Document:

Exhibit 10.1

 

SECOND AMENDMENT TO

FIRST
AMENDED AND RESTATED CREDIT AGREEMENT 

Dated as of May 18, 2007

among

MERITAGE HOMES CORPORATION,

as the Borrower,

GUARANTY BANK

as Administrative Agent and Swing Line Lender,

JPMORGAN
CHASE BANK, N.A.,

as Syndication Agent,

WACHOVIA
BANK, NATIONAL ASSOCIATION and BANK OF AMERICA, N.A.,

as Co-Documentation Agents,

COUNTRYWIDE BANK, FSB,

U. S. BANK NATIONAL ASSOCIATION, 

CITICORP NORTH AMERICA, INC., 

DEUTSCHE BANK TRUST COMPANY
AMERICAS, 

UBS SECURITIES LLC, and PNB PARIBAS

as Managing Agents,

SUNTRUST BANK,

as Co-Agent,

and

The Other Lenders Party Hereto

 

GUARANTY BANK,

as Joint Lead Arranger and 
Joint Book Manager

and

J. P.
MORGAN SECURITIES, INC.,

as Joint Lead Arranger and Joint Book Manager

SECOND AMENDMENT TO 

FIRST AMENDED AND RESTATED CREDIT AGREEMENT

This Second Amendment to First Amended and Restated
Credit Agreement (this “Second Amendment”) dated as of May 18,
2007, is entered into among Meritage Homes Corporation, a Maryland corporation
(the “Borrower”), the lenders listed on the signature pages hereof as
Lenders (the “Lenders”), and Guaranty Bank, in its capacity as
Administrative Agent (the “Administrative Agent”).  

BACKGROUND

A.            The Borrower, certain of the Lenders
and the Administrative Agent are parties to that certain First Amended and
Restated Credit Agreement dated as of May 16, 2006, as amended by that
certain First Amendment and Commitment Increase Agreement, dated as of
June 30, 2006 (as amended, modified, supplemented or restated, the “Credit
Agreement”).  Capitalized terms used
herein and not otherwise defined herein shall have the meanings attributed to
them in the Credit Agreement (as defined below).

B.            The Borrower has requested
(a) certain amendments to the Credit Agreement, (b) to add
Countrywide Bank, FSB (the “New Lender”) as a lender under the Credit
Agreement, and (c) to decrease the Commitments of Guaranty Bank, Wells
Fargo Bank, National Association and PNC Bank, National Association
(collectively, the “Decreasing Lenders”).  

C.            The Lenders and the Administrative
Agent hereby agree to amend the Credit Agreement, subject to the terms and
conditions set forth herein.

NOW, THEREFORE, in consideration of the covenants,
conditions and agreements hereafter set forth, and for other good and valuable
consideration, the receipt and adequacy of which are all hereby acknowledged,
the Borrower, the Lenders, and the Administrative Agent covenant and agree as
follows:

1.             AMENDMENTS.  

(a)           Section 1.01
of the Credit Agreement is hereby amended by adding the defined term “Applicable
Period” thereto in proper alphabetical order to read as follows:

“Applicable
Period” has the meaning specified in the definition of “Applicable Rate”
referenced in this Section 1.01.

(b)           The
definition of “Applicable Rate” set forth in Section 1.01 of
the Credit Agreement is hereby amended by adding the following paragraph to the
end thereof to read as follows:

 In the
event that any financial statement delivered pursuant to Section 6.01(a)
or 6.01(b) or any Compliance Certificate delivered pursuant to Section 6.02(b)
is shown to be inaccurate (regardless of whether this Agreement or the
Commitments are in effect when such inaccuracy is discovered), and such
inaccuracy, if corrected, would have led to a higher Applicable Rate for any
period (an “Applicable Period”) than the Applicable

Rate applied for such Applicable Period, then (i) the Borrower
shall immediately deliver to the Administrative Agent a correct Compliance
Certificate for such Applicable Period, (ii) the Applicable Rate shall be
determined using the Pricing Level applicable for such Applicable Period based
upon the corrected Compliance Certificate, and (iii) the Borrower shall
immediately pay to the Administrative Agent the accrued additional interest and
fees owing as a result of such increased Applicable Rate for such Applicable
Period, which payment shall be promptly applied by the Administrative Agent in
accordance with the terms hereof.  This
paragraph shall not limit the rights of the Administrative Agent and the
Lenders under Section 2.08 and Article VIII and other
provisions of this Agreement.  The
obligations of the Borrower under this paragraph shall survive termination of
the Commitments and the repayment of all other Obligations hereunder.

(c)           The
definition of “Borrowing Base” set forth in Section 1.01 of
the Credit Agreement is hereby amended to read as follows:

“Borrowing
Base” means with respect to an Inventory Valuation Date for which it is to
be determined, an amount equal to the sum (without duplication) of the
following assets of each Loan Party (but only to the extent that such assets
set forth in subparagraphs (a) through (g) below are not subject to any
Liens other than Permitted Liens):

(a)           90% of the Net Book Value of Presold
Units;

(b)           80% of the Net Book Value of Eligible
Model Units;

(c)           80% of the Net Book Value of Unsold
Units Under Construction;

(d)           80% of the Net Book Value of
Completed Unsold Units Less Than 18 Months Since Completion;

(e)           70% of the Net Book Value of Finished
Lots;

(f)            60% of the Net Book Value Land/Lots
Under Development; and

(g)           50% of the Net Book Value of
Unimproved Entitled Land;

provided, however, that (i) at no
time shall more than 70% of the Borrowing Base be comprised of the items set
forth in subparagraphs (e), (f) and (g) above, (ii) at no time shall
more than 40% of the Borrowing Base be comprised of the items set forth in
subparagraphs (f) and (g) above, and (iii) at no time shall the
aggregate amount of condominiums exceed 15% of the aggregate number of Units
comprising the items set forth in subparagraphs (a), (b), (c) and (d) in
the aggregate.

(d)           The
definition of “Scheduled Maturity Date” set forth in Section 1.01
of the Credit Agreement is hereby amended to read as follows:

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“Scheduled
Maturity Date” means May 18, 2011, as the same may be extended
pursuant to Section 2.14.

(e)           Section 2.02(a)
of the Credit Agreement is hereby amended by amending the second sentence
thereof to read as follows:

Each such
notice must be received by the Administrative Agent not later than
12:00 noon (i) three Business Days prior to the requested date of any
Borrowing of, conversion to or continuation of Eurodollar Rate Loans or of any
conversion of Eurodollar Rate Loans to Base Rate Revolving Loans, and (ii) on
the requested date of any Borrowing of Base Rate Revolving Loans.  

(f)            Section 2.04(b)
of the Credit Agreement is hereby amended by amending the second sentence
thereof to read as follows:

Each such
notice must be received by the Swing Line Lender and the Administrative Agent
not later than 2:00 p.m. on the requested borrowing date, and shall
specify (i) the amount to be borrowed, which shall be a minimum of
$100,000, and (ii) the requested borrowing date, which shall be a Business
Day.

(g)           Section 2.05(a)
of the Credit Agreement is hereby amended by amending the first sentence
thereof to read as follows:

The Borrower
may, upon notice to the Administrative Agent, at any time or from time to time
voluntarily prepay Revolving Loans in whole or in part without premium or
penalty; provided that (i) such notice must be received by the
Administrative Agent not later than 12:00 noon (A) three Business
Days prior to any date of prepayment of Eurodollar Rate Loans and (B) on
the date of prepayment of Base Rate Revolving Loans; (ii) any prepayment
of Eurodollar Rate Loans shall be in a principal amount of $5,000,000 or a
whole multiple of $1,000,000 in excess thereof; and (iii) any prepayment
of Base Rate Revolving Loans shall be in a principal amount of $500,000 or a
whole multiple of $100,000 in excess thereof or, in each case, if less, the
entire principal amount thereof then outstanding.

