credit Outstandings. A Non-Funding Lender shall not be
included in the calculation of “Requisite Lenders.”

"Responsible Officer” means, with respect to any Person, any of the principal
executive officers, managing members or general partners of such Person, but in any event, with
respect to financial matters, the chief financial officer, chief accounting officer, treasurer,
assistant treasurer, vice president of finance or controller of such Person.

"Restricted Payment” means (a) any dividend, distribution or any other payment whether
direct or indirect, on account of any Stock or Stock Equivalents of the Administrative Borrower or
any of its Restricted Subsidiaries now or hereafter outstanding, (b) any redemption, retirement,
sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of
any Stock or Stock Equivalents of the Administrative Borrower now or hereafter outstanding; and
(c) any payment of principal of, or premium on, the Subordinated Notes prior to the stated maturity
thereof.

"Restricted Subsidiary” means each Subsidiary of the Administrative Borrower, other
than (i) those that have been properly designated pursuant to Section 6.14 as an Unrestricted
Subsidiary and (ii) those Subsidiaries engaged in the business of originating residential home
loans, title insurance and reinsurance.

"Revolving Credit Commitment” means, with respect to each Lender, the commitment of
such Lender to make Revolving Loans and acquire interests in other Revolving Credit Outstandings in
the aggregate principal amount outstanding not to exceed the amount set forth opposite such
Lender’s name on Schedule I under the caption “Revolving Credit Commitment,” as
amended to reflect each Assignment and Acceptance or Assumption Agreement executed by such Lender
and as such amount may be increased or reduced pursuant to this Agreement.

"Revolving Credit Note” means a promissory note of the Borrowers payable to the order
of any Lender in a principal amount equal to the amount of such Lender’s Revolving Credit
Commitment evidencing the aggregate Indebtedness of the Borrowers to such Lender resulting from the
Revolving Loans owing to such Lender.

"Revolving Credit Outstandings” means, at any particular time, the sum of (a) the
principal amount of the Revolving Loans outstanding at such time plus (b) the Letter of Credit
Obligations outstanding at such time plus (c) the principal amount of the Swing Loans outstanding
at such time.

"Revolving Credit Termination Date” shall mean the earliest of (a) the Scheduled
Termination Date, (b) the date of termination of the Revolving Credit Commitments pursuant to
Section 2.5 and (c) the date on which the Obligations become due and payable pursuant to
Section 8.2.

"Revolving Loan” has the meaning assigned to such term in Section 2.1.

"S&P” means Standard & Poor’s Rating Services or any successor to the rating agency
business thereof.

"Scheduled Termination Date” means, as to each Lender, the fourth anniversary of the
Original Effective Date subject to the provisions for the extension of the Scheduled Termination
Date, as to such Lender, set forth in Section 2.17.

"SEC” means the Securities and Exchange Commission.

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

"Security” means any Stock, Stock Equivalent, voting trust certificate, bond,
debenture, note or other evidence of Indebtedness, whether secured, unsecured, convertible or
subordinated, or any certificate of interest, share or participation in, or any temporary or
interim certificate for the purchase or acquisition of, or any right to subscribe to, purchase or
acquire, any of the foregoing, but shall not include any evidence of the Obligations.

"Security Agreement” means the Security Agreement dated as of October 23, 2006 between
the Administrative Borrower and certain of its Subsidiaries, as grantors, and the Administrative
Agent, as secured party, as amended by Amendment No. 1 to Security Agreement, dated as of the date
hereof.

"Selling Lender” has the meaning assigned to such term in Section 10.7(a).

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

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

"Senior Unsecured Indebtedness” means at any time, the Indebtedness of the
Administrative Borrower and its Subsidiaries comprised of (a) the outstanding principal amount of
the Senior Notes and the January 2003 Senior Notes outstanding at such time and (b) the outstanding
principal amount of all other unsecured Indebtedness which is pari passu to the Senior Notes other
than trade payables that are not more than 90 days past the original invoice date thereof.

"Sold Homes” means all Units (including Model Homes) on which a building permit has
been issued and construction has begun or has been completed, and for which a written Contract for
Sale is in effect and has not been cancelled, the value of which is determined in conformity with
GAAP.

"Stock” means shares of capital stock (whether denominated as common stock or
preferred stock), beneficial, partnership or membership interests, participations or other
equivalents (regardless of how designated) of or in a corporation, partnership, limited liability
company or equivalent entity, whether voting or non-voting.

"Stock Equivalents” means all securities convertible into or exchangeable for Stock
and all warrants, options or other rights to purchase or subscribe for any Stock, whether or not
presently convertible, exchangeable or exercisable.

"Subordinated Indebtedness” means any Indebtedness of the Administrative Borrower and
its Restricted Subsidiaries that is subordinated to the Obligations on terms and conditions not
materially less favorable than the terms and conditions of the Subordinated Notes.

"Subordinated Notes” means, collectively, the 10 3/8% Senior Subordinated Notes due
2012 and the 7 1/2% Senior Subordinated Notes due 2011 issued by the Administrative Borrower
pursuant to the Indenture dated as of June 25, 2002, between the Administrative Borrower and Wells
Fargo Bank, N.A. (as successor by consolidation to Wells Fargo Bank National Association), as
trustee and the Indenture dated as of March 10, 2004 between the Administrative Borrower and Wells
Fargo Bank, N.A. (as successor by consolidation to Wells Fargo Bank Minnesota, National
Association), as trustee; or any Permitted Refinancing Indebtedness thereof.

"Subsidiary” means, with respect to any Person, any corporation, partnership, limited
liability company or other business entity of which an aggregate of over 50% of the outstanding
Voting Stock is, at the time, directly or indirectly, owned or controlled by such Person and/or one
or more Subsidiaries of such Person.

"Subsidiary Borrower” and “Subsidiary Borrowers” have the meanings assigned to
such terms in the preamble hereto.

"Swing Loan” has the meaning assigned to such term in Section 2.3(a).

"Swing Loan Borrowing” means a borrowing consisting of a Swing Loan.

"Swing Loan Lender” means CNAI or any other Lender that becomes the Administrative
Agent or that agrees with the approval of the Administrative Agent and the Administrative Borrower
to act as the Swing Loan Lender hereunder.

"Swing Loan Request” has the meaning assigned to such term in Section 2.3(b).

"Tangible Net Worth” means, with respect to the Administrative Borrower and its
Restricted Subsidiaries, the net worth of the Administrative Borrower and its Restricted
Subsidiaries, determined in conformity with GAAP, less all intangible assets of the Administrative
Borrower and its Restricted Subsidiaries but excluding any non-cash gain or loss resulting from any
mark-to-market adjustments made directly to the net worth of the Administrative Borrower and its
Restricted Subsidiaries on a Consolidated basis as a result of fluctuations in the value of
financial instruments owned by the Administrative Borrower and its Restricted Subsidiaries as
required under SFAS 133.

"Tax Affiliate” means, with respect to any Person, (a) any Subsidiary of such Person,
and (b) any Affiliate of such Person with which such Person files or is eligible to file
Consolidated, combined or unitary tax returns.

"Tax Allocation Agreement” means the Tax Allocation Agreement dated as of March 15,
2000 between Technical Olympic, Inc. and the Administrative Borrower, as amended, amended and
restated or otherwise modified from time to time, provided that the terms thereof (other than any
statutory change in tax rates) are no more adverse to the Lenders than the terms as of the Original
Effective Date.

"Tax Return” has the meaning assigned to such term in Section 4.7(a).

"Taxes” has the meaning assigned to such term in Section 2.15(a).

"Title IV Plan” means a pension plan, other than a Multiemployer Plan, covered by
Title IV of ERISA and to which the Borrower, any of its Restricted Subsidiaries or any ERISA
Affiliate has any obligation or liability (contingent or otherwise).

"TOSA” means Technical Olympic SA, a Greek publicly traded company.

"TOSI” means Technical Olympic Services, Inc., a Delaware corporation.

"Total Assets” of any Person means, at any date, (a) the total assets of such Person
and its Restricted Subsidiaries at such date determined on a Consolidated basis in conformity with
GAAP minus (b) any Securities issued by such Person held as treasury securities.

"Total Revolving Credit Commitment” means, as of any date, the sum of all Revolving
Credit Commitments for all Lenders then in effect, which sum shall not exceed $800,000,000 unless
the Total Revolving Credit Commitment is increased pursuant to Section 2.18.

"Transeastern Events” means the matters disclosed by the Administrative Borrower in
its reports on Form 8-K filed with the SEC on September 27, 2006 and October 2, 2006 relating to
EH/Transeastern, LLC, and for the avoidance of doubt, including disclosures arising from such
matters contained in the Administrative Borrower’s report on Form 8-K filed with the SEC on January
24, 2007 and on Form 10-Q for the quarter ended September 30, 2006 filed with the SEC on November
14, 2006.

"UCC” means the Uniform Commercial Code then in effect for the State of New York, or
such other jurisdiction as the context may require.

"Unaffiliated” means, with respect to a Joint Venture or an Unrestricted Subsidiary,
as the case may be, an entity for which all of the ownership or equity interests that are not owned
by the Administrative Borrower or any Restricted Subsidiary of the Administrative Borrower are
owned by persons who are not Permitted Holders or Affiliates of Permitted Holders.

"Unimproved Land” means all Entitled Land on which no construction of on-site
infrastructure improvements has begun, the value of which is determined in conformity with GAAP.

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

"Unit” means a single or multi family residential unit, including a condominium and
townhouse unit.

"Units Closed” means a Unit for which the purchase price therefor has been paid and
the title therefor has been delivered to a purchaser in accordance with a Contract for Sale for
such Unit.

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

"Unrestricted Subsidiary” means any Subsidiary of the Administrative Borrower
designated as an “Unrestricted Subsidiary” in accordance with Section 6.14 and which is not a
Restricted Subsidiary.

"Unsold Homes Under Construction” means all Units for which building permits have been
issued and construction has commenced, but not completed, and for which there is no written binding
contract of sale with an unrelated third party purchaser the value of which is the lesser of
(x) value determined in conformity with GAAP and (y) the appraised value determined in accordance
with the Mortgage Requirements.

"Unsold Land” means Unimproved Land, Land/Lot Under Development and Finished Lots,
excluding such Finished Lots subject to a Contract for Sale.

"Unsold Units” means Unsold Homes Under Construction and Completed Unsold Homes.

"Unused Commitment” means, as of any date, the amount by which (a) the Total Revolving
Credit Commitments on such date exceed (b) the Revolving Credit Outstandings as of such date.

"Unused Commitment Percentage” means, as of any date, the Unused Commitment divided by
the total Revolving Credit Commitment.

"USA Patriot Act” has the meaning assigned to such term in Section 4.19.

"U.S. Bank Accounts” means the following custodial accounts maintained by U.S. Bank :
(a) Account No. 6728003659 in the name of Engle Homes Delaware, Inc.; (b) Account No. 6728020649 in
the name of TOUSA Delaware Inc.; and (c) Account No. 6728020426 in the name of TOUSA Funding LLC.

"Voting Stock” means Stock of any Person having ordinary power to vote in the election
of members of the board of directors, managers, trustees or other controlling Persons, of such
Person (irrespective of whether, at the time, Stock of any other class or classes of such entity
shall have or might have voting power by reason of the happening of any contingency).

"Wholly-Owned Subsidiary” means, in respect of any Person, any Subsidiary of such
Person, all of the Stock of which (other than director’s qualifying shares as may be required by
law) is owned by such Person either directly or indirectly through one or more Wholly-Owned
Subsidiaries of Such Person.

"Withdrawal Liability” means, with respect to the Administrative Borrower or any of
its Subsidiaries at any time, the aggregate liability incurred (whether or not assessed) with
respect to all Multiemployer Plans pursuant to Section 4201 of ERISA or for increases in
contributions required to be made pursuant to Section 4243 of ERISA.

	 	 	 	Section 1.2 Computation of Time Periods.

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

	 	 	 	Section 1.3 Accounting Terms and Principles.

Except as set forth below, all accounting terms not specifically defined herein shall be
construed in conformity with GAAP and all accounting determinations required to be made pursuant
hereto shall, unless expressly otherwise provided herein, be made in conformity with GAAP.

	 	 	 	Section 1.4 Certain Terms.

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

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

(c) Each agreement defined in this Article I or otherwise referred to herein or in any other
Loan Document shall include all appendices, exhibits and schedules thereto. Unless the prior
written consent of the Requisite Lenders is required hereunder for an amendment, restatement,
supplement or other modification to any such agreement and such consent is not obtained, references
in this Agreement to such agreement shall be to such agreement as so amended, restated,
supplemented, modified or replaced.

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

(e) The term “including” when used in any Loan Document means “including without
limitation” except when used in the computation of time periods.

(f) The terms “Lender,” “Issuer” and “Administrative Agent” include
their respective successors.

(g) Upon the appointment of any successor Administrative Agent pursuant to Section 9.6,
references to CNAI in Section 9.3 and to Citibank in the definitions of Base Rate, Eurodollar Rate
shall be deemed to refer to the financial institution then acting as the Administrative Agent or
one of its Affiliates if it so designates.

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

ARTICLE II

THE FACILITY

	 	 	 	Section 2.1 The Revolving Credit Commitments.

On the terms and subject to the conditions contained in this Agreement, each Lender severally
agrees to make loans (each a “Revolving Loan”) in Dollars to the Borrowers from time to
time on any Business Day during the period from and including the Effective Date until the
Revolving Credit Termination Date in an aggregate amount not to exceed at any time outstanding for
all such loans by such Lender such Lender’s Revolving Credit Commitment, which Revolving Credit
Commitments are set forth in Schedule I hereto; provided, however, that at
no time shall any Lender be obligated to make a Revolving Loan in excess of such Lender’s Ratable
Portion of the Available Credit. Within the limits of each Lender’s Revolving Credit Commitment,
amounts of Revolving Loans repaid may be reborrowed under this Section 2.1.

	 	 	 	Section 2.2 Borrowing Procedures.

(a) Each Borrowing shall be made on written notice (or verbal notice followed by written
notice within six hours of such verbal notice) given by the Administrative Borrower on behalf of
the Borrowers to the Administrative Agent not later than 1:00 p.m. (New York City time) (i) one
Business Day, in the case of a Borrowing of Base Rate Loans and (ii) three Business Days, in the
case of a Borrowing of Eurodollar Rate Loans, prior to the date of the proposed Borrowing. Each
written notice shall be in substantially the form of Exhibit D (a “Notice of
Borrowing”) specifying (A) the date of such proposed Borrowing, (B) the aggregate amount of
such proposed Borrowing, (C) whether any portion of the proposed Borrowing will be of Base Rate
Loans or Eurodollar Rate Loans, (D) the initial Interest Period or Periods for any such Eurodollar
Rate Loans, and (E) the Available Credit (after giving effect to the proposed Borrowing). The
Revolving Loans shall be made as Base Rate Loans unless, subject to Section 2.13, the Notice of
Borrowing specifies that all or a portion thereof shall be Eurodollar Rate Loans. Notwithstanding
anything to the contrary contained in Section 2.3(a), if any Notice of Borrowing requests a
Borrowing of Base Rate Loans, the Administrative Agent may, in its sole discretion, make a Swing
Loan available to the Borrower in an aggregate amount not to exceed such proposed Borrowing, and
the aggregate amount of the corresponding proposed Borrowing shall be reduced accordingly by the
principal amount of such Swing Loan. Each Borrowing of Eurodollar Rate Loans shall be in an
aggregate amount of not less than $5,000,000 or an integral multiple of $1,000,000 in excess
thereof and each Borrowing of Base Rate Loans shall be in an aggregate amount of not less than
$1,000,000 or an integral multiple of $1,000,000 in excess thereof, or the remaining Available
Credit, if less.

(b) The Administrative Agent shall give to each Lender prompt notice of the Administrative
Agent’s receipt of a Notice of Borrowing and, if Eurodollar Rate Loans are properly requested in
such Notice of Borrowing, the applicable interest rate determined pursuant to Section 2.13(a).
Each Lender shall, before 11:00 a.m. (New York City time) on the date of the proposed Borrowing,
make available to the Administrative Agent at its address referred to in Section 10.8, in
immediately available funds, such Lender’s Ratable Portion of such proposed Borrowing. After the
Administrative Agent’s receipt of such funds and upon fulfillment of the applicable conditions set
forth in Section 3.1 and Section 3.2, the Administrative Agent will make such funds available to
the Borrowers.

(c) Unless the Administrative Agent shall have received notice from a Lender prior to the date
of any proposed Borrowing that such Lender will not make available to the Administrative Agent such
Lender’s Ratable Portion of such Borrowing, the Administrative Agent may assume that such Lender
has made such Ratable Portion available to the Administrative Agent on the date of such Borrowing
in accordance with this Section 2.2 and the Administrative Agent may, in reliance upon such
assumption, make available to the Borrowers on such date a corresponding amount. If and to the
extent that such Lender shall not have so made such Ratable Portion available to the Administrative
Agent, such Lender (on the one hand) and the Borrowers (on the other hand) severally agree to repay
to the Administrative Agent forthwith on demand such corresponding amount together with interest
thereon, for each day from the date such amount is made available to the Borrowers until the date
such amount is repaid to the Administrative Agent, at (i) in the case of the Borrowers, the
interest rate applicable at the time to the Loans comprising such Borrowings and (ii) in the case
of such Lender, the Federal Funds Rate for the first Business Day and thereafter at the interest
rate applicable at the time to the Loans comprising such Borrowing. If such Lender shall repay to
the Administrative Agent such corresponding amount, such corresponding amount so repaid shall
constitute such Lender’s Loan as part of such Borrowings for purposes of this Agreement. If the
Borrowers shall repay to the Administrative Agent such corresponding amount, such payment shall not
relieve such Lender of any obligation it may have hereunder to the Borrowers.

(d) The failure of any Lender to make the Loan or any payment required by it on the date
specified (a “Non-Funding Lender”), including any payment in respect of its participation
in Swing Loans and Letter of Credit Obligations, shall not relieve any other Lender of its
obligations to make such Loan or payment on such date but no such other Lender shall be responsible
for the failure of any Non-Funding Lender to make a Loan or payment required under this Agreement.

	 	 	 	Section 2.3 Swing Loans.

(a) On the terms and subject to the conditions contained in this Agreement, the Swing Loan
Lender may in its sole discretion make loans (each a “Swing Loan”) otherwise available to
the Borrowers under the Facility from time to time on any Business Day during the period from the
date hereof until the Revolving Credit Termination Date in an aggregate amount at any time
outstanding (together with the aggregate principal amount of any other loans made by the Swing Loan
Lender hereunder in its capacity as a Lender or the Swing Loan Lender) at any time not to exceed
the lesser of $20,000,000 and the Swing Loan Lender’s Ratable Portion of the Available Credit at
such time; provided, however, that the Swing Loan Lender shall not make any Swing
Loan to the extent that, after giving effect to such Swing Loan, the aggregate Revolving Credit
Outstandings would exceed the Maximum Credit. The Swing Loan Lender shall be entitled to rely on
the most recent Borrowing Base Certificate delivered to the Administrative Agent. Each Swing Loan
shall be a Base Rate Loan and must be repaid in full within seven days of its making or, if sooner,
upon any Borrowing hereunder and shall in any event mature no later than the Revolving Credit
Termination Date. Within the limits set forth in the first sentence of this Section 2.3(a) amounts
of Swing Loans repaid may be reborrowed under this Section 2.3(a).

(b) In order to request a Swing Loan, the Administrative Borrower shall telecopy to the
Administrative Agent a duly completed request setting forth the date, the requested amount and date
of the Swing Loan (a “Swing Loan Request”), to be received by the Administrative Agent not
later than 12:00 p.m. (New York City time) on the day of the proposed borrowing. The
Administrative Agent shall promptly notify the Swing Loan Lender of the details of the requested
Swing Loan. Subject to the terms of this Agreement, the Swing Loan Lender shall make a Swing Loan
available to the Administrative Agent which will make such amounts available to the Borrowers on
the date of the relevant Swing Loan Request. The Swing Loan Lender shall not make any Swing Loan
in the period commencing on the first Business Day after it receives written notice from any Lender
or the Administrative Agent (if a Person other than the Swing Loan Lender) that one or more of the
conditions precedent contained in Section 3.2 shall not on such date be satisfied, and ending when
such conditions are satisfied or waived. The Swing Loan Lender shall not otherwise be required to
determine that, or take notice whether, the conditions precedent set forth in Section 3.2 hereof
have been satisfied in connection with the making of any Swing Loan.

(c) The Swing Loan Lender shall notify the Administrative Agent in writing (which may be by
telecopy) weekly, by no later than 10:00 a.m. (New York City time) on the first Business Day of
each week, of the aggregate principal amount of its Swing Loans then outstanding.

(d) The Swing Loan Lender may demand at any time during the continuance of an Event of Default
that each Lender pay to the Administrative Agent, for the account of the Swing Loan Lender, in the
manner provided in subsection (e) below, such Lender’s Ratable Portion of all or a portion
of the outstanding Swing Loans, which demand shall be made through the Administrative Agent, shall
be in writing and shall specify the outstanding principal amount of Swing Loans demanded to be
paid.

(e) The Administrative Agent shall forward each notice referred to in clause (c) above
and each demand referred to in clause (d) above to each Lender on the day such notice or
such demand is received by the Administrative Agent (except that any such notice or demand received
by the Administrative Agent after 2:00 p.m. (New York City time) on any Business Day or any such
demand received on a day that is not a Business Day shall not be required to be forwarded to the
Lenders by the Administrative Agent until the next succeeding Business Day), together with a
statement prepared by the Administrative Agent specifying the amount of each Lender’s Ratable
Portion of the aggregate principal amount of the Swing Loans stated to be outstanding in such
notice or demanded to be paid pursuant to such demand, and, notwithstanding whether or not the
conditions precedent set forth in Section 3.2 shall have been satisfied (which conditions precedent
the Lenders hereby irrevocably waive) provided that the Swing Loan Lender has not received the
notice referred to in the penultimate sentence of clause (b) above prior to any such Swing
Loan (and the condition referred to in such notice has not been waived in accordance with this
Agreement), each Lender shall, before 11:00 a.m. (New York City time) on the Business Day next
succeeding the date of such Lender’s receipt of such written demand, make available to the
Administrative Agent, in immediately available funds, for the account of the Swing Loan Lender, the
amount specified in such demand. Upon such payment by a Lender, such Lender shall, except as
provided in clause (f) below, be deemed to have made a Revolving Loan to the Borrowers.
The Administrative Agent shall use such funds to repay the Swing Loans to the Swing Loan Lender.
To the extent that any Lender fails to make such payment available to the Administrative Agent for
the account of the Swing Loan Lender, the Borrowers shall repay such Swing Loan on demand.

(f) Upon the occurrence of a Default under Section 8.1(f), each Lender shall acquire, without
recourse or warranty, an undivided participation in each Swing Loan otherwise required to be repaid
by such Lender pursuant to clause (e) above, which participation shall be in a principal
amount equal to such Lender’s Ratable Portion of such Swing Loan, by paying to the Swing Loan
Lender on the date on which such Lender would otherwise have been required to make a payment in
respect of such Swing Loan pursuant to clause (e) above, in immediately available funds, an
amount equal to such Lender’s Ratable Portion of such Swing Loan. If all or part of such amount is
not in fact made available by such Lender to the Swing Loan Lender on such date, the Swing Loan
Lender shall be entitled to recover any such unpaid amount on demand from such Lender together with
interest accrued from such date at the Federal Funds Rate for the first Business Day after such
payment was due and thereafter at the rate of interest then applicable to Base Rate Loans.

(g) From and after the date on which any Lender is deemed to have made a Revolving Loan
pursuant to clause (e) above with respect to any Swing Loan or purchases an undivided
participation interest in a Swing Loan pursuant to clause (f) above, the Swing Loan Lender
shall promptly distribute to such Lender such Lender’s Ratable Portion of all payments of principal
of and interest received by the Swing Loan Lender on account of such Swing Loan other than those
received from a Lender pursuant to clause (e) or (f) above.

	 	 	 	Section 2.4 Letters of Credit.

(a) Each Existing Letter of Credit is deemed to be a letter of credit issued hereunder for all
purposes of this Agreement and the other Loan Documents. On the terms and subject to the
conditions contained in this Agreement, each Issuer agrees to Issue one or more Letters of Credit
at the request of the Administrative Borrower from time to time on any Business Day during the
period commencing on the Effective Date and ending on the earlier of the Revolving Credit
Termination Date and 30 days prior to the Scheduled Termination Date; provided,
however, that no Issuer shall be under any obligation to Issue any Letter of Credit if:

(i) any order, judgment or decree of any Governmental Authority or arbitrator shall
purport by its terms to enjoin or restrain such Issuer from Issuing such Letter of Credit
or any Requirement of Law applicable to such Issuer or any request or directive (whether or
not having the force of law) from any Governmental Authority with jurisdiction over such
Issuer shall prohibit, or request that such Issuer refrain from, the Issuance of letters of
credit generally or such Letter of Credit in particular or shall impose upon such Issuer
with respect to such Letter of Credit any restriction or reserve or capital requirement
(for which such Issuer is not otherwise compensated) not in effect on the Original
Effective Date or result in any unreimbursed loss, cost or expense (for which such Issuer
is not otherwise compensated) that was not applicable, in effect or known to such Issuer as
of the Original Effective Date and that such Issuer in good faith deems material to it;

(ii) such Issuer shall have received written notice from the Administrative Agent, any
Lender or the Administrative Borrower, on or prior to the requested date of Issuance of
such Letter of Credit, that one or more of the applicable conditions contained in
Section 3.2 and Section 2.4 is not then satisfied;

(iii) after giving effect to the Issuance of such Letter of Credit, the aggregate
Revolving Credit Outstandings would exceed the Maximum Credit at such time;

(iv) after giving effect to the Issuance of such Letter of Credit, the Letter of
Credit Obligations at such time exceed 50% of the aggregate Revolving Credit Commitments;

(v) any fees due in connection with a requested Issuance have not been paid;

(vi) such Letter of Credit is requested to be Issued in a form that is not acceptable
to such Issuer; or

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

None of the Lenders (other than the Issuers in their capacity as such) shall have any obligation to
Issue any Letter of Credit.

(b) In no event shall the expiration date of any Letter of Credit, (i) be more than one year
after the date of Issuance thereof, or (ii) except as provided below, be less than thirty days
prior to the Scheduled Termination Date; provided, however, that any Letter of
Credit with a one-year term may provide for the renewal thereof, prior to the Scheduled Termination
Date, for additional one-year periods (which shall in no event extend beyond the expiry date
referred to in clause (ii) above).

