Document:

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Exhibit 4.1

AmerUs Group Co.

AMENDED AND RESTATED CHAIRMAN’S BONUS PLAN

Section 1. General Purpose of Plan; Definitions

The name of this plan is the AmerUs Group Co. Chairman’s Bonus Plan (the
“Plan”). The purpose of the Plan is to compensate and reward certain agents of
AmerUs Group Co.’s (“Company”) insurer-subsidiaries for attaining and
maintaining specified levels of life insurance production and to encourage such
agents to participate in the Company’s long-term success by correlating bonuses
with the performance of Company’s common stock.

The following Plan terms shall be defined as set forth below:

	1.1	 	Award Date means February 15 in the calendar year following any Base Year or
Vesting Year; provided, that if February 15 in any calendar year is not a
Business Day the Award Date for that calendar year shall be the next succeeding
Business Day.
	 
	1.2	 	Base Year means a calendar year for which an Insurer has published a Base Year
Supplement pursuant to which the Committee shall determine whether each Eligible
Agent has qualified for a grant under the Plan.
	 
	1.3	 	Base Year Supplement is the addendum to the Plan published for a specified Base
Year by one or more Insurers setting out, for each specified Eligible Agent
Contract, its Bonus Schedule, Eligible Products, Production Threshold, Vesting
Years, and any other terms, provisions, or conditions consistent with this Plan
an Insurer may elect to include as to such Base Year and grants of Stock Units
in respect thereof. The provisions of the Insurers’ Base Year Supplements may
vary from each other and from year to year. Each Base Year Supplement shall be
filed with the Plan and made a part of it.
	 
	1.4	 	Bonus Rates are those percentages of Plan Participants’ Base Year Plan
Production pursuant to which grants of Stock Units hereunder will be made.
	 
	1.5	 	Bonus Schedule is a listing showing the Bonus Rate for each level of Plan
Production under specified Eligible Agent Contracts of an Insurer for a Base
Year.
	 
	1.6	 	A Business Day is any day on which trading occurs on the New York Stock Exchange.
	 
	1.7	 	Change of Control means any of the following events: (a) any “Person” (as such
term is defined in Rule 13d-5 under the Securities Exchange Act of 1934, as
amended, (the “Exchange Act”)) or group (as such term is defined in Sections
3(a)(9) and 13(d)(3) of the Exchange Act) other than a Subsidiary of the Company
(for purposes of this definition only, “Subsidiary” shall mean each of those
Persons of which another Person, directly or indirectly through one or more
Subsidiaries, owns beneficially securities having more than 25% of the voting
power in the election of directors (or Persons fulfilling similar functions or
duties) of the owned Person (without giving effect to any contingent voting
rights)) or any employee benefit plan (or any related trust) of the Company or a
Subsidiary of the Company, becomes the beneficial owner (as such term is defined
in Rule 13d-3 of the Exchange Act) of (1) 25% or more of the common stock of the
Company or (2) securities of the Company that are entitled to vote generally in
the election of directors of the Company (“Voting Securities”) representing 25%
or more of the combined voting power of all Voting Securities of the Company;
(b) the following individuals cease for any reason to constitute a majority of
the number of directors then serving: individuals who, on the date hereof,
constitute the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened election
contest, including but not limited to a consent solicitation, relating to the
election of directors of the Company) whose appointment or election by the Board
or nomination for election by the Company’s stockholders was approved or
recommended by a vote of at least two-thirds (2/3) of the directors then still in

 

 

	 	 	office who either were directors on the date hereof or whose appointment,
election or nomination for election was previously so approved or recommended;
or (c) there is consummated a merger, reorganization or consolidation involving
the Company or any direct or indirect Subsidiary of the Company and any other
corporation or other entity, other than a merger, reorganization or
consolidation which results in the common stock and Voting Securities of the
Company outstanding immediately prior to such merger, reorganization 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 60%, respectively, of the common stock and combined voting
power of the Voting Securities of the Company or such surviving entity or any
parent thereof outstanding immediately after such merger, reorganization or
consolidation, or (d) the stockholders of the Company approve a plan of complete
liquidation or dissolution of the Company or there is consummated an agreement
for the sale or disposition by the Company of all or substantially all of the
Company’s assets.
	 
	1.8	 	Committee means those individuals appointed by Company to administer this Plan.
	 
	1.9	 	Company means AmerUs Group Co., Des Moines, Iowa.
	 
	

	 	
	1.10	 	Deferred Amount means the amount of Stock Units granted under the Plan the
cashing out of which a Plan Participant elects to defer under the Plan as
described in Section 4 of the Plan.
	 
	1.11	 	Disabled or Disability means, as context may require, unable or the inability to
engage in substantially all of the major duties of an Eligible Agent by reason
of any medically determined physical or mental impairment which is expected to
last for a continuous period of not less than 12 months.
	 
	1.12	 	Eligible Agent means an agent of an Insurer who is a party to an Eligible Agent
Contract and who has not given a Vest at 65 Notice to the Committee pursuant to
Section 3.6.
	 