(h)           Section 6.02(c)
of the Credit Agreement is hereby amended to read as follows:

(c)           as soon as available, and in any event
within 35 days after the last day of each calendar month or more frequently, as
requested by the Administrative Agent, a Borrowing Base Certificate showing the
computation of the Borrowing Base in reasonable detail as of the close of
business on the last day of such month, signed by a Responsible Officer of the
Borrower;

(i)            Section 7.11(a)
of the Credit Agreement is hereby amended to read as follows:

(a)           Minimum Net Worth.  Permit Consolidated Tangible Net Worth at any
time to be less than the sum of (a) $600,000,000 plus (b) an amount
equal to 50% of Consolidated Net Income earned in each full fiscal quarter
ending after December 31, 2006 (with no deduction for a net loss in any
such fiscal quarter), plus (c) an amount

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equal to 50% of the aggregate increases in Consolidated Tangible Net
Worth of the Borrower and its Restricted Subsidiaries after December 31,
2006 by reason of the issuance and sale of Equity Interests or other equity
interests of the Borrower or any Restricted Subsidiary (other than issuances to
the Borrower or a wholly-owned Restricted Subsidiary), including upon any
conversion of debt securities of the Borrower into such Equity Interests or
other equity interests, plus (d) an amount equal to the net worth of any
Person that becomes a Restricted Subsidiary or is merged into or consolidated
with the Borrower or any Restricted Subsidiary or substantially all of the
assets of which are acquired by the Borrower or any Restricted Subsidiary, in
each case after December 31, 2006.

(j)            Section 7.11(e)
of the Credit Agreement is hereby amended to read as follows:

(e)           Total Land Restrictions.  Permit (a) the sum of (i) the Net
Book Value of Unentitled Land, plus (ii) the Net Book Value of Unimproved
Entitled Land, plus (iii) the Net Book Value of Land/Lots Under
Development, plus (iv) the Net Book Value of Finished Lots to exceed
(b) the sum of (i) 125% of Consolidated Tangible Net Worth plus
(ii) 50% of the aggregate outstanding principal amount of Subordinated
Debt.

(k)           Section 7.11(g)
of the Credit Agreement is hereby amended to read as follows:

(g)           Unsold Units.  Permit the number of Unsold Units existing at
the end of any fiscal quarter to exceed the greater of (a) 30% of the
number of Unit Closings within the four fiscal quarters ending on the last day
of such fiscal quarter and (b) 60% of the number of Unit Closings within
the two fiscal quarters ending on the last day of such fiscal quarter.

(l)            The
Commitment and Pro Rata Share of the New Lender are hereby established, the
Commitments of the Decreasing Lenders are hereby reduced, and the Pro Rata
Shares of the Lenders are hereby amended, all as set forth on Schedule 2.01,
which is hereby amended to be in the form of Schedule 2.01 attached
to this Second Amendment.

(m)          Exhibit D,
the Compliance Certificate, is hereby amended to be in the form of Exhibit D
attached to this Second Amendment.

(n)           Exhibit H,
the Borrowing Base Certificate, is hereby amended to be in the form of Exhibit H
attached to this Second Amendment.

2.             NEW
LENDER.

(a)           The
New Lender represents and warrants to the Administrative Agent as follows:

(i)            it has received a
copy of the Credit Agreement and all amendments thereto, together with copies
of the most recent financial statements of the Borrower delivered pursuant
thereto;

(ii)           it has,
independently and without reliance upon any Agent-Related Person and based on
such documents and information as it has deemed appropriate, made its

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own appraisal
of and investigation into the business, prospects, operations, property,
financial and other condition and creditworthiness of the Loan Parties and
their respective Subsidiaries, and all applicable bank or other regulatory Laws
relating to the transactions contemplated by the Credit Agreement, and made its
own decision to enter into the Credit Agreement and to extend credit to the
Borrower and the other Loan Parties under the Credit Agreement;

(iii)          it will,
independently and without reliance upon any Agent-Related Person and based on
such documents and information as it shall deem appropriate at the time,
continue to make its own credit analysis, appraisals and decisions in taking or
not taking action under the Credit Agreement and the other Loan Documents, and
to make such investigations as it deems necessary to inform itself as to the business,
prospects, operations, property, and other condition and creditworthiness of
the Borrower and the other Loan Parties.

(b)           The
New Lender acknowledges as follows:

(i)            no Agent-Related
Person has made any representation or warranty to it, and no act by the
Administrative Agent hereafter taken, including any consent to and acceptance
of any assignment or review of the affairs of any Loan Party or any Affiliate
thereof, shall be deemed to constitute any representation or warranty by any
Agent-Related Person to any Lender as to any matter, including whether
Agent-Related Persons have disclosed material information in their possession;

(ii)           except for notices,
reports and other documents expressly required to be furnished to the Lenders
by the Administrative Agent pursuant to the Credit Agreement, the
Administrative Agent shall not have any duty or responsibility to provide any
Lender with any credit or other information concerning the business, prospects,
operations, property, financial and other condition or creditworthiness of any
of the Loan Parties or any of their respective Affiliates which may come into
the possession of any Agent-Related Person; and

(iii)          simultaneously with
the satisfaction of the conditions to effectiveness set forth in Section 4
of this Second Amendment, it shall be deemed automatically to have become a
party to the Credit Agreement and have all rights and obligations of a Lender
under the Credit Agreement and the other Loan Documents (and it expressly makes
the appointment set forth in, and agrees to the obligations imposed under, Article IX
of the Credit Agreement).

3.             REPRESENTATIONS
AND WARRANTIES.  By its execution and
delivery hereof, the Borrower represents and warrants that, as of the date
hereof:

(a)           the
representations and warranties contained in the Credit Agreement and the other
Loan Documents are true and correct on and as of the date hereof as made on and
as of such date, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct
as of such earlier date, and except that the representations contained in
subsections (a) and (b) of Section 5.05 of the Credit
Agreement

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shall be deemed to refer to the most recent statements furnish pursuant
to subsections (a) and (b), respectively, of Section 6.01 of
the Credit Agreement;

(b)           no
event has occurred and is continuing which constitutes a Default or an Event of
Default;

(c)           (i) the
Borrower has full power and authority to execute and deliver this Second
Amendment, a Note payable to the order of the New Lender in the amount of such
Lender’s Commitment as established by this Second Amendment (the “New Note”),
and the Notes payable to the order of each Decreasing Lender (the “Replacement
Notes”), (ii) this Second Amendment, the New Note and the Replacement
Notes have been duly executed and delivered by the Borrower and (iii) this
Second Amendment, the New Note, the Replacement Notes and the Credit Agreement,
as amended hereby, constitute the legal, valid and binding obligations of the
Borrower, enforceable in accordance with their respective terms, except as
enforceability may be limited by applicable Debtor Relief Laws and by general
principles of equity (regardless of whether enforcement is sought in a
proceeding in equity or at law) and except as rights to indemnity may be
limited by federal or state securities laws;

(d)           neither
the execution, delivery and performance of this Second Amendment, the New Note,
the Replacement Notes or the Credit Agreement, as amended hereby, nor the
consummation of any transactions contemplated herein or therein, will violate
any Law or conflict with any Organization Documents of the Borrower, or any
indenture, agreement or other instrument to which the Borrower or any of it
property is subject; and

(e)           no
authorization, approval, consent, or other action by, notice to, or filing
with, any Governmental Authority or other Person not previously obtained is
required for (i) the execution, delivery or performance by the Borrower,
of this Second Amendment, the New Note or the Replacement Notes or
(ii) the acknowledgement by each Guarantor of this Second Amendment.