(c) In connection with the Issuance of each Letter of Credit, the Administrative Borrower
shall give the relevant Issuer and the Administrative Agent at least two Business Days’ prior
written notice, in such written or electronic form as is acceptable to the Issuer, of the requested
Issuance of such Letter of Credit (a “Letter of Credit Request”). Such notice shall be
irrevocable and shall specify the Issuer of such Letter of Credit, the stated amount of the Letter
of Credit requested, which stated amount shall not be less than $10,000, the date of Issuance of
such requested Letter of Credit (which day shall be a Business Day), the date on which such Letter
of Credit is to expire (which date shall be a Business Day), and the Person for whose benefit the
requested Letter of Credit is to be Issued. Such notice, to be effective, must be received by the
relevant Issuer and the Administrative Agent not later than 11:00 a.m. (New York City time) on the
second Business Day prior to the requested Issuance of such Letter of Credit.

(d) Subject to the satisfaction of the conditions set forth in this Section 2.4, the relevant
Issuer shall, on the requested date, Issue a Letter of Credit on behalf of the Administrative
Borrower and, if applicable, one of its Subsidiaries (including any other Borrower) in accordance
with such Issuer’s usual and customary business practices. If the Person for whose benefit the
requested Letter of Credit is to be issued is not a Borrower, the Administrative Borrower shall
cause such Person to be a co-applicant with the Administrative Borrower with respect to such Letter
of Credit. No Issuer shall Issue any Letter of Credit in the period commencing on the first
Business Day after it receives written notice from any Lender or the Administrative Agent that one
or more of the conditions precedent contained in Section 3.2 shall not on such date be satisfied,
and ending when such conditions are satisfied. The relevant Issuer shall not otherwise be required
to determine that, or take notice whether, the conditions precedent set forth in Section 3.2 have
been satisfied in connection with the Issuance of any Letter of Credit.

(e) Each Issuer shall comply with the following:

(i) give the Administrative Agent written notice (or telephonic notice confirmed
promptly thereafter in writing, which writing may be by telecopier) of the Issuance of a
Letter of Credit Issued by it, of all drawings under a Letter of Credit Issued by it, the
payment (or the failure to pay when due) by the Borrowers of any Reimbursement Obligation
when due (which notice the Administrative Agent shall promptly transmit by telecopy or
similar transmission to each Lender);

(ii) upon the request of any Lender, furnish to such Lender copies of such other
documentation as may reasonably be requested by such Lender; and

(iii) no later than 10 Business Days following the last day of each calendar month,
provide to the Administrative Agent (and the Administrative Agent shall provide a copy to
each Lender requesting the same) and the Administrative Borrower, a schedule in form and
substance reasonably satisfactory to the Administrative Agent, setting forth the aggregate
Letter of Credit Obligations outstanding at the end of each month and any information
requested by the Administrative Borrower or the Administrative Agent relating thereto.

(f) Immediately upon the Issuance by an Issuer of a Letter of Credit in accordance with the
terms and conditions of this Agreement, such Issuer shall be deemed to have sold and transferred to
each Lender, and each Lender shall be deemed irrevocably and unconditionally to have purchased and
received from such Issuer, without recourse or warranty, an undivided interest and participation,
to the extent of such Lender’s Ratable Portion, in such Letter of Credit and the obligations of the
Borrowers with respect thereto (including all Letter of Credit Obligations with respect thereto)
and any security therefor and guaranty pertaining thereto.

(g) The Borrowers agree to pay to the Issuer of any Letter of Credit the amount of all
Reimbursement Obligations owing to such Issuer under any Letter of Credit Issued for its account no
later than the date that is the next succeeding Business Day after the Administrative Borrower
receives written notice from such Issuer that payment has been made under such Letter of Credit
(the “Reimbursement Date”), irrespective of any claim, set-off, defense or other right that
any Borrower may have at any time against such Issuer or any other Person. In the event that any
Issuer makes any payment under any Letter of Credit and the Borrowers shall not have repaid such
amount to such Issuer pursuant to this clause (g) on or before 11:00 a.m. (New York City
time) on the next Business Day following the Administrative Borrower’s receipt of the aforesaid
notice, then (i) the relevant Issuer shall notify the Administrative Agent of such failure to
repay, (ii) such Reimbursement Obligation shall be payable on demand with interest thereon computed
from the date on which such Reimbursement Obligation arose to the date of repayment in full at the
rate of interest applicable to past due Revolving Loans bearing interest at a rate based on the
Base Rate during such period, (iii) the Borrowers shall be deemed to have elected (if a formal
notice of Borrowing has not been received by the Administrative Agent in respect of such
Reimbursement Obligation) to have the Reimbursement Obligation satisfied by the Borrowing of a Base
Rate Loan in an amount equal to such Reimbursement Obligation and (iv) each Lender shall, except
during the continuance of a Default or Event of Default under Section 8.1(f) and notwithstanding
whether or not the conditions precedent set forth in Section 3.2 shall have been satisfied (which
conditions precedent the Lenders hereby irrevocably waive) provided that such Issuer has not
received the notice referred to in the penultimate sentence of clause (d) above (and the
condition referred to in such notice has not been waived in accordance with this Agreement), pay to
the Administrative Agent for the account of such Issuer the amount of such Lender’s Ratable Portion
of such Reimbursement Obligations and be deemed to have made a Revolving Loan to the Borrowers in
the principal amount of such payment. Prior to the funding of such Revolving Loan, if the
Administrative Agent so notifies such Lender prior to 11:00 a.m. (New York City time) on any
Business Day, such Lender shall make available to the Administrative Agent for the account of such
Issuer its Ratable Portion of the amount of such payment on such Business Day in immediately
available funds. Whenever any Issuer receives from the Borrowers a payment of a Reimbursement
Obligation as to which the Administrative Agent has received for the account of such Issuer any
payment from a Lender pursuant to this clause (g), such Issuer shall pay to the
Administrative Agent and the Administrative Agent shall promptly pay to each Lender, in immediately
available funds, an amount equal to such Lender’s Ratable Portion of the amount of such payment
adjusted, if necessary, to reflect the respective amounts the Lenders have paid in respect of such
Reimbursement Obligation.

(h) The Borrowers’ obligation to pay each Reimbursement Obligation and the obligations of the
Lenders to make payments to the Administrative Agent for the account of the Issuers with respect to
Letters of Credit shall be absolute, unconditional and irrevocable, and shall be performed strictly
in accordance with the terms of this Agreement, under any and all circumstances whatsoever,
including the occurrence of any Default or Event of Default, and irrespective of:

(i) any lack of validity or enforceability of any Letter of Credit or any Loan
Document, or any term or provision therein;

(ii) any amendment or waiver of or any consent to departure from all or any of the
provisions of any Letter of Credit or any Loan Document;

(iii) the existence of any claim, set off, defense or other right that any Borrower,
any other party guaranteeing, or otherwise obligated with, any Borrower, any Subsidiary or
other Affiliate thereof or any other Person may at any time have against the beneficiary
under any Letter of Credit, any Issuer, the Administrative Agent or any Lender or any other
Person, whether in connection with this Agreement, any other Loan Document or any other
related or unrelated agreement or transaction;

(iv) any draft or other document presented under a Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect or any statement therein being
untrue or inaccurate in any respect;

(v) payment by the Issuer under a Letter of Credit against presentation of a draft or
other document that does not comply with the terms of such Letter of Credit; and

(vi) any other act or omission to act or delay of any kind of any Issuer, the Lenders,
the Administrative Agent or any other Person or any other event or circumstance whatsoever,
whether or not similar to any of the foregoing, that might, but for the provisions of this
Section 2.4, constitute a legal or equitable discharge of the Borrowers’ obligations
hereunder.

Any action taken or omitted to be taken by the relevant Issuer under or in connection with any
Letter of Credit, if taken or omitted in the absence of gross negligence or willful misconduct,
shall not put such Issuer under any resulting liability to any Borrower or any Lender. In
determining whether drafts and other documents presented under a Letter of Credit comply with the
terms thereof, the Issuer may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or information to the contrary
and, in making any payment under any Letter of Credit, the Issuer may rely exclusively on the
documents presented to it under such Letter of Credit as to any and all matters set forth therein,
including reliance on the amount of any draft presented under such Letter of Credit, whether or not
the amount due to the beneficiary thereunder equals the amount of such draft and whether or not any
document presented pursuant to such Letter of Credit proves to be insufficient in any respect, if
such document on its face appears to be in order, and whether or not any other statement or any
other document presented pursuant to such Letter of Credit proves to be forged or invalid or any
statement therein proves to be inaccurate or untrue in any respect whatsoever and any noncompliance
in any immaterial respect of the documents presented under such Letter of Credit with the terms
thereof shall, in each case, be deemed not to constitute willful misconduct or gross negligence of
the Issuer.

(i) If and to the extent such Lender shall not have so made its Ratable Portion of the amount
of the payment required by clause (g) above available to the Administrative Agent for the
account of such Issuer, such Lender agrees to pay to the Administrative Agent for the account of
such Issuer forthwith on demand any such unpaid amount together with interest thereon, for the
first Business Day after payment was first due at the Federal Funds Rate, and thereafter until such
amount is repaid to the Administrative Agent for the account of such Issuer, at the rate
per annum applicable to Base Rate Loans under the Facility. The failure of any
Lender to make available to the Administrative Agent for the account of such Issuer its Ratable
Portion of any such payment shall not relieve any other Lender of its obligation hereunder to make
available to the Administrative Agent for the account of such Issuer its Ratable Portion of any
payment on the date such payment is to be made, but no Lender shall be responsible for the failure
of any other Lender to make available to the Administrative Agent for the account of the Issuer
such other Lender’s Ratable Portion of any such payment.

(j) From time to time, the Administrative Borrower may by notice to the Administrative Agent
designate an additional Lender (in addition to CNAI) that agrees (in its sole discretion) to act in
such capacity is reasonably satisfactory to the Administrative Agent as an Issuer. Each such
additional Issuer shall execute a counterpart of this Agreement upon the approval of the
Administrative Agent (which approval shall not be unreasonably withheld) and shall thereafter be an
Issuer hereunder for all purposes.

	 	 	 	Section 2.5 Reduction and Termination of the Revolving Credit Commitments.

The Administrative Borrower may, upon same Business Day’s notice to the Administrative Agent,
terminate in whole or reduce in part ratably the unused portions of the respective Revolving Credit
Commitments of the Lenders; provided, however, that (x) each partial reduction shall be in an
aggregate amount of not less than $10,000,000 or an integral multiple of $1,000,000 in excess
thereof and (y) no such termination or reduction of the Revolving Credit Commitments shall be
permitted if, after giving effect thereto and to any repayments of the Revolving Loans made on the
effective date thereof, the aggregate Revolving Credit Outstandings would exceed the Total
Revolving Credit Commitment.

	 	 	 	Section 2.6 Repayment of Loans.

The Borrowers promise to repay the entire unpaid principal amount of the Revolving Loans, the
Swing Loans and any Reimbursement Obligations (unless required to be paid sooner hereunder), and
cash collateralize all outstanding Letters of Credit in accordance with Section 8.3, on the
Revolving Credit Termination Date.

	 	 	 	Section 2.7 Evidence of Debt.

(a) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing Indebtedness of the Borrowers to such Lender resulting from each Loan of such Lender
from time to time, including the amounts of principal and interest payable and paid to such Lender
from time to time under this Agreement.

(b) The Administrative Agent shall maintain accounts in accordance with its usual practice in
which it shall record (i) the amount of each Loan made and, if a Eurodollar Rate Loan, the Interest
Period applicable thereto, (ii) the amount of any principal or interest due and payable by the
Borrowers to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder from the Borrowers, whether such sum constitutes principal or interest, fees,
expenses or other amounts due under the Loan Documents and each Lender’s Ratable Portion thereof,
if applicable.

(c) The entries made in the accounts maintained pursuant to clauses (a) and
(b) of this Section 2.7 shall, to the extent permitted by applicable law, be prima
facie evidence of the existence and amounts of the obligations recorded therein;
provided, however, that the failure of any Lender or the Administrative Agent to
maintain such accounts or any error therein shall not in any manner affect the obligations of the
Borrowers to repay the Loans in accordance with their terms.

(d) Notwithstanding any other provision of the Agreement, in the event that any Lender
requests that the Borrowers execute and deliver a promissory note or notes payable to such Lender
in order to evidence the Indebtedness owing to such Lender by the Borrowers hereunder, the
Borrowers will promptly execute and deliver a Revolving Credit Note or Revolving Credit Notes to
such Lender evidencing any Revolving Loans of such Lender, substantially in the form of
Exhibit C.

	 	 	 	Section 2.8 Prepayments.

(a) The Borrowers may, upon at least three Business Days’ prior notice by the Administrative
Borrower to the Administrative Agent stating the proposed date and aggregate principal amount of
the prepayment, prepay the outstanding principal amount of the Revolving Loans in whole or in part;
provided, however, that (i) if any prepayment of any Eurodollar Rate Loan is made
by the Borrowers other than on the last day of an Interest Period for such Loan, the Borrowers
shall also pay any amounts owing pursuant to Section 2.13(e), (ii) each partial prepayment of
Eurodollar Loans shall be in an aggregate principal amount not less than $5,000,000 or an integral
multiple of $1,000,000 in excess thereof (or the remaining balance of the Loans, if less) and each
partial prepayment of Base Rate Loans shall be in an aggregate principal amount not less than
$1,000,000 or an integral multiple of $1,000,000 in excess thereof (or the remaining balance of the
Loans, if less) and (iii) the Borrowers may prepay the outstanding principal amount of any Swing
Loan in whole or in part, with no minimum partial prepayment requirement. Upon the giving of such
notice of prepayment, the principal amount of Revolving Loans specified to be prepaid shall become
due and payable on the date specified for such prepayment.

(b) The Borrowers shall prepay Loans, or cash collateralize outstanding Letters of Credit in
accordance with Section 8.3, to the extent as a result of Section 2.17 or any Scheduled Termination
Date, and after giving effect thereto, the aggregate Revolving Credit Outstandings would exceed the
then Lenders’ total Revolving Credit Commitment, and otherwise shall have no right to prepay the
principal amount of any Loan other than as provided in this Section 2.8.

	 	 	 	Section 2.9 Interest.

(a) Rate of Interest.

All Loans and the outstanding amount of all other Obligations shall bear interest, in the case
of Loans, on the unpaid principal amount thereof from the date such Loans are made and, in the case
of such other Obligations, from the date such other Obligations are due and payable until, in all
cases, paid in full, except as otherwise provided in Section 2.9(c), as follows:

(i) if a Base Rate Loan or such other Obligation, at a rate per annum
equal to the sum of (A) the Base Rate as in effect from time to time, plus (B) the
Applicable Margin; and

(ii) if a Eurodollar Rate Loan, at a rate per annum equal to the sum of
(A) the Eurodollar Rate determined for the applicable Interest Period, plus (B) the
Applicable Margin in effect from time to time during such Interest Period.

(b) Interest Payments.

(i) Interest accrued on each Base Rate Loan (other than Swing Loans) shall be payable in
arrears (A) on the last day of each calendar quarter, commencing on the first such day following
the making of such Base Rate Loan and (B) if not previously paid in full, at maturity (whether by
acceleration or otherwise) of such Base Rate Loan; (ii) interest accrued on Swing Loans shall be
payable in arrears on the last day of each calendar quarter; (iii) interest accrued on each
Eurodollar Rate Loan shall be payable in arrears (A) on the last day of each Interest Period
applicable to such Loan and if such Interest Period has a duration of more than three months, on
each day during such Interest Period occurring every three months from the first day of such
Interest Period, (B) upon the payment or prepayment thereof in full or in part and (C) if not
previously paid in full, at maturity (whether by acceleration or otherwise) of such Eurodollar Rate
Loan; and (iv) interest accrued on the amount of all other Obligations shall be payable on demand
from and after the time such Obligation becomes due and payable (whether by acceleration or
otherwise).

(c) Default Interest.

Notwithstanding the rates of interest specified in Section 2.9(a) or elsewhere herein,
effective immediately upon the occurrence of an Event of Default, and for as long thereafter as
such Event of Default shall be continuing, the principal balance of all Loans and the amount of all
other Obligations then due and payable shall bear interest at a rate that is two percent
per annum in excess of the rate of interest applicable to such Obligations from
time to time.

Section 2.10 Conversion/Continuation Option.

(a) The Administrative Borrower may elect (i) at any time on any Business Day to convert Base
Rate Loans (other than Swing Loans) or any portion thereof to Eurodollar Rate Loans, and (ii) at
the end of any applicable Interest Period, to convert Eurodollar Rate Loans or any portion thereof
into Base Rate Loans or to continue such Eurodollar Rate Loans or any portion thereof for an
additional Interest Period; provided, however, that the aggregate amount of the
Eurodollar Loans for each Interest Period must be in the amount of $5,000,000 or an integral
multiple of $1,000,000 in excess thereof. Each conversion or continuation shall be allocated among
the Loans of each Lender in accordance with its Ratable Portion. Each such election shall be in
substantially the form of Exhibit F (a “Notice of Conversion or Continuation”) and
shall be made by giving the Administrative Agent at least three Business Days’ prior written notice
specifying (A) the amount and type of Loan being converted or continued, (B) in the case of a
conversion to or a continuation of Eurodollar Rate Loans, the applicable Interest Period, and
(C) in the case of a conversion, the date of conversion.

(b) The Administrative Agent shall promptly notify each Lender of its receipt of a Notice of
Conversion or Continuation and of the options selected therein. Notwithstanding the foregoing, no
conversion in whole or in part of Base Rate Loans to Eurodollar Rate Loans, and no continuation in
whole or in part of Eurodollar Rate Loans upon the expiration of any applicable Interest Period,
shall be permitted at any time at which (i) a Default or an Event of Default shall have occurred
and be continuing or (ii) the continuation of, or conversion into, would violate or otherwise not
be permitted under any of the provisions of Section 2.13. If, within the time period required
under the terms of this Section 2.10, the Administrative Agent does not receive a Notice of
Conversion or Continuation from the Administrative Borrower containing a permitted election to
continue any Eurodollar Rate Loans for an additional Interest Period or to convert any such Loans,
then, upon the expiration of the applicable Interest Period, such Loans shall be automatically
converted to Base Rate Loans. Each Notice of Conversion or Continuation shall be irrevocable.

Section 2.11 Fees.

(a) Applicable Unused Commitment Fee.

The Borrowers agree to pay to each Lender a commitment fee on the daily average amount of the
Unused Commitments from the Original Effective Date until the Revolving Credit Termination Date at
the Applicable Unused Commitment Fee Rate, payable in arrears (i) on the last day of each calendar
quarter, commencing on the first such day following the Original Effective Date and (ii) on the
Revolving Credit Termination Date.

(b) Letter of Credit Fees.

The Borrowers agree to pay the following amounts with respect to Letters of Credit issued by
any Issuer:

(i) to the Administrative Agent for the account of each Issuer of a Letter of Credit, with
respect to each Letter of Credit issued by such Issuer, an issuance fee equal to 0.10% per
annum of the maximum amount available from time to time to be drawn under such Letter of
Credit, payable in arrears (A) on the last day of each calendar quarter, commencing on the
first such day following the issuance of such Letter of Credit and (B) on the Revolving Credit
Termination Date; and

(ii) to the Administrative Agent for the ratable benefit of the Lenders, with respect to
each Letter of Credit, a fee accruing at a rate per annum equal to the
Applicable Margin for Letters of Credit of the maximum amount available from time to time to be
drawn under such Letter of Credit, payable in arrears (A) on the last day of each calendar
quarter, commencing on the first such day following the issuance of such Letter of Credit and
(B) on the Revolving Credit Termination Date; provided, however, that during
the continuance of an Event of Default, such fee shall be increased by two percent per
annum and shall be payable on demand.

(c) Additional Fees.

The Borrowers agree to pay to the Administrative Agent and the Arrangers additional fees, the
amount and dates of payment of which are embodied in any separate fee letter entered into between
or among such parties.

Section 2.12 Payments and Computations.

(a) The Borrowers shall make each payment hereunder (including fees and expenses) not later
than 1:00 p.m. (New York City time) on the day when due, in Dollars, to the Administrative Agent at
its address referred to in Section 10.8 in immediately available funds without deduction, set-off
or counterclaim. The Administrative Agent will promptly thereafter cause to be distributed
immediately available funds relating to the payment of principal or interest or fees to the
Lenders, in accordance with the application of payments set forth in clauses (e) and
(f) of this Section 2.12, as applicable, for the account of their respective Applicable
Lending Offices; provided, however, that amounts payable pursuant to
Section 2.13(c), Section 2.13(e), Section 2.14 or Section 2.15 shall be paid only to the affected
Lender or Lenders and amounts payable with respect to Swing Loans shall be paid only to the Swing
Loan Lender. Payments received by the Administrative Agent after 1:00 p.m. (New York City time)
shall be deemed to be received on the next Business Day.

(b) All computations of interest and of fees based on the Base Rate shall be made by the
Administrative Agent on the basis of a year of 365/366 days, as the case may be, and all
computations of all other interest and all fees shall be made by the Administrative Agent on the
basis of a year of 360 days, in each case for the actual number of days (including the first day
but excluding the last day) occurring in the period for which such interest and fees are payable.
Each determination by the Administrative Agent of an interest rate hereunder shall be conclusive
and binding for all purposes, absent manifest error.

(c) Whenever any payment hereunder shall be stated to be due on a day other than a Business
Day, the due date for such payment shall be extended to the next succeeding Business Day, and such
extension of time shall in such case be included in the computation of payment of interest or fees,
as the case may be; provided, however, that if such extension would cause payment
of interest on or principal of any Eurodollar Rate Loan to be made in the next calendar month, such
payment shall be made on the immediately preceding Business Day. All repayments of any Revolving
Loans shall be applied as follows: first, to repay such Loans outstanding as Base Rate
Loans and then to repay such Loans outstanding as Eurodollar Rate Loans with those Eurodollar Rate
Loans having earlier expiring Interest Periods being repaid prior to those having later expiring
Interest Periods.

(d) Unless the Administrative Agent shall have received notice from the Administrative
Borrower to the Lenders prior to the date on which any payment is due hereunder that the Borrowers
will not make such payment in full, the Administrative Agent may assume that the Borrowers have
made such payment in full to the Administrative Agent on such date and the Administrative Agent
may, in reliance upon such assumption, cause to be distributed to each Lender on such due date an
amount equal to the amount then due such Lender. If and to the extent that the Borrowers shall not
have made such payment in full to the Administrative Agent, each Lender shall repay to the
Administrative Agent forthwith on demand such amount distributed to such Lender together with
interest thereon at the Federal Funds Rate, for the first Business Day, and, thereafter, at the
rate applicable to Base Rate Loans, for each day from the date such amount is distributed to such
Lender until the date such Lender repays such amount to the Administrative Agent.

(e) Subject to the provisions of Section 2.12(f) (and except as otherwise provided in
Section 2.8), all payments and any other amounts received by the Administrative Agent from or for
the benefit of the Borrowers shall be applied as follows: first, to pay principal of and
interest on any portion of the Loans that the Administrative Agent may have advanced pursuant to
the express provisions of this Agreement on behalf of any Lender, for which the Administrative
Agent has not then been reimbursed by such Lender or the Borrowers, second, to pay all
other Obligations then due and payable, and third, as the Administrative Borrower so
designates. Payments in respect of Swing Loans received by the Administrative Agent shall be
distributed to the Swing Loan Lender; payments in respect of Revolving Loans received by the
Administrative Agent shall be distributed to each Lender in accordance with such Lender’s Ratable
Portion; and all payments of fees and all other payments in respect of any other Obligation shall
be allocated among such of the Lenders and Issuers as are entitled thereto, and, for such payments
allocated to the Lenders, in proportion to their respective Ratable Portions.

(f) During the continuance of an Event of Default, the Borrowers hereby irrevocably waive the
right to direct the application of any and all payments in respect of the Obligations and agrees
that, notwithstanding the provisions of clause (e) above, the Administrative Agent may, and
shall upon either (A) the written direction of the Requisite Lenders or (B) the acceleration of the
Obligations pursuant to Section 8.2, apply all payments (subject in any event to the restrictions
set forth in Section 8.3 in respect of the application of amounts funded to a cash collateral
account in respect of outstanding Letter of Credit Obligations) in respect of any Obligations and
all funds on deposit in any cash collateral account in the following order (after first paying all
expenses incurred by the Administrative Agent in the performance of its duties and in the
enforcement of the rights of the Lenders and the Issuers under the Loan Documents, including,
without limitation, all costs and expenses of collection, reasonable attorneys’ fees (including all
allocated costs of internal counsel) and other professional fees, court costs and other amounts in
respect of expense reimbursement and indemnities then due the Administrative Agent in connection
therewith):

(i) first, to pay interest on and then principal of any portion of the
Revolving Loans which the Administrative Agent may have advanced on behalf of any Lender
for which the Administrative Agent has not then been reimbursed by such Lender or the
Borrowers;

(ii) second, to pay interest on and then principal of any Swing Loan;

(iii) third, to pay Obligations in respect of any other expense reimbursements
or indemnities then due the Administrative Agent;

(iv) fourth, to pay Obligations in respect of any expense reimbursements or
indemnities then due to the Lenders and the Issuers;

(v) fifth, to pay Obligations in respect of any fees then due to the
Administrative Agent, the Lenders and the Issuers;

(vi) sixth, to pay interest then due and payable in respect of the Loans and
Reimbursement Obligations;

(vii) seventh, to pay or prepay principal payments on the Loans and
Reimbursement Obligations and to provide cash collateral for outstanding Letter of Credit
Undrawn Amounts in the manner described in Section 8.3, ratably to the aggregate principal
amount of such Loans, Reimbursement Obligations and Letter of Credit Undrawn Amounts; and

(viii) eighth, to the ratable payment of all other Obligations;

provided, however, that if sufficient funds are not available to fund all payments
to be made in respect of any Obligation described in any of clauses first through eighth, the
available funds being applied with respect to any such Obligation (unless otherwise specified in
such clause) shall be allocated to the payment of such Obligations ratably, based on the proportion
of the Administrative Agent’s and each Lender’s or Issuer’s interest in the aggregate outstanding
Obligations described in such clauses. The order of priority set forth in clauses first through
eighth of this clause (f) may at any time and from time to time be changed by the agreement
of all Lenders without necessity of notice to or consent of or approval by any Borrower or any
other Person. The order of priority set forth in clauses first through fifth of this
clause (f) may be changed only with the prior written consent of the Administrative Agent
in addition to all Lenders.

