Document:

Credit Agreement

 

Exhibit 10.30

$800,000,000

CREDIT AGREEMENT

Dated as of March 9, 2006

among

Technical Olympic USA, Inc.,

as Borrower

and

The Lenders and Issuers Party Hereto

and

Citicorp North America, Inc.,

as Administrative Agent,

Deutsche Bank Securities Inc.,

as Syndication Agent,

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

and

Wachovia Capital Markets, LLC

as Co-Documentation Agents,

and

Citigroup Global Markets Inc.

and

Deutsche Bank Securities Inc.

as Joint Lead Arrangers and Joint Book Managers

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I
	 	 	 	 
	 
	 	 
	 	 	 	 
	DEFINITIONS, INTERPRETATION AND ACCOUNTING TERMS

 	 	 	 	 
	SECTION 1.1
	 	Defined Terms.

	 	 	1	 
	SECTION 1.2
	 	Computation of Time Periods.

	 	 	22	 
	SECTION 1.3
	 	Accounting Terms and Principles.

	 	 	22	 
	SECTION 1.4
	 	Certain Terms.

	 	 	22	 
	 
	 	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 
	 	 	 	 
	THE FACILITY
	 	 	 	 
	 
	 	 
	 	 	 	 
	SECTION 2.1
	 	The Revolving Credit Commitments.

	 	 	23	 
	SECTION 2.2
	 	Borrowing Procedures.

	 	 	23	 
	SECTION 2.3
	 	Swing Loans.

	 	 	24	 
	SECTION 2.4
	 	Letters of Credit.

	 	 	26	 
	SECTION 2.5
	 	Reduction and Termination of the Revolving Credit Commitments.

	 	 	30	 
	SECTION 2.6
	 	Repayment of Loans.

	 	 	30	 
	SECTION 2.7
	 	Evidence of Debt.

	 	 	30	 
	SECTION 2.8
	 	Prepayments.

	 	 	31	 
	SECTION 2.9
	 	Interest.

	 	 	31	 
	SECTION 2.10
	 	Conversion/Continuation Option.

	 	 	32	 
	SECTION 2.11
	 	Fees.

	 	 	32	 
	SECTION 2.12
	 	Payments and Computations.

	 	 	33	 
	SECTION 2.13
	 	Special Provisions Governing Eurodollar Rate Loans.

	 	 	35	 
	SECTION 2.14
	 	Capital Adequacy.

	 	 	37	 
	SECTION 2.15
	 	Taxes.

	 	 	37	 
	SECTION 2.16
	 	Substitution of Lenders.

	 	 	39	 
	SECTION 2.17
	 	Facility Extension.

	 	 	40	 
	SECTION 2.18
	 	Facility Increase.

	 	 	41	 
	 
	 	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 
	 	 	 	 
	CONDITIONS TO LOANS AND LETTERS OF CREDIT
	 	 	 	 
	 
	 	 
	 	 	 	 
	SECTION 3.1
	 	Conditions Precedent to the Effectiveness of this Agreement.

	 	 	42	 
	SECTION 3.2
	 	Conditions Precedent to Each Loan and Letter of Credit.

	 	 	44	 
	SECTION 3.3
	 	Determinations of Initial Borrowing Conditions.

	 	 	44	 
	 
	 	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES
	 	 	 	 
	 
	 	 
	 	 	 	 
	SECTION 4.1
	 	Corporate Existence; Compliance with Law.

	 	 	45	 
	SECTION 4.2
	 	Corporate Power; Authorization; Enforceable Obligations.

	 	 	45	 
	SECTION 4.3
	 	Ownership of Subsidiaries.

	 	 	46	 

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	 	 	 	 	Page
	SECTION 4.4
	 	Financial Statements.