4.             CONDITIONS
TO EFFECTIVENESS. All provisions of this Second Amendment shall be
effective on May 18, 2007, subject to the satisfaction or completion of
the following:

(a)           the
Administrative Agent shall have received counterparts of this Second Amendment
executed by the Lenders, the Borrower and acknowledged by each Guarantor;

(b)           the
Administrative Agent shall have received the duly executed New Note for the New
Lender and duly executed Replacement Notes for each Decreasing Lender;

(c)           the
Administrative Agent shall have received a certified corporate resolution of
the Borrower authorizing the execution, delivery and performance of this Second
Amendment, the New Note and the Replacement Notes;

(d)           the
Administrative Agent shall have received an opinion of the Borrower’s counsel,
in form and substance satisfactory to the Administrative Agent, with respect to
matters set forth in Sections 3(c), (d), and (e) of this Second Amendment;

 6
 

(e)           the
Administrative Agent shall have received immediately available funds from the
Borrower, for the account of each Lender, in an amount agreed to by the
Borrower and each such Lender; and

(f)            the
Administrative Agent shall have received, in form and substance satisfactory to
the Administrative Agent and its counsel, such other documents, certificates
and instruments as the Administrative Agent shall require.

5.             PAYMENT.  Upon satisfaction of the conditions to
effectiveness set forth in Section 4 of this Second Amendment, the New
Lender shall, to the extent necessary, make a payment to the Administrative
Agent in an amount sufficient, upon the application of such payment to the
outstanding Revolving Loans held by the Decreasing Lenders, to cause the
principal amount of Revolving Loans outstanding held by the New Lender and each
Decreasing Lender to be in the amount of its respective Pro Rata Share (after
giving effect to the establishment and modification of the Commitments in accordance
with this Second Amendment) of all outstanding Revolving Loans.  If, as a result of the payment by the New
Lender provided for in this Section 5, any payment of Eurodollar Rate
Loans held by a Decreasing Lender occurs on a day which is not the last day of
the applicable Interest Period, the Borrower will pay to the Administrative
Agent for the benefit of any Decreasing Lender holding a Eurodollar Rate Loan
any loss or cost incurred by such Lender resulting therefrom in accordance with
Section 3.05 of the Credit Agreement.  Upon the making of the payments described in
this Section 5, the New Lender shall be deemed to have irrevocably and
unconditionally purchased and received, without recourse or warranty, an
undivided participation in all outstanding Swing Line Loans and L/C Obligations
in accordance with its Pro Rata Share (after giving effect to this Second
Amendment).

6.             REFERENCE
TO THE CREDIT AGREEMENT.  

(a)           Upon
the effectiveness of this Second Amendment, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, or words of like import shall mean
and be a reference to the Credit Agreement, as modified hereby.  This Second Amendment shall be a Loan
Document.

(b)           The
Credit Agreement, as modified herein, shall remain in full force and effect and
is hereby ratified and confirmed.

7.             COSTS,
EXPENSES AND TAXES.  The Borrower
agrees to pay on demand all costs and expenses of the Administrative Agent in
connection with the preparation, reproduction, execution and delivery of this
Second Amendment and the other instruments and documents to be delivered
hereunder (including the reasonable fees and out-of-pocket expenses of counsel
for the Administrative Agent with respect thereto).

8.             GUARANTORS
ACKNOWLEDGMENT.  By signing below,
each Guarantor (a) acknowledges, consents and agrees to the execution,
delivery and performance by the Borrower of this Second Amendment,
(b) acknowledges and agrees that its obligations in respect of its
Guaranty are not released, diminished, waived, modified, impaired or affected
in any manner by this Second Amendment or any of the provisions contemplated
herein, (c) ratifies and

 7
 

confirms its obligations under its Guaranty, and (d) acknowledges
and agrees that it has no claims or offsets against, or defenses or counterclaims
to, its Guaranty.

9.             EXECUTION
IN COUNTERPARTS.  This Second
Amendment may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and
delivered shall be deemed to be an original and all of which when taken
together shall constitute but one and the same instrument.  For purposes of this Second Amendment, a
counterpart hereof (or signature page thereto) signed and transmitted by any Person
party hereto to the Administrative Agent (or its counsel) by facsimile machine,
telecopier or electronic mail is to be treated as an original.  The signature of such Person thereon, for
purposes hereof, is to be considered as an original signature, and the
counterpart (or signature page thereto) so transmitted is to be considered to
have the same binding effect as an original signature on an original document.

10.           GOVERNING
LAW; BINDING EFFECT.  This Second
Amendment shall be deemed to be a contract made under and governed by and
continued in accordance with the internal laws of the State of Texas applicable
to agreements made and to be performed entirely within such state, provided
that each party shall retain all rights arising under federal law.  This Second Amendment shall be binding upon
the parties hereto and their respective successors and assigns.

11.           HEADINGS.  Section headings in this Second Amendment are
included herein for convenience of reference only and shall not constitute a
part of this Second Amendment for any other purpose.

12.           ENTIRE
AGREEMENT.  THE CREDIT AGREEMENT, AS
AMENDED BY THIS SECOND AMENDMENT, AND THE OTHER LOAN DOCUMENTS, REPRESENT THE
FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL 
AGREEMENTS BETWEEN THE PARTIES. 
THERE ARE NO UNWRITTEN ORAL 
AGREEMENTS BETWEEN THE PARTIES.

	
  REMAINDER OF PAGE
  LEFT INTENTIONALLY BLANK

  

 

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IN WITNESS WHEREOF, the parties hereto have executed
this Second Amendment by their duly authorized officers as of the date first
above written.

	
  

  	
  MERITAGE HOMES CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  

  	
  By:

  	
  /s/ Larry W.
  Seay

  	
   

  
	
   

  	
   

  	
  Larry W. Seay

  	
   

  
	
   

  	
   

  	
  Executive Vice
  President and

  	
   

  
	
   

  	
   

  	
  Chief Financial
  Officer

  	
   

  

 

 9
 

 

	
  

  	
  GUARANTY BANK, as
  Administrative Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John
  Augustat

  	
   

  
	
   

  	
   

  	
  John Augustat

  	
   

  
	
   

  	
   

  	
  Assistant Vice
  President

  	
   

  

 

 

	
  

  	
  GUARANTY BANK, as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John
  Augustat

  	
   

  
	
   

  	
   

  	
  John Augustat

  	
   

  
	
   

  	
   

  	
  Assistant Vice President

  	
   

  

 

 10
 

 

	
  

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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kent Kaiser

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kent Kaiser

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Director

  	
   

  

 

 11

 

	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark W. Lariviere

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mark W. Lariviere

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Senior Vice President

  	
   

  
						

 

 12
 

 

	
  

  	
  WACHOVIA BANK, NATIONAL

  ASSOCIATION, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Kevin M. Cole, I

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Kevin M. Cole, I

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Assistant Vice President

  	
   

  
						

 

 13
 

 

	
  

  	
  U. S. BANK NATIONAL ASSOCIATION,
  as a

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adrian Montero

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Adrian Montero

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Vice President

  	
   

  
						

 

 14
 

 

	
  

  	
  WELLS FARGO BANK, NATIONAL

  ASSOCIATION, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronald Rozga

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ronald Rozga

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Senior Vice President

  	
   

  
						

 

 15
 

 

	
  

  	
  CITICORP NORTH AMERICA, INC.,
  as a

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Floyd

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mark Floyd

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Vice President

  	
   

  
						

 

 16
 

 

	
  

  	
  DEUTSCHE BANK TRUST COMPANY

  AMERICAS, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Omayra Laucelia

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Omayra Laucelia

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Evelyn Thierry

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Evelyn Thierry

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Vice President

  	
   

  
						

 

 17
 

 

	
  

  	
  UBS LOAN FINANCE LLC, as a
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Irja R. Otsa

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Irja R. Otsa

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Associate Director

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David B. Julie

  	
   

  
	
   

  	
   

  	
  Name:

  	
  David B. Julie

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Associate Director

  	
   

  
						

 

 18
 

 

	
  

  	
  PNC BANK, NATIONAL ASSOCIATION,
  as a

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Luis Donoso

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Luis Donoso

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Vice President

  	
   

  
						