(g) At the option of the Administrative Agent, principal on the Swing Loans, Reimbursement
Obligations, interest, fees, expenses and other sums due and payable in respect of the Revolving
Loans may be paid from the proceeds of Swing Loans or Revolving Loans. The Borrowers hereby
authorize the Swing Loan Lender to make Swing Loans pursuant to Section 2.3(a), and the Lenders to
make Revolving Loans pursuant to Section 2.2(a), from time to time in the Swing Loan Lender’s, or
such Lender’s discretion, that are in the amounts of any and all principal payable with respect to
the Swing Loans and interest, fees, expenses and other sums payable in respect of the Revolving
Loans, and further authorizes the Administrative Agent to give the Lenders notice of any Borrowing
with respect to such Swing Loans and Revolving Loans and to distribute the proceeds of such Swing
Loans and Revolving Loans to pay such amounts. The Borrowers agree that all such Swing Loans and
Revolving Loans so made shall be deemed to have been requested by them (irrespective of the
satisfaction of the conditions in Section 3.2, which conditions the Lenders irrevocably waive) and
direct that all proceeds thereof shall be used to pay such amounts.

Section 2.13 Special Provisions Governing Eurodollar Rate Loans.

(a) Determination of Interest Rate.

The Eurodollar Rate for each Interest Period for Eurodollar Rate Loans shall be determined by
the Administrative Agent pursuant to the procedures set forth in the definition of “Eurodollar
Rate.” The Administrative Agent’s determination shall be presumed to be correct, absent
manifest error, and shall be binding on the Borrowers.

(b) Interest Rate Unascertainable, Inadequate or Unfair.

In the event that: (i) the Administrative Agent determines that adequate and fair means do
not exist for ascertaining the applicable interest rates by reference to which the Eurodollar Rate
then being determined is to be fixed; or (ii) the Requisite Lenders notify the Administrative Agent
that the Eurodollar Rate for any Interest Period will not adequately reflect the cost to such
Lenders of making or maintaining such Loans for such Interest Period, the Administrative Agent
shall forthwith so notify the Administrative Borrower and the Lenders, whereupon each Eurodollar
Loan shall automatically, on the last day of the current Interest Period for such Loan, convert
into a Base Rate Loan and the obligations of the Lenders to make Eurodollar Rate Loans or to
convert Base Rate Loans into Eurodollar Rate Loans shall be suspended until the Administrative
Agent shall notify the Administrative Borrower that the Requisite Lenders have determined that the
circumstances causing such suspension no longer exist.

(c) Increased Costs.

If at any time any Lender determines that the introduction of or any change in or in the
interpretation of any law, treaty or governmental rule, regulation or order (other than any change
by way of imposition or increase of reserve requirements included in determining the Eurodollar
Rate) or the compliance by such Lender with any guideline, request or directive from any central
bank or other Governmental Authority (whether or not having the force of law), shall have the
effect of increasing the cost to such Lender of agreeing to make or making, funding or maintaining
any Eurodollar Rate Loans, then the Borrowers shall from time to time, upon demand by such Lender
delivered to the Administrative Borrower (with a copy of such demand to the Administrative Agent),
pay to the Administrative Agent for the account of such Lender additional amounts sufficient to
compensate such Lender for such increased cost. A certificate as to the amount of such increased
cost, submitted to the Administrative Borrower and the Administrative Agent by such Lender, shall
be conclusive and binding for all purposes, absent manifest error.

(d) Illegality.

Notwithstanding any other provision of this Agreement, if any Lender determines that the
introduction of or any change in or in the interpretation of any law, treaty or governmental rule,
regulation or order after the Original Effective Date shall make it unlawful, or any central bank
or other Governmental Authority shall assert that it is unlawful, for any Lender or its Eurodollar
Lending Office to make Eurodollar Rate Loans or to continue to fund or maintain Eurodollar Rate
Loans, then, on notice thereof and demand therefor by such Lender to the Administrative Borrower
through the Administrative Agent, (i) the obligation of such Lender to make or to continue
Eurodollar Rate Loans and to convert Base Rate Loans into Eurodollar Rate Loans shall be suspended,
and each such Lender shall make a Base Rate Loan as part of any requested Borrowing of Eurodollar
Rate Loans and (ii) if the affected Eurodollar Rate Loans are then outstanding, the Administrative
Borrower shall immediately convert each such Loan into a Base Rate Loan. If at any time after a
Lender gives notice under this Section 2.13(d) such Lender determines that it may lawfully make
Eurodollar Rate Loans, such Lender shall promptly give notice of that determination to the
Administrative Borrower and the Administrative Agent, and the Administrative Agent shall promptly
transmit the notice to each other Lender. The Administrative Borrower’s right to request, and such
Lender’s obligation, if any, to make Eurodollar Rate Loans shall thereupon be restored.

(e) Breakage Costs.

In addition to all amounts required to be paid by the Borrowers pursuant to Section 2.9, the
Borrowers shall compensate each Lender, upon demand made to the Administrative Borrower, for all
losses, expenses and liabilities (including any loss or expense incurred by reason of the
liquidation or reemployment of deposits or other funds acquired by such Lender to fund or maintain
such Lender’s Eurodollar Rate Loans to the Borrowers but excluding any loss of the Applicable
Margin on the relevant Loans) which that Lender may sustain (i) if for any reason a proposed
Borrowing, conversion into or continuation of Eurodollar Rate Loans does not occur on a date
specified therefor in a Notice of Borrowing or a Notice of Conversion or Continuation given by the
Administrative Borrower or in a telephonic request by it for borrowing or conversion or
continuation or a successive Interest Period does not commence after notice therefor is given
pursuant to Section 2.10, (ii) if for any reason any Eurodollar Rate Loan is prepaid (including as
a result of any conversion into a Base Rate Loan on a date which is not the last day of the
applicable Interest Period), (iii) as a consequence of a required conversion of a Eurodollar Rate
Loan to a Base Rate Loan as a result of any of the events indicated in Section 2.13(d), or (iv) as
a consequence of any failure by the Borrowers to repay Eurodollar Rate Loans when required by the
terms hereof. The Lender making demand for such compensation shall deliver to the Administrative
Borrower concurrently with such demand a written statement as to such losses, expenses and
liabilities, and this statement shall be conclusive as to the amount of compensation due to such
Lender, absent manifest error.

	 	 	 	Section 2.14 Capital Adequacy.

If at any time any Lender determines that (a) the adoption of or any change in or in the
interpretation of any law, treaty or governmental rule, regulation or order after the Original
Effective Date regarding capital adequacy, (b) compliance with any such law, treaty, rule,
regulation, or order, or (c) compliance with any guideline or request or directive from any central
bank or other Governmental Authority (whether or not having the force of law) shall have the effect
of reducing the rate of return on such Lender’s (or any corporation controlling such Lender’s)
capital as a consequence of its obligations hereunder or under or in respect of any Letter of
Credit to a level below that which such Lender or such corporation could have achieved but for such
adoption, change, compliance or interpretation, then, upon demand from time to time by such Lender
made to the Administrative Borrower (with a copy of such demand to the Administrative Agent), the
Borrowers shall pay to the Administrative Agent for the account of such Lender, from time to time
as specified by such Lender, additional amounts sufficient to compensate such Lender for such
reduction. A certificate as to such amounts submitted to the Administrative Borrower and the
Administrative Agent by such Lender shall be conclusive and binding for all purposes absent
manifest error.

	 	 	 	Section 2.15 Taxes.

(a) Any and all payments by any Loan Party under each Loan Document shall be made free and
clear of and without deduction for any and all present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto, excluding (i) in the
case of each Lender and the Administrative Agent (A) taxes measured by its net income, and
franchise taxes imposed on it, by the jurisdiction (or any political subdivision thereof) under the
laws of which such Lender or the Administrative Agent (as the case may be) is organized and (B) any
United States withholding taxes payable with respect to payments under the Loan Documents under
laws (including any statute, treaty or regulation) in effect on the Original Effective Date (or, in
the case of an Eligible Assignee, the date of the Assignment and Acceptance) applicable to such
Lender or the Administrative Agent, as the case may be, but not excluding any United States
withholding taxes payable as a result of any change in such laws occurring after the Original
Effective Date (or the date of such Assignment and Acceptance) and (ii) in the case of each Lender,
taxes measured by its net income, and franchise taxes imposed on it as a result of a present or
former connection (but not any such connection arising solely from the Administrative Agent or such
Lender having executed, delivered or performed its obligations or received a payment under, or
enforced, this Agreement or any other Loan Document) between such Lender and the jurisdiction of
the Governmental Authority imposing such tax or any taxing authority thereof or therein (all such
non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities being
hereinafter referred to as “Taxes”). If any Taxes shall be required by law to be deducted
from or in respect of any sum payable under any Loan Document to any Lender or the Administrative
Agent (w) the sum payable shall be increased as may be necessary so that after making all required
deductions (including deductions applicable to additional sums payable under this Section 2.15 such
Lender or the Administrative Agent (as the case may be) receives an amount equal to the sum it
would have received had no such deductions been made, (x) the relevant Loan Party shall make such
deductions, (y) the relevant Loan Party shall pay the full amount deducted to the relevant taxing
authority or other authority in accordance with applicable law, and (z) the relevant Loan Party
shall deliver to the Administrative Agent evidence of such payment.

(b) In addition, the Borrowers agree to pay any present or future stamp or documentary taxes
or any other excise or property taxes, charges or similar levies of the United States or any
political subdivision thereof or any applicable foreign jurisdiction, and all liabilities with
respect thereto, which arise from any payment made under any Loan Document or from the execution,
delivery or registration of, or otherwise with respect to, any Loan Document (collectively,
"Other Taxes”).

(c) Except for amounts due as a result of a breach of a Lender’s obligations under
Section 2.15(f), the Borrowers will indemnify each Lender and the Administrative Agent for the full
amount of Taxes and Other Taxes (including any Taxes and Other Taxes imposed by any jurisdiction on
amounts payable under this Section 2.15 paid by such Lender or the Administrative Agent (as the
case may be) and any liability (including for penalties, interest and expenses) arising therefrom
or with respect thereto, whether or not such Taxes or Other Taxes were correctly or legally
asserted. This indemnification shall be made within 30 days from the date such Lender or the
Administrative Agent (as the case may be) makes written demand therefor to the Administrative
Borrower.

(d) Within 30 days after the date of any payment of Taxes or Other Taxes by any Loan Party,
the Administrative Borrower shall furnish to the Administrative Agent, at its address referred to
in Section 10.8, the original or a certified copy of a receipt evidencing payment thereof.

(e) Without prejudice to the survival of any other agreement of the Borrowers hereunder, the
agreements and obligations of the Borrowers contained in this Section 2.15 shall survive the
payment in full of the Obligations.

(f) On or prior to the Effective Date in the case of each Non-U.S. Lender that is a signatory
hereto, and on the date of the Assignment and Acceptance pursuant to which it becomes a Lender in
the case of each other Non-U.S. Lender and from time to time thereafter if requested by the
Administrative Borrower or the Administrative Agent, each Non-U.S. Lender that is entitled at such
time to an exemption from United States withholding tax, or that is subject to such tax at a
reduced rate under an applicable tax treaty, shall provide the Administrative Agent and the
Administrative Borrower with two completed originals of the following: (i) Form W-8ECI (claiming
exemption from withholding because the income is effectively connected with a U.S. trade or
business) (or any successor form); (ii) Form W-8BEN (claiming exemption from, or a reduction of,
withholding tax under an income tax treaty) (or any successor form); (iii) in the case of a
Non-U.S. Lender claiming exemption under Sections 871(h) or 881(c) of the Code, a Form W-8BEN
(claiming exemption from withholding under the portfolio interest exemption) or any successor form;
or (iv) any other applicable form, certificate or document prescribed by the IRS certifying as to
such Non-U.S. Lender’s entitlement to such exemption from United States withholding tax or reduced
rate with respect to all payments to be made to such Non-U.S. Lender under the Loan Documents.
Unless the Administrative Borrower and the Administrative Agent have received forms or other
documents satisfactory to them indicating that payments under any Loan Document to or for a
Non-U.S. Lender are not subject to United States withholding tax or are subject to such tax at a
rate reduced by an applicable tax treaty, the Borrowers or the Administrative Agent shall withhold
amounts required to be withheld by applicable Requirements of Law from such payments at the
applicable statutory rate.

(g) Any Lender claiming any additional amounts payable pursuant to this Section 2.15 shall use
its reasonable efforts (consistent with its internal policy and legal and regulatory restrictions)
to change the jurisdiction of its Applicable Lending Office if the making of such a change would
avoid the need for, or reduce the amount of, any such additional amounts that would be payable or
may thereafter accrue and would not, in the sole determination of such Lender, be otherwise
disadvantageous to such Lender.

	 	 	 	Section 2.16 Substitution of Lenders.

In the event that (a) (i) any Lender makes a claim under Section 2.13(c) or Section 2.14, or
(ii) it becomes illegal for any Lender to continue to fund or make any Eurodollar Rate Loan and
such Lender notifies the Administrative Borrower pursuant to Section 2.13(d), or (iii) the
Borrowers are required to make any payment pursuant to Section 2.15 that is attributable to any
Lender, or (iv) any Lender is a Non-Funding Lender, or (v) any Lender is a Rejecting Lender
pursuant to Section 2.17, (b) in the case of clause (a)(i) above, as a consequence of
increased costs in respect of which such claim is made, the effective rate of interest payable to
such Lender under this Agreement with respect to its Loans materially exceeds the effective average
annual rate of interest payable to the Requisite Lenders under this Agreement and (c) Lenders
holding at least 75% of the Revolving Credit Commitments are not subject to such increased costs or
illegality, payment or proceedings (any such Lender, an “Affected Lender”), the
Administrative Borrower may substitute another financial institution for such Affected Lender
hereunder, upon reasonable prior written notice (which written notice must be given within 90 days
following the occurrence of any of the events described in clauses (a)(i), (ii), (iii) or
(iv)) by the Administrative Borrower to the Administrative Agent and the Affected Lender that
the Administrative Borrower intends to make such substitution, which substitute financial
institution must be an Eligible Assignee and, if not a Lender, reasonably acceptable to the
Administrative Agent; provided, however, that if more than one Lender claims
increased costs, illegality or right to payment arising from the same act or condition and such
claims are received by the Administrative Borrower within 30 days of each other then the
Administrative Borrower may substitute all, but not (except to the extent the Administrative
Borrower has already substituted one of such Affected Lenders before the Administrative Borrower’s
receipt of the other Affected Lenders’ claim) less than all, Lenders making such claims. In the
event that the proposed substitute financial institution or other entity is reasonably acceptable
to the Administrative Agent and the written notice was properly issued under this Section 2.16, the
Affected Lender shall sell and the substitute financial institution or other entity shall purchase
at par, pursuant to an Assignment and Acceptance, all rights and claims of such Affected Lender
under the Loan Documents and the substitute financial institution or other entity shall assume and
the Affected Lender shall be relieved of its Revolving Credit Commitments and all other prior
unperformed obligations of the Affected Lender under the Loan Documents (other than in respect of
any damages (other than exemplary or punitive damages, to the extent permitted by applicable law)
in respect of any such unperformed obligations). Upon the effectiveness of such sale, purchase and
assumption (which, in any event shall be conditioned upon the payment in full by the Borrowers to
the Affected Lender in cash of all fees, unreimbursed costs and expenses and indemnities accrued
and unpaid through such effective date), the substitute financial institution or other entity shall
become a “Lender” hereunder for all purposes of this Agreement having a Revolving Credit
Commitment in the amount of such Affected Lender’s Revolving Credit Commitment assumed by it and
such Revolving Credit Commitment of the Affected Lender shall be terminated, provided that all
indemnities under the Loan Documents shall continue in favor of such Affected Lender.

	 	 	 	Section 2.17 Facility Extension.

(a) Extension Requests. The Administrative Borrower may request a one-year extension
of the Scheduled Termination Date by submitting a request for an extension to the Administrative
Agent no more than 120 days nor less than 90 days prior to the Scheduled Termination Date then in
effect. At the time of or prior to the delivery of such request, the Administrative Borrower shall
propose to the Administrative Agent the amount of the fees that the Borrowers agree to pay with
respect to such one-year extension if approved by Lenders (such request for an extension, together
with the fee proposal, being herein referred to as the “Extension Request”). Promptly upon
(but not later than five (5) Business Days after) receipt of the Extension Request, the
Administrative Agent shall notify each Lender of the contents thereof and shall request each Lender
to approve the Extension Request. Each Lender approving the Extension Request (the “Consenting
Lenders”) shall deliver its written approval no later than sixty (60) days after the date of
the Extension Request. If the approval of all Lenders is received by the Administrative Agent
within sixty (60) days after the date of the Extension Request (or as otherwise provided in
Section 2.17(b)), the Administrative Agent shall promptly so notify the Administrative Borrower and
each Consenting Lender, and the Scheduled Termination Date shall be extended by one (1) year, and
in such event the Administrative Borrower may thereafter request further extension(s) of the then
scheduled Scheduled Termination Date in accordance with this Section 2.17. If any Lender does not
deliver to the Administrative Agent such Lender’s written approval to any Extension Request within
sixty (60) days after the date of such Extension Request, the Scheduled Termination Date shall not
be extended, except as otherwise provided in Section 2.17(b) or 2.17(c).

(b) Full Assignment. If the aggregate Revolving Credit Commitments of all Consenting
Lenders are equal to or greater than 75% of the Total Revolving Credit Commitment in effect
immediately prior to the Extension Request, then the Administrative Borrower may arrange for all
rights and obligations of each Lender under this Agreement and under the other Loan Documents
(including, without limitation, their Revolving Credit Commitment and all Loans owing to them) who
has not given its written approval within sixty (60) days after the date of such Extension Request
(the “Rejecting Lenders”) to be assigned, within ninety (90) days following such Extension
Request, in accordance with Section 2.16 or 10.2, as applicable, to one or more Consenting Lenders
or new replacement Lenders who shall have approved in writing such Extension Request at the time of
such assignment (such Consenting Lenders together with any new replacement Lenders, the
"Replacement Lenders”), and upon the assignment in full of the aggregate Revolving Credit
Commitments, outstanding Loans and all Reimbursement Obligations of Rejecting Lenders to
Replacement Lenders, the Administrative Agent shall promptly so notify the Administrative Borrower
and each Consenting and Replacement Lender, and the Scheduled Termination Date shall be extended by
one (1) year, and in such event the Administrative Borrower may thereafter request further
extension(s) as provided in Section 2.17(a).

(c) Partial Assignment. If on the date that is ninety (90) days after the date of
such Extension Request, less than all of the rights and obligations of the Rejecting Lenders under
this Agreement and under the other Loan Documents (including, without limitation, their Revolving
Credit Commitment and all Loans owing to them) have been assigned to Replacement Lenders in
accordance with Section 2.17(b), the Administrative Agent shall promptly notify the Administrative
Borrower, each Consenting Lender, each Replacement Lender and each Rejecting Lender, and the
Scheduled Termination Date shall be extended by one (1) year solely in respect of the aggregate
Revolving Credit Commitments of the Consenting Lenders and the Replacement Lenders and (A) the
aggregate Revolving Credit Commitment shall be automatically reduced, effective as of the Scheduled
Termination Date immediately prior to such extension (the “Previous Scheduled Termination
Date”) to an amount equal to the Revolving Credit Commitments of the Consenting Lenders and the
Replacement Lenders; (B) all rights and obligations of such Rejecting Lenders under this Agreement
and under the other Loan Documents (including, without limitation, their Revolving Credit
Commitment and all Loans owing to them) shall be terminated, effective as of the previous Scheduled
Termination Date (or such earlier date as the Administrative Borrower and the Administrative Agent
may designate, in which case the reduction of the aggregate Revolving Credit Commitment provided
for in clause (A) above shall occur on such earlier date); and (C) the Borrowers shall pay to
Administrative Agent on the date of such termination, solely for the account of such Rejecting
Lender, all amounts due and owing such Rejecting Lender hereunder or under any other Loan Document,
including without limitation the aggregate outstanding principal amount of the Loans owed to such
Rejecting Lender with respect to the terminated Revolving Credit Commitment, together with accrued
interest thereon through the date of such termination, all amounts payable under Section 2.13 and
2.14 with respect to such Rejecting Lender and all fees payable to such Rejecting Lender hereunder
with respect to the terminated Revolving Credit Commitment (and payment of such amount may not be
waived except with the consent of each Rejecting Lender, as more specifically provided in
Section 10.1(a)(ii)); and upon such Rejecting Lender’s termination, such Rejecting Lender shall
cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.13, 2.14
and 2.15 and Sections 10.3 and 10.4, as well as to any fees accrued hereunder and not yet paid, and
shall continue to be obligated under Section 9.5 with respect to obligations and liabilities
accruing prior to such termination of such Rejecting Lender’s Revolving Credit Commitment.

(d) Approval of Extension. Within ten (10) days after the Administrative Agent’s
notice to the Administrative Borrower that all (or some, as applicable) of Lenders have approved an
Extension Request (whether pursuant to Section 2.17(a), (b) or (c)), the Borrowers shall pay to the
Administrative Agent for the account of each Consenting Lender and/or Replacement Lender, as
applicable, an extension fee in the amount provided in the Extension Request.

(e) No Default. Notwithstanding anything to the contrary contained herein, no
extension of the Scheduled Termination Date may be effected under this Section 2.17 if (x) a
Default or Event of Default shall be in existence on the effective date of such extension or would
occur after giving effect thereto or (y) any representation or warranty made or deemed made by any
Borrower in any Loan Document or any Guarantor in the Guaranty is not or would not be true or
correct in any material respect on the effective date of such increase (except to the extent any
such representation or warranty is stated to relate solely to an earlier date, in which case such
representation or warranty shall be true and correct in all material respects on and as of such
earlier date).

	 	 	 	Section 2.18 Facility Increase.

The Administrative Borrower may request, in writing, an increase in the aggregate Revolving
Credit Commitments by up to the sum of (x) $150,000,000 and (y) the aggregate amount of the
Revolving Credit Commitments of the Rejecting Lenders that have been terminated on their Scheduled
Termination Date (the “Facility Increase”); provided, however, that such
increase will only become effective if (i) the Administrative Borrower shall have given the
Administrative Agent at least 10 Business Days’ notice of its intention to effect a Facility
Increase and the desired amount of such Facility Increase, (ii) at the time of and after giving
effect to such increase, the Administrative Borrower is in pro forma compliance
with the financial covenants set forth in Article V hereof, (iii) no Default or Event of
Default has occurred and is continuing or would result therefrom, and (iv) the conditions precedent
to a Borrowing set forth in Section 3.2 are satisfied as of such date. The Administrative Borrower
shall have the right to offer such increase to (x) the existing Lenders, and each existing Lender
will have the right, but not the obligation, to commit to all or a portion of the proposed increase
or (y) other Eligible Assignees acceptable to the Administrative Agent and each Issuer in its
respective sole and absolute discretion; provided, however, that the minimum
Revolving Credit Commitment of each such new Eligible Assignee accepting a Revolving Credit
Commitment as part of such Facility Increase equals or exceeds $5,000,000, and such Lender or
Eligible Assignee executes an Assumption Agreement pursuant to which such Lender agrees to commit
to all or a portion of such Facility Increase and, in the case of an Eligible Assignee, to be bound
by the terms of this Agreement as a Lender. On the effective date provided for in the Assumption
Agreement providing for a Facility Increase (each a “Facility Increase Effective Date”),
the Revolving Credit Commitments will be increased by the amount committed to by each Lender or
Eligible Assignee on the Facility Increase Effective Date. In the event there are Lenders and
Eligible Assignees that have committed to a Facility Increase in excess of the maximum amount
requested (or permitted), then the Administrative Agent shall have the right to allocate such
commitments, first to Lenders and then to Eligible Assignees, on whatever basis the Administrative
Agent determines is appropriate in consultation with the Administrative Borrower.

	 	 	 	Section 2.19 Certain Accounts.

Notwithstanding anything to the contrary contained herein or in any of the other Loan
Documents, no Loan Party shall be required to cause any U.S. Bank Account to be subject to a
Deposit Account Control Agreement (and the Lenders hereby waive the requirement set forth in the
first amendment to the March 2006 Credit Agreement, dated as of October 23, 2006, to cause each
U.S. Bank Account to be subject to a Deposit Account Control Agreement by November 22, 2006) so
long as (i) such U.S. Bank Account is and continues to be a custodial account and does not
constitute a Deposit Account or Securities Account and (ii) the custodian of such U.S. Bank Account
remains under written instruction by an authorized officer of the customer of such U.S. Bank
Account to automatically transfer any cash that is deposited in such U.S. Bank Account to a Linked
Deposit Account (or such other Deposit Account as to which the Administrative Agent shall have
entered into an agreement which provides the Administrative Agent with “control” (as such term is
defined under the UCC) with respect to such Deposit Account).

ARTICLE III

CONDITIONS TO LOANS AND LETTERS OF CREDIT

	 	 	 	Section 3.1 Conditions Precedent to the Effectiveness of this Agreement.

This Agreement shall be effective on the date (the “Effective Date”) on which all of
the following conditions precedent have been first satisfied (unless waived by the Requisite
Lenders or unless the time for satisfaction thereof has been extended by the Administrative Agent):

(a) Certain Documents.

The Administrative Agent shall have received on the Effective Date each of the following, each
dated the Effective Date unless otherwise indicated or agreed to by the Administrative Agent, in
form and substance satisfactory to the Administrative Agent and (except for any Revolving Credit
Notes) in sufficient copies for each Lender:

(i) this Agreement, duly executed and delivered by the Borrowers and the Requisite
Lenders, and, for the account of each such Requisite Lenders requesting the same, a Revolving
Credit Note or Revolving Credit Notes of the Borrowers conforming to the requirements set forth
herein;

(ii) an amendment to the Security Agreement duly executed and delivered by the parties
thereto, pursuant to which, among other things, the Obligations of the Subsidiary Borrowers
shall become secured obligations thereunder;

(iii) a favorable opinion of Greenberg Traurig, LLP, counsel to the Loan Parties in form
and substance reasonably satisfactory to the Administrative Agent;

(iv) a good standing certificate of each Loan Party, certified as of a recent date by the
Secretary of State of the state of organization or formation of such Loan Party;

(v) a certificate of the Secretary or an Assistant Secretary of each Loan Party certifying
(A) the names and true signatures of each officer of such Loan Party who has been authorized to
execute and deliver any Loan Document or other document required hereunder to be executed and
delivered by or on behalf of such Loan Party, (B) that the certificate of incorporation (or
equivalent Constituent Document) and by-laws (or equivalent Constituent Document) of such Loan
Party as in effect and delivered to the Administrative Agent on October 23, 2006 (in connection
with the first amendment to the March 2006 Credit Agreement) have not been amended and remain
in full force and effect and (C) the resolutions of such Loan Party’s Board of Directors (or
equivalent governing body) approving and authorizing the execution, delivery and performance of
this Agreement and the other Loan Documents to which it is a party;

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

(vii) such other certificates, documents, agreements and information respecting any Loan
Party as any Lender through the Administrative Agent may reasonably request.