	 	 	46	 
	SECTION 4.5
	 	Material Adverse Change.

	 	 	47	 
	SECTION 4.6
	 	Litigation.

	 	 	47	 
	SECTION 4.7
	 	Taxes.

	 	 	47	 
	SECTION 4.8
	 	Full Disclosure.

	 	 	47	 
	SECTION 4.9
	 	Margin Regulations.

	 	 	48	 
	SECTION 4.10
	 	No Burdensome Restrictions; No Defaults.

	 	 	48	 
	SECTION 4.11
	 	Investment Company Act

	 	 	48	 
	SECTION 4.12
	 	Use of Proceeds.

	 	 	48	 
	SECTION 4.13
	 	Insurance.

	 	 	48	 
	SECTION 4.14
	 	Labor Matters.

	 	 	49	 
	SECTION 4.15
	 	ERISA.

	 	 	49	 
	SECTION 4.16
	 	Environmental Matters.

	 	 	49	 
	SECTION 4.17
	 	Intellectual Property.

	 	 	49	 
	SECTION 4.18
	 	Title; Real Property.

	 	 	50	 
	SECTION 4.19
	 	Anti-Terrorism Laws.

	 	 	50	 
	 
	 	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 
	 	 	 	 
	FINANCIAL COVENANTS
	 	 	 	 
	 
	 	 
	 	 	 	 
	SECTION 5.1
	 	Adjusted Consolidated Tangible Net Worth.

	 	 	51	 
	SECTION 5.2
	 	Maximum Indebtedness to Adjusted Consolidated Tangible Net Worth Ratio.

	 	 	51	 
	SECTION 5.3
	 	Minimum Interest Coverage Ratio.

	 	 	51	 
	SECTION 5.4
	 	Unsold Land to Adjusted Consolidated Tangible Net Worth.

	 	 	51	 
	SECTION 5.5
	 	Unsold Units to Units Closed.

	 	 	52	 
	 
	 	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 
	 	 	 	 
	AFFIRMATIVE COVENANTS
	 	 	 	 
	 
	 	 
	 	 	 	 
	SECTION 6.1
	 	Reporting Requirements.

	 	 	52	 
	SECTION 6.2
	 	Preservation of Corporate Existence, Etc.

	 	 	55	 
	SECTION 6.3
	 	Compliance with Laws, Etc.

	 	 	55	 
	SECTION 6.4
	 	Conduct of Business.

	 	 	55	 
	SECTION 6.5
	 	Payment of Taxes, Etc.

	 	 	55	 
	SECTION 6.6
	 	Maintenance of Insurance.

	 	 	55	 
	SECTION 6.7
	 	Transactions with Affiliates.

	 	 	55	 
	SECTION 6.8
	 	Access.

	 	 	56	 
	SECTION 6.9
	 	Keeping of Books.

	 	 	56	 
	SECTION 6.10
	 	Maintenance of Properties, Etc.

	 	 	56	 
	SECTION 6.11
	 	Application of Proceeds.

	 	 	56	 
	SECTION 6.12
	 	Environmental.

	 	 	56	 
	SECTION 6.13
	 	Additional Guaranties.

	 	 	57	 
	SECTION 6.14
	 	Designation of Restricted and Unrestricted Subsidiaries.

	 	 	57	 

-ii-

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE VII
	 	 	 	 
	 
	 	 
	 	 	 	 
	NEGATIVE COVENANTS
	 	 	 	 
	 
	 	 
	 	 	 	 
	SECTION 7.1
	 	Liens, Etc.

	 	 	59	 
	SECTION 7.2
	 	Investments.

	 	 	59	 
	SECTION 7.3
	 	Restricted Payments.

	 	 	60	 
	SECTION 7.4
	 	Restriction on Fundamental Changes.

	 	 	61	 
	SECTION 7.5
	 	Change in Nature of Business.

	 	 	61	 
	SECTION 7.6
	 	Transactions with Affiliates.

	 	 	61	 
	SECTION 7.7
	 	Restrictions on Subsidiary Distributions; No New Negative Pledge.

	 	 	62	 
	SECTION 7.8
	 	Sale/Leasebacks.

	 	 	62	 
	SECTION 7.9
	 	Compliance with ERISA.

	 	 	62	 
	SECTION 7.10
	 	Environmental.

	 	 	62	 
	 
	 	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 
	 	 	 	 
	EVENTS OF DEFAULT
	 	 	 	 
	 
	 	 
	 	 	 	 
	SECTION 8.1
	 	Events of Default.