 

 19
 

 

	
  

  	
  SUNTRUST BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ W. John Wendler

  	
   

  
	
   

  	
   

  	
  Name:

  	
  W. John Wendler

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Senior Vice President

  	
   

  
						

 

 20
 

 

	
  

  	
  COMERICA BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Casey L. Stevenson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Casey L. Stevenson

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  	
   

  
						

 

 21
 

 

	
  

  	
  COMPASS BANK, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chad Mantei

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Chad Mantei

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Vice President

  	
   

  
						

 

 22
 

 

	
  

  	
  REGIONS BANK (successor by
  merger with

  AmSouth Bank), as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ronny Hudspeth

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Ronny hudspeth

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Sr. Vice President

  	
   

  
						

 

 23
 

 

	
  

  	
  BANK OF OKLAHOMA, N.A., as a
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Patricia A. Richards

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Patricia A. Richards

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Senior Vice President

  	
   

  
						

 

 24
 

 

	
  

  	
  LASALLE BANK, N.A., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nathaniel Deven

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Nathaniel Deven

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Vice President

  	
   

  
						

 

 25
 

 

	
  

  	
  KEYBANK NATIONAL ASSOCIATION,
  as a

  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew K. McKown

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Andrew K. McKown

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Vice President

  	
   

  
						

 

 26

 

	
  

  	
  NORTHERN TRUST COMPANY, as a
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher Mata

  
	
   

  	
   

  	
  Name:

  	
  Christopher Mata

  
	
   

  	
   

  	
  Title:

  	
   

  	
  Officer

  
					

 

 27
 

 

	
  

  	
  CALIFORNIA BANK & TRUST, a California

  banking corporation, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephanie Lantz

  
	
   

  	
   

  	
  Name:

  	
  Stephanie Lantz

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

 28
 

 

	
  

  	
  BNP PARIBAS, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Berangere Allen

  
	
   

  	
   

  	
  Name:

  	
  Berangere Allen

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Simone Vinocour

  
	
   

  	
   

  	
  Name:

  	
  Simone Vinocour

  
	
   

  	
   

  	
  Title:

  	
  Director

  
					

 

 29
 

 

	
  

  	
  COUNTRYWIDE BANK, FSB, as a
  Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas A. Dixon

  
	
   

  	
   

  	
  Name:

  	
  Douglas A. Dixon

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President

  

 

 30
 

 

	
  

  	
  ACKNOWLEDGED AND AGREED TO:

  
	
   

  	
   

  
	
   

  	
  MERITAGE HOMES OF ARIZONA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MERITAGE PASEO CROSSING, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Meritage Homes of Arizona, Inc., its Sole

  
	
   

  	
   

  	
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MERITAGE HOMES CONSTRUCTION, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MERITAGE PASEO CONSTRUCTION, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Meritage Homes Construction, Inc., its Sole

  
	
   

  	
   

  	
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  

 

 31
 

 

	
  

  	
  MERITAGE HOMES OF TEXAS GP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MERITAGE HOMES OF TEXAS LP

  HOLDING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MERITAGE HOMES OF TEXAS L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Meritage Homes of Texas GP, Inc., its

  
	
   

  	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  

 

 32
 

 

	
  

  	
  MERITAGE HOLDINGS, L.L.C.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Meritage Homes of Texas L.P., its Sole

  
	
   

  	
   

  	
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Meritage Homes of Texas GP, Inc., its

  
	
   

  	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MERITAGE HOMES OPERATING

  COMPANY, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Meritage Holdings, L.L.C., its General

  
	
   

  	
   

  	
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Meritage Homes of Texas L.P., its Sole

  
	
   

  	
   

  	
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Meritage Homes of Texas GP, Inc., its

  
	
   

  	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  

 

 33
 

 

	
  

  	
  MERITAGE HOMES OF TEXAS JOINT

  VENTURE HOLDING COMPANY, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Meritage Homes of Texas L.P., its Sole

  
	
   

  	
   

  	
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Meritage Homes of Texas GP, Inc., its

  
	
   

  	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MERITAGE HOMES OF CALIFORNIA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MERITAGE HOMES OF NEVADA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  

 

 34
 

 

	
  

  	
  MTH-CAVALIER, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Meritage Homes Construction, Inc., its

  
	
   

  	
   

  	
  Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MTH GOLF, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Meritage Homes Construction, Inc., its Sole

  
	
   

  	
   

  	
  Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MERITAGE HOMES OF COLORADO, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MERITAGE HOMES OF FLORIDA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  

 

 35
 

 

	
  

  	
  CALIFORNIA URBAN BUILDERS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CALIFORNIA URBAN HOMES, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Meritage Homes of California, Inc., its Sole

  
	
   

  	
   

  	
  Member and Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GREATER HOMES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Larry W. Seay

  
	
   

  	
   

  	
  Larry W. Seay

  
	
   

  	
   

  	
  Executive Vice President and

  
	
   

  	
   

  	
  Chief Financial Officer

  

 

 36

SCHEDULE 2.01

COMMITMENTS

AND PRO RATA SHARES

	
  Lender

  	
   

  	
  Commitment

  	
   

  	
  Pro Rata Share

  	
   

  
	
  Guaranty Bank

  	
   

  	
  $

  	
  90,000,000

  	
   

  	
  10.588235294

  	
  %

  
	
  JPMorgan Chase Bank,
  N.A., a national banking association

  	
   

  	
  $

  	
  80,000,000

  	
   

  	
  9.411764706

  	
  %

  
	
  Wachovia Bank, National
  Association

  	
   

  	
  $

  	
  70,000,000

  	
   

  	
  8.235294118

  	
  %

  
	
  Bank of America, N.A.

  	
   

  	
  $

  	
  60,000,000

  	
   

  	
  7.058823529

  	
  %

  
	
  Countrywide Bank, FSB

  	
   

  	
  $

  	
  55,000,000

  	
   

  	
  6.470588235

  	
  %

  
	
  U. S. Bank
  National Association

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  5.882352941

  	
  %

  
	
  Citicorp North America,
  Inc.

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  5.882352941

  	
  %

  
	
  Deutsche Bank Trust
  Company Americas

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  5.882352941

  	
  %

  
	
  UBS Loan Finance, LLC

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  5.882352941

  	
  %

  
	
  BNP Paribas

  	
   

  	
  $

  	
  50,000,000

  	
   

  	
  5.882352941

  	
  %

  
	
  SunTrust Bank

  	
   

  	
  $

  	
  35,000,000

  	
   

  	
  4.117647059

  	
  %

  
	
  Comerica Bank

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  2.941176471

  	
  %

  
	
  Compass Bank

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  2.941176471

  	
  %

  
	
  Regions Bank

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  2.941176471

  	
  %

  
	
  Bank of Oklahoma, N.A.

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  2.941176471

  	
  %

  
	
  LaSalle Bank, N.A.

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  2.941176471

  	
  %

  
	
  PNC Bank, National
  Association

  	
   

  	
  $

  	
  25,000,000

  	
   

  	
  2.941176471

  	
  %

  
	
  KeyBank, National Association

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  2.3592941176

  	
  %

  
	
  Wells Fargo Bank,
  National Association

  	
   

  	
  $

  	
  15,000,000

  	
   

  	
  1.764705882

  	
  %

  
	
  Northern Trust Company

  	
   

  	
  $

  	
  15,000,000

  	
   

  	
  1.764705882

  	
  %

  
	
  California Bank &
  Trust, a California banking corporation

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
  1.176470588

  	
  %

  
	
  Total

  	
   

  	
  $

  	
  850,000,000.00

  	
   

  	
  100.000000000

  	
  %

  

 

EXHIBIT D

FORM OF COMPLIANCE CERTIFICATE

Financial
Statement Date:                          

To:                              Guaranty
Bank, as Administrative Agent, L/C Issuer and Swing Line Lender

Ladies and Gentlemen:

Reference is made to that certain First Amended and Restated Credit
Agreement, dated as of May 16, 2006 (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the “Agreement;”
the terms defined therein being used herein as therein defined), among Meritage
Homes Corporation (the “Borrower”), the Lenders from time to time party
thereto, and Guaranty Bank, as Administrative Agent, L/C Issuer and Swing Line
Lender.