	 	(b)	 	Fee and Expenses Paid.

There shall have been paid to the Administrative Agent, for the account of the Administrative
Agent and the Lenders, as applicable, all fees due and payable on or before the Effective Date
(including all such fees described in any fee letter referred to in Section 2.11(c) and all
reasonable fees and expenses of counsel for which invoices in reasonable detail have been
presented), and all expenses due and payable on or before the Effective Date.

	 	(c)	 	Consents, Etc.

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

	 	 	 	Section 3.2 Conditions Precedent to Each Loan and Letter of Credit.

The obligation of each Lender on any date (including the Effective Date) to make any Loan and
of each Issuer on any date (including the Effective Date) to Issue any Letter of Credit is subject
to the satisfaction of each of the following conditions precedent:

	 	(a)	 	Request for Borrowing or Issuance of Letter of Credit.

With respect to any Loan, the Administrative Agent shall have received a duly executed Notice
of Borrowing (or, in the case of Swing Loan, a duly executed Swing Loan Request) and with respect
to any Letter of Credit, the Administrative Agent and the Issuer shall have received a duly
executed Letter of Credit Request.

	 	(b)	 	Representations and Warranties; No Defaults.

The following statements shall be true on and as of the date of such Loan or Issuance, both
before and after giving effect thereto and, in the case of any Loan, to the application of the
proceeds therefrom:

(i) the representations and warranties set forth in Article IV and in the other Loan
Documents shall be true and correct on and as of the Original Effective Date and shall be true
and correct in all material respects on and as of any such date after the Original Effective
Date with the same effect as though made on and as of such date, except to the extent such
representations and warranties expressly relate to an earlier date, in which case such
representation and warranties shall have been true and correct on and as of such earlier date;
and

(ii) no Default or Event of Default has occurred and is continuing.

	 	(c)	 	Additional Matters.

The Administrative Agent shall have received such additional documents, information and
materials as any Lender, through the Administrative Agent, may reasonably request.

Each submission by the Administrative Borrower to the Administrative Agent of a Notice of
Borrowing or a Swing Loan Request and the acceptance by the Borrowers of the proceeds of each Loan
requested therein, and each submission by the Administrative Borrower to an Issuer of a Letter of
Credit Request and the Issuance of each Letter of Credit requested therein, shall be deemed to
constitute a representation and warranty by the Borrowers as to the matters specified in
Section 3.2(b) on the date of the making of such Loan or the Issuance of such Letter of Credit.

	 	 	 	Section 3.3 Determinations of Effective Date Conditions.

For purposes of determining compliance with the conditions specified in Section 3.1, each
Lender shall be deemed to have consented to, approved, accepted or be satisfied with, each document
or other matter required thereunder to be consented to or approved by or acceptable or satisfactory
to the Lenders unless an officer of the Administrative Agent responsible for the transactions
contemplated by the Loan Documents shall have received notice from the Requisite Lenders prior to
the initial Borrowing or Issuance hereunder specifying their objection thereto.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

To induce the Lenders, the Issuers and the Administrative Agent to enter into this Agreement,
each Borrower represents and warrants to the Lenders, the Issuers and the Administrative Agent, on
and as of the Effective Date, the making of the Loans and the other financial accommodations
(including the Issuance of Letters of Credit) on the Effective Date and on and as of each date as
required by Section 3.2(b)(i):

	 	 	 	Section 4.1 Corporate Existence; Compliance with Law.

Each of the Administrative Borrower and its Restricted Subsidiaries (a) is duly organized or
incorporated, validly existing and in good standing under the laws of the jurisdiction of its
organization; (b) is duly qualified to do business as a foreign corporation or entity and in good
standing under the laws of each jurisdiction where such qualification is necessary, except where
the failure to be so qualified or in good standing would not have a Material Adverse Effect;
(c) has all requisite power and authority and the legal right to own, pledge, mortgage and operate
its properties, to lease the property it operates under lease and to conduct its business as now or
currently proposed to be conducted; (d) is in compliance with its Constituent Documents; (e) is in
compliance with all applicable Requirements of Law except where the failure to be in compliance
would not in the aggregate have a Material Adverse Effect; and (f) has all necessary licenses,
permits, consents or approvals from or by, has made all necessary filings with, and has given all
necessary notices to, each Governmental Authority having jurisdiction, to the extent required for
such ownership, operation and conduct, except for licenses, permits, consents, approvals or filings
that can be obtained or made by the taking of ministerial action to secure the grant or transfer
thereof or the failure to obtain or make would not, in the aggregate, have a Material Adverse
Effect.

	 	 	 	Section 4.2 Corporate Power; Authorization; Enforceable Obligations.

(a) The execution, delivery and performance by each Loan Party of the Loan Documents to which
it is a party and the consummation of the transactions contemplated thereby:

(i) are within such Loan Party’s corporate, limited liability company, partnership or
other powers;

(ii) have been or, at the time of delivery thereof pursuant to Article III will have
been duly authorized by all necessary corporate or other entity action, including the
consent of shareholders, partners and members where required;

(iii) do not and will not (A) contravene any Loan Party’s or any of its Subsidiaries’
respective Constituent Documents, (B) violate any other Requirement of Law applicable to
any Loan Party (including Regulations T, U and X of the Federal Reserve Board), or any
order or decree of any Governmental Authority or arbitrator applicable to any Loan Party,
(C) conflict with or result in the breach of, or constitute a default under, or result in
or permit the termination or acceleration of, any Contractual Obligation of any Loan Party,
or (D) result in the creation or imposition of any Lien upon any of the property of any
Loan Party (other than any Lien Securing the Obligations); and

(iv) do not require the consent of, authorization by, approval of, notice to, or
filing or registration with, any Governmental Authority or any other Person, other than
those listed on Schedule 4.2 and which have been prior to the Original Effective
Date, obtained or made, copies of which have been delivered to the Administrative Agent and
each of which is in full force and effect.

(b) This Agreement and the Guaranty have been, and each of the other Loan Documents will have
been upon delivery thereof pursuant to the terms of this Agreement, duly executed and delivered by
each Loan Party thereto. This Agreement and the Guaranty are, and the other Loan Documents will
be, when delivered hereunder, the legal, valid and binding obligation of each Loan Party thereto,
enforceable against such Loan Party in accordance with its terms, subject to applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’
rights and remedies generally.

	 	 	 	Section 4.3 Ownership of Subsidiaries.

Set forth on Schedule 4.3 is a complete and accurate list showing, as of the Effective
Date, all Restricted Subsidiaries of the Administrative Borrower and, as to each such Subsidiary,
the jurisdiction of its organization, the number of shares of each class of Stock authorized (if
applicable), the number outstanding on the Effective Date and the number and percentage of the
outstanding shares of each such class owned (directly or indirectly) by the Administrative
Borrower. Except as set forth on Schedule 4.3, no Stock of any Restricted Subsidiary of
the Administrative Borrower is subject to any outstanding option, warrant, right of conversion or
purchase or any similar right. All of the outstanding Stock of each Restricted Subsidiary of the
Administrative Borrower owned (directly or indirectly) by the Administrative Borrower has been
validly issued, is fully paid and non-assessable (to the extent applicable) and, as of the
Effective Date, is owned by the Administrative Borrower or a Restricted Subsidiary of the
Administrative Borrower, free and clear of all Liens. Neither the Administrative Borrower nor any
such Restricted Subsidiary is a party to, or has knowledge of, any agreement restricting the
transfer or hypothecation of any Stock of any such Restricted Subsidiary, other than (i) the Loan
Documents and (ii) such customary restrictions related to the interest of the Administrative
Borrower and its Restricted Subsidiaries in limited liability companies or partnerships. The
Administrative Borrower does not own or hold, directly or indirectly, any Stock of any Person other
than such Subsidiaries and Investments permitted by Section 7.2, which Investments are set forth on
Schedule 4.3.

	 	 	 	Section 4.4 Financial Statements.

(a) The Consolidated balance sheets of the Administrative Borrower and its Subsidiaries as at
December 31, 2004 and as at September 30, 2005, and the related Consolidated statements of income,
retained earnings and cash flows of the Administrative Borrower and its Subsidiaries for the fiscal
year or fiscal quarter, as the case may be, then ended (and the December 31, 2004 financial
statements certified by Ernst & Young LLP), copies of which have been furnished to each Lender,
fairly present the Consolidated financial condition of the Administrative Borrower and its
Subsidiaries as at such date and the Consolidated results of the operations of the Administrative
Borrower and its Subsidiaries for the period ended on such date, all in conformity with GAAP
(subject, in the case of the financial statements as of and for the period ended September 30,
2005, to normal year-end adjustments and to the absence of notes).

(b) Except as set forth on Schedule 4.4, neither the Administrative Borrower nor any
of its Restricted Subsidiaries has any material obligation, material contingent liability or
material liability for taxes, material long-term leases or unusual forward or long-term material
commitment that is not reflected in the Financial Statements referred to in clause (a)
above or in the notes thereto and not otherwise permitted by this Agreement.

(c) The One Year Projections were prepared by the Administrative Borrower in light of the past
operations of its business, and reflect projections for the one year period beginning on January 1,
2006 on a quarterly basis. The One Year Projections are based upon estimates and assumptions
stated therein, that the Administrative Borrower believes in each case to be reasonable and fair in
light of current conditions and current facts known to the Administrative Borrower on the Original
Effective Date and, as of the Original Effective Date, reflect the Administrative Borrower’s good
faith and reasonable estimates of the future financial performance of the Administrative Borrower
and its Restricted Subsidiaries and of the other information projected therein for the periods set
forth therein.

	 	 	 	Section 4.5 Material Adverse Change.

There has been no Material Adverse Change and there have been no events or developments that
in the aggregate have had a Material Adverse Effect since December 31, 2004.

	 	 	 	Section 4.6 Litigation.

Except as set forth on Schedule 4.6, there are no pending or, to the knowledge of the
Administrative Borrower threatened actions, investigations or proceedings affecting the
Administrative Borrower or any of its Restricted Subsidiaries before any court, Governmental
Authority or arbitrator other than those that in the aggregate are not reasonably likely to be
determined adversely to any Loan Party and, if so determined, would not have a Material Adverse
Effect. The performance of any action by any Loan Party required or contemplated by any Loan
Documents is not restrained or enjoined (either temporarily, preliminarily or permanently).

	 	 	 	Section 4.7 Taxes.

(a) All federal, state, local and foreign income and franchise and other material tax returns,
reports and statements (collectively, the “Tax Returns”) required to be filed by the
Administrative Borrower or any of its Tax Affiliates have been filed with the appropriate
Governmental Authorities in all jurisdictions in which such Tax Returns are required to be filed,
all such Tax Returns are true and correct in all material respects, and all taxes, charges and
other impositions reflected therein have been paid prior to the date on which any fine, penalty,
interest, late charge or loss may be added thereto for non-payment thereof except where contested
in good faith and by appropriate proceedings if adequate reserves therefor have been established on
the books of the Administrative Borrower or such Tax Affiliate in conformity with GAAP. Except as
set forth on Schedule 4.7, no Tax Return is under audit or examination by any Governmental
Authority and no notice of such an audit or examination or any assertion of any claim for Taxes has
been given or made by any Governmental Authority. Proper and accurate amounts have been withheld
by the Administrative Borrower and each of its Tax Affiliates from their respective employees for
all periods in full and complete compliance with the tax, social security and unemployment
withholding provisions of applicable Requirements of Law and such withholdings have been timely
paid to the respective Governmental Authorities.

(b) Except as set forth on Schedule 4.7, none of the Administrative Borrower or any of
its Tax Affiliates has (i) executed or filed with the IRS or any other Governmental Authority any
agreement or other document extending, or having the effect of extending, the period for the filing
of any Tax Return or the assessment or collection of any charges, (ii) incurred any obligation
under any tax sharing agreement or arrangement other than those of which the Administrative Agent
has received a copy prior to the date hereof, or (iii) been a member of an affiliated, combined or
unitary group other than the group of which the Administrative Borrower (or its Tax Affiliate) is
the common parent.

	 	 	 	Section 4.8 Full Disclosure.

(a) The information prepared or furnished by or on behalf of any Loan Party in connection with
this Agreement, the other Loan Documents or the consummation of the transactions contemplated
hereby or thereby including the information contained in the Disclosure Documents, does not contain
any untrue statement of a material fact or omit to state a material fact necessary to make the
statements contained therein or herein not misleading.

(b) The Administrative Borrower has delivered to the Administrative Agent a true, complete and
correct copy of the Disclosure Documents. The Disclosure Documents comply as to form in all
material respects with all applicable requirements of all applicable state and Federal securities
laws.

	 	 	 	Section 4.9 Margin Regulations.

No Borrower is engaged in the business of extending credit for the purpose of purchasing or
carrying margin stock (within the meaning of Regulation U of the Federal Reserve Board), and no
proceeds of any Loan or Letter of Credit will be used to purchase or carry any such margin stock or
to extend credit to others for the purpose of purchasing or carrying any such margin stock in
contravention of Regulation T, U or X of the Federal Reserve Board.

	 	 	 	Section 4.10 No Burdensome Restrictions; No Defaults.

(a) Neither the Administrative Borrower nor any of its Restricted Subsidiaries (i) is a party
to any Contractual Obligation the performance of which by any thereof, either unconditionally or
upon the happening of an event, would result in the creation of a Lien (other than a Lien permitted
under Section 7.1) on the property or assets of any thereof or (ii) is subject to any charter or
corporate restrictions that would, in the aggregate, have a Material Adverse Effect.

(b) Neither the Administrative Borrower nor any of its Restricted Subsidiaries is in default
under or with respect to any Contractual Obligation owed by it and, to the knowledge of the
Administrative Borrower, no other party is in default under or with respect to any Contractual
Obligation owed to any Loan Party, other than, in either case, those defaults that in the aggregate
would not have a Material Adverse Effect.

(c) To the best knowledge of the Administrative Borrower, there are no Requirements of Law
applicable to any Loan Party the compliance with which by such Loan Party would, in the aggregate,
have a Material Adverse Effect.

	 	 	 	Section 4.11 Investment Company Act.

Neither the Administrative Borrower nor any of its Restricted Subsidiaries is an
"investment company” or an “affiliated person” of, or “promoter” or
"principal underwriter” for, an “investment company,” as such terms are defined in
the Investment Company Act of 1940, as amended.

	 	 	 	Section 4.12 Use of Proceeds.

The proceeds of the Loans and the Letters of Credit have been prior to the date hereof used by
the Administrative Borrower solely in accordance with the March 2006 Credit Agreement, and on and
after the date hereof have been or are being used by the Borrowers (a) to pay transaction costs,
fees and expenses related to this Agreement and (b) for (i) current operating obligations of the
Borrowers incurred in the ordinary course of business as currently conducted and (ii) Investments
permitted by Section 7.2(i).

	 	 	 	Section 4.13 Insurance.

Except as set forth on Schedule 4.13, all policies of insurance of any kind or nature
of the Administrative Borrower or any of its Restricted Subsidiaries, including policies of life,
fire, theft, product liability, public liability, property damage, other casualty, employee
fidelity, workers’ compensation and employee health and welfare insurance, are in full force and
effect and are of a nature and provide such coverage as is customarily carried by, and to the best
knowledge and belief of the Administrative Borrower is sufficient for, businesses of the size and
character of such Person. Except as set forth on Schedule 4.13, none of the Administrative
Borrower or any of its Restricted Subsidiaries has in the three years preceding the Original
Effective Date been refused insurance for any material coverage for which it had applied or had any
policy of insurance terminated (other than at its request).

	 	 	 	Section 4.14 Labor Matters.

(a) There are no strikes, work stoppages, slowdowns or lockouts pending or threatened against
or involving the Administrative Borrower or any of its Subsidiaries, other than those that in the
aggregate would not have a Material Adverse Effect.

(b) There are no unfair labor practices, grievances or complaints pending, or, to the
Borrower’s knowledge, threatened, against or involving the Administrative Borrower or any of its
Restricted Subsidiaries, nor are there any pending or, to the Administrative Borrower’s knowledge,
threatened arbitrations or grievances involving the Administrative Borrower or any of its
Restricted Subsidiaries, other than those that, in the aggregate, if resolved adversely to the
Administrative Borrower or such Restricted Subsidiary, would not have a Material Adverse Effect.

	 	 	 	Section 4.15 ERISA.

Each Title IV Plan is in compliance in all material respects with applicable provisions of
ERISA, the Code and other Requirements of Law except for non-compliances that in the aggregate
would not have a Material Adverse Effect. There has been no, nor is there reasonably expected to
occur, any ERISA Event other than those that, in the aggregate, would not have a Material Adverse
Effect. Neither the Administrative Borrower nor any ERISA Affiliate has contributed or been
obligated to contribute to, any Multiemployer Plan within the last six years.

	 	 	 	Section 4.16 Environmental Matters.

(a) The operations of each Borrower and each of its Subsidiaries have been and are in
compliance with all Environmental Laws, other than non-compliances that individually or in the
aggregate are not reasonably likely to result in a Material Adverse Effect.

(b) There are no facts, circumstances or conditions arising out of or relating to the
operations of any Borrower or any of its Subsidiaries or ownership of Real Property owned, operated
or leased by any Borrower or any of its Subsidiaries which are not specifically included in the
financial information furnished to the Lenders other than those that individually or in the
aggregate are not reasonably likely to result in a Material Adverse Effect.

	 	 	 	Section 4.17 Intellectual Property.

The Administrative Borrower and its Restricted Subsidiaries own or license or otherwise have
the right to use all licenses, permits, patents, patent applications, trademarks, trademark
applications, service marks, trade names, copyrights, copyright applications, franchises,
authorizations and other intellectual property rights that are material for the operations of their
respective businesses, without infringement upon or conflict with the rights of any other Person
with respect thereto, including all trade names associated with any private label brands of the
Administrative Borrower or any of its Restricted Subsidiaries. To the Administrative Borrower’s
knowledge, no slogan or other advertising device, product, process, method, substance, part or
component, or other material now employed, or now contemplated to be employed, by the
Administrative Borrower or any of its Restricted Subsidiaries infringes upon or conflicts with any
rights owned by any other Person, and no action, proceeding, claim or litigation regarding any of
the foregoing is pending or threatened.

	 	 	 	Section 4.18 Title; Real Property.

(a) Each of the Administrative Borrower and its Restricted Subsidiaries has good and
marketable or indefeasible title to, or valid leasehold interests in, all Real Property and good
title to all material personal property in each case that is purported to be owned or leased by it,
including those reflected on the most recent Financial Statements delivered by the Administrative
Borrower, and none of such properties and assets is subject to any Lien, except Liens permitted
under Section 7.1.

(b) All Permits required to have been issued or appropriate to enable all Real Property of the
Administrative Borrower or any of its Restricted Subsidiaries to be lawfully occupied and used for
all of the purposes for which they are currently occupied and used have been lawfully issued and
are in full force and effect, other than those that, in the aggregate, would not have a Material
Adverse Effect.

(c) None of the Borrower or any of its Restricted Subsidiaries has received any notice, or has
any knowledge, of any pending, threatened or contemplated condemnation proceeding affecting any
Real Property of the Borrower or any of its Subsidiaries or any part thereof, except those that, in
the aggregate, would not have a Material Adverse Effect.

	 	 	 	Section 4.19 Anti-Terrorism Laws.

(a) Neither the Administrative Borrower nor, to the knowledge of any of the Loan Parties, any
of its Affiliates is in violation of any laws relating to terrorism or money laundering
(“Anti-Terrorism Laws”), including Executive Order No. 13224 on Terrorist Financing,
effective September 23, 2001 (the “Executive Order”), and the Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001,
Public Law 107-56 (signed into law on October 26, 2001) (the “USA Patriot Act”).

(b) Neither the Administrative Borrower nor, to the knowledge of any of Loan Parties, any of
its Affiliates acting or benefiting in any capacity in connection with the Loans is any of the
following:

(i) a Person or entity that is listed in the annex to, or is otherwise subject to the
provisions of, the Executive Order;

(ii) a Person or entity owned or controlled by, or acting for or on behalf of, any
Person or entity that is listed in the annex to, or is otherwise subject to the provisions
of, the Executive Order;

(iii) a Person or entity with which any Lender is prohibited from dealing or otherwise
engaging in any transaction by any Anti-Terrorism Law;

(iv) a Person or entity that commits, threatens or conspires to commit or supports
“terrorism” as defined in the Executive Order; or

(v) a Person or entity that is named as a “specially designated national and blocked
person” on the most current list published by the U.S. Treasury Department Office of
Foreign Assets Control at its official website or any replacement website or other
replacement official publication of such list.

(c) Neither the Administrative Borrower nor, to the knowledge of any Loan Party, any of its
Affiliates acting in any capacity in connection with the Loans (i) conducts any business or engages
in making or receiving any contribution of funds, goods or services to or for the benefit of any
Person described in clause (b) above, (ii) deals in, or otherwise engages in any
transaction relating to, any property or interests in property blocked pursuant to the Executive
Order, or (iii) engages in or conspires to engage in any transaction that evades or avoids, or has
the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in
any Anti-Terrorism Law.

ARTICLE V

FINANCIAL COVENANTS

As long as any of the Obligations or the Revolving Credit Commitments remain outstanding,
unless the Requisite Lenders otherwise consent in writing, the Borrowers agree with the Lenders and
the Administrative Agent that:

	 	 	 	Section 5.1 Adjusted Consolidated Tangible Net Worth.

The Administrative Borrower shall maintain Adjusted Consolidated Tangible Net Worth measured
as of the last day of each fiscal quarter ending after the Original Effective Date of (a)
$500,000,000 plus (b) in the case of each fiscal quarter ending after the Original
Effective Date, 50% of the Consolidated Net Income of the Administrative Borrower for each full
fiscal quarter starting after the Original Effective Date plus (c) 50% of the aggregate
increase in shareholders’ equity of the Administrative Borrower after the date hereof by reason of
an Equity Issuance (including upon conversion of Indebtedness into such capital stock but excluding
(i) stock issued in connection with an employee stock ownership plan, an employee stock option
plan, an employee stock purchase plan, and (ii) any portion of such increase in shareholders’
equity attributable to goodwill recognized in connection with a Permitted Acquisition).

	 	 	 	Section 5.2 Maximum Indebtedness to Adjusted Consolidated Tangible Net Worth
Ratio.

The Administrative Borrower shall maintain Indebtedness to Adjusted Consolidated Tangible Net
Worth Ratio measured as of the last day of each fiscal quarter ending after the Original Effective
Date of not more than (a) 2.50 to 1, if at such time the Interest Coverage Ratio, determined as of
such last day, for the four fiscal quarter period ending on such last day is greater than or equal
to 2.50 to 1, and (b) 2.25 to 1 if at such time the Interest Coverage Ratio, determined as of such
last day, for the four fiscal quarter period ending on such last day, is less than 2.50 to 1.

	 	 	 	Section 5.3 Minimum Interest Coverage Ratio.

The Administrative Borrower shall maintain an Interest Coverage Ratio, measured as of the last
day of each fiscal quarter ending after the Original Effective Date, for the four fiscal quarter
period ending on such day, of greater than or equal to 2.00 to 1.

	 	 	 	Section 5.4 Unsold Land to Adjusted Consolidated Tangible Net Worth.

The Administrative Borrower shall maintain a ratio measured as of the last day of each fiscal
quarter ending after the Original Effective Date of (a) Unsold Land of the Administrative Borrower
and its Restricted Subsidiaries, the value of which is determined in conformity with GAAP, to
(b) Adjusted Consolidated Tangible Net Worth of not more than 1.50 to 1.

	 	 	 	Section 5.5 Unsold Units to Units Closed.

The Administrative Borrower shall maintain a ratio measured as of the last day of each fiscal
quarter ending after the Original Effective Date of (a) the aggregate number of Units owned by the
Administrative Borrower and its Restricted Subsidiaries that constitute Unsold Units to (b) Units
Closed by the Administrative Borrower and its Restricted Subsidiaries, determined as of the last
day of each calendar month, for the twelve months ending on such day, of not more than 1 to 4. For
the avoidance of doubt, for any period, the calculation of the ratio of Unsold Units to Units
Closed shall give pro forma effect to the Unsold Units and Units Closed acquired by the
Administrative Borrower or its Restricted Subsidiaries in connection with a Permitted Acquisition
consummated during such period.

ARTICLE VI

AFFIRMATIVE COVENANTS

As long as the Obligations or the Revolving Credit Commitments remain outstanding, unless the
Requisite Lenders otherwise consent in writing, the Borrowers agree with the Lenders and the
Administrative Agent that:

	 	 	 	Section 6.1 Reporting Requirements.

The Administrative Borrower shall furnish to the Administrative Agent each of the following:

	 	(a)	 	Quarterly Reports.

Within 45 days after the end of each fiscal quarter (other than fiscal quarters ending
December 31), financial information regarding the Administrative Borrower and its Subsidiaries
consisting of Consolidated and consolidating unaudited balance sheets as of the close of such
quarter and the related statements of income and cash flow for such quarter and that portion of the
fiscal year ending as of the close of such quarter, setting forth in comparative form the figures
for the corresponding period in the prior year and the figures contained in the One Year
Projections, or, if applicable the latest business plan provided pursuant to clause (d)
below, for the current fiscal year, in each case certified by the Chief Financial Officer of the
Administrative Borrower as fairly presenting the Consolidated and consolidating financial position
of the Administrative Borrower and its Subsidiaries as at the dates indicated and the results of
their operations and cash flow for the periods indicated in conformity with GAAP (subject to the
absence of footnote disclosure and normal year-end audit adjustments). To the extent the
information set forth in this clause (a) of Section 6.1 are included in the Administrative
Borrower’s Quarterly Report on Form 10-Q as filed with the Securities and Exchange Commission, such
information shall be deemed delivered for the purposes hereof.

(b) Annual Reports.