	1.13	 	Eligible Agent Contract means an agent contract between an Insurer and an
Eligible Agent which is in effect during a Base Year and designated by such
Insurer in a Base Year Supplement.
	 
	1.14	 	Eligible Products are those insurance products that are designated by an Insurer
in a Base Year Supplement.
	 
	1.15	 	Fair Market Value means, as of any Business Day, the closing price of a share of
Stock on such date on the New York Stock Exchange.
	 
	1.16	 	Final Vesting Date, for each grant of Stock Units, means the date of the earlier
of the following occurrences: (a) the Award Date occurring immediately after
the last Vesting Year for such grant; and (b) the date a Vest at 65 Notice given
by a Plan Participant pursuant to Section 3.6.
	 
	1.17	 	Insurer means any insurer-subsidiary of Company. Insurers means Company’s
insurer-subsidiaries, collectively.
	 
	1.18	 	Plan means this AmerUs Group Co. Chairman’s Bonus Plan.
	 
	1.19	 	Plan Participant means an Eligible Agent who has qualified under the Plan for a
grant of Stock Units and who has a vested and/or unvested interest in one or
more Stock Units granted under the Plan, which interest has not been forfeited.
	 
	1.20	 	Plan Production means the production, measured as provided in the applicable
Base Year Supplement, of an Eligible Agent for sales of Eligible Products under
an Eligible Agent Contract for a Base Year and the Vesting Year that corresponds
therewith.
	 
	1.21	 	Previously Deferred Amount means a Deferred Amount elected by a Plan Participant
to be re-deferred under
	

	 	

 

 

	

	 	
	 	 	the Plan, as described in Section 4 of the Plan.

	 
	1.22	 	Production Threshold means, for each Eligible Agent Contract, the Plan
Production set by an Insurer for a Base Year and the Vesting Year that
corresponds therewith.
	 
	1.23	 	Re-Defer or Re-Deferral means the election of a Plan Participant to defer the
receipt of all of a Deferred Amount or all Re-Deferred Amounts, for an
additional Deferral Period beginning on the date on which such immediately
preceding Deferral Period ends with such election being made at a time set by
the Committee which is prior to the end of such immediately preceding Deferral
Period
	 
	1.24	 	Re-Deferred Amount means an amount a Plan Participant has Re-Deferred in
accordance with the immediately preceding Sub Section 1.23 of the Plan
	 
	1.25	 	Deferral Period means, with respect to a particular Stock Unit, the period
determined by the Committee during which such Stock Unit may not be cashed out,
which period shall be no shorter than the period beginning on the Final Vesting
Date or the Plan Participant’s 65th birthday, as applicable, and ending on the
second anniversary of the Final Vesting Date or the Plan Participant’s 65th
birthday, as applicable. Deferral Period shall also mean any Deferral Period
relating to a Re-Deferred Amount, which period will begin on the date a Plan
Participant Re-Defers such Re-Deferred Amount.
	 
	1.26	 	Stock means the common stock of AmerUs Group Co.
	 
	1.27	 	Subsidiary means any corporation in an unbroken chain of corporations beginning
with the Company if each of the corporations (other than the last corporation in
the unbroken chain) owns stock possessing 50% or more of the total combined
voting power of all classes in one of the other corporations in the chain.
	 
	1.28	 	Stock Unit means a unit which, on the day such unit is cashed out, is equal in
Fair Market Value to a share of Stock.
	 
	1.29	 	Vest at 65 Notice shall have the meaning set forth in Section 3.6.
	 
	1.30	 	Vesting Years are those consecutive calendar years specified in a Base Year
Supplement, which shall be no less than three, immediately following any Base
Year, subject to Section 3.5 hereof.

	

	 	

Section 2. Eligibility

	

	 	
	2.1	 	Bonus Rate, Eligible Agent Contracts, Eligible Products, and
Production Threshold are Plan components which relate to the
eligibility for and amount of any grant hereunder. Such components may
be established by each Insurer in its sole discretion for a Base Year
in a Base Year Supplement. Any Insurer may suspend new grants of Stock
Units for any calendar year by not publishing a Base Year Supplement
therefor.
	 
	2.2	 	Each Eligible Agent whose applicable Plan Production meets or exceeds
the Production Threshold for his/her Eligible Agent Contract for a
Base Year shall receive a grant under the Plan as of the Award Date
therefor.
	 
	Section 3. Operation
	 
	3.1	 	Grants of Stock Units. As of each Award Date, the Committee shall
determine which Eligible Agents have met the applicable Production
Threshold under the Plan for the immediately preceding Base Year and
the number of Stock Units to be granted to each pursuant to the Base
Year Supplement for such Base Year. The number of Stock Units to be
granted shall be calculated by (1) multiplying each Eligible Agent’s
applicable Plan Production for the Base Year by the applicable Bonus
Rate and (2) dividing the product thereof by the Fair Market Value on
that Award Date. Fractions shall be rounded to the nearest whole
number. The Committee will notify each Eligible Agent who receives
Stock Units of the number thereof within 30 days of the Award Date.
	