The undersigned Responsible Officer hereby certifies as of the date
hereof that he/she is the                                                          
of the Borrower, and that, as such, he/she is authorized to execute and deliver
this Certificate to the Administrative Agent on the behalf of the Borrower, and
that:

[Use following for fiscal year-end
financial statements]

Attached hereto as Schedule 1 are the year-end audited
financial statements required by Section 6.01(a) of the Agreement
for the fiscal year of the Borrower ended as of the above date, together with
the report and opinion of an independent certified public accountant required
by such section.

[Use following for fiscal quarter-end
financial statements]

1.             Attached hereto as Schedule 1
are the unaudited financial statements required by Section 6.01(b)
of the Agreement for the fiscal quarter of the Borrower ended as of the above
date.  Such financial statements fairly
present the financial condition, results of operations and cash flows of the
Borrower and its Subsidiaries in accordance with GAAP as at such date and for such
period, subject only to normal year-end audit adjustments and the absence of
footnotes.

2.             The undersigned has
reviewed and is familiar with the terms of the Agreement and has made, or has
caused to be made under his/her supervision, a detailed review of the
transactions and condition (financial or otherwise) of the Borrower during the
accounting period covered by the attached financial statements.

3.             A review of the
activities of the Borrower during such fiscal period has been made under the
supervision of the undersigned with a view to determining whether during such
fiscal period the Borrower performed and observed all its Obligations under the
Loan Documents, and

 1
 

[select
one:]

[to the best knowledge of the
undersigned as of the date hereof no Default or Event of Default under the
Agreement has occurred and its continuing.]

—or—

[the following is a list of each such Default or
Event of Default and its nature and status:]

4.             The financial
covenant analyses and information set forth on Schedule 2 attached
hereto are true and accurate on and as of the date of this Certificate.

IN WITNESS WHEREOF, the
undersigned has executed this Certificate as of                                ,
                         .

	
   

  	
  MERITAGE HOMES CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 2
 

For the Month/Quarter/Year ended                                       (“Statement
Date”)

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

	
  I.

  	
  Leverage
  Ratio – For Determination of Applicable Rate.

  
	
   

  	
  A.

  	
  Consolidated
  Indebtedness:

  
	
   

  	
   

  	
  1.

  	
  Indebtedness of
  the Loan Parties:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (a)

  	
  Without
  duplication, all obligations for borrowed money and all obligations evidenced
  by bonds, debentures, notes, loan agreements or other similar instruments:

  	
   

  	
  $                                          

  
	
   

  	
   

  	
   

  	
  (b)

  	
  Without
  duplication, all direct or contingent obligations arising under letters of
  credit (including standby and commercial), banker’s acceptances, bank
  guaranties, surety bonds and similar instruments:

  	
   

  	
  $                                          

  
	
   

  	
   

  	
   

  	
  (c)

  	
  Without
  duplication, all net obligations under any Swap Contract:

  	
   

  	
  $                                          

  
	
   

  	
   

  	
   

  	
  (d)

  	
  Without
  duplication, all obligations to pay the deferred purchase price of property
  or services (except (i) Trade accounts payable that are not more 30 days
  past the date the invoice was approved and entered into the computer system
  by such Loan Party, (ii) accrued expenses incurred by such Person in the
  ordinary course of business, (iii) marketing fees payable to developers
  of master planned communities incurred by such Person in the ordinary course
  of business, (iv) reimbursement obligations for impact or development
  fee credits to be received by such Person incurred in the ordinary course of
  business, (v) deferred lot premium or profit participation obligations
  payable to developers of master planned communities incurred in the ordinary
  course of business and (vi) obligations to developers or owners of
  master planned communities in form of a performance encumbrance of such
  Person incurred in the ordinary course of business):

  	
   

  	
  $                                          

  
	
   

  	
   

  	
   

  	
  (e)

  	
  Without
  duplication, indebtedness (excluding prepaid interest thereon) secured by a
  Lien on property owned or being purchased (including indebtedness arising
  under conditional sales or other title retention agreements), whether or not
  such indebtedness shall have been assumed or is limited in recourse:

  	
   

  	
  $                                          

  

 

 3
 

 

	
      

  	
   

  	
   

  	
  (f)

  	
  Without
  duplication, obligations under Capital Leases:

  	
   

  	
  $                                          

  
	
   

  	
   

  	
   

  	
  (g)

  	
  Without
  duplication, Synthetic Lease Obligations and other Off-Balance Sheet
  Liabilities:

  	
   

  	
  $                                          

  
	
  

  	
   

  	
   

  	
  (h)

  	
  Without
  duplication, obligations in respect of Redeemable Stock:

  	
   

  	
  $                                          

  
	
   

  	
   

  	
   

  	
  (i)

  	
  Without
  duplication, any Receivables Facility Attributed Indebtedness:

  	
   

  	
  $                                          

  
	
  

  	
   

  	
   

  	
  (j)

  	
  Without
  duplication, any “withdrawal liability” as such term is defined under
  Part I of Subtitle E of Title IV of ERISA:

  	
   

  	
  $                                          

  
	
   

  	
   

  	
   

  	
  (k)

  	
  Without
  duplication, all Guarantees in respect of any of the foregoing:

  	
   

  	
  $                                          

  
	
  

  	
   

  	
   

  	
  (l)

  	
  Indebtedness
  (Lines I.A.1(a) + (b) + (c) + (d) + (e) + (f) + (g) + (h) + (i) + (j) + (k)):

  	
   

  	
  $                                          

  
	
   

  	
   

  	
  2.

  	
  Indebtedness of
  one Loan Party to another Loan Party:

  	
   

  	
  $                                          

  
	
  

  	
   

  	
  3.

  	
  Consolidated
  Indebtedness (Line I.A.1(l) - Line I.A.2):

  	
   

  	
  $                                          

  
	
   

  	
  B.

  	
  Consolidated
  Tangible Net Worth:

  	
   

  	
   

  
	
  

  	
   

  	
  1.

  	
  Shareholders’
  Equity of the Loan Parties:

  	
   

  	
  $                                          

  
	
   

  	
   

  	
  2.

  	
  Intangible
  Assets of the Loan Parties:

  	
   

  	
  $                                          

  
	
  

  	
   

  	
  3.

  	
  Consolidated
  Tangible Net Worth: (Line I.B.1 - Line I.B.2):

  	
   

  	
  $                                          

  
	
   

  	
  C.

  	
  Leverage Ratio:

  	
   

  	
   

  
	
  

  	
   

  	
  1.

  	
  Consolidated
  Indebtedness:

  	
   

  	
  $                                          

  
	
   

  	
   

  	
  2.

  	
  The face amount
  of all undrawn Performance Letters of Credit issued for the account of, or guaranteed
  by, the Loan Parties:

  	
   

  	
  $                                          

  
	
  

  	
   

  	
  3.

  	
  Attributable
  Indebtedness in respect of Synthetic Lease Obligations and other Off-Balance
  Sheet Liabilities and Guarantees with respect thereto:

  	
   

  	
  $                                          

  
	
   

  	
   

  	
  4.

  	
  Total ((Lines
  I.C.1 - I.C.2 - I.C.3)   ̧
  Line I.B.3):

  	
   

  	
            
  to 1

  
	
  II.

  	
  Section
  7.02(j) – Limitation on other Investments.

  	
   

  	
   

  
	
   

  	
  A.

  	
  Actual amount of
  Investments other than those permitted by subsections (a) through (i) of Section
  7.02:

  	
   

  	
  $                                          

  
	
  

  	
  B.