Within 90 days after the end of each fiscal year, financial information regarding the
Administrative Borrower and its Subsidiaries consisting of Consolidated and consolidating balance
sheets of the Administrative Borrower and its Subsidiaries as of the end of such year and related
statements of income and cash flows of the Administrative Borrower and its Subsidiaries for such
fiscal year, all prepared in conformity with GAAP and certified, in the case of such Consolidated
Financial Statements, without qualification as to the scope of the audit or as to the
Administrative Borrower being a going concern by Ernst & Young LLP or another nationally recognized
independent certified public accountant, together with the report of such accounting firm stating
that (i) such Financial Statements fairly present the Consolidated financial position of the
Administrative Borrower and its Subsidiaries as at the dates indicated and the results of their
operations and cash flow for the periods indicated in conformity with GAAP applied on a basis
consistent with prior years (except for changes with which such independent certified public
accountants shall concur and which shall have been disclosed in the notes to the Financial
Statements) and (ii) the examination by such accountants in connection with such Consolidated
Financial Statements has been made in accordance with generally accepted auditing standards, and
accompanied by a certificate stating that in the course of the regular audit of the business of the
Administrative Borrower and its Subsidiaries such accounting firm has obtained no knowledge that a
Default or Event of Default in respect of the financial covenant contained in Section 5.2 has
occurred and is continuing or, if in the opinion of such accounting firm, a Default or Event of
Default has occurred and is continuing in respect of such financial covenant, a statement as to the
nature thereof. To the extent the information set forth in this clause (b) of Section 6.1
are included in the Administrative Borrower’s Annual Report on Form 10-K as filed with the
Securities and Exchange Commission, such information shall be deemed delivered for the purposes
hereof.

(c) Compliance Certificate. Together with each delivery of any report pursuant to
clauses (a) and (b) of this Section 6.1,

(i) a certificate of a Responsible Officer of the Administrative Borrower (each, a
"Compliance Certificate”) (A) showing in reasonable detail the calculations used in
determining the Indebtedness to Adjusted Consolidated Tangible Net Worth Ratio (for purposes of
determining the Applicable Margin and the Applicable Unused Commitment Fee Rate) and demonstrating
compliance with each of the financial covenants contained in Article V as of the end of such
quarter, (B) showing such information and calculations reasonably requested by the Administrative
Agent relating to Indebtedness Associated with Assets Not Owned of the Administrative Borrower and
its Restricted Subsidiaries or with respect to which the Administrative Borrower or any of its
Restricted Subsidiaries has options (or similar rights) to purchase land and (C) stating that no
Default or Event of Default has occurred and is continuing or, if a Default or an Event of Default
has occurred and is continuing, stating the nature thereof and the action that the Administrative
Borrower proposes to take with respect thereto; and

(ii) summary Consolidated and consolidating financial statements for each of (A) the
Unrestricted Subsidiaries as a group and (B) the Administrative Borrower and the Restricted
Subsidiaries as a group.

(d) Projections/Business Plan.

Not later than the end of each fiscal year, and containing substantially the types of
financial information contained in the One Year Projections, the annual business and financial
plans of the Administrative Borrower for the next succeeding fiscal year; provided, however, that
the annual business and financial plans of the Administrative Borrower for the fiscal year ending
on December 31, 2007 shall be delivered no later than the earlier of (i) January 30, 2007 and
(ii) such earlier date as Administrative Borrower delivers substantially similar information to the
lenders to EH/Transeastern, LLC.

(e) Default Notices.

As soon as practicable, and in any event within five Business Days after a Responsible Officer
of any Loan Party has actual knowledge of the existence of any Default, Event of Default or other
event having had a Material Adverse Effect, the Administrative Borrower shall give the
Administrative Agent notice specifying the nature of such Default or Event of Default or other
event, including the anticipated effect thereof, which notice, if given by telephone, shall be
promptly confirmed in writing on the next Business Day.

(f) Notice of Litigation.

Promptly after the commencement thereof, the Administrative Borrower shall give the
Administrative Agent written notice of the commencement of all actions, suits and proceedings
before any domestic or foreign Governmental Authority or arbitrator, affecting the Administrative
Borrower or any of its Restricted Subsidiaries, that, in the reasonable judgment of the
Administrative Borrower, expose the Administrative Borrower or such Restricted Subsidiary to
liability which, if adversely determined could reasonably be expected to have a Material Adverse
Effect.

(g) ERISA Matters.

The Administrative Borrower shall furnish the Administrative Agent the following:

(a) promptly and in any event within 10 days after the Administrative Borrower, any of its
Subsidiaries or any ERISA Affiliate knows or has reason to know that any ERISA Event reasonably
likely to result in a liability of the Administrative Borrower or its Subsidiaries in excess of
$1,000,000 has occurred, a written statement of a Responsible Officer of the Administrative
Borrower describing such ERISA Event and the action, if any, that the Administrative Borrower,
its Subsidiaries and ERISA Affiliates propose to take with respect thereto and a copy of any
notice filed by the Administrative Borrower, any of its Subsidiaries or any ERISA Affiliate
with the PBGC or the IRS pertaining thereto; and

(b) promptly following any request therefor, copies of (i) each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) filed by the Administrative
Borrower or any ERISA Affiliate with the Internal Revenue Service with respect to each Title IV
Plan; (ii) the most recent actuarial valuation report for each Title IV Plan; (iii) all notices
received by the Administrative Borrower or any ERISA Affiliate from a Multiemployer Plan
sponsor or any governmental agency concerning an ERISA Event; and (iv) such other documents or
governmental reports or filings relating to any Title IV Plan (or employee benefit plan
sponsored or contributed to by the Administrative Borrower or any of its Subsidiaries) as the
Administrative Agent shall reasonably request.

(h) Environmental Matters.

The Administrative Borrower shall provide to the Administrative Agent promptly and in any
event within 10 days after receipt by the Administrative Borrower or any Restricted Subsidiary, a
copy of (i) any written notice or claim to the effect that the Administrative Borrower or any
Subsidiary is or may be liable to any Person as a result of a Release or threatened Release or any
toxic or hazardous waste or substance into the environment and (ii) any notice alleging any
violation of any Environmental Law by the Administrative Borrower or any Restricted Subsidiary
which, in the case of either (i) or (ii), could reasonably be expected to have a Material Adverse
Effect.

(i) Borrowing Base Determination.

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

(ii) The Administrative Agent may (prior to the occurrence of an Event of Default, at
its sole cost and expense and with 14 days prior written notice to the Administrative
Borrower, and, after and during the continuance of an Event of Default, at the Borrowers’
sole cost and expense) make physical verifications of the Borrowing Base Assets in any
manner and through any medium that the Administrative Agent considers advisable, and the
Administrative Borrower shall furnish all such assistance and information as the
Administrative Agent may require in connection therewith.

(j) Cash Flow Projections.

Together with the Borrowing Base Certificate delivered by the Administrative Borrower in the
calendar months of January, April, July and October, or more frequently as reasonably requested by
the Administrative Agent, the Administrative Borrower shall deliver to the Administrative Agent
monthly cash flow projections covering the calendar quarter in which such Borrowing Base
Certificate was delivered, each of which shall be in a form reasonably acceptable to the
Administrative Agent.

(k) Recourse Obligations; Joint Venture Disclosures.

The Administrative Borrower shall deliver to the Administrative Agent no later than 45 days
after the end of each fiscal quarter, or more frequently as reasonably requested by the
Administrative Agent, (i) a schedule of guarantee, indemnity and similar undertakings and other
contingent obligations of the Administrative Borrower and its Restricted Subsidiaries, with respect
to Joint Ventures and other third parties (other than any such undertakings and obligations of the
Administrative Borrower with respect to any Restricted Subsidiary), including, in each case, a
description of such undertakings and obligations (including the face amount thereof) and the
conditions giving rise to claims in respect thereof and (ii) reports with respect to Joint Ventures
covering the subject matter of the representations and warranties set forth in Sections 4.6, 4.10,
4.14, 4.15, 4.16 and 4.18, as applied to the Joint Ventures (with schedules of exceptions, if
necessary).

(l) Material Developments with respect to Joint Ventures.

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

(m) Transeastern JV.

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

(ii) The Administrative Borrower shall promptly report verbally to a designated
representative of the Administrative Agent any (A) material development with respect to
EH/Transeastern, LLC and (B) definitive agreement reached with respect to restructuring of
the financial obligations or capital structure of EH/Transeastern, LLC and any obligations
of the Administrative Borrower or any of its Subsidiaries with respect thereto.

(n) Other Information.

The Administrative Borrower will provide the Administrative Agent or any Lender with such
other information respecting the business, properties, condition, financial or otherwise, or
operations of the Administrative Borrower or any of its Restricted Subsidiaries as the
Administrative Agent or any Lender through the Administrative Agent may from time to time
reasonably request.

Section 6.2 Preservation of Corporate Existence, Etc.

The Administrative Borrower shall, and shall cause each of its Restricted Subsidiaries to,
preserve and maintain its legal existence, rights (charter and statutory) and franchises, except as
permitted by Section 7.2 and Section 7.4.

Section 6.3 Compliance with Laws, Etc.

The Administrative Borrower shall, and shall cause each of its Restricted Subsidiaries to,
comply with all applicable Requirements of Law, Contractual Obligations and Permits, except where
the failure so to comply would not in the aggregate have a Material Adverse Effect.

Section 6.4 Conduct of Business.

The Administrative Borrower shall, and shall cause each of its Restricted Subsidiaries to,
(a) conduct its business in the ordinary course and (b) use its reasonable efforts, in the ordinary
course and consistent with past practice, to preserve its business and the goodwill and business of
the customers, advertisers, suppliers and others having business relations with the Administrative
Borrower or any of its Restricted Subsidiaries, except where the failure to comply with the
covenants in each of clauses (a) and (b) above would not in the aggregate have a
Material Adverse Effect.

	 	 	 	Section 6.5 Payment of Taxes, Etc.

The Administrative Borrower shall, and shall cause each of its Subsidiaries to, pay and
discharge before the same shall become delinquent, all lawful material governmental claims, taxes,
assessments, charges and levies, except where contested in good faith, by proper proceedings and
adequate reserves therefor have been established on the books of the Administrative Borrower or the
appropriate Subsidiary in conformity with GAAP.

Section 6.6 Maintenance of Insurance.

The Administrative Borrower shall maintain for, and cause to be maintained by, each of its
Restricted Subsidiaries insurance with responsible and reputable insurance companies or
associations in such amounts and covering such risks as is usually carried by companies engaged in
similar businesses and owning similar properties in the same general areas in which the
Administrative Borrower or such Restricted Subsidiary operates, and such other insurance as may be
reasonably requested by the Requisite Lenders.

Section 6.7 Transactions with Affiliates.

The Administrative Borrower shall conduct, and cause each of its Subsidiaries to conduct, all
transactions otherwise not prohibited under this Agreement with any of their Affiliates (including
payment of management fees) on terms that are fair and reasonable and no less favorable to the
Administrative Borrower or such Subsidiary than it would obtain in an arm’s-length transaction with
a Person not an Affiliate thereof; provided, however, that (a) the Administrative
Borrower may make payments to TOSI of up to $5,000,000 in any fiscal year under the Management
Services Agreement (or another similar agreement) and (b) the Administrative Borrower may perform
its obligations under the Tax Allocation Agreement.

Section 6.8 Access.

The Administrative Borrower shall from time to time permit the Administrative Agent and the
Lenders, or any agents or representatives thereof, promptly after written notification of the same
(except that during the continuance of an Event of Default, no such notice shall be required) to
(a) examine and make copies of and abstracts from the records and books of account of the
Administrative Borrower and each of its Subsidiaries and Joint Ventures, (b) visit the properties
of the Administrative Borrower and each of its Subsidiaries and Joint Ventures, (c) discuss the
affairs, finances and accounts of the Administrative Borrower and each of its Subsidiaries and
Joint Ventures with any of their respective officers or directors and (d) communicate directly with
any of the Borrower’s certified public accountants and other professionals retained by the
Administrative Borrower, its Subsidiaries and Joint Ventures and hereby instructs (on behalf of
itself, its Subsidiaries and Joint Ventures) such accountants and other professionals to cooperate
with and provide information to the Administrative Agent (other than any such communication which
is subject to attorney-client privilege). The Administrative Borrower shall authorize its
independent certified public accountants to disclose to the Administrative Agent or any Lender
during the continuance of an Event of Default of the type described in Section 9.1(a) or (b) any
and all Financial Statements and other information of any kind, as the Administrative Agent or any
Lender reasonably requests from the Administrative Borrower and that such accountants may have with
respect to the business, financial condition, results of operations or other affairs of the
Administrative Borrower or any of its Subsidiaries and Joint Ventures. Provisions in this Section
6.8 with respect to Joint Ventures shall apply to Joint Ventures managed by the Administrative
Borrower or any of its Subsidiaries and in all other cases shall apply only to the extent of
information received by the Administrative Borrower or any of its Subsidiaries from the Joint
Venture.

Section 6.9 Keeping of Books.

The Administrative Borrower shall, and shall cause each of its Subsidiaries to keep, proper
books of record and account, in which full and correct entries shall be made in conformity with
GAAP (to the extent GAAP is applicable thereto) of all financial transactions and the assets and
business of the Administrative Borrower and each such Subsidiary.

Section 6.10 Maintenance of Properties, Etc.

The Administrative Borrower shall, and shall cause each of its Restricted Subsidiaries to,
maintain and preserve, (a) all of its properties (tangible and intangible) which are necessary in
the conduct of its business in good working order and condition, subject to ordinary wear and tear,
(b) all rights, permits, licenses, approvals and privileges (including all Permits) used or useful
or necessary in the conduct of its business and (c) all registered patents, trademarks, trade
names, copyrights, service marks and other intellectual property with respect to its business;
except where the failure to so maintain and preserve would not in the aggregate have a Material
Adverse Effect.

Section 6.11 Application of Proceeds.

The Borrowers shall use the entire amount of the proceeds of the Loans and Letters of Credit
as provided in Section 4.12.

Section 6.12 Environmental.

The Administrative Borrower shall, and shall cause each of its Restricted Subsidiaries to
comply in all material respects with Environmental Laws and, without limiting the foregoing, the
Administrative Borrower shall, at its sole cost and expense, upon receipt of any notification or
otherwise obtaining knowledge of any Release or other event that individually or in the aggregate
could reasonably be expected to have a Material Adverse Effect, (a) conduct or pay for consultants
to conduct, tests or assessments of environmental conditions at such operations or properties,
including the investigation and testing of subsurface conditions and (b) take such Remedial Action,
and undertake such investigation or other action as required by Environmental Laws or as any
Governmental Authority requires or as is appropriate and consistent with good business practice to
address the Release or event and otherwise ensure compliance with Environmental Laws.

Section 6.13 Additional Subsidiary Borrowers.

To the extent not delivered to the Administrative Agent on or before the Effective Date, the
Administrative Borrower promptly shall, and shall cause each of its Restricted Subsidiaries
promptly to, in the case of any Restricted Subsidiary that is a Domestic Subsidiary owning 5% or
more of the Total Assets of the Administrative Borrower and its Restricted Subsidiaries or
contributing 5% or more of the Consolidated Net Income of the Administrative Borrower and its
Restricted Subsidiaries for the immediately preceding four fiscal quarters, cause such Restricted
Subsidiary to become a party hereto as an additional Subsidiary Borrower. Notwithstanding anything
herein to the contrary, in the event that at any time the Subsidiaries of the Administrative
Borrower (other than those Subsidiaries engaged in the business of originating residential home
loans, title insurance and reinsurance) that are not Borrowers own, in the aggregate for all such
Subsidiaries, 5% or more of the Total Assets of the Administrative Borrower and its Restricted
Subsidiaries or contribute 5% or more of the Consolidated Net Income of the Administrative Borrower
and its Restricted Subsidiaries for the immediately preceding four fiscal quarters, the
Administrative Borrower shall promptly cause such number of its Subsidiaries to become a party
hereto as additional Subsidiary Borrowers so that the Subsidiaries of the Administrative Borrower
that are not Subsidiary Borrowers do not own, in the aggregate for all such Subsidiaries, 5% or
more of the Total Assets of the Administrative Borrower and its Restricted Subsidiaries or
contribute 5% or more of the Consolidated Net Income of the Administrative Borrower and its
Restricted Subsidiaries for the immediately preceding four fiscal quarters. Prior to any
Subsidiary of the Administrative Borrower incurring, or having outstanding (including, without
limitation, the Senior Notes or the Senior Subordinated Notes) any guaranty obligation in respect
of other Indebtedness of the Administrative Borrower or any Restricted Subsidiary, the
Administrative Borrower shall promptly cause such Subsidiary to become a party hereto as an
additional Subsidiary Borrower. Each of the Borrowers agrees that, if, pursuant to this Section
6.13, the Administrative Borrower shall be required to cause any Subsidiary that is not a
Subsidiary Borrower to become an additional Subsidiary Borrower, or if for any reason the
Administrative Borrower desires any such Subsidiary to become an additional Subsidiary Borrower,
such Subsidiary shall execute and deliver to the Administrative Agent a Credit Agreement Supplement
and shall thereafter for all purposes be a party to this Agreement and have the same rights,
benefits and obligations as a Borrower on the Effective Date.

Section 6.14 Designation of Restricted and Unrestricted Subsidiaries.

The Board of Directors may designate any Subsidiary of the Administrative Borrower to be an
Unrestricted Subsidiary if the Subsidiary to be so designated:

(a) does not own any Stock or Indebtedness of, or own or hold any Lien on any property of, the
Administrative Borrower or any other Restricted Subsidiary or is not otherwise required by the
terms of this Agreement to be a Restricted Subsidiary, a Borrower or a Guarantor;

(b) has no Indebtedness other than Indebtedness:

(1) as to which neither the Administrative Borrower nor any of its Restricted
Subsidiaries (A) provides credit support of any kind (including any undertaking,
agreement or instrument that would constitute Indebtedness), (B) is directly or
indirectly liable as a guarantor or otherwise, or (C) constitutes the lender; provided,
however, the Administrative Borrower or a Restricted Subsidiary may loan, advance or
extend credit to, or guarantee the Indebtedness of, an Unrestricted Subsidiary at any
time following the date such Subsidiary is designated as an Unrestricted Subsidiary in
accordance with this Section 6.14; and

(2) no default with respect to which (including any rights that the holders thereof
may have to take enforcement action against an Unrestricted Subsidiary) would permit
upon notice, lapse of time or both any holder of any other Indebtedness (other any
guaranty permitted by the proviso to the preceding clause (1)) of the
Administrative Borrower or any of its Restricted Subsidiaries to declare a default on
such other Indebtedness or cause the payment thereof to be accelerated or payable prior
to its stated maturity;

(c) is not party to any agreement, contract, arrangement or understanding with the
Administrative Borrower or any Restricted Subsidiary of the Administrative Borrower unless the
terms of any such agreement, contract, arrangement or understanding are no less favorable to the
Administrative Borrower or such Restricted Subsidiary than those that might be obtained at the time
from Persons who are not Affiliates of the Administrative Borrower;

(d) is a Person with respect to which neither the Administrative Borrower nor any of its
Restricted Subsidiaries has any direct or indirect obligation (1) to subscribe for additional Stock
or (2) to maintain or preserve such Person’s financial condition or to cause such Person to achieve
any specified levels of operating results;

(e) has not guaranteed or otherwise directly or indirectly provided credit support for any
Indebtedness of the Administrative Borrower or any of its Restricted Subsidiaries; and

(f) has at least one director on its board of directors that is not a director or executive
officer of the Administrative Borrower or any of its Restricted Subsidiaries and has at least one
executive officer that is not a director or executive officer of the Administrative Borrower or any
of its Restricted Subsidiaries.

Unless so designated as an Unrestricted Subsidiary, any Person that is or becomes a Subsidiary
of the Borrower will be classified as a Restricted Subsidiary.

Upon designation of a Restricted Subsidiary as an Unrestricted Subsidiary in compliance with
this covenant, such Restricted Subsidiary shall be released from the Guaranty previously made by
such Restricted Subsidiary and, if such Restricted Subsidiary is a Borrower, shall be released from
this Agreement and the Revolving Credit Notes (if any).

The Board of Directors may designate any Unrestricted Subsidiary to be a Restricted
Subsidiary, if, immediately after giving pro forma effect to such designation, no Default or Event
of Default shall have occurred and be continuing or would result therefrom.

Any such designation or redesignation by the Board of Directors will be evidenced to the
Administrative Agent by filing with the Administrative Agent (within five Business Days after
adoption of such resolution) a board resolution giving effect to such designation or redesignation
and an officers’ certificate signed by two Responsible Officers that:

(a) certifies that such designation or redesignation complies with the preceding provisions;
and

(b) gives the effective date of such designation or redesignation.

The Administrative Borrower shall not enter into, or permit a Restricted Subsidiary to enter
into, any transaction with an Unrestricted Subsidiary that, if in effect at the time of designation
of such Subsidiary as an Unrestricted Subsidiary, would be inconsistent with the above restrictions
as to designation of Restricted Subsidiaries as Unrestricted Subsidiaries.

Section 6.15 Mortgage Requirements.

(a) Completed Unsold Homes. Mortgages on Units that became Completed Unsold Homes on
or prior to November 30, 2006, including all related Mortgage Requirements, will be delivered no
later than January 30, 2007, excluding any Completed Unsold Home that is no longer a Completed
Unsold Home as of January 30, 2007 either because of being “completed” (within the meaning of the
definition of Completed Unsold Home) for more than six months as of such date or because such Unit
has been conveyed to an unrelated third party purchaser to a Contract for Sale; provided
that if the Borrowers have substantially complied with the requirements of this sentence by January
30, 2007, such date may, upon request of the Administrative Borrower, be extended by the
Administrative Agent to a date not later than March 1, 2007.

(b) Subdivision Mortgages.

(i) No later than March 1, 2007, each Borrower shall (A) execute and deliver for recording
in the appropriate land records of the applicable Governmental Authority initial Mortgages
covering all Unsold Home Under Construction, Completed Unsold Homes and Sold Homes owned by
such Borrower and all Finished Lots owned by such Borrower in a subdivision where such Borrower
also owns Unsold Home Under Construction, Completed Unsold Homes and Sold Homes with respect to
subdivisions in which Mortgages were delivered under Section 6.15(a) (excluding any Completed
Unsold Home covered by a Mortgage delivered under Section 6.15(a)), and (B) deliver to the
Administrative Agent (or its designated third party agent) a duplicate executed original of
each such Mortgage together with a policy of title insurance covering such Mortgage as
described in Section 6.15(d)(v); provided that if the Borrowers have substantially
complied with the requirements of this clause (i) by March 1, 2007, such date may, upon request
of the Administrative Borrower, be extended by the Administrative Agent to a date not later
than April 1, 2007.

(ii) No later than April 1, 2007, each Borrower shall (A) execute and deliver for
recording in the appropriate land records of the applicable Governmental Authority initial
Mortgages covering all Unsold Home Under Construction, Completed Unsold Homes and Sold Homes
owned by such Borrower and all Finished Lots owned by such Borrower in a subdivision where such
Borrower also owns Unsold Home Under Construction, Completed Unsold Homes and Sold Homes and
not covered by Mortgages delivered under Section 6.15(a) or 6.15(b), and (B) deliver to the
Administrative Agent (or its designated third party agent) a duplicate executed original of
each such Mortgage together with a policy of title insurance covering such Mortgage as
described in Section 6.15(d)(v); provided that if the Borrowers have substantially
complied with the requirements of this clause (ii) by April 1, 2007, such date may, upon
request of the Administrative Borrower, be extended by the Administrative Agent to a date not
later than May 1, 2007.

(iii) As any additional Finished Lot is acquired by a Borrower in a subdivision where such
Borrower also owns Unsold Home Under Construction, Completed Unsold Homes or Sold Homes subject
to a Mortgage, contemporaneously with or promptly following such acquisition, the applicable
Borrower shall either (A) (1) execute and deliver for recording in the appropriate land records
of the applicable Governmental Authority, an amendment, spreader or similar modification to the
applicable Mortgage, in form and substance reasonably satisfactory to the Administrative Agent,
extending the Lien of such Mortgage to cover such additional Finished Lot and (2) deliver to
the Administrative Agent (or its designated third party agent) a duplicate executed original of
each such amendment, spreader or similar modification together with an endorsement to the
policy of title insurance covering the applicable Mortgage insuring the applicable Mortgage as
so modified, in a form sufficient that the applicable title policy satisfies the requirements
of Section 6.15(d)(v), or (B) if an amendment, spreader or similar modification is not commonly
in use in the state where such Finished Lot is located, then in lieu of clause (A) of this
sentence, (1) execute and deliver for recording in the appropriate land records of the
applicable Governmental Authority a Mortgage covering such additional Finished Lot and (2)
deliver to the Administrative Agent (or its designated third party) a duplicate executed
original of each such Mortgage together with a policy of title insurance covering such Mortgage
as described in Section 6.15(d)(v).

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

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

(i) the Mortgage will be recorded in the appropriate land records of the applicable
Governmental Authority, provided that in connection with such recording, subject to the
prior approval of the Administrative Agent, the Borrowers may undertake customary procedures to
reduce mortgage recording, transfer, documentary stamp, intangible and similar taxes to be
imposed as a result of such recording;

(ii) the Mortgage will provide, so long as no Event of Default has occurred and is
continuing, for the release from the Lien of such Mortgage (A) of any Unit upon payment of a
release price equal to the net sales proceeds under a Contract for Sale for the applicable Unit
and (B) any Finished Lots, Land/Lots Under Development and Unimproved Land without release
consideration as set forth in Section 6.15(c);

(iii) determination of appraised value by a third party independent appraiser meeting
FIRREA requirements and selected by the Administrative Agent (for the account of the Lenders)
based upon FIRREA requirements, including, where appropriate, standards for mass appraisals,
and otherwise in form and substance satisfactory to the Administrative Agent; provided
that (A) no determination of appraised value shall be required with respect to any Sold Home
and (B) determination of value of Finished Lots, Land/Lots Under Development and Unimproved
Land shall be required only to the extent such Finished Lot, Land/Lots Under Development or
Unimproved Land is a Borrowing Base Asset;

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

(v) a fully paid ALTA lender’s policy of title insurance (which may initially be in the
form of a “marked-up” title commitment or pro forma policy, provided that the final policy is
delivered within a reasonable time thereafter) an amount equal to the amount of the Mortgage,
showing no exceptions that would materially impair the value of the applicable Mortgaged
Property, containing customary endorsements and otherwise in form and substance satisfactory to
the Administrative Agent, insuring the applicable Mortgage to be a valid first and subsisting
Lien on the applicable Mortgaged Property;

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

Section 6.16 Designated Account Deposits.

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

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

	 	 	 	Section 6.17 Equity Pledge Agreement.

Within five (5) Business Days following the Effective Date, the Administrative Borrower shall
deliver to the Administrative Agent (i) a duly executed Equity Pledge Agreement, (ii) original
stock or equivalent ownership certificates evidencing the equity interests pledged pursuant to the
Equity Pledge Agreement (to the extent such equity interests are certificated), together with stock
(or equivalent) powers undated and executed in blank by a Responsible Officer of the Administrative
Borrower, and (iii) an opinion of Greenberg Traurig, LLP, counsel to the Administrative Borrower
with respect to the Equity Pledge Agreement in form and substance satisfactory to the
Administrative Agent.