	 	

 

 

	

	 	
	3.2	 	Vesting. A Plan Participant’s interest in the Stock Units granted to
him/her under the Plan for any Base Year shall vest over the number of
Vesting Years set out in the Base Year Supplement therefor, such that
1/x (where x = the number of Vesting Years for that Base Year) of any
grant shall vest on the Award Date following each Vesting Year if the
Plan Participant’s applicable Plan Production shall have met or
exceeded the applicable Production Threshold for that Vesting Year.
The Production Threshold for a Vesting Year is the applicable
Production Threshold set by an Insurer for that Base Year (e.g., an
Insurer’s Production Threshold for Vesting Year 2003 is its Production
Threshold for Base Year 2003). Any interest which does not vest as
provided in this Section 3.2, Section 3.4 or Section 3.6 is forfeited.
	 
	3.3	 	Forfeiture of Interest in the Plan. A Plan
Participant’s vested and unvested interests in any
Stock Units shall be forfeited upon any termination
for cause of his/her Eligible Agent Contract.
	 
	3.4	 	Death of a Plan Participant. Any unvested interest in
any Stock Units which is held by an individual who is
a Plan Participant at the time of his/her death shall
be deemed vested as of the date of the Plan
Participant’s death.
	 
	3.5	 	Disability. For any Plan Participant who becomes
Disabled for a period which does not exceed 5 calendar
years, the vesting process will be suspended during
the term of Disability. The calendar year in which the
Disability begins will not be deemed a Vesting Year
unless the Plan Participant meets the Production
Threshold for that Vesting Year. Upon termination of
the Disability, the Plan Participant may resume
vesting pursuant to the terms hereof. The calendar
year in which the Disability ends will not be deemed a
Vesting Year unless the Plan Participant meets the
Production Threshold for that Vesting Year. Any
continuous Disability which exceeds 5 calendar years
will result in forfeiture of the disabled Plan
Participant’s unvested interest in any Stock Units.
	 
	3.6	 	Age 65. A Plan Participant may, on or after his/her
65th birthday, elect for his/her interest in Stock
Units to vest as of the date when he/she gives notice
of such election to the Committee (“Vest at 65
Notice”), if the Plan Participant has averaged at
least $100,000 of Plan Production in either the six
consecutive Base Years preceding the calendar year in
which the Plan Participant gives such notice or the
six consecutive Base Years ending on the date of such
notice, whichever is appropriate; provided, however,
that no Plan Participant may give a Vest at 65 Notice
prior to January 1, 2010.
	

	 	

Section 4. Deferral Election

	

	 	
	4.1	 	Each Plan Participant who is eligible to participate in the Plan may
elect to defer receipt of no less than one hundred percent (100%) of
the amount he or she may receive, with respect to any given award of
Stock Units, following the Stock Units’ Final Vesting Date or the
giving of a Vest at 65 Notice, as applicable. Such election shall be
made prior to the Final Vesting Date or prior to the Plan
Participant’s 65th birthday, as applicable, and no earlier or later
than such date as the Committee shall determine.
	 
	4.2	 	At the end of any Deferral Period applicable to a Deferred Amount, a
Plan Participant may elect to Re-Defer receipt of all of a Deferred
Amount. Such election shall be made prior to the end of the Deferral
Period and no later than such date as the Committee shall determine.
	

	 	

Section 5. Stock Units

Stock Units granted under the Plan shall be subject to the following terms and
conditions and shall contain such additional terms and conditions, not
inconsistent with the Plan, as the Committee in its sole discretion may
determine:

	

	 	
	5.1	 	Deferral Period. No Stock Unit may be cashed out during its
Deferral Period; provided , however, that in the event of the death
or termination of a Plan Participant, the Stock Units of such Plan
Participant may be cashed out as described in Sections 5.1.2 and
5.1.3 of the Plan.
	

	 	

 

 

	

	 	
	5.1.1	 	Cash Out. On the first Business Day following the Final Vesting Date
or at the end of a Deferral Period or Re-Deferral Period, as
applicable, for particular Stock Units, such Stock Units shall be
cashed out by each Plan Participant, unless a Plan Participant
elects to defer or Re-Defer such cash out in accordance with Section
4 of the Plan. Upon cashing a Stock Unit, a Plan Participant shall
be entitled to receive an amount in cash equal in value to the Fair
Market Value of a share of Stock on the first Business Day following
the Final Vesting Date, if such Stock Unit has not been deferred by
such Plan Participant, or on the first Business Day following the
end of the Deferral Period or Re-Deferral Period (the “Cash Out
Amount”) for Stock Units that have been deferred or Re-Deferred, as
applicable. Payment of the Cash Out Amount to Plan Participants
shall be made in a lump sum within thirty (30) days of the Final
Vesting Date or of the end of the Deferral Period or Re-Deferral
Period as applicable.
	 