  	
  Maximum in aggregate
  amount at any one time outstanding (Line I.B.3. x 30%):

  	
   

  	
  $                                          

  
	
  III.

  	
  Section
  7.03 – Limitation on Indebtedness.

  	
   

  	
   

  
	
  

  	
  A.

  	
  Aggregate amount
  of secured Indebtedness, provided that such Liens are on assets other than
  Borrowing Base Assets:

  	
   

  	
  $                                          

  

 

 4
 

 

	
   

  	
  B.

  	
  Maximum amount
  at any time outstanding (Line I.B.3. x 10%):

  	
   

  	
  $                                          

  
	
   

  	
  C.

  	
  Aggregate amount
  of Indebtedness guarantied pursuant to Springing Guarantees:

  	
   

  	
  $                                          

  
	
  

  	
  D.

  	
  Maximum amount
  permitted (50% of Line I.B.3):

  	
   

  	
  $                                          

  
	
  IV.

  	
  Section 7.11(a)
  – Minimum Net Worth.

  	
   

  	
   

  
	
  

  	
  A.

  	
  Actual
  Consolidated Tangible Net Worth (Line I.B.3):

  	
   

  	
  $                                          

  
	
   

  	
  B.

  	
  Minimum Net
  Worth:

  	
   

  	
   

  
	
  

  	
   

  	
  1.

  	
  50% of
  Consolidated Net Income earned in each full fiscal quarter ending after
  December 31, 2006 (with no deduction for a net loss during any such
  period):

  	
   

  	
  $                                          

  
	
   

  	
   

  	
  2.

  	
  50% of aggregate
  increases in Consolidated Tangible Net Worth of the Borrower and its
  Subsidiaries after December 31, 2006 by reason of the issuance and sale
  of Equity Interests or other equity interests of the Borrower or any
  Subsidiary (other than issuances to the Borrower or a wholly-owned
  Subsidiary), including any conversion of debt securities of the Borrower into
  such Equity Interests or other equity interests:

  	
   

  	
  $                                          

  
	
  

  	
   

  	
  3.

  	
  An amount equal
  to the net worth of any Person that becomes a Subsidiary or is merged into or
  consolidated with the Borrower or any Subsidiary or substantially all of the
  assets of which are acquired by the Borrower or any Subsidiary, in each case
  after December 31, 2006:

  	
   

  	
  $                                          

  
	
   

  	
   

  	
  4.

  	
  Required Minimum
  Net Worth ($600,000,000 + Line IV.B.1. + 2. + 3.):

  	
   

  	
  $                                          

  
	
  V.

  	
  Section
  7.11(b) – Maximum Leverage Ratio.

  	
   

  	
   

  
	
   

  	
  A.

  	
  Leverage Ratio
  (Line I.C.3.):

  	
   

  	
             
  to 1

  
	
  

  	
  B.

  	
  Maximum Leverage
  Ratio:

  	
   

  	
  2.25 to 1

  
	
  VI.

  	
  Section
  7.11(c) – Minimum Interest Coverage Ratio.

  	
   

  	
   

  
	
  

  	
  A.

  	
  Consolidated
  EBITDA for the period of four fiscal quarters ending on the date of date of
  determination (the “Subject Period”):

  	
   

  	
   

  
	
   

  	
   

  	
  1.

  	
  Consolidated Net
  Income of the Loan Parties for the Subject Period:

  	
   

  	
  $                                          

  
	
  

  	
   

  	
  2.

  	
  To the extent
  deducted from revenues in determining Consolidated Net Income, Consolidated
  Interest Expense for the Subject Period:

  	
   

  	
  $                                          

  
	
   

  	
   

  	
  3.

  	
  To the extent
  deducted from revenues in determining Consolidated Net Income, expense for
  income taxes paid or accrued for the Subject Period:

  	
   

  	
  $                                          

  

 

 5
 

 

	
   

  	
   

  	
  4.

  	
  To the extent
  deducted from revenues in determining Consolidated Net Income, depreciation
  for the Subject Period:

  	
   

  	
  $                                          

  
	
   

  	
   

  	
  5.

  	
  To the extent
  deducted from revenues in determining Consolidated Net Income, amortization
  for the Subject Period:

  	
   

  	
  $                                          

  
	
  

  	
   

  	
  6.

  	
  To the extent
  deducted from revenues in determining Consolidated Net Income,  all other non-cash items reducing Consolidated
  Net Income (excluding any non-cash charge that results in an accrual of a
  reserve for cash charges in the future) for the Subject Period:

  	
   

  	
  $                                          

  
	
   

  	
   

  	
  7.

  	
  To the extent
  deducted from revenues in determining Consolidated Net Income, the amount of
  dividends accrued or payable by the Loan Parties in respect of Disqualified
  Equity Interests or any Preferred Stock of any Restricted Subsidiary
  (excluding any amount payable to any Loan Party), which amount shall be
  “grossed up” to include any applicable taxes on income that would be used to
  pay such dividends, provided, however, that interest, dividends
  or other payments or accruals of a consolidated Subsidiary that is not wholly
  owned shall be included only to the extent of the interest of such Person in
  such Subsidiary:

  	
   

  	
  $                                          

  
	
  

  	
   

  	
  8.

  	
  Consolidated
  EBITDA (Lines VI.A.1. + 2. + 3. + 4. + 5. + 6. + 7.):

  	
   

  	
  $                                          

  
	
   

  	
  B.

  	
  Consolidated
  Interest Incurred for the Subject Period:

  	
   

  	
  $

  
	
  

  	
  C.

  	
  Interest
  Coverage Ratio (Line VI.A.8.  ̧
  VI.B.):

  	
   

  	
          
  to 1

  
	
   

  	
  D.

  	
  Minimum Interest
  Coverage Ratio

  	
   

  	
  2.00 to 1

  
	
  VII.

  	
  Section
  7.11(d) – Borrowing Base Debt.

  	
   

  	
   

  
	
   

  	
  A.

  	
  Borrowing Base
  as of date of determination (from Borrowing Base Report):

  	
   

  	
  $                                          

  
	
  

  	
  B.

  	
  Consolidated
  Indebtedness as of such date of determination (Line I.A.3):

  	
   

  	
  $                                          

  
	
   

  	
  C.

  	
  Any portion of
  any Subordinated Debt of any Loan Party which is due and payable more than
  one year from such date of determination:

  	
   

  	
  $                                          

  
	
  

  	
  D.

  	
  Indebtedness
  secured by Liens on assets that are not part of any of the Borrowing Base
  Assets, but only to the extent that the Indebtedness secured by Liens on such
  assets (x) does not exceed the Net Book Value of such asset as determined by
  GAAP and (y) does not exceed in aggregate amount the amount set forth in Section
  7.03(f):

  	
   

  	
  $                                          

  

 

 6
 

 

	
   

  	
  E.

  	
  The face amount
  of all undrawn Performance Letters of Credit, in each case issued for the
  account of, or guaranteed by the Loan Parties:

  	
   

  	
  $                                          

  
	
   

  	
  F.

  	
  Cash and Cash
  Equivalents and Receivables of the Loan Parties not subject to any Lien
  securing Indebtedness in an aggregate amount in excess of $5,000,000:

  	
   

  	
  $                                          

  
	
  

  	
  G.

  	
  Borrowing Base
  Debt (Lines VII.B. - C. - D. - E. - F.):

  	
   

  	
  $                                          

  
	
  VIII.

  	
  Section
  7.11(e) – Total Land Restrictions.

  	
   

  	
   

  
	
  

  	
  A.

  	
  Net Book Value
  of Unentitled Land:

  	
   

  	
  $                                          

  
	
   

  	
  B.

  	
  Net Book Value
  of Unimproved Entitled Land:

  	
   

  	
  $                                          

  
	
  

  	
  C.

  	
  Net Book Value
  of Land/Lots Under Development:

  	
   

  	
  $                                          

  
	
   

  	
  D.