ARTICLE VII

NEGATIVE COVENANTS

As long as any of the Obligations or the Revolving Credit Commitments remain outstanding,
without the written consent of the Requisite Lenders, the Borrowers agree with the Lenders and the
Administrative Agent that:

	 	 	 	Section 7.1 Liens, Etc.

The Administrative Borrower shall not, and shall not permit any of its Restricted Subsidiaries
to, create or suffer to exist, any Lien upon or with respect to any of its properties or assets,
whether now owned or hereafter acquired, or assign, or permit any of its Restricted Subsidiaries to
assign, any right to receive income, except for:

(a) Liens (other than Customary Permitted Liens and purchase money Liens) granted by the
Administrative Borrower or any Restricted Subsidiary of the Administrative Borrower existing on the
Original Effective Date and disclosed on Schedule 7.1;

(b) Customary Permitted Liens of the Administrative Borrower and its Restricted Subsidiaries;

(c) purchase money Liens granted by the Administrative Borrower or any Restricted Subsidiary
of the Administrative Borrower (including the interest of a lessor under a Capital Lease and Liens
to which any property is subject at the time of the Administrative Borrower’s or such Restricted
Subsidiary’s acquisition thereof) and limited in each case to the property purchased with the
proceeds of such purchase money Indebtedness or subject to such Capital Lease; provided,
however, that no Lien that attaches to any Borrowing Base Asset shall be permitted by this
clause (c);

(d) any Lien securing the renewal, extension, refinancing or refunding of any Indebtedness
secured by any Lien permitted by clauses (a), (c) or (d) of this
Section 7.1 without any material change in the assets subject to such Lien;

(e) Liens on its interest in Joint Ventures securing Indebtedness of such Joint Ventures;

(f) Liens on the office building owned by Newmark Homes, L.P. located at 1470 First Colony
Boulevard, Sugar Land, Texas 77479;

(g) Liens securing the Obligations; and

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

provided that at the time any such Liens are incurred, and after giving effect thereto, the then
Available Credit shall be greater than zero.

Section 7.2 Investments.

The Administrative Borrower shall not, and shall not permit any of its Restricted Subsidiaries
to, directly or indirectly make or maintain any Investment except:

(a) Investments existing on the date hereof and disclosed on Schedule 7.2;

(b) Investments in cash and Cash Equivalents;

(c) Investments in accounts, contract rights and chattel paper (each as defined in the
Uniform Commercial Code), notes receivable and similar items arising or acquired in the ordinary
course of business consistent with the past practice of the Administrative Borrower and its
Subsidiaries;

(d) Investments received in settlement of amounts due to the Administrative Borrower or any
Subsidiary of the Administrative Borrower effected in the ordinary course of business;

(e) Investments by (i) the Administrative Borrower in any Subsidiary Borrower, or by any
Subsidiary Borrower in the Administrative Borrower or any other Subsidiary Borrower, or (ii) a
Subsidiary that is not a Subsidiary Borrower in the Borrower or any Restricted Subsidiary, or
(iii) the Administrative Borrower or any Subsidiary Borrower in the Administrative Borrower’s
Subsidiaries engaged in the business of originating residential home loans, title insurance and
reinsurance not to exceed in the aggregate at any time 10% of Adjusted Consolidated Tangible Net
Worth;

(f) loans or advances to employees of the Administrative Borrower or any of its Subsidiaries
in the ordinary course of business, which loans and advances shall not exceed the aggregate
outstanding principal amount of $5,000,000 at any time;

(g) advances on sales commissions to the sales agents of the Administrative Borrower or any of
its Restricted Subsidiaries;

(h) Investments in the same or a complimentary line of business as the Administrative Borrower
not otherwise permitted hereby in an aggregate outstanding amount at any time not to exceed 2% of
Adjusted Consolidated Tangible Net Worth;

(i) net cash Investments (including letters of credit) in, contributions and loans to, and
guaranty obligations of Indebtedness of, Unaffiliated Joint Ventures and Unaffiliated Unrestricted
Subsidiaries, the then cost value of which shall not at any time exceed in the aggregate for all
such Investments 35% of the Adjusted Consolidated Tangible Net Worth of the Administrative Borrower
and its Restricted Subsidiaries (with cost value defined as the aggregate cost plus all
additions minus all returns thereon in cash); provided that on the date which is
the eighteen month anniversary date of July 28, 2005, (x) the foregoing percentage shall be reduced
to 30% and (y) after giving effect to clause (x), the Administrative Borrower shall be in
compliance with this clause (i) on and as of such date; provided, further, that, it
shall be a condition to any such Investment that the Administrative Borrower, a Subsidiary Borrower
and or any other Restricted Subsidiary acquiring such Investment shall pledge and grant a security
interest in its equity ownership interest in such Unaffiliated Joint Venture or Unaffiliated
Unrestricted Subsidiary in favor of the Administrative Agent for the ratable benefit of the Lenders
by executing and/or delivering a Pledge Agreement, other related documents and instruments and an
opinion of legal counsel for such pledgor, each in form and substance satisfactory to the
Administrative Agent, except that the forgoing shall not apply to such Investments of up to
$25,000,000 in the aggregate if (x) the Unaffiliated Joint Venture is one listed on Schedule 7.2
and (y) such pledge and security interest would be prohibited by the terms of the Unaffiliated
Joint Venture or Unaffiliated Unrestricted Subsidiary operating agreement, partnership agreement or
similar ownership agreement or by any agreement to which such Unaffiliated Joint Venture or
Unaffiliated Unrestricted Subsidiary is a party; provided, further, that (1) no
Investment shall be made, directly or indirectly, in EH/Transeastern, LLC without the prior written
consent of the Requisite Lenders, and (2) no investment shall be made in any Person for the purpose
of acquiring or financing (in whole or in part) the acquisition of any assets of EH/Transeastern,
LLC without the prior written consent of the Requisite Lenders other than (in the case of this
subclause (2) only) any such investments made after January 1, 2007 in an aggregate amount not to
exceed $5,000,000.

(j) Investments in Permitted Acquisitions; and

(k) Investments under deferred compensation agreements.

Section 7.3 Restricted Payments.

The Administrative Borrower shall not, and shall not permit any of its Restricted Subsidiaries
to, directly or indirectly, declare, order, pay, make or set apart any sum for any Restricted
Payment except for the following:

(a) Restricted Payments by any Subsidiary of the Administrative Borrower to the Administrative
Borrower or any Restricted Subsidiary; and

(b) payments of principal of, premium on, or repurchase of the Subordinated Notes prior to the
stated maturity thereof not to exceed $50,000,000; provided that the Senior Leverage Ratio
shall be less than 1.25:1.0 after giving effect to such payment or repurchase; and

(c) other Restricted Payments in an aggregate amount not to exceed the sum of (i) $10,000,000
plus (ii) 5% of cumulative Consolidated Net Income since January 1, 2006; provided
that (x) all dividends paid in cash pursuant to this clause (c)(x) in any consecutive four fiscal
quarter period ending on or prior to the first anniversary of the Original Effective Date shall not
exceed 4% of Consolidated Net Income for such four fiscal quarter period and (y) all dividends paid
in cash pursuant to this clause (c)(y) in any consecutive four fiscal quarter period ending
thereafter shall not exceed 5% of consolidated Net Income for such four quarter fiscal period;

provided, however, that the Restricted Payments described in clause (b) or
(c) above shall not be permitted if either (A) an Event of Default or Default shall have occurred
and be continuing at the date of declaration or payment thereof or would result therefrom or
(B) such Restricted Payment is prohibited under the terms of any Indebtedness (other than the
Obligations) of the Administrative Borrower or any of its Subsidiaries; provided,
further, that (i) the Restricted Payments described in clause (b) or (c) above shall not be
permitted unless before and after giving effect to such Restricted Payments, the Administrative
Borrower shall be in compliance with the financial covenants contained in Article V on a
pro forma basis; and

(d) dividends and distributions on the common stock of the Administrative Borrower paid solely
in shares of the common Stock of the Administrative Borrower.

Section 7.4 Restriction on Fundamental Changes.

The Administrative Borrower shall not, and shall not permit any of its Restricted Subsidiaries
to enter into an agreement to affect, or effect, a Permitted Acquisition, if at the time thereof
and after giving effect thereto, there would be a Default or Event of Default. Except for
Permitted Acquisitions, the Administrative Borrower shall not, and shall not permit any of its
Restricted Subsidiaries to (a) merge with any Person other than any Restricted Subsidiary into the
Administrative Borrower or any Subsidiary Borrower, as long as the surviving entity of such merger
is the Administrative Borrower or a Subsidiary Borrower, (b) consolidate with any Person other than
any Restricted Subsidiary into the Administrative Borrower or any Subsidiary Borrower, as long as
the surviving entity of such consolidation is the Administrative Borrower or a Subsidiary Borrower,
(c) acquire all or substantially all of the Stock or Stock Equivalents of any Person, (d) acquire
all or substantially all of the assets of any Person or all or substantially all of the assets
constituting the business of a division, branch or other unit operation of any Person, (e) enter
into any Joint Venture or partnership with any Person, other than pursuant to an Investment made
pursuant to Section 7.2 or (f) create any Restricted Subsidiary unless, (I) after giving effect to
such creation or acquisition, (x) no Default or Event of Default shall have occurred or be
continuing, and (y) the Administrative Borrower is in compliance with Section 6.13, and (II) such
Restricted Subsidiary is either (i) a Wholly-Owned Restricted Subsidiary, or (ii) created in
connection with an Investment permitted pursuant to Section 7.2.

Section 7.5 Change in Nature of Business.

The Administrative Borrower shall not, and shall not permit any of its Subsidiaries to, make
any material change in the nature or conduct of its business as carried on at the Original
Effective Date.

Section 7.6 Transactions with Affiliates.

The Administrative Borrower shall not, and shall not permit any of its Restricted Subsidiaries
to, except as otherwise expressly permitted herein, do any of the following: (a) make any
Investment in an Affiliate of the Administrative Borrower that is not a Restricted Subsidiary of
the Administrative Borrower; (b) transfer, sell, lease, assign or otherwise dispose of any asset to
any Affiliate of the Administrative Borrower that is not a Restricted Subsidiary of the
Administrative Borrower; (c) merge into or consolidate with or purchase or acquire assets from any
Affiliate of the Administrative Borrower that is not a Restricted Subsidiary of the Administrative
Borrower; (d) repay any Indebtedness to any Affiliate of the Administrative Borrower that is not a
Restricted Subsidiary of the Administrative Borrower; or (e) enter into any other transaction
directly or indirectly with or for the benefit of any Affiliate of the Administrative Borrower that
is not a Subsidiary Borrower (including guaranties and assumptions of obligations of any such
Affiliate), except for (i) transactions in the ordinary course of business on a basis no less
favorable to the Administrative Borrower or such Subsidiary Borrower as would be obtained in an
arm’s length transaction with a Person not an Affiliate, (ii) salaries and other director or
employee compensation or benefits to officers or directors of the Administrative Borrower or any of
its Subsidiaries commensurate with current compensation and benefits levels, and (iii) indemnities
of officers, directors and employees of the Administrative Borrower and its Subsidiaries permitted
by their respective organizational documents and by applicable law; provided,
however, that the Administrative Borrower shall not be prohibited under this Section 7.6
from (x) making payments of up to $5,000,000 per fiscal year to TOSI under the Management Services
Agreement (or another similar agreement) or (y) performing its obligations under the Tax Allocation
Agreement.

	 	 	 	Section 7.7 Restrictions on Subsidiary Distributions; No New Negative Pledge.

The Administrative Borrower shall not, and shall not permit any of its Restricted Subsidiaries
to, (a) except as set forth on Schedule 7.7, agree to enter into or suffer to exist or
become effective any consensual encumbrance or restriction of any kind on the ability of such
Restricted Subsidiary to pay dividends or make any other distribution or transfer of funds or
assets or make loans or advances to or other Investments in, or pay any Indebtedness owed to, the
Administrative Borrower or any other Restricted Subsidiary of the Administrative Borrower, except
for customary profit allocation provisions or (b) enter into or suffer to exist or become effective
any agreement prohibiting or limiting the ability of the Administrative Borrower or any Restricted
Subsidiary of the Administrative Borrower to create, incur, assume or suffer to exist any Lien upon
any of its property, assets or revenues, whether now owned or hereafter acquired, to secure the
Obligations, including any agreement requiring any other Indebtedness or Contractual Obligation of
the Administrative Borrower or any of its Restricted Subsidiaries to be equally and ratably secured
with the Obligations.

	 	 	 	Section 7.8 Sale/Leasebacks.

The Administrative Borrower shall not, and shall not permit any of its Restricted Subsidiaries
to, enter into any sale and leaseback transaction covering any property with an aggregate Fair
Market Value in excess of $10,000,000; provided, however, that the Administrative Borrower and its
Restricted Subsidiaries may sell Model Homes in the ordinary course of business and leaseback such
Model Homes so long as none of the Administrative Borrower or any of its Subsidiaries has any
obligation to sell or repurchase the leased Model Homes at the end of the lease term.

	 	 	 	Section 7.9 Compliance with ERISA.

The Administrative Borrower shall not cause or permit to occur, and shall not permit any of
its Restricted Subsidiaries to cause or permit to occur, or cause or permit any ERISA Affiliate to
cause or permit to occur (a) an event which could result in the imposition of a Lien under
Section 412 of the IRC or Section 302 or 4068 of ERISA or (b) an ERISA Event that would have a
Material Adverse Effect.

	 	 	 	Section 7.10 Environmental.

The Administrative Borrower shall not, and shall not permit any of its Restricted Subsidiaries
to, allow a Release of any Contaminant in violation of any Environmental Law, or otherwise violate
any Environmental Law; provided, however, that the Administrative Borrower shall
not be deemed in violation of this Section 7.10 if, all such violations could not reasonably be
expected to have a Material Adverse Effect.

	 	 	 	Section 7.11 Designated Account Proceeds.

The Administrative Borrower shall not, and shall not permit any Subsidiary Borrower, to
withdraw or to instruct the transfer of any amounts from a Designated Account except for (i)
transfers to another Designated Account and (ii) payments or withdrawals from a Designated Account
solely for the purpose of paying current operating obligations of the Administrative Borrower and
the Subsidiary Borrowers then due and payable incurred in the ordinary course of business as
currently conducted and each such withdrawal or payment shall be deemed a representation by the
Borrowers of compliance with such covenant; provided, however, transfers may be
made from a Designated Account to, and payments and withdrawals of the type described in clause
(ii) may be made from, “zero-balance” payment accounts currently maintained by the Administrative
Borrower and certain of the Subsidiary Borrowers with Wachovia Bank, National Association and
linked to Designated Accounts maintained with Wachovia Bank, National Association, so long as (x)
such accounts are not “deposit accounts” within the meaning of the UCC or (y) each such account is
subject to a Deposit Account Control Agreement perfecting the Administrative Agent’s security
interest in such account within a reasonable period of time after the date hereof but in no event
later than 30 days after notice from the Administrative Agent to the Administrative Borrower.

ARTICLE VIII

EVENTS OF DEFAULT

	 	 	 	Section 8.1 Events of Default.

Each of the following events shall be an Event of Default:

(a) the Borrowers shall fail to pay any principal of any Loan or any Reimbursement Obligation
when the same becomes due and payable; or

(b) the Borrowers shall fail to pay any interest on any Loan, any fee under any of the Loan
Documents or any other Obligation (other than one referred to in clause (a) above) and such
non-payment continues for a period of five calendar days after the due date therefor;

(c) any representation or warranty made or deemed made by any Loan Party in any Loan Document
or by any Loan Party (or any of its officers) in connection with any Loan Document shall prove to
have been incorrect in any material respect when made or deemed made; or

(d) any Loan Party shall fail to perform or observe any term, covenant or agreement contained
in this Agreement or in any other Loan Document, if such failure shall remain unremedied for
30 days after the date on which written notice thereof shall have been given to the Administrative
Borrower by the Administrative Agent or any Lender; or

(e) (i) the Administrative Borrower or any of its Restricted Subsidiaries shall fail to make
any payment on any Indebtedness (other than the Obligations) of the Administrative Borrower or any
such Restricted Subsidiary, and in each such case, such failure relates to Indebtedness having a
principal amount of $10,000,000 or more, when the same becomes due and payable (whether by
scheduled maturity, required prepayment, acceleration, demand or otherwise); or (ii) any other
event shall occur or condition shall exist under any agreement or instrument relating to any
Indebtedness of the Administrative Borrower or any of its Restricted Subsidiaries having a
principal amount of $10,000,000 or more, if the effect of such event or condition is to accelerate,
or to permit the acceleration of, the maturity of such Indebtedness; or (iii) any Indebtedness of
the Administrative Borrower and any of its Restricted Subsidiaries having a principal amount of
$10,000,000 or more shall become or be declared to be due and payable, or required to be prepaid or
repurchased (other than by a regularly scheduled required prepayment), prior to the stated maturity
thereof; or

(f) (i) the Administrative Borrower or any of its Restricted Subsidiaries shall generally not
pay its debts as such debts become due, shall admit in writing its inability to pay its debts
generally or shall make a general assignment for the benefit of creditors, (ii) any proceeding
shall be instituted by or against the Administrative Borrower or any of its Restricted Subsidiaries
seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up,
reorganization, arrangement, adjustment, protection, relief or composition of it or its debts under
any Requirement of Law relating to bankruptcy, insolvency or reorganization or relief of debtors,
or seeking the entry of an order for relief or the appointment of a custodian, receiver, trustee or
other similar official for it or for any substantial part of its property; provided,
however, in the case of any such proceedings instituted against the Administrative Borrower
or any of its Restricted Subsidiaries (but not instituted by the Administrative Borrower or any of
its Restricted Subsidiaries), either such proceedings shall remain undismissed or unstayed for a
period of 30 days or any of the actions sought in such proceedings shall occur, or (iii) the
Administrative Borrower or any of its Restricted Subsidiaries shall take any corporate action to
authorize any of the actions set forth above in clauses (i) and (ii) of this subsection (f); or

(g) any final judgment or order (or other similar process) involving, in any single case or in
the aggregate, an amount in excess of $10,000,000 in the case of a money judgment, to the extent
not covered by insurance, or that could reasonably be expected to have a Material Adverse Effect,
in the case of a non-monetary judgment, shall be rendered against one or more of the Administrative
Borrower and its Restricted Subsidiaries by a court having jurisdiction, and such judgment or order
shall continue unsatisfied and in effect for a period of thirty days without being vacated,
discharged, satisfied, or stayed or bonded pending appeal; or

(h) an ERISA Event shall occur and the amount of all liabilities and deficiencies resulting
therefrom that are or are reasonably likely to be imposed on the Administrative Borrower, any
Restricted Subsidiary of the Administrative Borrower or any ERISA Affiliate, whether or not
assessed, exceeds $5,000,000 in the aggregate;

(i) any material provision of the Guaranty or any other Loan Document shall for any reason
cease to be valid and binding, or enforceable against, on any Loan Party thereto, or any Loan Party
shall so state in writing; or

(j) there shall occur any Change of Control; or

(k) one or more of the Administrative Borrower and its Restricted Subsidiaries shall have
entered into one or more consent or settlement decrees or agreements or similar arrangements with a
Governmental Authority or one or more judgments, orders, decrees or similar actions shall have been
entered against one or more of the Administrative Borrower and its Restricted Subsidiaries based on
or arising from the violation of or pursuant to any Environmental Law, or the generation, storage,
transportation, treatment, disposal or Release of any Contaminant and, in connection with all the
foregoing, the Administrative Borrower and its Restricted Subsidiaries are likely to incur
environmental liabilities and costs in excess of $15,000,000 in the aggregate.

	 	 	 	Section 8.2 Remedies.

During the continuance of any Event of Default, the Administrative Agent (a) may, and at the
request of the Requisite Lenders shall, by notice to the Administrative Borrower declare that all
or any portion of the Revolving Credit Commitments be terminated, whereupon the obligation of each
Lender to make any Loan and each Issuer to Issue any Letter of Credit shall immediately be
decreased or terminate, as the case may be, and/or (b) may, and at the request of the Requisite
Lenders shall, by notice to the Administrative Borrower, declare the Loans, all interest thereon
and all other amounts and Obligations payable under this Agreement to be forthwith due and payable,
whereupon the Loans, all such interest and all such amounts and Obligations shall immediately
become and be forthwith due and payable, without presentment, demand, protest or further notice of
any kind, all of which are hereby expressly waived by the Borrowers; provided,
however, that upon the occurrence of the Events of Default specified in Section 8.1(f)(ii),
the Revolving Credit Commitments of each Lender to make Loans and the commitments of each Lender
and Issuer to Issue or participate in Letters of Credit shall each automatically be terminated and
the Loans, all such interest and all such amounts and Obligations shall automatically become and be
due and payable, without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by the Borrowers.

	 	 	 	Section 8.3 Actions in Respect of Letters of Credit.

If at any time the Revolving Credit Commitments terminate while any Letters of Credit are
outstanding or any Event of Default shall have occurred and be continuing, the Borrowers shall
(x) pay to the Administrative Agent in immediately available funds at the Administrative Agent’s
office referred to in Section 10.8, for deposit in a cash collateral account, an amount equal to
102.5% of the sum of all outstanding Letter of Credit Obligations or (y) make such other
arrangements in respect of outstanding Letters of Credit as shall be acceptable to the Requisite
Lenders. Amounts held in such cash collateral account shall be applied by the Administrative Agent
to the payment of Reimbursement Obligations, and the unused portion thereof after all such Letters
of Credit shall have expired or been fully drawn upon, if any, shall be applied in accordance with
clause (f) of Section 2.12. The Administrative Agent shall promptly give notice of any such
application; provided, however, that the failure to give such written notice shall
not invalidate any such application. Promptly after all such Letters of Credit shall have expired
or been fully drawn upon and all other obligations of the Borrowers hereunder and under the
Revolving Credit Notes shall have been paid in full, the balance, if any, in such cash collateral
account shall be returned to the Borrowers.

	 	 	 	Section 8.4 Rescission.

If at any time after termination of the Revolving Credit Commitments and/or acceleration of
the maturity of the Loans, the Borrowers shall pay all arrears of interest and all payments on
account of principal of the Loans and Reimbursement Obligations that shall have become due
otherwise than by acceleration (with interest on principal and, to the extent permitted by law, on
overdue interest, at the rates specified herein) and all Events of Default and Defaults (other than
non-payment of principal of and accrued interest on the Loans due and payable solely by virtue of
acceleration) shall be remedied or waived pursuant to Section 10.1, then upon the written consent
of the Requisite Lenders and written notice to the Administrative Borrower, the termination of the
Revolving Credit Commitments and/or the acceleration and their consequences may be rescinded and
annulled; provided, however, that such action shall not affect any subsequent Event
of Default or Default or impair any right or remedy consequent thereon. The provisions of the
preceding sentence are intended merely to bind the Lenders and the Issuers to a decision that may
be made at the election of the Requisite Lenders; and such provisions are not intended to benefit
the Borrowers and do not give the Borrowers the right to require the Lenders to rescind or annul
any acceleration hereunder, even if the conditions set forth herein are met.

ARTICLE IX

THE ADMINISTRATIVE AGENT

	 	 	 	Section 9.1 Authorization and Action.

(a) Each Lender and each Issuer hereby appoints CNAI as the Administrative Agent hereunder and
each Lender and each Issuer authorizes the Administrative Agent to take such action as agent on its
behalf and to exercise such powers under this Agreement and the other Loan Documents as are
delegated to the Administrative Agent under such agreements and to exercise such powers as are
reasonably incidental thereto. Without limiting the foregoing, each Lender and each Issuer hereby
authorizes the Administrative Agent to execute and deliver, and to perform its obligations under,
each of the Loan Documents to which the Administrative Agent is a party and to exercise all rights,
powers and remedies that the Administrative Agent may have under such Loan Documents pursuant to
which the Administrative Agent is acting as agent for the Lenders and the Issuers.

(b) As to any matters not expressly provided for by this Agreement and the other Loan
Documents (including enforcement or collection), the Administrative Agent shall not be required to
exercise any discretion or take any action, but shall be required to act or to refrain from acting
(and shall be fully protected in so acting or refraining from acting) upon the instructions of the
Requisite Lenders, and such instructions shall be binding upon all Lenders and each Issuer;
provided, however, that the Administrative Agent shall not be required to take any
action that (i) the Administrative Agent in good faith believes exposes it to personal liability
unless the Administrative Agent receives an indemnification satisfactory to it from the Lenders and
the Issuers with respect to such action or (ii) is contrary to this Agreement or applicable law.
The Administrative Agent agrees to give to each Lender and each Issuer prompt notice of each notice
given to it by any Loan Party pursuant to the terms of this Agreement or the other Loan Documents.

(c) In performing its functions and duties hereunder and under the other Loan Documents, the
Administrative Agent is acting solely on behalf of the Lenders and the Issuers and its duties are
entirely administrative in nature. The Administrative Agent does not assume and shall not be
deemed to have assumed any obligation other than as expressly set forth herein and in the other
Loan Documents or any other relationship as the agent, fiduciary or trustee of or for any Lender,
Issuer or holder of any other Obligation. The Administrative Agent may perform any of its duties
under any Loan Document by or through its agents (which shall include, without limitation, any
third party mortgage servicers) or employees.

	 	 	 	Section 9.2 Administrative Agent’s Reliance, Etc.

None of the Administrative Agent, any of its Affiliates or any of their respective directors,
officers, agents or employees shall be liable for any action taken or omitted to be taken by it,
him, her or them under or in connection with this Agreement or the other Loan Documents, except for
its, his, her or their own gross negligence or willful misconduct. Without limiting the foregoing,
the Administrative Agent (a) may treat the payee of any Revolving Credit Note as its holder until
such Revolving Credit Note has been assigned in accordance with Section 10.2, (b) may rely on the
Register to the extent set forth in Section 10.2(c), (c) may consult with legal counsel (including
counsel to the Administrative Borrower or any other Loan Party), independent public accountants and
other experts selected by it and shall not be liable for any action taken or omitted to be taken in
good faith by it in accordance with the advice of such counsel, accountants or experts, (d) makes
no warranty or representation to any Lender or Issuer and shall not be responsible to any Lender or
Issuer for any statements, warranties or representations made by or on behalf of any Borrower or
any of its Subsidiaries in or in connection with this Agreement or any other Loan Document,
(e) shall not have any duty to ascertain or to inquire either as to the performance or observance
of any terms, covenant or condition of this Agreement or any other Loan Document, as to the
financial condition of any Loan Party or as to the existence or possible existence of any Default
or Event of Default; (f) shall not be responsible to any Lender or Issuer for the due execution,
legality, validity, enforceability, genuineness, sufficiency or value of, or the attachment,
perfection or priority of any Lien created or purported to be created under or in connection with,
this Agreement, any other Loan Document or any other instrument or document furnished pursuant
hereto or thereto; and (g) shall incur no liability under or in respect of this Agreement or any
other Loan Document by acting upon any notice, consent, certificate or other instrument or writing
(which may be a telecopy or electronic mail) or any telephone message believed by it to be genuine
and signed or sent by the proper party or parties.