	5.1.2	 	If a Plan Participant’s Eligible Agent Contract is terminated
without cause prior to the Final Vesting Date for any grant of Stock
Units, the Committee will cash out, as of such Final Vesting Date,
any interests in such grant of Stock Units which are vested at the
time of termination. In such event, the Cash Out Amount will be
calculated using the Fair Market Value on the Business Day which is
or next follows the applicable Final Vesting Date, subject to
Section 4.2. If a Plan Participant’s Eligible Agent Contract is
terminated without cause after the Final Vesting Date as to any
grant, the Committee will cash out any vested interests in such
grant as of the date of such termination.
	 
	5.1.3	 	Any interests in Stock Units which are vested at the time of death
of a Plan Participant shall be cashed out, promptly upon receipt by
the Committee of notice of such death, and the Cash Out Amount will
be calculated using the Fair Market Value on the Business Day which
is or next follows the date of death of the Plan Participant. Any
such Cash
Out Amount shall be payable to a beneficiary designated by the Plan
Participant or, if none, to the estate of the Plan Participant.
	 
	5.1.4	 	The Committee may offset any Cash Out Amount against amounts owed to
one or more Insurers by the Plan Participant.
	 
	5.1.5	 	The Committee may, in its sole discretion, cash out any Plan
Participant’s vested interest in any Stock Units at any time.
	 
	5.2	 	Not a Security. A Stock Unit is not a stock option, warrant, or
subscription right. Plan Participants are not shareholders of the
Company and have no ownership interest in Stock, no right to acquire
Stock, and no voting or dividend rights. A Plan Participant’s vested
interest in his/her Stock Units is not transferable other than by
will or by laws of descent and distribution and, during a Plan
Participant’s lifetime, Stock Units may be cashed out only by the
Plan Participant or the Committee.
	 
	5.3	 	Changes in Stock. In the event of a change in the number of
outstanding shares of Stock by reason of any stock dividend,
subdivision, reclassification, recapitalization, split, combination,
or exchange of shares; the number of Stock Units issued to each Plan
Participant shall be correspondingly adjusted to the extent that the
Committee in its sole discretion determines is necessary to
equitably reflect such change.
	 
	5.4	 	Change of Control. Any Base Year Supplement may contain provisions
governing the effect of a Change of Control on the vesting of Stock
Units granted in respect of that Base Year. Participants’ interests
in Stock Units granted in respect of any Base Year for which no such
provisions appear in the Base Year Supplement will be deemed vested
upon the occurrence of a Change of Control and will be cashed out at
the Fair Market Value on the last Business Day preceding such Change
of Control and paid to Participants as soon as practicable
thereafter.
	

	 	

Section 6. Taxes

 

 

The Company may withhold from a Plan Participant’s vested interest in any Stock
Units the amount of any withholding or other tax required by law to be withheld
or paid by the Company with respect to such Stock Units, and the Company may
defer cashing out any Stock Unit unless the Company is indemnified to its
satisfaction against liability for any tax. The amount of withholding or tax
payment shall be determined by the Committee and shall be payable by a Plan
Participant at such time as the Committee determines. A Plan Participant may
satisfy his or her tax withholding obligation by the payment of cash to the
Company or in any other manner approved by the Committee. The Committee shall
be authorized to establish, in its sole discretion, such rules and procedures
relating to withholding methods as it deems necessary or appropriate.

Section 7. Administration

The Plan shall be administered by the Committee which at all times shall
consist of at least three but no more than five employees of Company and/or
Insurers appointed by Company’s Chief Executive Officer (“CEO”). The
composition of the Committee may be changed at any time in the discretion of
the CEO. The Committee shall have the power and authority to grant Stock Units
to Plan Participants pursuant to the terms of the Plan. In addition, the
Committee shall have the power to take, direct, or delegate all actions which
it determines are necessary or appropriate to the administration of the Plan,
including but not limited to the following:

	

	 	
	7.1	 	To determine in a manner consistent with the Plan the terms and
conditions of all grants made thereunder and to notify Plan
Participants thereof;
	 
	7.2	 	To construe and interpret the provisions of the Plan and any
agreements relating thereto and to make, alter, and repeal rules and
regulations governing the administration of the Plan;
	 
	7.3	 	To decide all questions of eligibility for participation in the Plan
and to review and determine the rights thereunder of any Plan
Participant;
	 
	7.4	 	To obtain any needed information and to determine such facts as are
necessary to the proper administration of the Plan;
	 
	7.5	 	To construe any uncertain terms, correct any defect, supply any
omission, and reconcile any inconsistency which may inhere in the Plan
in a manner that is consistent with the purposes thereof;
	 
	7.6	 	To defer payment of any Cash Out Amount, following the termination of
an Eligible Agent’s Contract, for such period as it, in its sole
discretion, may determine;
	 
	7.7	 	To review situations in which an Eligible Agent is a party to more
than one Eligible Agent Contract during a Base Year or Vesting Year
and to aggregate and/or make pro rata or other adjustments in its sole
discretion to the Plan Production and/or Production Threshold
applicable to such Eligible Agent for any such year;
	 
	7.8	 	To determine, in its sole discretion, the existence of a Disability or
of vesting rights under Section 3.5 hereof; and
	 
	7.9	 	To do such other acts as are necessary or appropriate to the
administration of the Plan in accordance with its provisions and with
any applicable statute or regulation.
	