  	
  Net Book Value
  of Finished Lots:

  	
   

  	
  $                                          

  
	
  

  	
  E.

  	
  Actual (Lines
  VIII.A. + B. + C. + D.):

  	
   

  	
  $                                          

  
	
   

  	
  F.

  	
  Line I.B.3 x
  125%:

  	
   

  	
  $                                          

  
	
  

  	
  G.

  	
  50% of
  outstanding Subordinated Debt:

  	
   

  	
  $                                          

  
	
   

  	
  H.

  	
  Maximum Total
  Land Restrictions (Lines VIII.F. + G.):

  	
   

  	
  $                                          

  
	
  IX.

  	
  Section
  7.11(f) – Raw Land Restrictions.

  	
   

  	
   

  
	
   

  	
  A.

  	
  Net Book Value
  of Unentitled Land:

  	
   

  	
  $                                          

  
	
  

  	
  B.

  	
  Net Book Value
  of Unimproved Entitled Land:

  	
   

  	
  $                                          

  
	
   

  	
  C.

  	
  Actual (Lines
  IX.A. + B.):

  	
   

  	
  $                                          

  
	
  

  	
  D.

  	
  Maximum Raw Land
  Restrictions (Line I.B.3 x 20%):

  	
   

  	
  $                                          

  
	
  X.

  	
  Section
  7.11(g) – Unsold Units.

  	
   

  	
   

  
	
  

  	
  A.

  	
  Actual Number of
  Unsold Units existing as of the end of the fiscal quarter:

  	
   

  	
  $                                          

  
	
   

  	
  B.

  	
  Number of Unit
  Closings within the four fiscal quarters ending on the last day of the fiscal
  quarter x 30%:

  	
   

  	
  $                                          

  
	
  

  	
  C.

  	
  Number of Units
  of Closings within two fiscal quarters ending on the last day of the fiscal
  quarter x 60%:

  	
   

  	
  $                                          

  
	
   

  	
  D.

  	
  Maximum Unsold
  Units (Greater of Line X.B. and Line X.C.):

  	
   

  	
  $                                          

  
	
  XI.

  	
  Section
  7.11(h) – Model Units.

  	
   

  	
   

  
	
   

  	
  A.

  	
  Actual Number of
  Model Units existing as of the end of the fiscal quarter:

  	
   

  	
  $                                          

  
	
  

  	
  B.

  	
  Number of Unit
  Closings within the four fiscal quarters ending on the last day of the fiscal
  quarter:

  	
   

  	
  $                                          

  

 

 7
 

 

	
   

  	
  C.

  	
  Maximum Model
  Units (Line XI.B. x 10%):

  	
   

  	
  $                                          

  

 

 8

EXHIBIT H

FORM OF
BORROWING BASE CERTIFICATE

Date:                          

To:                              Guaranty
Bank, as Administrative Agent, L/C Issuer and Swing Line Lender

Ladies and Gentlemen:

Reference is made to that certain First Amended and
Restated Credit Agreement, dated as of May 16, 2006 (as amended, extended,
supplemented or otherwise modified in writing from time to time, the “Agreement;”
the terms defined therein being used herein as therein defined), among Meritage
Homes Corporation (the “Borrower”), the Lenders from time to time party
thereto, and Guaranty Bank, as Administrative Agent, L/C Issuer and Swing Line
Lender.

This Borrowing Base Certificate is delivered pursuant
to Section 6.02(c) of the Credit Agreement.  All capitalized terms used herein and defined
in the Credit Agreement shall be used herein as so defined.

I.                                         Borrowing Base [to be completed
monthly]

Borrower hereby represents and warrants that the
following Borrowing Base Report is true and correct in all respects as of                     ,
           (the “Reporting
Date”).  The Borrowing Base is determined
as follows:

	
  1.

  	
   

  	
  Net Book Value of Presold Units:

  	
   

  	
  $

  	
   

  
	
  2.

  	
   

  	
  Net Book Value of Eligible Model Units:

  	
   

  	
  $

  	
   

  
	
  3.

  	
   

  	
  Net Book Value of Unsold Units Under Constructions:

  	
   

  	
  $

  	
   

  
	
  4. 

  	
   

  	
  Net Book Value of Completed Unsold Units Less Than
  18 Months Since Completion:

  	
   

  	
  $

  	
   

  
	
  5.

  	
   

  	
  Net Book Value of Finished Lots:

  	
   

  	
  $

  	
   

  
	
  6.

  	
   

  	
  Net Book Value of Land/Lots Under Development:

  	
   

  	
  $

  	
   

  
	
  7.

  	
   

  	
  Net Book Value of Unimproved Entitled Land:

  	
   

  	
  $

  	
   

  
	
  8. 

  	
   

  	
  Borrowing Base on Reporting Date ((90% x Line 1.) + (80%
  x Line 2.) + (80% x Line 3.) + (80% x Line 4.) + (70% x Line 5.) + (60% x
  Line 6.) + (50% x Line 7.)):

  	
   

  	
  $

  	
   

  

 

 1
 

 

	
  9.

  	
   

  	
  Borrowing Base Debt

  	
   

  	
   

  
	
   

  	
   

  	
  A.

  	
  Consolidated Indebtedness as of Reporting Date (Line
  I.A.3 of Compliance Certificate):

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  B.

  	
  Any portion of any Subordinated Debt of any Loan
  Party which is due and payable more than one year from such date of
  determination:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
  C.

  	
  Indebtedness secured by Liens on assets that are not
  part of any of the Borrowing Base Assets, but only to the extent that the
  Indebtedness secured by Liens on such assets (i) does not exceed the Net Book
  Value of such asset as determined by GAAP and (ii) does not exceed in
  aggregate amount the amount set forth in Section 7.03(f):

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  D.

  	
  The face amount of all undrawn Performance Letters
  of Credit, in each case issued for the account of, or guaranteed by the
  Borrower or any of its Subsidiaries (other than Unrestricted Subsidiaries):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
  E.

  	
  Cash and Cash Equivalents of the Loan Parties not
  subject to any Lien securing Indebtedness in an aggregate amount in excess of
  $5,000,000:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
  F.

  	
  Borrowing Base Debt (Lines 9.A. - B. - C. - D. -
  E.):

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  
	
  10.

  	
   

  	
   

  	
  Availability (Line 8 - Line 9.F.)

  	
   

  	
   

  

 

II.                                     Borrowing Base Certifications

Borrower hereby represents and warrants that as of the
Reporting Date:

1.                                       No
more than 70% of the Borrowing Base is comprised of the items set forth in
lines 5, 6 and 7 above.

2.                                       No
more than 40% of the Borrowing Base is comprised of the items set forth in
lines 6 and 7 above.

3.                                       The
aggregate amount of condominiums included in the Borrowing Base does not exceed
15% of the aggregate number of Units comprising the items set forth in lines 1,
2, 3 and 4 in the aggregate.

 2
 

IN WITNESS WHEREOF, the
undersigned has executed this Certificate as of                        ,
             .

	
   

  	
  MERITAGE HOMES CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 3Exhibit 10.2

PROMISSORY
NOTE

(Date)

FOR VALUE RECEIVED, Acusphere, Inc. a corporation located at
the address stated below (“Maker”)
promises, jointly and severally if more than one, to pay to the order of General Electric Capital Corporation or any
subsequent holder hereof (each, a “Payee”)
at its office located at 83 Wooster Heights
Road, Danbury, CT  06810 or at
such other place as Payee or the holder hereof may designate, the principal sum
of Three Hundred Forty-Seven Thousand Six
Hundred Sixty-Three and 02/100 Dollars ($347,663.02), with interest
on the unpaid principal balance, from the date hereof through and including the
dates of payment, at a fixed interest rate of Ten and Fifty-Five Hundredths
percent (10.55%) per annum, to be paid in lawful money of the United States, in
Forty-Two (42) consecutive monthly installments of principal and interest as
follows:

	
  Periodic

  	
   

  	
   

  	
   

  
	
  Installment

  	
   

  	
  Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Thirty Six (36)

  	
   

  	
  $

  	
  10,643.05

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Five (5)

  	
   

  	
  $

  	
  4,816.24

  	
   

  

 

(each “Periodic Installment”),
and a final installment which shall be in the amount of Four Thousand Eight
Hundred Sixteen and 24/100  Dollars
($4,816.24), plus any outstanding principal and interest.  The first Periodic Installment shall be due
and payable on July 1, 2007 and the following Periodic Installments and the
final installment shall be due and payable on the same day of each succeeding
month (each, a “Payment Date”).  Such
installments have been calculated on the basis of a 360 day year of twelve
30-day months.  Each payment may, at the
option of the Payee, be calculated and applied on an assumption that such
payment would be made on its due date.