	 	 	 	Section 9.3 The Administrative Agent Individually.

With respect to its Ratable Portion, CNAI shall have and may exercise the same rights and
powers hereunder and is subject to the same obligations and liabilities as and to the extent set
forth herein for any other Lender. The terms “Lenders” or “Requisite Lenders,”
"Lenders,” and any similar terms shall, unless the context clearly otherwise indicates,
include, without limitation, the Administrative Agent in its individual capacity as a Lender or as
one of the Requisite Lenders. CNAI and its Affiliates may accept deposits from, lend money to, and
generally engage in any kind of banking, trust or other business with any Loan Party as if CNAI
were not acting as the Administrative Agent.

	 	 	 	Section 9.4 Lender Credit Decision.

Each Lender and each Issuer acknowledges that it shall, independently and without reliance
upon the Administrative Agent or any other Lender conduct its own independent investigation of the
financial condition and affairs of the Borrowers and each other Loan Party in connection with the
making and continuance of the Loans and with the issuance of the Letters of Credit. Each Lender
and each Issuer also acknowledges that it shall, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit decisions in taking or not taking
action under this Agreement and other Loan Documents.

	 	 	 	Section 9.5 Indemnification.

Each Lender agrees to indemnify the Administrative Agent and each of its Affiliates, and each
of their respective directors, officers, employees, agents and advisors (to the extent not
reimbursed by the Borrowers), from and against such Lender’s aggregate Ratable Portion of any and
all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses and disbursements (including reasonable fees, expenses and disbursements of financial and
legal advisors) of any kind or nature whatsoever that may be imposed on, incurred by, or asserted
against, the Administrative Agent or any of its Affiliates, directors, officers, employees, agents
and advisors in any way relating to or arising out of this Agreement or the other Loan Documents or
any action taken or omitted by the Administrative Agent under this Agreement or the other Loan
Documents; provided, however, that no Lender shall be liable to the Administrative
Agent and any of its Affiliates, and any of their respective directors, officers, employees, agents
and advisors for any portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from such Administrative Agent’s,
Affiliates’, directors’, officers’, employees’, agents’ or advisors’ gross negligence or willful
misconduct. Without limiting the foregoing, each Lender agrees to reimburse the Administrative
Agent promptly upon demand for its ratable share of any out-of-pocket expenses (including
reasonable fees, expenses and disbursements of financial and legal advisors) incurred by the
Administrative Agent in connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal proceedings or
otherwise) of, or legal advice in respect of its rights or responsibilities under, this Agreement
or the other Loan Documents, to the extent that the Administrative Agent is not reimbursed for such
expenses by the Borrowers or another Loan Party.

	 	 	 	Section 9.6 Successor Administrative Agent.

The Administrative Agent may resign at any time by giving written notice thereof to the
Lenders and the Administrative Borrower. Upon any such resignation, the Requisite Lenders shall
have the right to appoint a successor Administrative Agent. If no successor Administrative Agent
shall have been so appointed by the Requisite Lenders, and shall have accepted such appointment,
within 30 days after the retiring Administrative Agent’s giving of notice of resignation, then the
retiring Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative
Agent, selected from among the Lenders. In either case, such appointment shall be subject to the
prior written approval of the Administrative Borrower (which approval may not be unreasonably
withheld and shall not be required upon the occurrence and during the continuance of an Event of
Default). Upon the acceptance of any appointment as Administrative Agent by a successor
Administrative Agent, such successor Administrative Agent shall succeed to and become vested with
all the rights, powers, privileges and duties of the retiring Administrative Agent, and the
retiring Administrative Agent shall be discharged from its duties and obligations under this
Agreement and the other Loan Documents. Prior to any retiring Administrative Agent’s resignation
hereunder as Administrative Agent, the retiring Administrative Agent shall take such action as may
be reasonably necessary to assign to the successor Administrative Agent its rights as
Administrative Agent under the Loan Documents. After such resignation, the retiring Administrative
Agent shall continue to have the benefit of this Article IX as to any actions taken or omitted to
be taken by it while it was Administrative Agent under this Agreement and the other Loan Documents.
Anything herein to the contrary notwithstanding, the Administrative Agent shall resign if at any
time the Administrative Agent is not a Lender having a Revolving Credit Commitment of at least
$10,000,000 (or such ratably lesser amount if the Revolving Credit Commitments have been reduced in
accordance with this Agreement).

ARTICLE X

MISCELLANEOUS

	 	 	 	Section 10.1 Amendments, Waivers, Etc.

(a) No amendment or waiver of any provision of this Agreement or any other Loan Document nor
consent to any departure by any Loan Party therefrom shall in any event be effective unless the
same shall be in writing and signed by the Requisite Lenders (or by the Administrative Agent with
the consent of the Requisite Lenders) and, in the case of any amendment, by the Borrowers, and then
any such waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no amendment, waiver or consent
shall, unless in writing and signed by each Lender affected thereby, in addition to the Requisite
Lenders, do any of the following:

(i) increase the Revolving Credit Commitment of such Lender or subject such Lender to
any additional obligation; provided, however, that, except as provided in
Section 2.18, any such increase in the Revolving Credit Commitment of such Lender shall
require the consent of all Lenders;

(ii) extend the then scheduled final maturity of any Loan owing to such Lender, except
as provided in Section 2.17;

(iii) reduce the principal amount of any Loan or Reimbursement Obligation owing to
such Lender (other than by the payment or prepayment thereof);

(iv) reduce the rate of interest on any Loan or Reimbursement Obligations outstanding
to such Lender or any fee payable hereunder to such Lender;

(v) postpone any scheduled date fixed for payment of such interest or fees owing to
such Lender;

(vi) change the aggregate Ratable Portions of Lenders required for any or all Lenders
to take any action hereunder;

(vii) release any Borrower from its payment obligation to such Lender under this
Agreement or the Revolving Credit Notes owing to such Lender (if any) or release any
Guarantor from its obligations under the Guaranty except in connection with sale or other
disposition of a Subsidiary Borrower or a Guarantor (or all or substantially all of the
assets thereof) or as otherwise specifically provided herein; or

(viii) amend this Section 10.1 or the definition of the term “Requisite
Lenders”;

and provided, further, that no amendment, waiver or consent shall, unless in
writing and signed by the Administrative Agent, the Issuer or the Swing Loan Lender, as the case
may be, in addition to the Lenders required above to take such action, affect the rights or duties
of the Administrative Agent, the Issuer or the Swing Loan Lender, as the case may be, under this
Agreement or the other Loan Documents.

(b) The Administrative Agent may, but shall have no obligation to, with the written
concurrence of any Lender, execute amendments, modifications, waivers or consents on behalf of such
Lender. Any waiver or consent shall be effective only in the specific instance and for the
specific purpose for which it was given. No notice to or demand on any Borrower in any case shall
entitle such Borrower to any other or further notice or demand in similar or other circumstances.

(c) If, in connection with any proposed amendment, modification, waiver or termination (a
"Proposed Change”) requiring the consent of all affected Lenders, the consent of Requisite
Lenders is obtained, but the consent of other Lenders whose consent is required is not obtained
(any such Lender whose consent is not obtained as described in this Section 10.1 being referred to
as a “Non-Consenting Lender”), then, so long as the Lender that is acting as the
Administrative Agent is not a Non-Consenting Lender, at the Administrative Borrower’s request, each
other Lender shall have a right to purchase its pro rata share of such
Non-Consenting Lender’s Revolving Credit Commitment and Revolving Credit Outstandings, and if such
Lenders do not purchase all of such Non-Consenting Lender’s Revolving Credit Commitment or
Revolving Credit Outstandings, an Eligible Assignee acceptable to the Administrative Agent shall
have the right with the Administrative Agent’s consent and in the Administrative Agent’s sole
discretion (but shall have no obligation) to purchase from such Non-Consenting Lender, and such
Non-Consenting Lender agrees that it shall, upon the Administrative Agent’s request, sell and
assign to the Lender acting as the Administrative Agent or such Eligible Assignee, all of the
Revolving Credit Commitments, and Revolving Credit Outstandings of such Non-Consenting Lender for
an amount equal to the principal balance of all Loans held by the Non-Consenting Lender and all
accrued interest and fees with respect thereto and all other amounts through the date of sale,
provided, however, that such purchase and sale shall not be effective until the
Administrative Agent shall have received from such Eligible Assignee an agreement in form and
substance satisfactory to the Administrative Agent and the Administrative Borrower whereby such
Eligible Assignee shall agree to be bound by the terms hereof. Each Lender agrees that, if it
becomes a Non-Consenting Lender, it shall execute and deliver to the Administrative Agent an
Assignment an Acceptance to evidence such sale and purchase and shall deliver to the Administrative
Agent any Revolving Credit Note (if the assigning Lender’s Loans are evidenced by a Revolving
Credit Note) subject to such Assignment and Acceptance; provided, however, that the
failure of any Non-Consenting Lender to execute an Assignment and Acceptance shall not render such
sale and purchase (and the corresponding assignment) invalid.

	 	 	 	Section 10.2 Assignments and Participations.

(a) Each Lender may sell, transfer, negotiate or assign to one or more Eligible Assignees all
or a portion of its rights and obligations hereunder (including all of its rights and obligations
with respect to the Revolving Loans, the Swing Loans and the Letters of Credit); provided,
however, that (i) if any such assignment shall be of the assigning Lender’s Revolving
Credit Outstandings and Revolving Credit Commitments, such assignment shall cover the same
percentage of such Lender’s Revolving Credit Outstandings and Revolving Credit Commitments,
(ii) the aggregate amount being assigned pursuant to each such assignment (determined as of the
date of the Assignment and Acceptance with respect to such assignment) shall in no event (if less
than the Assignor’s entire interest) be less than $5,000,000 or an integral multiple of $1,000,000
in excess thereof, except, in either case, (A) with the consent of the Administrative Borrower and
the Administrative Agent or (B) if such assignment is being made to a Lender or an Affiliate or
Approved Fund of such Lender, and (iii) if such Eligible Assignee is not, prior to the date of such
assignment, a Lender or an Affiliate or Approved Fund of a Lender, such assignment shall be subject
to the prior consent of the Administrative Agent, the Swing Loan Lender, each Issuer and the
Administrative Borrower (which consent shall not be unreasonably withheld or delayed); and
provided, further, that, notwithstanding any other provision of this Section 10.2,
the consent of the Administrative Borrower shall not be required for any assignment occurring when
any Event of Default shall have occurred and be continuing.

(b) The parties to each such assignment shall execute and deliver to the Administrative Agent,
for its acceptance and recording, an Assignment and Acceptance, together with any Revolving Credit
Note (if the assigning Lender’s Loans are evidenced by a Revolving Credit Note) subject to such
assignment. In addition, any Lender or Eligible Assignee assuming a Revolving Credit Commitment in
connection with a Facility Increase shall execute an Assumption Agreement in accordance with
Section 2.18. Upon such execution, delivery, acceptance and recording of any Assignment and
Acceptance or Assumption Agreement, as the case may be, and, other than in respect of assignment
made pursuant to Section 2.16 and Section 10.1(c), the receipt by the Administrative Agent from the
assignee of an assignment/assumption fee in the amount of $3,500, then from and after the effective
date specified in such Assignment and Acceptance or Assumption Agreement, as the case may be,
(i) the assignee thereunder shall become a party hereto and, to the extent that rights and
obligations under the Loan Documents have been assigned to such assignee pursuant to such
Assignment and Acceptance or assumed by such assuming party pursuant to such Assumption Agreement,
have the rights and obligations of a Lender, and, in the case of an assignment, if such Lender were
an Issuer, of such Issuer hereunder and thereunder, and (ii) the assignor under an Assignment and
Acceptance shall, to the extent that rights and obligations under this Agreement have been assigned
by it pursuant to such Assignment and Acceptance, relinquish its rights (except for those surviving
the payment in full of the Obligations) and be released from its obligations under the Loan
Documents, other than those relating to events or circumstances occurring prior to such assignment
(and, in the case of an Assignment and Acceptance covering all or the remaining portion of an
assigning Lender’s rights and obligations under the Loan Documents, such Lender shall cease to be a
party hereto).

(c) The Administrative Agent shall maintain at its address referred to in Section 10.8 a copy
of each Assignment and Acceptance and each Assumption Agreement delivered to and accepted by it and
a register for the recording of the names and addresses of the Lenders and the Revolving Credit
Commitments of and principal amount of the Loans and Letter of Credit Obligations owing to each
Lender from time to time (the “Register”). Any assignment pursuant to this Section 10.2
shall not be effective until such assignment is recorded in the Register. The entries in the
Register shall be conclusive and binding for all purposes, absent manifest error, and the Loan
Parties, the Administrative Agent and the Lenders may treat each Person whose name is recorded in
the Register as a Lender for all purposes of this Agreement. The Register shall be available for
inspection by the Administrative Borrower, the Administrative Agent or any Lender at any reasonable
time and from time to time upon reasonable prior notice.

(d) Notwithstanding anything to the contrary contained in clause (b) above, the Loans
(including the Revolving Credit Notes evidencing such Loans) are registered obligations and the
right, title, and interest of the Lenders and their assignees in and to such Loans shall be
transferable only upon notation of such transfer in the Register. A Revolving Credit Note shall
only evidence the Lender’s or an assignee’s right, title and interest in and to the related Loan,
and in no event is any such Revolving Credit Note to be considered a bearer instrument or
obligation. This Section 10.2 shall be construed so that the Loans are at all times maintained in
"registered form” within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the
Internal Revenue Code or such regulations. Solely for purposes of this and for tax purposes only,
the Administrative Agent shall act as the Borrowers’ agent for purposes of maintaining such
notations of transfer in the Register.

(e) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an
assignee or an Assumption Agreement executed by the Administrative Borrower and a Lender or an
Eligible Assignee, the Administrative Agent shall, if such Assignment and Acceptance or Assumption
Agreement has been completed, (i) accept such Assignment and Acceptance or Assumption Agreement,
(ii) record the information contained therein in the Register and (iii) in the case of an
Assignment and Acceptance, give prompt notice thereof to the Administrative Borrower. Within five
Business Days after its receipt of such notice, the Borrowers at their own expense, shall, if
requested by such assignee, execute and deliver to the Administrative Agent, new Revolving Credit
Notes to the order of such assignee in an amount equal to the Revolving Credit Commitments assumed
by it pursuant to such Assignment and Acceptance or Assumption Agreement and, if the assigning
Lender, in the case of an Assignment and Acceptance, has surrendered any Revolving Credit Note for
exchange in connection with the assignment and has retained Revolving Credit Commitments hereunder,
new Revolving Credit Notes to the order of the assigning Lender in an amount equal to the Revolving
Credit Commitments retained by it hereunder. Such new Revolving Credit Notes shall be dated the
same date as the surrendered Revolving Credit Notes and be in substantially the form of
Exhibit C.

(f) In addition to the other assignment rights provided in this Section 10.2, each Lender may
assign, as collateral or otherwise, any of its rights under this Agreement, whether now owned or
hereafter acquired (including rights to payments of principal or interest on the Loans), to (x) any
Federal Reserve Bank pursuant to Regulation A of the Federal Reserve Board without notice to or
consent of the Borrowers or (y) in the case of any Lender that is a Fund, any holders of
obligations owed or Securities issued by such Lender as security for such obligations or Securities
or any trustee for, or other representative of, such holders, and this Section shall not apply to
any such pledge or assignment of a security interest; provided, however, that no
such assignment shall release the assigning Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

(g) Each Lender may sell participations to one or more Persons in or to all or a portion of
its rights and obligations under the Loan Documents (including all its rights and obligations with
respect to the Revolving Loans and Letters of Credit). The terms of such participation shall not,
in any event, require the participant’s consent to any amendments, waivers or other modifications
of any provision of any Loan Documents, the consent to any departure by any Loan Party therefrom,
or to the exercising or refraining from exercising any powers or rights such Lender may have under
or in respect of the Loan Documents (including the right to enforce the obligations of the Loan
Parties), except if any such amendment, waiver or other modification or consent would reduce the
amount, or postpone any date fixed for, any amount (whether of principal, interest or fees) payable
to such participant under the Loan Documents, to which such participant would otherwise be entitled
under such participation. In the event of the sale of any participation by any Lender, (w) such
Lender’s obligations under the Loan Documents shall remain unchanged, (x) such Lender shall remain
solely responsible to the other parties for the performance of such obligations, (y) such Lender
shall remain the holder of such Obligations for all purposes of this Agreement, and (z) the
Borrowers, the Administrative Agent and the other Lenders shall continue to deal solely and
directly with such Lender in connection with such Lender’s rights and obligations under this
Agreement. Each participant shall be entitled to the benefits of Section 2.14 and Section 2.15 and
of Section 2.13(c) as if it were a Lender; provided, however, that anything herein
to the contrary notwithstanding, the Borrowers shall not, at any time, be obligated to make under
Section 2.14, Section 2.15 or Section 2.13(c) to the participant in the rights and obligations of
any Lender (together with such Lender) any payment in excess of the amount the Borrowers would have
been obligated to pay to such Lender in respect of such interest had such participation not been
sold.

(h) Any Issuer may at any time assign its rights and obligations hereunder to any other Lender
by an instrument in form and substance satisfactory to the Administrative Borrower, the
Administrative Agent, such Issuer and such Eligible Assignee. If any Issuer ceases to be a Lender
hereunder by virtue of any assignment made pursuant to this Section 10.2, then, as of the effective
date of such cessation, such Issuer’s obligations to Issue Letters of Credit pursuant to
Section 2.4 shall terminate and such Issuer shall be an Issuer hereunder only with respect to
outstanding Letters of Credit issued prior to such date.

	 	 	 	Section 10.3 Costs and Expenses.

(a) The Borrowers agree upon demand to pay, or reimburse the Administrative Agent for, all of
the Administrative Agent’s reasonable internal and external audit, legal, appraisal, valuation,
filing, document duplication and reproduction and investigation expenses and for all other
reasonable out-of-pocket costs and expenses of every type and nature (including, without
limitation, after receipt of invoice documentation, the reasonable fees, expenses and disbursements
of the Administrative Agent’s external counsel, local legal counsel, auditors, accountants,
appraisers, printers, insurance and environmental advisors, financial advisors and other
consultants and agents) incurred by the Administrative Agent in connection with any of the
following: (i) the Administrative Agent’s audit and investigation of the Administrative Borrower
and its Subsidiaries in connection with the preparation, negotiation or execution of any Loan
Document, (ii) the preparation, negotiation, execution or interpretation of this Agreement
(including, without limitation, the satisfaction or attempted satisfaction of any conditions set
forth in Article III), any Loan Document or any proposal letter or commitment letter issued in
connection therewith or the making of the Loans hereunder, (iii) the ongoing administration of this
Agreement and the Loans, including consultation with attorneys in connection therewith and with
respect to the Administrative Agent’s rights and responsibilities hereunder and under the other
Loan Documents, (iv) the protection, collection or enforcement of any Obligation or the enforcement
of any Loan Document, (v) the commencement, defense or intervention in any court proceeding
relating in any way to the Obligations, any Loan Party, any of the Administrative Borrower’s
Subsidiaries, this Agreement or any other Loan Document, (vi) the response to, and preparation for,
any subpoena or request for document production with which the Administrative Agent is served or
deposition or other proceeding in which the Administrative Agent is called to testify, in each
case, relating in any way to the Obligations, any Loan Party, any of the Administrative Borrower’s
Subsidiaries, this Agreement or any other Loan Documents or (vii) any amendment, consent, waiver,
assignment, restatement, or supplement to any Loan Document or the preparation, negotiation, and
execution of the same.

(b) The Borrowers further agree to pay or reimburse the Administrative Agent and each of the
Lenders and Issuers upon demand for all out-of-pocket costs and expenses, including, without
limitation, reasonable attorneys’ fees (including allocated costs of internal counsel and costs of
settlement), incurred by the Administrative Agent, such Lenders or Issuers in connection with any
of the following: (i) in enforcing any Loan Document or Obligation or any security therefor or
exercising or enforcing any other right or remedy available by reason of an Event of Default,
(ii) in connection with any refinancing or restructuring of the credit arrangements provided
hereunder in the nature of a “work-out” or in any insolvency or bankruptcy proceeding, (iii) in
commencing, defending or intervening in any litigation or in filing a petition, complaint, answer,
motion or other pleadings in any legal proceeding relating to the Obligations, any Loan Party, any
of the Administrative Borrower’s Subsidiaries and related to or arising out of the transactions
contemplated hereby or by any other Loan Document or (iv) in taking any other action in or with
respect to any suit or proceeding (bankruptcy or otherwise) described in clause (i), (ii) or
(iii) above.

	 	 	 	Section 10.4 Indemnities.

(a) The Borrowers agree to indemnify and hold harmless the Administrative Agent, each
Arranger, each Lender and each of their respective Affiliates, and each of the directors, officers,
employees, agents, representative, attorneys, consultants and advisors of or to any of the
foregoing (including those retained in connection with the satisfaction or attempted satisfaction
of any condition set forth in Article III (each such Person being an “Indemnitee”) from and
against any and all claims, damages, liabilities, obligations, losses, penalties, actions,
judgments, suits, costs, disbursements and expenses of any kind or nature (including fees,
disbursements and expenses of financial and legal advisors to any such Indemnitee) that may be
imposed on, incurred by or asserted against any such Indemnitee in connection with or arising out
of any investigation, litigation or proceeding, whether or not any such Indemnitee is a party
thereto, whether direct, indirect, or consequential and whether based on any federal, state or
local law or other statutory regulation, securities or commercial law or regulation, or under
common law or in equity, or on contract, tort or otherwise, in any manner relating to or arising
out of this Agreement, any other Loan Document, any Obligation, any Letter of Credit, the
Disclosure Document, the Revolving Credit Notes or any act, event or transaction related or
attendant to any thereof, or the use or intended use of the proceeds of the Loans or Letters of
Credit or in connection with any investigation of any potential matter covered hereby
(collectively, the “Indemnified Matters”); provided, however, that the
Borrowers shall not have any obligation under this Section 10.4 to an Indemnitee with respect to
any Indemnified Matter caused by or resulting from the gross negligence or willful misconduct of
that Indemnitee, as determined by a court of competent jurisdiction in a final non-appealable
judgment or order. Without limiting the foregoing, Indemnified Matters include (i) all
environmental liabilities and costs arising from or connected with the past, present or future
operations of the Administrative Borrower or any of its Subsidiaries or damage to real or personal
property or natural resources or harm or injury alleged to have resulted from any Release of
Contaminants; (ii) any costs or liabilities incurred in connection with any Remedial Action
concerning the Administrative Borrower or any of its Subsidiaries; (iii) any costs or liabilities
incurred in connection with any Environmental Lien and (iv) any costs or liabilities incurred in
connection with any other matter under any Environmental Law, including the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 (49 U.S.C. 9601 et
seq.) and applicable state property transfer laws, except, with respect to those matters
referred to in clauses (i), (ii), (iii) and (iv) above, to the extent attributable to acts of the
Administrative Agent, such Lender or such Issuer or any agent on behalf of the Administrative
Agent, such Lender or such Issuer. In the case of an investigation, litigation or other proceeding
to which the indemnity in this Section 10.4 applies, such indemnity shall be effective whether or
not such investigation, litigation or proceeding is brought by any Borrower, any of its directors,
securityholders or creditors, an Indemnitee or any other person, or an Indemnitee is otherwise a
party thereto and whether or not the transactions contemplated hereby are consummated.

(b) The Borrowers shall indemnify the Administrative Agent, the Lenders and each Issuer for,
and hold the Administrative Agent, the Lenders and each Issuer harmless from and against, any and
all claims for brokerage commissions, fees and other compensation made against the Administrative
Agent, the Lenders and the Issuers for any broker, finder or consultant with respect to any
agreement, arrangement or understanding made by or on behalf of any Loan Party or any of its
Subsidiaries in connection with the transactions contemplated by this Agreement.

(c) The Administrative Borrower, at the request of any Indemnitee, shall have the obligation
to defend against such investigation, litigation or proceeding or requested Remedial Action and the
Administrative Borrower, in any event, may participate in the defense thereof with legal counsel of
the Administrative Borrower’s choice. In the event that such Indemnitee requests the
Administrative Borrower to defend against such investigation, litigation or proceeding or requested
Remedial Action, the Administrative Borrower shall promptly do so and such Indemnitee shall have
the right to have legal counsel of its choice participate in such defense. No action taken by
legal counsel chosen by such Indemnitee in defending against any such investigation, litigation or
proceeding or requested Remedial Action, shall vitiate or in any way impair the Borrowers’
obligation and duty hereunder to indemnify and hold harmless such Indemnitee.

(d) The Borrowers agree that any indemnification or other protection provided to any
Indemnitee pursuant to this Agreement (including pursuant to this Section 10.4) or any other Loan
Document shall (i) survive payment in full of the Obligations and (ii) inure to the benefit of any
Person that was at any time an Indemnitee under this Agreement or any other Loan Document.

	 	 	 	Section 10.5 Limitation of Liability.

The Borrowers agree that no Indemnitee shall have any liability (whether in contract, tort or
otherwise) to any Loan Party or any of their respective Subsidiaries or any of their respective
equity holders or creditors for or in connection with the transactions contemplated hereby and in
the other Loan Documents, except for direct damages (as opposed to special, indirect, consequential
or punitive damages (including, without limitation, any loss of profits, business or anticipated
savings)) determined in a final non-appealable judgment by a court of competent jurisdiction to
have resulted from such Indemnitee’s gross negligence or willful misconduct. The Borrowers hereby
waive, release and agree (each for itself and on behalf of its Subsidiaries) not to sue upon any
such claim for any special, indirect, consequential or punitive damages, whether or not accrued and
whether or not known or suspected to exist in its favor.

	 	 	 	Section 10.6 Right of Set-off.

Upon the occurrence and during the continuance of any Event of Default each Lender and each
Affiliate of a Lender is hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other indebtedness at any time owing by such Lender or
its Affiliates to or for the credit or the account of any Borrower against any and all of the
Obligations now or hereafter existing whether or not such Lender shall have made any demand under
this Agreement or any other Loan Document and even though such Obligations may be unmatured. Each
Lender agrees promptly to notify the Administrative Borrower after any such set-off and application
made by such Lender or its Affiliates; provided, however, that the failure to give
such notice shall not affect the validity of such set-off and application. The rights of each
Lender under this Section 10.6 are in addition to the other rights and remedies (including other
rights of set-off) that such Lender may have.