	 	

The Committee shall have sole and absolute discretion in the exercise of all
its powers under the Plan, including but not limited to those set out above, to
the maximum extent permitted by law. Any decision, determination, or other act
by the Committee with respect to the Plan shall be final and binding on all
persons, including the Company, the Insurers, Eligible Agents, and Plan
Participants. In the event that any decision, determination, or other act of
the Committee taken in the course of its administration of the Plan is subject
to judicial review, it is intended that the court shall defer to the position
of the Committee to the maximum extent permitted by applicable law. No member
of the Committee shall be liable to any person for any action taken or omitted
in connection with the interpretation

 

 

or administration of this Plan. On the reasonable request of a Plan
Participant, the Committee shall provide such Plan Participant with a report on
the status of his or her account.

Section 8. Amendments and Termination

The Company may amend, alter, or terminate the Plan at any time. Any
termination will end grants under the Plan for future Base Years. No amendment,
alteration, or termination shall operate to impair without the Plan
Participant’s consent any vested interest in any Stock Units, any interest in a
grant which may be made for the Base Year in which termination occurs, or an
interest in any existing grant which may vest pursuant to the terms hereof. In
the event of Plan termination or any discontinuance by one or more Insurers,
the Committee will publish a Production Threshold for each Eligible Agent
Contract for each succeeding Vesting Year, as contemplated hereby, or if no
Production Threshold is published, the Production Threshold shall be that most
recently published for the applicable Eligible Agent Contract. No term of this
Plan shall be construed to alter or limit any right of an Insurer under any
Eligible Agent Contract.

Section 9. Unfunded Status of the Plan

The Plan is intended to constitute an “unfunded” plan for incentive and
deferred compensation. With respect to a Plan Participant’s vested interest in
the Plan, nothing set forth in the Plan shall give such Plan Participant any
rights that are greater than those of a general creditor of the Company. The
Committee may authorize, in its sole discretion, the creation of trusts or
other arrangements to meet the obligations created under the Plan with respect
to grants made hereunder, provided that the existence of such trusts or other
arrangements is consistent with the unfunded status of the Plan.

Section 10. Stock Unit Certificates; Plan Accounting; Committee’s Decisions
Final

No Stock Unit certificates will be issued under the Plan, and the accounting
records of each Plan Participant’s vested and/or unvested interests in the Plan
shall be maintained by the Company under the supervision of the Committee. The
Committee’s decision concerning any question or dispute regarding such records
shall be final.

Section 11. Effective Date of the Plan

The Plan shall be effective on January 1, 2002.2ND AMENDT. TO AMENDED & RESTATED CREDIT AGRMT.

 

Exhibit 10.41

Second Amendment To Amended and Restated Credit Agreement

     This Second Amendment to the Amended and Restated Credit Agreement dated
as of April 12, 2004 (this “Second Amendment”), is entered into among Technical
Olympic USA, Inc., a Delaware corporation (the “Borrower”), the Lenders party
hereto and Citicorp North America, Inc. (“CNAI”), as agent for the Lenders and
the Issuers (in such capacity, the “Administrative Agent”), and amends that
certain Amended and Restated Credit Agreement dated as of April 4, 2003 (as
amended hereby and as the same may be further amended, supplemented or
otherwise modified from time to time, the “Credit Agreement”) entered into
among the Borrower, the Lenders, the Issuers, and CNAI as Administrative Agent.
Capitalized terms used herein and not otherwise defined herein shall have the
meanings ascribed to them in the Credit Agreement.

W I T N E S S E T H:

     WHEREAS, the Borrower has requested an amendment to the Credit Agreement
to provide for (i) an increase in the amount of Revolving Credit Commitments
available under the Credit Agreement from $315,000,000 to $350,000,000, subject
to the execution of joinder agreements by Bank United, FSB and Branch Banking
and Trust Company, each in form and substance satisfactory to the
Administrative Agent, pursuant to which such financial institutions become
Lenders under the Credit Agreement, (ii) the reduction to zero of the available
facility increase provisions set forth to Section 2.19 (Facility Increase),
(iii) an increase in the maximum aggregate amount of Letter of Credit
Obligations the Borrower may have outstanding at any time from $125,000,000 to
$175,000,000, (iv) an exception from the prohibition on Restricted Payments to
permit the Borrower to pay dividends or make distributions in respect of its
common stock in common stock of the Borrower, and (v) Letters of Credit that
expire after the Scheduled Termination Date, in each case on the terms
described herein;

     WHEREAS, the Borrower has requested that the Lenders consent to such
amendments to the Credit Agreement as described herein;

     WHEREAS, pursuant to Section 11.1(a) (Amendments, Waivers, Etc.) of the
Credit Agreement, the consent of each Lender is required to modify those
provisions of the Credit Agreement as requested by the Borrower;

     NOW, THEREFORE, in consideration of the above premises, the Borrower and
the Lenders party hereto agree as follows:

     SECTION 1. Second Amendment to the Credit Agreement. The Credit Agreement
is, effective as of the Second Amendment Effective Date (as defined below),
hereby amended as follows:

     (a) Subject to the execution of joinder agreements by Bank
United, FSB and Branch Banking and Trust Company, each in form and
substance satisfactory to the Administrative Agent, pursuant to
which such financial institutions become Lenders under the Credit
Agreement, Schedule I (Revolving Credit Commitments) to the Credit
Agreement is hereby amended and restated in its entirety and
replaced with a new Schedule I (Revolving Credit Commitments) as
set forth on Annex A attached hereto.