	 	 	63	 
	SECTION 8.2
	 	Remedies.

	 	 	64	 
	SECTION 8.3
	 	Actions in Respect of Letters of Credit.

	 	 	64	 
	SECTION 8.4
	 	Rescission.

	 	 	65	 
	 
	 	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 
	 	 
	 	 	 	 
	THE ADMINISTRATIVE AGENT
	 	 	 	 
	 
	 	 
	 	 	 	 
	SECTION 9.1
	 	Authorization and Action.

	 	 	65	 
	SECTION 9.2
	 	Administrative Agent’s Reliance, Etc.

	 	 	66	 
	SECTION 9.3
	 	The Administrative Agent Individually.

	 	 	66	 
	SECTION 9.4
	 	Lender Credit Decision.

	 	 	67	 
	SECTION 9.5
	 	Indemnification.

	 	 	67	 
	SECTION 9.6
	 	Successor Administrative Agent.

	 	 	67	 
	 
	 	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	 
	 	 
	 	 	 	 
	MISCELLANEOUS
	 	 
	 	 	 	 
	 
	 	 
	 	 	 	 
	SECTION 10.1
	 	Amendments, Waivers, Etc.

	 	 	68	 
	SECTION 10.2
	 	Assignments and Participations.

	 	 	69	 
	SECTION 10.3
	 	Costs and Expenses.

	 	 	72	 
	SECTION 10.4
	 	Indemnities.

	 	 	72	 
	SECTION 10.5
	 	Limitation of Liability.

	 	 	74	 
	SECTION 10.6
	 	Right of Set-off.

	 	 	74	 
	SECTION 10.7
	 	Sharing of Payments, Etc.

	 	 	74	 
	SECTION 10.8
	 	Notices, Etc.

	 	 	75	 
	SECTION 10.9
	 	No Waiver; Remedies.

	 	 	76	 
	SECTION 10.10
	 	Binding Effect.

	 	 	76	 
	SECTION 10.11
	 	Governing Law.

	 	 	76	 

-iii-

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 10.12
	 	Submission to Jurisdiction; Service of Process.

	 	 	76	 
	SECTION 10.13
	 	Waiver of Jury Trial.

	 	 	77	 
	SECTION 10.14
	 	Section Titles.

	 	 	77	 
	SECTION 10.15
	 	Execution in Counterparts.

	 	 	77	 
	SECTION 10.16
	 	Entire Agreement.

	 	 	77	 
	SECTION 10.17
	 	Confidentiality.

	 	 	77	 
	SECTION 10.18
	 	USA Patriot Act.

	 	 	78	 
	SECTION 10.19
	 	Agent Communications.

	 	 	78	 

-iv-

 

Schedules

	 	 	 	 	 
	Schedule I	 	—	 	Revolving Credit Commitments

	Schedule II	 	—	 	Applicable Lending Offices and Addresses for Notices

	Schedule 2.4	 	—	 	Existing Letters of Credit

	Schedule 4.2	 	—	 	Consents

	Schedule 4.3	 	—	 	Ownership of Subsidiaries

	Schedule 4.4	 	—	 	Material Obligations

	Schedule 4.6	 	—	 	Litigation

	Schedule 4.7	 	—	 	Taxes

	Schedule 4.13	 	—	 	Insurance

	Schedule 7.1	 	—	 	Existing Liens

	Schedule 7.2	 	—	 	Existing Investments

	Schedule 7.7	 	—	 	Restrictions on Subsidiary Distributions

Exhibits

	 	 	 	 	 
	Exhibit A	 	—	 	Form of Assignment and Acceptance

	Exhibit B	 	—	 	Form of Assumption Agreement

	Exhibit C	 	—	 	Form of Revolving Credit Note

	Exhibit D	 	—	 	Form of Notice of Borrowing

	Exhibit E	 	—	 	Form of Borrowing Base Certificate

	Exhibit F	 	—	 	Form of Notice of Conversion or Continuation

	Exhibit G	 	—	 	Form of Opinion of Counsel for the Loan Parties

	Exhibit H	 	—	 	Form of Guaranty

-v-

 

     Credit Agreement (this “Agreement”), dated as of March 9, 2006, among
Technical Olympic USA, Inc., a Delaware corporation (the “Borrower”), the Lenders
(as defined below), the Issuers (as defined below), Citicorp North America, Inc.
(“CNAI”), as agent for the Lenders and the Issuers (in such capacity, the
“Administrative Agent”), Deutsche Bank Securities Inc., as syndication agent (in
such capacity, the “Syndication Agent”) and J.P. Morgan Securities Inc. and
Wachovia Capital Markets, LLC, as co-documentation agents (in such capacity, the
“Co-Documentation Agents”).