The acceptance by Payee of
any payment which is less than payment in full of all amounts due and owing at
such time shall not constitute a waiver of Payee’s right to receive payment in
full at such time or at any prior or subsequent time.

The Maker hereby expressly authorizes the Payee to insert the date value
is actually given in the blank space on the face hereof and on all related
documents pertaining hereto.

This Note may be secured by a
security agreement, chattel mortgage, pledge agreement or like instrument (each
of which is hereinafter called a “Security
Agreement”).

Time is of the essence hereof.  If
any installment or any other sum due under this Note or any Security Agreement
is not received within ten (10) days after its due date, the Maker agrees to
pay, in addition to the amount of each such installment or other sum, a late
payment charge of five percent (5%) of the amount of said installment or other
sum, but not exceeding any lawful maximum. 
If (i) Maker fails to make payment of any amount due hereunder within
ten (10) days after the same becomes due and payable; or (ii) Maker is in
default under, or fails to perform under any term or condition contained in any
Security Agreement, then the entire principal sum remaining unpaid, together
with all accrued interest thereon and any other sum payable under this Note or
any Security Agreement, at the election of Payee, shall, upon Payee’s election,
immediately become due and payable, with interest thereon at the lesser of
eighteen percent (18%) per annum or the highest rate not prohibited by
applicable law from the date of such accelerated maturity until paid (both before
and after any judgment).

The
Maker may prepay in full, but not in part, its entire indebtedness hereunder
upon payment of the entire indebtedness plus an additional sum as a premium
equal to the following percentages of the remaining principal balance for the
indicated period:

Prior
to the first annual anniversary date of this Note: Not Allowed

Thereafter
and prior to the second annual anniversary date of this Note: five percent (5%)

Thereafter
and prior to the third annual anniversary date of this Note: three percent (3%)

Plus
all other sums due hereunder or under any Security Agreement.

It is the intention of the parties hereto to comply with the applicable
usury laws; accordingly, it is agreed that, notwithstanding any provision to
the contrary in this Note or any Security Agreement, in no event shall this
Note or any Security Agreement require the payment or permit the collection of
interest in excess of the maximum amount permitted by applicable law.  If any such excess interest is contracted
for, charged or received under this Note or any Security Agreement, or if all
of the principal balance shall be prepaid, so that under any of such
circumstances the amount of interest contracted for, charged or received under
this Note or any Security Agreement on the principal balance shall exceed the
maximum amount of interest permitted by applicable law, then in such event (a)
the provisions of this paragraph shall govern and control,  (b) neither Maker nor any other person or
entity now or hereafter liable for the payment hereof shall be obligated to pay
the amount of such interest to the extent that it is in excess of the maximum
amount of interest permitted by applicable law, 
(c) any such excess which may have been collected shall be either
applied as a credit against the then unpaid principal balance or refunded to
Maker, at the option of the Payee, and (d) the effective rate of interest shall
be automatically reduced to the maximum lawful contract rate allowed under
applicable law as now or hereafter construed by the courts having jurisdiction
thereof.  It is further agreed that
without limitation of the foregoing, all calculations of the rate of interest
contracted for, charged or received under this Note or any Security Agreement
which are made for the purpose of determining whether such rate exceeds the
maximum lawful contract rate, shall be made, to the extent permitted by
applicable law, by amortizing, prorating, allocating and spreading in equal
parts during the period of the full stated term of the indebtedness evidenced
hereby, all interest at any time contracted for, charged or received from Maker
or otherwise by Payee in connection with such indebtedness; provided, however,
that if any applicable state law is amended or the law of the United States of
America preempts any applicable state law, so that it becomes lawful for the
Payee to receive a greater interest per annum rate than is presently allowed,
the Maker agrees that, on the effective date of such amendment or preemption,
as the case may be, the lawful maximum hereunder shall be increased to the
maximum interest per annum rate allowed by the amended state law or the law of
the United States of America.

The Maker and all sureties, endorsers, guarantors or any others (each
such person, other than the Maker, an “Obligor”)
who may at any time become liable for the payment hereof jointly and severally
consent hereby to any and all extensions of time, renewals, waivers or
modifications of, and all substitutions or releases of, security or of any
party primarily or secondarily liable on this Note or any Security Agreement or
any term and provision of either, which may be made, granted or consented to by
Payee, and agree that suit may be brought and maintained against any one or
more of them, at the election of Payee without joinder of any other as a party
thereto, and that Payee shall not be required first to foreclose, proceed
against, or exhaust any security hereof in order to enforce payment of this
Note.  The Maker and each Obligor hereby
waives presentment, demand for payment, notice of nonpayment, protest, notice
of protest, notice of dishonor, and all other notices in connection herewith,
as well as filing of suit (if permitted by law) and diligence in collecting
this Note or enforcing any of the security hereof, and agrees to pay (if
permitted by law) all expenses incurred in collection, including Payee’s actual
attorneys’ fees.  Maker and each Obligor
agrees that fees not in excess of twenty percent (20%) of the amount then due
shall be deemed reasonable.

THE MAKER HEREBY UNCONDITIONALLY WAIVES ITS RIGHTS TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF,
DIRECTLY OR INDIRECTLY, THIS NOTE, ANY OF THE RELATED DOCUMENTS, ANY DEALINGS
BETWEEN MAKER AND PAYEE RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION OR
ANY RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED
BETWEEN MAKER AND PAYEE.  THE SCOPE OF
THIS WAIVER IS INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY
BE FILED IN ANY COURT (INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY
CLAIMS.)  THIS WAIVER IS IRREVOCABLE
MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THE WAIVER
SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS NOTE, ANY RELATED DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR
AGREEMENTS RELATING TO THIS TRANSACTION OR ANY RELATED TRANSACTION.  IN THE EVENT OF LITIGATION, THIS NOTE MAY BE
FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

This Note and any Security Agreement constitute the entire agreement of
the Maker and Payee with respect to the subject matter hereof and supercedes
all prior understandings, agreements and representations, express or implied.

No variation or modification of this Note, or any waiver of any of its
provisions or conditions, shall be valid unless in writing and signed by an
authorized representative of Maker and Payee. 
Any such waiver, consent, modification or change shall be effective only
in the specific instance and for the specific purpose given.

Any provision in this Note or any Security Agreement which is in
conflict with any statute, law or applicable rule shall be deemed omitted,
modified or altered to conform thereto.

	
  

  	
  Acusphere, Inc.

  
	
   

  	
   

  
	
  /s/ Frederick
  Ahlholm

  	
   

  	
  By:

  	
  /s/ John F. Thero

  	
   

  
	
  (Witness)

  	
   

  
	
  Frederick
  Ahlholm

  	
  Name: John F. Thero

  
	
  (Print name)

  	
   

  
	
  500 Arsenal
  Street

  	
  Title: Senior VP
  & CFO

  
	
  Watertown, MA
  02472

  	
   

  
	
  (Address)

  	
   

  
	
   

  	
   

  
	
   

  	
  Federal Tax ID
  #:

  	
   04-3208947

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  500 Arsenal
  Street, Watertown, MA 02472

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