1

 

     (b) Section 1.1(Defined Terms) of the Credit Agreement is
hereby amended by inserting the following definitions in the
appropriate place to preserve the alphabetical order of the
definitions in such section:

     (i) “Liquidity Event Period” means any period (a) beginning
on the first date on which (i) an Event of Default occurs, (ii)
the Available Credit plus the amount of Unrestricted Cash is less
than $50,000,000 for three consecutive Business Days, or (iii) the
date which is 30 days prior to the Scheduled Termination Date, and
(b) ending on the first date on which all of the following are
true (i) no Event of Default is continuing, (ii) the Available
Credit plus the amount of Unrestricted Cash has been greater than
$50,000,000 for 20 consecutive Business Days, and (iii) the date
which is 30 days prior to the Scheduled Termination Date has not
occurred.

     (ii) “Second Amendment” means the Second Amendment, dated April
12, 2004, to this Agreement, among the Borrower, the
Administrative Agent and the Lenders party thereto.”

     (iii) “Second Amendment Effective Date” has the meaning set forth
in Section 2 (Conditions Precedent to the Effectiveness of this
Second Amendment) of the Second Amendment.

     (c) Section 2.4 (Letters of Credit) of the Credit Agreement is
hereby amended by deleting, in clause (a)(iv) thereof, the figure
“$125,000,000” and replacing it with the figure “$175,000,000”.

     (d) Section 2.4 (Letters of Credit) of the Credit Agreement is
hereby further amended by deleting in its entirety clause (b)
thereof and replacing it with the following:

     “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 except as provided below);
and provided, further, that from and after the Second Amendment
Effective Date, Letters of Credit may be issued having (or be
renewed to have) an expiration date after the Scheduled
Termination Date. Upon the commencement of and during the
continuation of a Liquidity Event Period, the Borrower shall pay
to the Administrative Agent in immediately available funds at the
Administrative Agent’s office referred to in Section 11.8
(Notices, Etc.) for deposit in a Cash Collateral Account, an
amount equal to 105% of the undrawn amount of any outstanding
Letters of Credit having an expiration date occurring after the
Scheduled Termination Date. Amounts held in such Cash Collateral
Account shall be applied by the Administrative Agent to the
payment of all Obligations in respect of such Letters of Credit.
As such Letters of Credit expire, are cancelled and returned to
the Issuer or are drawn upon and the Obligations in respect
thereof are paid, the unused portion of the amounts in such Cash
Collateral Account, if any, shall be applied in accordance with
clause (f) of Section 2.13 (Payments and Computations) or, if (x)
a Liquidity Event Period is

2

 

no longer continuing or (y) all such Letter of Credit Obligations
that are not cash collateralized have been paid in full, returned
to the Borrower. Notwithstanding the foregoing, no amount held in
such Cash Collateral Account shall be returned to the Borrower
after the termination of the Revolving Credit Commitments until
all of the Obligations have been paid in full. The Administrative
Agent shall promptly give notice of any such application described
above; provided, however, that the failure to give such written
notice shall not be a breach of this agreement, and the
Administrative Agent shall have no liability whatsoever for any
such failure, and any such failure shall not affect the validity
or effectiveness of such application. If any Letters of Credit
remain outstanding after the Scheduled Termination Date, the
Borrower shall use its best efforts to have all such outstanding
Letters of Credit returned to the Issuer for cancellation.”

     (e) Section 2.19 (Facility Increase) of the Credit Agreement is
hereby amended by inserting, at the end thereof, the following
sentence:

     “Notwithstanding the foregoing, from and after the Second
Amendment Effective Date, the amount of the Facility Increase
available shall be zero absent a vote of all Lenders affected
thereby in accordance with Section 11.1 (Amendments, Waivers,
Etc.) to establish a new Facility Increase amount.”

     (f) Section 8.5 (Restricted Payments) is hereby amended by
deleting the punctuation “.” at the end of clause (b) thereof,
inserting the punctuation and words “; and” in its place and
inserting a new clause (c) at the end of Section 8.5 (Restricted
Payments) as follows:

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

     SECTION 2. Conditions Precedent to the Effectiveness of this Second
Amendment.