	 	 	 	Section 10.7 Sharing of Payments, Etc.

(a) If any Lender obtains any payment (whether voluntary, involuntary, through the exercise of
any right of set-off or otherwise) of the Loans owing to it, any interest thereon, fees in respect
thereof or amounts due pursuant to Section 10.3 or Section 10.4 (other than payments pursuant to
Section 2.14, Section 2.15 or Section 2.16 in excess of its Ratable Portion of all payments of such
Obligations obtained by all the Lenders, such Lender (a “Purchasing Lender”) shall
forthwith purchase from the other Lenders (each, a “Selling Lender”) such participations in
their Loans or other Obligations as shall be necessary to cause such Purchasing Lender to share the
excess payment ratably with each of them.

(b) If all or any portion of any payment received by a Purchasing Lender is thereafter
recovered from such Purchasing Lender, such purchase from each Selling Lender shall be rescinded
and such Selling Lender shall repay to the Purchasing Lender the purchase price to the extent of
such recovery together with an amount equal to such Selling Lender’s ratable share (according to
the proportion of (i) the amount of such Selling Lender’s required repayment in relation to
(ii) the total amount so recovered from the Purchasing Lender) of any interest or other amount paid
or payable by the Purchasing Lender in respect of the total amount so recovered.

(c) The Borrowers agree that any Purchasing Lender so purchasing a participation from a
Selling Lender pursuant to this Section 10.7 may, to the fullest extent permitted by law, exercise
all its rights of payment (including the right of set-off) with respect to such participation as
fully as if such Lender were the direct creditor of the Borrowers in the amount of such
participation.

	 	 	 	Section 10.8 Notices, Etc.

All notices, demands, requests and other communications provided for in this Agreement shall
be given in writing, or by any telecommunication device capable of creating a written record
(including electronic mail), and addressed to the party to be notified as follows:

	 	(a)	 	if to any Borrower:

Technical Olympic USA, Inc.

4000 Hollywood Boulevard

Suite 500 N.

Hollywood, FL 33021

Attention: Steven Wagman, Chief Financial Officer

Telecopy no: (954) 364-4010

E-Mail Address: swagman@tousa.com

(b) if to any Lender, at its Domestic Lending Office specified opposite its name on
Schedule II or on the signature page of any applicable Assignment and Acceptance;

(c) if to any Issuer, at the address set forth under its name on Schedule II; and

	 	(d)	 	if to the Administrative Agent or the Swing Loan Lender:

Citigroup Global Markets Inc.

Two Penns Way, Suite 200

New Castle, Delaware 19720

Attention: David G. Maffett

Telecopy no: 212.994.0961

E-Mail Address: david.g.maffett@citigroup.com

	 	 	 	with a copy to:

Chadbourne & Parke LLP

30 Rockefeller Plaza

New York, New York 10112

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

Telecopy no: (212) 541-5369

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

or at such other address as shall be notified in writing (i) in the case of any Borrower, the
Administrative Agent and the Swing Loan Lender to the other parties and (y) in the case of all
other parties, to the Administrative Borrower and the Administrative Agent. All such notices and
communications shall be effective upon personal delivery (if delivered by hand, including any
overnight courier service), when deposited in the mails (if sent by mail), or when properly
transmitted (if sent by a telecommunications device or through the Internet); provided,
however, that notices and communications to the Administrative Agent pursuant to Article II
or IX shall not be effective until received by the Administrative Agent.

	 	 	 	Section 10.9 No Waiver; Remedies.

No failure on the part of any Lender, Issuer or the Administrative Agent to exercise, and no
delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise thereof or the exercise
of any other right. The remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

	 	 	 	Section 10.10 Binding Effect.

This Agreement shall become effective when it shall have been executed by the Borrowers and
the Administrative Agent and when the Administrative Agent shall have been notified by each
Requisite Lender and Issuer that such Lender or Issuer has executed it and thereafter shall be
binding upon and inure to the benefit of the Borrowers, the Administrative Agent and each Lender
and Issuer and, in each case, their respective successors and assigns, provided,
however, that no Borrower shall have the right to assign its rights hereunder or any
interest herein without the prior written consent of the Lenders.

	 	 	 	Section 10.11 Governing Law.

This Agreement and the rights and obligations of the parties hereto shall be governed by, and
construed and interpreted in accordance with, the law of the State of New York.

	 	 	 	Section 10.12 Submission to Jurisdiction; Service of Process.

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

(b) Each Borrower irrevocably consents to the service of any and all process in such action or
proceeding arising out of or in connection with this Agreement or any Loan Document by the mailing
(by registered or certified mail, postage prepaid) of copies of such process to an appointed
process agent or the Borrower at its address specified in Section 10.8. Each Borrower agrees that
a final judgment in any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.

(c) Nothing contained in this Section 10.12 shall affect the right of the Administrative Agent
or any Lender to serve process in any other manner permitted by law or commence legal proceedings
or otherwise proceed against any Borrower or any other Loan Party in any other jurisdiction.

(d) If for the purposes of obtaining judgment in any court it is necessary to convert a sum
due hereunder in Dollars into another currency, the parties hereto agree, to the fullest extent
that they may effectively do so, that the rate of exchange used shall be that at which in
accordance with normal banking procedures the Administrative Agent could purchase Dollars with such
other currency at the spot rate of exchange quoted by the Administrative Agent at 11:00 a.m. (New
York time) on the Business Day preceding that on which final judgment is given, for the purchase of
Dollars, for delivery two Business Days thereafter.

	 	 	 	Section 10.13 Waiver of Jury Trial.

EACH OF THE ADMINISTRATIVE AGENT, THE LENDERS, THE ISSUERS AND THE BORROWERS IRREVOCABLY
WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT.

	 	 	 	Section 10.14 Section Titles.

The section titles contained in this Agreement are and shall be without substantive meaning or
content of any kind whatsoever and are not a part of the agreement between the parties hereto,
except when used to reference a section. Any reference to the number of a clause, sub-clause or
subsection hereof immediately followed by a reference in parenthesis to the title of the Section
containing such clause, sub-clause or subsection is a reference to such clause, sub-clause or
subsection and not to the entire Section; provided, however, that, in case of
direct conflict between the reference to the title and the reference to the number of such Section,
the reference to the title shall govern absent manifest error. If any reference to the number of a
Section (but not to any clause, sub-clause or subsection thereof) is followed immediately by a
reference in parenthesis to the title of a Section, the title reference shall govern in case of
direct conflict absent manifest error.

	 	 	 	Section 10.15 Execution in Counterparts.

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

	 	 	 	Section 10.16 Entire Agreement.

This Agreement, together with all of the other Loan Documents and all certificates and
documents delivered hereunder or thereunder, embodies the entire agreement of the parties and
supersedes all prior agreements and understandings relating to the subject matter hereof.

	 	 	 	Section 10.17 Confidentiality.

(a) None of the Administrative Agent or any Lender may disclose to any Person any
confidential, proprietary or non-public information of the Administrative Borrower and its
Subsidiaries furnished to the Administrative Agent or the Lenders by the Administrative Borrower
(such information being referred to collectively herein as the “Borrower Information”),
except that the Administrative Agent and each of the Lenders may disclose Borrower Information
(i) to its and its Affiliates’ employees, officers, directors, agents and advisors on a need to
know basis (it being understood that the Persons to whom such disclosure is made will be informed
of the confidential nature of such Borrower Information and instructed to keep such Borrower
Information confidential on substantially the same terms as provided herein), (ii) to the extent
requested by any regulatory authority or any self regulatory organization, (iii) to the extent
required by applicable laws or regulations or by any subpoena or similar legal process, (iv) to any
other party to this Agreement, (v) if reasonably necessary in connection with the exercise of any
remedies hereunder or under any other Loan Document or any suit, action or proceeding relating to
this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder,
(vi) subject to an agreement containing provisions substantially the same as those of this
Section 10.17, to any assignee of or participant in, or any prospective assignee of or participant
in, any of its rights or obligations under this Agreement or any derivatives counter party,
(vii) to the extent such Borrower Information (A) is or becomes generally available to the public
on a non-confidential basis other than as a result of a breach of this Section 10.17 by the
Administrative Agent or such Lender, or (B) is or becomes available to the Administrative Agent or
such Lender on a nonconfidential basis from a source other than a Borrower and (viii) with the
prior written consent of the Administrative Borrower.

(b) No Borrower may disclose to any Person the amount or terms of any fees payable to the
Administrative Agent, the Arrangers or any Lender (such information being collectively referred to
herein as the “Facility Information”), except that the Administrative Borrower may disclose
the Facility Information (i) to its and its respective Affiliates’ employees, officers, directors,
agents and advisors who have a need to know the Facility Information in connection with this
Agreement and the transactions contemplated hereby or (ii) to the extent required by applicable
laws or regulations or by any subpoena or similar legal process.

	 	 	 	Section 10.18 USA Patriot Act.

Each Lender hereby notifies each Loan Party that pursuant to the requirements of the USA
Patriot Act, it is required to obtain, verify and record information that identifies Loan Parties,
which information includes the name and address of each Loan Party and other information that will
allow the Lenders to identify such Loan Party in accordance with the USA Patriot Act.

	 	 	 	Section 10.19 Agent Communications.

(a) Each Loan Party hereby agrees that it will provide to the Administrative Agent all
information, documents and other materials that it is obligated to furnish to the Administrative
Agent pursuant to the Loan Documents, including, without limitation, all notices, requests,
financial statements, financial and other reports, certificates and other information material, but
excluding any such communication that (i) relates to a request for a new, or a conversion of an
existing, Borrowing or other extension of credit (including any election of an interest rate or
interest period relating thereto), (ii) relates to the payment of any principal or other amount due
under this Agreement prior to the scheduled date therefor, (iii) provides notice of any Default
under this Agreement or (iv) is required to be delivered to satisfy any condition precedent to the
effectiveness of this Agreement and/or any borrowing or other extension of credit hereunder (all
such non-excluded communications being referred to herein collectively as
"Communications”), by transmitting the Communications in an electronic/soft medium in a
format acceptable to the Administrative Agent to oploanswebadmin@citigroup.com. In addition, each
Loan Party agrees to continue to provide the Communications to the Administrative Agent in the
manner specified in the Loan Documents but only to the extent requested by the Administrative
Agent.

(b) Each Loan Party further agrees that the Administrative Agent may make the Communications
available to the Lenders by posting the Communications on Intralinks (the “Platform”).
Each Loan Party acknowledges that the distribution of material through an electronic medium is not
necessarily secure and that there are confidentiality and other risks associated with such
distribution.

(c) THE PLATFORM IS PROVIDED “AS IS” “AS AVAILABLE”. THE AGENT PARTIES (AS DEFINED BELOW) DO
NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND
EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF ANY
KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, WITHOUT LIMITATION, ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD-PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS IS MADE BY THE AGENT PARTIES IN CONNECTION WITH THE
COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE ADMINISTRATIVE AGENT OR ANY OF ITS
AFFILIATES OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ADVISORS OR
REPRESENTATIVES (COLLECTIVELY, “AGENT PARTIES”) HAVE ANY LIABILITY TO THE LOAN PARTIES, ANY
LENDER OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, DIRECT
OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT,
CONTRACT OR OTHERWISE) ARISING OUT OF THE LOAN PARTIES’ OR THE ADMINISTRATIVE AGENT’S TRANSMISSION
OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS
FOUND IN A FINAL, NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED
PRIMARILY FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

(d) The Administrative Agent agrees that the receipt of the Communications by the
Administrative Agent at its e-mail address set forth above shall constitute effective delivery of
the Communications to the Administrative Agent for purposes of the Loan Documents. Each Lender
agrees that notice to it (as provided in the next sentence) specifying that the Communications have
been posted to the Platform shall constitute effective delivery of the Communications to such
Lender for purposes of the Loan Documents. Each Lender agrees to notify the Administrative Agent
in writing (including by electronic communication) from time to time of such Lender’s e-mail
address to which the foregoing notice may be sent by electronic transmission and (ii) that the
foregoing notice may be sent to such e-mail address.

(e) Nothing herein shall prejudice the right of the Administrative Agent or any Lender to give
any notice or other communication pursuant to any Loan Document in any other manner specified in
such Loan Document.

	 	 	 	Section 10.20 Joint and Several Liability.

(a) Each Borrower states and acknowledges that: (i) pursuant to this Agreement the Borrowers
desire to utilize their borrowing potential on a consolidated basis to the same extent possible as
if they were merged into a single corporate entity and that this Agreement reflects the
establishment of credit facilities which would not otherwise be available to such Borrower if each
Borrower were not jointly and severally liable for payment of the Obligations; (ii) it has
determined that it will benefit specifically and materially from the advances of credit
contemplated by this Agreement; (iii) it is both a condition precedent to the obligations of each
Lender hereunder and a desire of the Borrowers that each Borrower execute and deliver to each
Lender this agreement, and (iv) the Borrowers have requested and bargained for the structure and
terms of and security for the advances contemplated by this Agreement.

(b) Each Borrower shall be liable for all amounts due to the Administrative Agent and/or any
Lender from any Borrower under this Agreement, regardless of which Borrower actually receives
Loans, the benefit of any Letter of Credit Issuance or other extensions of credit hereunder (all
such extensions of credit being, collectively, “Extensions of Credit”) or the amount of
such Extensions of Credit received by any Borrower or the manner in which the Administrative Agent
and/or such Lender accounts for such Extensions of Credit on its books and records (without
limiting the foregoing, each Borrower shall be liable for Extensions of Credit made to each other
Borrower). Each Borrower’s Obligation with respect to Extensions of Credit made to it, and each
Borrower’s Obligations arising as a result of the joint and several liability of such Borrower
hereunder, with respect to Extensions of Credit made to another Borrower hereunder, shall be
separate and distinct obligations, but all such Obligations shall be primary obligations of such
Borrower.

(c) Each Borrower’s Obligations arising as a result of the joint and several liability of such
Borrower hereunder with respect to Extensions of Credit made to another Borrower hereunder shall,
to the fullest extent permitted by law, be unconditional irrespective of (i) the validity or
enforceability, avoidance or subordination of the Obligations or any other Borrower or of any
promissory note or other document evidencing all or any part of the Obligation of any other
Borrower, (ii) the absence of any attempt to collect the Obligations from any other Borrower, any
other guarantor, or any other security therefor, or the absence of any other action to enforce the
same, (iii) the waiver, consent, extension, forbearance or granting of any indulgence by the
Administrative Agent and/or any Lender with respect to any provisions of any instrument evidencing
the Obligations of any other Borrower, or any part thereof, or any other agreement now or hereafter
executed by any other Borrower and delivered to the Administrative Agent and/or any Lender,
(iv) the failure by the Administrative Agent and/or any Lender to take any steps to perfect and
maintain its security interest in, or to preserve its rights to, any security or collateral for the
Obligations of any other Borrower, (v) the Administrative Agent’s and/or any Lender’s election, in
any proceedings instituted under the Bankruptcy Code, of the application of Section 1111(b)(2) of
the Bankruptcy Code, (vi) any borrowing or grant of a security interest by any other Borrower, as
debtor-in-possession under Section 364 of the Bankruptcy Code, (vii) the disallowance of all or any
portion of the Administrative Agent’s and/or any Lender’s claim(s) for the repayment of the
Obligations of any other Borrower under Section 502 of the Bankruptcy Code, or (viii) any other
circumstances which might constitute a legal or equitable discharge or defense of a guarantor or of
any other Borrower (other than the indefeasible payment of the Obligations). With respect to each
Borrower’s Obligations arising as a result of the joint and several liability of such Borrower
hereunder with respect to Extensions of Credit made to any Borrower hereunder, such Borrower
waives, until the Obligations shall have been paid in full and this Agreement shall have been
terminated, any right to enforce any right to subrogation or any remedy which the Administrative
Agent and/or any Lender now has or may hereafter have against any other Borrower, any endorser or
any guarantor of all or any part of the Obligations, and any benefit of, and any right to
participate in, any security or collateral given to the Administrative Agent and/or any Lender to
secure payment of the Obligations or any other liability of any other Borrower to the
Administrative Agent and/or any Lender.

(d) Each Borrower agrees if such Borrower’s joint and several liability hereunder, or if any
Liens securing such joint and several liability, would, but for the application of this sentence,
be unenforceable under applicable law, such joint and several liability and each such Lien shall be
valid and enforceable to the maximum extent that would not cause such joint and several liability
or such Lien to be unenforceable under applicable law, and such joint and several liability and
such Lien shall be deemed to have been automatically amended accordingly at all relevant times.

(e) Upon the occurrence and during the continuance of any Event of Default, the Administrative
Agent may proceed directly and at once, without notice, against a Borrower to collect and recover
the full amount, or any portion of the Obligations, without first proceeding against any other
Borrower or any other Person, or against any security or collateral for the Obligations. Each
Borrower consents and agrees that the Administrative Agent shall be under no obligation to marshal
any assets in favor of such Borrower or against or in payment of any or all of the Obligations.

(f) The Borrowers are obligated to repay the Obligations as joint and several obligors under
this Agreement. To the extent that any Borrower shall, under this Agreement as a joint and several
obligor, repay any of the Obligations constituting Extensions of Credit made to another Borrower
hereunder or other Obligations incurred directly and primarily by any other Borrower (an
"Accommodation Payment”), then the Borrower making such Accommodation Payment shall be
entitled to contribution and indemnification from, and be reimbursed by, each of the other
Borrowers in an amount, for each of such other Borrowers, equal to a fraction of such Accommodation
Payment, the numerator of which fraction is such other Borrower’s “Allocable Amount” (as defined
below) and the denominator of which is the sum of the Allocable Amounts of all of the Borrowers.
As of any date of determination, the “Allocable Amount” of each Borrower shall be equal to the
maximum amount of liability for Accommodation Payments which could be asserted against such
Borrower hereunder without (i) rendering such Borrower “insolvent” within the meaning of Section
101 (31) of the Bankruptcy Code, Section 2 of the Uniform Fraudulent Transfer Act (“UFTA”)
or Section 2 of the Uniform Fraudulent Conveyance Action (“UFCA”), (ii) leaving such
Borrower with unreasonably small capital or assets, within the meaning of Section 548 of the
Bankruptcy Code, Section 4 of the UFTA, or Section 5 of the UFCA, or (iii) leaving such Borrower
unable to pay its debts as they become due within the meaning of Section 548 of the Bankruptcy Code
or Section 4 of the UFTA, or Section 5 of the UFCA. All rights and claims of contribution,
indemnification and reimbursement under this Section shall be subordinate in right of payment to
the prior payment in full of the Obligation. The provisions of this Section shall, to the extent
expressly inconsistent with any provision in any Loan Document, supersede such inconsistent
provision.

	 	 	 	Section 10.21 Administrative Borrower.

Each of the other Borrowers appoints the Administrative Borrower as its agent for all purposes
relevant to this Agreement, including the giving and receipt of notices and execution and delivery
of all documents, instruments and certificates contemplated herein and all modifications hereto.
Any acknowledgement, consent, direction, certificate or other action which might otherwise be valid
or effective only if given or taken by all of the Borrowers or acting singly, shall be valid and
effective if given or taken only by the Administrative Borrower, whether or not any of the other
Borrowers joins therein.

	 	 	 	Section 10.22 No Release.

(a) The Administrative Borrower acknowledges and agrees that this Agreement shall in no way
constitute a release of the Administrative Borrower from any of its payment obligations under the
March 2006 Credit Agreement or the Revolving Credit Notes (if any) owing to any Lender.

(b) Each Subsidiary Borrower acknowledges and agrees that this Agreement shall in no way
constitute a release of such Subsidiary Borrower’s obligations as a Guarantor under the Guaranty,
and each Subsidiary Borrower hereby reaffirms its obligations under the Guaranty in all respects.

[Signature Pages Follow]

4

ADMINISTRATIVE BORROWER:

TECHNICAL OLYMPIC USA, INC.,

as the Administrative Borrower

By:     /s/ Randy Kotler     

Name: Randy Kotler

Title: Sr. VP and Chief Accounting Officer

5

SUBSIDIARY BORROWERS:

	 	 	 	ENGLE HOMES DELAWARE, INC.

	 	 	 	ENGLE
HOMES RESIDENTIAL CONSTRUCTION, L.L.C.

	 	 	 	ENGLE/JAMES LLC

	 	 	 	MCKAY
LANDING LLC

	 	 	 	NEWMARK HOMES PURCHASING, L.P.

	 	 	 	NEWMARK HOMES, L.L.C.

	 	 	 	NEWMARK HOMES, L.P.

	 	 	 	PREFERRED BUILDERS REALTY, INC.

	 	 	 	SILVERLAKE INTERESTS, L.C.

	 	 	 	TOI, LLC

	 	 	 	TOUSA, LLC

	 	 	 	TOUSA
ASSOCIATES SERVICES COMPANY

	 	 	 	TOUSA
DELAWARE, INC.

	 	 	 	TOUSA
FUNDING, LLC

	 	 	 	TOUSA
HOMES, INC.

	 	 	 	TOUSA
HOMES, L.P.

	 	 	 	TOUSA
HOMES INVESTMENT #1, INC.

	 	 	 	TOUSA
HOMES FLORIDA, L.P.

	 	 	 	TOUSA
HOMES INVESTMENT #2, INC.

	 	 	 	TOUSA
HOMES INVESTMENT #2, LLC

	 	 	 	TOUSA
REALTY, INC.

	 	 	 	TOUSA
INVESTMENT #2, INC.

	 	 	 	TOUSA
HOMES ARIZONA, LLC

	 	 	 	TOUSA
HOMES COLORADO, LLC

	 	 	 	TOUSA
HOMES NEVADA, LLC

	 	 	 	TOUSA
HOMES MID-ATLANTIC HOLDING, LLC

	 	 	 	TOUSA
HOMES MID-ATLANTIC, LLC

	 	 	 	TOUSA
MID-ATLANTIC INVESTMENT, LLC

	 	 	 	TOUSA
VENTURES, LLC

	 	 	 	TOUSA/WEST HOLDINGS, INC.

	 	 	 	LORTON SOUTH CONDOMINIUM, LLC

	 	 	 	ENGLE
HOMES COMMERCIAL CONSTRUCTION, LLC

	 	 	 	LB/TE
#1, LLC

By:     /s/ Randy Kotler     

Name: Randy Kotler

Title: VP and Treasurer

6

SUBSIDIARY BORROWERS (continued):

NEWMARK HOMES BUSINESS TRUST

By:     /s/ Randy Kotler     

Name: Randy Kotler

Title: Managing Trustee

7

CITICORP NORTH AMERICA, INC.,

as Administrative Agent and a Lender

By:     /s/ R. Tucker Borden     

Name: Tucker Borden

Title: Vice President

8

CITIBANK, N.A., as an Issuer

By:     /s/ R. Tucker Borden     

Name: Tucker Borden

Title: Vice President

9

CITIBANK, N.A., as a Lender

By:     /s/ Christine M. Kanicki     

Name: Christine M. Kanicki

Title: Attorney – In — Fact

10

	 	 	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, as a
	 	 	 	Lender

By:     

Name:

Title:

By:     

Name:

Title:

11

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

By:     /s/ John P. McDonagh     

Name: John P. McDonagh

Title: Managing Director

12

WACHOVIA BANK, N.A.,

as a Lender

By:     /s/ R. Scott Holtzapple     

Name: R. Scott Holtzapple

Title: Senior Vice President

13

BANK OF THE

WEST, a California Banking Corporation, as a
Lender

By:     

Name:

Title:

By:     

Name:

Title:

14

BRANCH BANKING AND TRUST COMPANY, as a

Lender

By:     /s/ Anne C. Grady     

Name: Anne C. Grady

Title: Vice President

15

BANKUNITED, FSB, as a

Lender

By:     

Name:

Title:

16

COMPASS BANK, an Alabama banking

corporation, as a Lender

By:     

Name:

Title:

17

COMERICA BANK, as a Lender

By:     /s/ Charles Weddell     

Name: Charles Weddell

Title: Vice President

18

CREDIT SUISSE, CAYMAN
ISLANDS BRANCH, as a Lender

By:     /s/ Cassandra Droogan     

Name: Cassandra Droogan

Title: Vice President

By:     /s/ Laurence Lapeyre     

Name: Laurence Lapeyre

Title: Associate

19

FORTIS BANK S.A./N.V.,

CAYMAN ISLANDS BRANCH, as a Lender

By:     /s/ Laurie Albright     

Name: Laurie Albright

Title: Loan Closer

By:     /s/ Mason Chau     

Name: Mason Chau

Title: AVP

20

GRAND CENTRAL ASSET TRUST SAN
SERIES, as a Lender

By:     /s/ Molly Walter     

Name: Molly Walter

Title: Attorney – In — Fact

21

GUARANTY BANK, as

a Lender

By:     /s/ Dan Killian     

Name: Dan Killian

Title: Senior Vice President

22

KEYBANK NATIONAL

ASSOCIATION, as a Lender

By:     

Name:

Title:

23

NATIXIS (fka NATEXIS BANQUES POPULAIRES),
as a Lender

By:     /s/ M.E. Dugeny     

Name: M. E. Dugeny

Title: Managing Director

By:     /s/ Guillaume De Parscau     

Name: Guillaume De Parscau

Title: Managing Director

24

NATIONAL CITY BANK,

as a Lender

By:     /s/ John M. Osberg     

Name: John M. Osberg

Title: Senior Vice President

25

PNC BANK,

NATIONAL ASSOCIATION, as a Lender

By:     /s/ Douglas G. Paul     

Name: Douglas G. Paul

Title: Senior Vice President

26

QUATTRO SPECIAL
SITUATIONS, LLC, as a Lender

By:     /s/ Patrick Criscillo     

Name: Patrick Criscillo

Title: CFO

27

RAYMOND JAMES BANK, FSB, as a

Lender

By:     /s/ William J. Hindman     

Name: William J. Hindman

Title: Vice President

28

SOVEREIGN BANK, as a

Lender

By:     /s/ Erin T. Aslakson     

Name: Erin T. Aslakson

Title: Assistant Vice President

29

UBS LOAN
FINANCE, LLC, as a Lender

By:     

Name:

Title:

By:     

Name:

Title:

30

U.S. BANK NATIONAL ASSOCIATION, as a

Lender

By:     

Name:

Title:

31

	 	 	 	WASHINGTON MUTUAL BANK, as a Lender

By:     /s/ Anne D. Brehony     

Name: Anne D. Brehony

Title: Vice President

32

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