     The parties hereto agree as follows:

ARTICLE I

DEFINITIONS, INTERPRETATION AND ACCOUNTING TERMS

     SECTION 1.1 Defined Terms.

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

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

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

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

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

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

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

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

 

 

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

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

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

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

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

-2-

 

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

	 	 	 	0.300	%	 
	 	Higher than 33 1/3% and lower than or equal to 66 2/3%

	 	 	 	0.225	%	 
	 	Lower than or equal to 33 1/3%

	 	 	 	0.125	%	 
	 

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

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

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

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

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

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

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

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

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

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

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

     (a) the product of (x) 0.50 and (y) the Unimproved Land owned by the Borrower or any
Restricted Subsidiary;

     (b) the product of (x) 0.65 and (y) the Land/Lots Under Development owned by the
Borrower or any Restricted Subsidiary;

-3-

 

     (c) the product of (x) 0.65 and (y) the Finished Lots owned by the Borrower or any
Restricted Subsidiary;

     (d) the product of (x) 0.80 and (y) the Unsold Homes Under Construction owned by the
Borrower or any Restricted Subsidiary;

     (e) the product of (x) 0.80 and (y) the Completed Unsold Homes owned by the Borrower or
any Restricted Subsidiary;

     (f) the product (x) 0.90 and (y) the Sold Homes owned by the Borrower and any
Restricted Subsidiary; and

     (g) the product of (x) 1.00 and (y) the sum of (a) Escrow Proceeds Receivables and (b)
Unrestricted Cash in excess of $10,000,000;

provided, however, that (i) at no time shall more than 25% of the Borrowing Base be
comprised of Unimproved Land, (ii) all assets of the Borrower and the Restricted Subsidiaries
included in the Borrowing Base shall not be subject to any Lien (other than Customary Permitted
Liens) and shall be owned 100% by the Borrower or a Restricted Subsidiary, and (iii) (x) during the
period beginning on the Effective Date and ending on the first anniversary of the Effective Date,
no more than 55% of the Borrowing Base shall be comprised of Land/Lots Under Development and
Finished Lots and (y) thereafter no more than 50% of the Borrowing Base shall be comprised of
Land/Lots Under Development and Finished Lots.

     “Borrowing Base Assets” means the Unimproved Land, Land/Lots Under Development,
Finished Lots, Unsold Homes Under Construction, Completed Unsold Homes, Sold Homes, Escrow Proceeds
Receivables and Unrestricted Cash in excess of $10,000,000 included in the calculation of the
Borrowing Base.

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

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

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

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

     “Cash Equivalents” means

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

     (b) certificates of deposit, eurodollar time deposits, overnight bank deposits and
bankers’ acceptances of any commercial bank organized under the laws of the United States,
any

-4-

 

state thereof, the District of Columbia, any foreign bank, or its branches or agencies
(fully protected against currency fluctuations) which, at the time of acquisition, are rated
at least “A-1” by S&P or “P-1” by Moody’s,

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

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

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

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

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

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

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

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

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

-5-

 

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

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

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

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

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

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

     “Completed Unsold Homes” means, as of any date, all Units (including all Model Homes),
for which construction has been “completed”, but for which there is in existence no written
Contract for Sale, the value of which is determined in conformity with GAAP. Construction will be
considered “completed” when a temporary certificate of occupancy or a certificate of occupancy has
been issued.

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

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

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

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

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

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

-6-

 

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

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

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

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

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

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

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

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

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

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

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

-7-

 

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

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

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

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

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

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

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

-8-

 

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

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

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

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

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

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

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

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

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

     “Eurodollar Base Rate” means, with respect to any Interest Period for any Eurodollar
Rate Loan, the rate determined by the Administrative Agent to be the offered rate for deposits in
Dollars

-9-

 

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

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

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

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

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

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

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

     “Existing Credit Agreement” means that certain Amended and Restated Credit Agreement
dated as of October 26, 2004 by and among the Borrower, the lenders and issuers party thereto, CNAI
as administrative agent, as amended, amended and restated or otherwise modified from time to time.