     (a) This Second Amendment shall become effective as of the date hereof on
the date (the “Second Amendment Effective Date”) when the following conditions
precedent have been satisfied:

     (i) Certain Documents. The Administrative Agent shall have
received on or before the Second Amendment Effective Date all of
the following, all of which shall be in form and substance
satisfactory to the Administrative Agent, in sufficient originally
executed copies for each of the Lenders:

     (A) this Second Amendment, duly executed by the Borrower and
the Administrative Agent;

     (B) the Acknowledgment attached hereto, executed by each
Guarantor;

     (C) The Consent of Lenders, in the form attached hereto as
Exhibit A (each a “Lender Consent”) executed by each Lender;

3

 

     (D) a favorable opinion of Greenberg Traurig, LLP, counsel to
the Loan Parties, addressed to the Administrative Agent and the
Lenders (including any additional lenders) as to the
enforceability of this Second Amendment and the enforceability of
the Credit Agreement, the Guaranty, the Pledge Agreement and the
other Loan Documents after giving effect to this Amendment, and
addressing such other matters as the Administrative Agent or any
Lender through the Administrative Agent may reasonably request,
including, without limitation, no conflicts with the Constituent
Documents of each Loan Party, any Requirements of Law or any
material agreements; and

     (E) such additional documentation as the Administrative Agent
or, if appropriate, any Lenders may reasonably require.

     (ii) Representations and Warranties. Each of the
representations and warranties made by the Borrower or the other
Loan Parties in or pursuant to the Credit Agreement, as amended by
this Second Amendment, and the other Loan Documents to which the
Borrower or any of the other Loan Parties is a party or by which
the Borrower or any of the Loan Parties is bound, shall be true
and correct in all material respects on and as of the Second
Amendment Effective Date (other than representations and
warranties in any such Loan Document that are expressly limited to
a specific date).

     (iii) Corporate and Other Proceedings. All corporate and
other proceedings, and all documents, instruments and other legal
matters in connection with the transactions contemplated by this
Second Amendment shall be satisfactory in all respects, including
without limitation, form and substance, to the Administrative
Agent in its sole discretion.

     (iv) No Events of Default. No Event of Default or Default
shall have occurred and be continuing on the Second Amendment
Effective Date.

     (v) No Litigation. No litigation shall have been commenced
against any Loan Party or any of its Subsidiaries, either on the
date hereof or the Second Amendment Effective Date, seeking to
restraint or enjoin (whether temporarily, preliminarily or
permanently) the performance of any action by any Loan Party
required or contemplated by this Amendment or the Credit Agreement
or any Credit Document, in either case as amended hereby; and

     (vi) Fees and Expenses Paid. The Borrower shall have paid
all fees and expenses due, after giving effect to this Second
Amendment, on or before the Second Amendment Effective Date
including, without limitation, the fees set forth in Section 5
hereof and all costs and expenses of the Administrative Agent in
connection with the preparation, reproduction, execution and
delivery of this Amendment and all other Loan Documents entered
into in connection herewith (including, without limitation, the
reasonable fees and out-of-pocket expenses of counsel for the
Administrative Agent with respect thereto and all other Loan
Documents) and all other costs, expenses and fees due under any
Loan Document.

     SECTION 3. Representations and Warranties. The Borrower hereby represents
and warrants to the Lenders that (a) as of the date hereof, and after giving
effect to the

4

 

amendments contained herein, no Event of Default or Default under the
Credit Agreement shall have occurred and be continuing and (b) all of the
representations and warranties of such Borrower contained in Article IV
(Representations and Warranties) of the Credit Agreement and in any other Loan
Document are true and correct as of the date of execution hereof in all
material respects, as though made on and as of such date (other than
representations and warranties in any such Loan Document expressly that are
limited to a specific date).

     SECTION 4. Reference to and Effect on the Loan Documents.

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

     (b) Except as specifically amended hereby, all of the terms of the Credit
Agreement and all other Loan Documents shall remain unchanged and in full force
and effect.

     (c) The execution, delivery and effectiveness of this Second Amendment
shall not operate as a waiver of any right, power or remedy under the Credit
Agreement or any of the Loan Documents of any Lender, any Issuer, the
Administrative Agent, the Collateral Monitoring Agent, or the Swing Loan Lender
nor constitute a waiver of any provision of the Credit Agreement or any of the
Loan Documents.

     SECTION 5. Fees, Costs and Expenses. The Borrower agrees to pay on
demand in accordance with the terms of Section 11.3 (Costs and Expenses) of the
Credit Agreement all costs and expenses of the Administrative Agent in
connection with the preparation, reproduction, execution and delivery of this
Second Amendment and all other Loan Documents entered into in connection
herewith, including the reasonable fees and out-of-pocket expenses of counsel
for the Administrative Agent with respect thereto.

     SECTION 6. Execution in Counterparts. This Second Amendment may be
executed and delivered in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed and delivered
shall be deemed an original and all of which taken together shall constitute
one and the same original agreement.

     SECTION 7. Governing Law. This Second Amendment shall be interpreted, and
the rights and liabilities of the parties determined, in accordance with the
internal law of the State of New York.

[Signature Pages Follow]

5

 

     IN WITNESS WHEREOF, this Second Amendment has been duly executed on the
date set forth above.

	 	 	 
	 	 	
Technical Olympic, USA

as Borrower
	 	 	
By: /s/ Patricia M. Petersen

Name: Patricia M. Petersen

Title:   Vice President and General Counsel
	 	 	 
	 	 	
Citicorp North America, Inc.,

as Administrative Agent
	 	 	
By: /s/ Michael Chiopak

Name: Michael Chiopak

Title:   Vice President
	 	 	 
	 	 	
Citibank, N.A.,

as Issuer
	 	 	
By: /s/ Michael Chiopak

Name:  Michael Chiopak

Title:    Vice President

6

 

Acknowledgment

     Reference is hereby made to the Guaranty, the Pledge Agreement and the
other Loan Documents to which each of the undersigned is a party.

     Each of the undersigned Guarantors hereby consents to the terms of the
foregoing Second Amendment to the Credit Agreement and agrees that the terms
thereof shall not affect in any way its obligations and liabilities under the
undersigned’s Loan Documents, all of which obligations and liabilities shall
remain in full force and effect and each of which is hereby reaffirmed.

	 	 	 
	Alliance Insurance and Information

	 	TOI, LLC
	Services, L.L.C.

	 	Tousa Associates Services Company
	Engle Homes Delaware, Inc.

	 	TOUSA Financing, Inc.
	Engle Homes Residential Construction, L.L.C.

	 	TOUSA Homes, Inc. f/k/a Engle Homes, Inc.
	Engle/James, LLC

	 	TOUSA Delaware, Inc.
	McKay Landing, LLC

	 	TOUSA Ventures, LLC
	Newmark Homes, L.L.C.

	 	Universal Land Title Investment #1, L.L.C.
	Newmark Homes L.P.

	 	Universal Land Title Investment #2, L.L.C.
	Newmark Homes Purchasing, L.P.

	 	Universal Land Title Investment #3, L.L.C.
	Pacific United L.P.

	 	Universal Land Title Investment #4, L.L.C.
	Preferred Builders Realty, Inc.

	 	Universal Land Title of Colorado, Inc.
	Preferred Home Mortgage Company

	 	Universal Land Title of South Florida, Ltd.
	Prestige Abstract & Title, L.L.C.

	 	Universal Land Title of Texas, Inc.
	Professional Advantage Title, Ltd.

	 	Universal Land Title of the Palm Beaches,
	Silverlake Interests, L.C.

	 	Ltd.
	The Century Title Agency, Ltd.

	 	Universal Land Title, Inc.

	 	 	 	 	 
	 	 	 
	 	By:  	             /s/ Patricia M. Petersen
 	 
	 	 	Name:  	Patricia M. Petersen 	 
	 	 	Title:  	Authorized Representative 	 
	 

	 	 	 
	DP-NH Management, L.L.C.

	 	Newmark Homes Business Trust
	DP-NH Investments, L.P.
	 	 
	Silver
Oak Trails, L.P.
	 	 
	 

 

By: /s/ Patricia M. Petersen

Name: Patricia M. Petersen

Title: Vice-President and General Counsel of

Technical Olympic USA, Inc., Authorized

Representative
	 	By: /s/ Randy Kotler

Name: Randy Kotler

Title: Managing Trustee

7

 

Exhibit A

Form of Consent of Lenders

to

Second Amendment to
Amended and Restated Credit Agreement

     Each of the undersigned is a Lender party to that certain Amended and
Restated Credit Agreement (the “Credit Agreement”), dated as of April 4, 2003
entered into among Technical Olympic USA, Inc., a Delaware Corporation (the
"Borrower”), the Lenders and Issuers party thereto and Citigroup North America,
Inc. (“CNAI”) as agent for the Lenders and Issuers (in such capacity, the
"Administrative Agent”).

     Each of the undersigned hereby consents, pursuant to and in accordance
with Section 11.1 (Amendments, Waivers, Etc.,) of the Credit Agreement, to the
amendments and other terms of that certain Second Amendment, dated as of April
12, 2004, to the Credit Agreement (the “Second Amendment”) and acknowledges and
agrees to be bound by the terms of such Second Amendment and that the terms of
such Second Amendment shall not affect its obligations and liabilities as a
Lender under the Loan Documents (other than as expressly described in such
Amendment), that all of such obligations and liabilities remain in full force
and effect and are hereby reaffirmed.

     Each of the undersigned Lenders hereby further acknowledges its Revolving
Credit Commitment in the amount set forth opposite its name on Schedule I
(Revolving Credit Commitments) to the Second Amendment.

     This consent 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 consent. 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
counterpart by telecopy shall be effective as delivery of a manually executed
counterpart of this consent. Notices to parties hereto shall be given as
provided in the Amendment.

     The terms of this consent shall be binding upon, and shall inure to the
benefit of, the parties hereto and their respective successors and assigns.

     This consent shall be governed by and construed in accordance with the law
of the State of New York.

Dated as of April 12, 2004.

8

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