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

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

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

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

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

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

-10-

 

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

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

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

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

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

     “Finished Lots” means lots of Entitled Land as to which offsite construction has been
substantially completed, utilities and all major infrastructure have been completed and stubbed to
the site, and building permits for Units may be promptly pulled and construction commenced by the
Borrower or any Restricted Subsidiary without the satisfaction of any further conditions, the value
of which is determined in conformity with GAAP.

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

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

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

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

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

-11-

 

     “Guaranty” means the guaranty agreement substantially in the form of Exhibit
H, dated as of the Effective Date executed by each Restricted Subsidiary of the Borrower named
therein or that has executed a joinder to the Guaranty pursuant to Section 6.13.

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

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

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

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

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

-12-

 

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

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

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

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

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

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

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

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

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

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

-13-

 

     2.17, any Interest Period that would end after the applicable Scheduled Maturity Date
shall end on the applicable Scheduled Maturity Date.

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

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

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

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

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

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

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

     “Land/Lots Under Development” means Entitled Land where physical site improvement has
commenced and is continuing, the value of which is determined in conformity with GAAP.

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

-14-

 

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

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

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

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

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

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

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

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

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

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

     “Material Adverse Change” means a material adverse change in any of (a) the business,
condition (financial or otherwise), performance, properties, prospects or operations of any Loan
Party or (b) the ability of any Loan Party to perform its respective obligations under the Loan
Documents.

     “Material Adverse Effect” means an event that results in or causes, or could
reasonably be expected to result in or cause, a Material Adverse Change.

     “Maximum Credit” means, at any time, the lesser of (a) the Revolving Credit
Commitments in effect at such time and (b) the amount by which Borrowing Base at such time exceeds
the amount of Senior Unsecured Indebtedness outstanding at such time.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     “Revolving Credit Commitment” means, with respect to each Lender, the commitment of
such Lender to make Revolving Loans and acquire interests in other Revolving Credit Outstandings in
the aggregate principal amount outstanding not to exceed the amount set forth opposite such
Lender’s name on Schedule I under the caption “Revolving Credit Commitment,” as
amended to reflect each Assignment

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and Acceptance or Assumption Agreement executed by such Lender and as such amount may be
increased or reduced pursuant to this Agreement.

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

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

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

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

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

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

     “SEC” means the Securities and Exchange Commission.

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

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

     “Senior Leverage Ratio” shall mean for each four quarter fiscal period ending on the
last day of each fiscal quarter, the ratio of (a) Senior Unsecured Indebtedness to (b) EBITDA for
such period.

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

     “Senior Unsecured Indebtedness” shall mean at any time, the Indebtedness of the
Borrower and its Subsidiaries comprised of (a) the outstanding principal amount of the Senior Notes
and the January 2003 Senior Notes outstanding at such time, (b) the outstanding Revolving Loans and
Swing Loans, and any undrawn Letters of Credit issued, under the Loan Documents at such time, and
(c) the outstanding principal amount of all other unsecured Indebtedness which is pari passu to the
obligations under the Loan Documents other than trade payables that are not more than 90 days past
the original invoice date thereof.

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     “Sold Homes” means all Units (including Model Homes) on which a building permit has
been issued and construction has begun or has been completed, for which the Borrower or any
Restricted Subsidiary has entered into a written Contract for Sale, the value of which is
determined in conformity with GAAP.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

     “Unsold Homes Under Construction” means all Units for which building permits have been
issued and construction has commenced, but not completed, and for which there is no written

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binding contract of sale with an unrelated third party purchaser, the value of which is determined
in conformity with GAAP.

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

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

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

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

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

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

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

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

     SECTION 1.2 Computation of Time Periods.

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

     SECTION 1.3 Accounting Terms and Principles.

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

     SECTION 1.4 Certain Terms.

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

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

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

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

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

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

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

ARTICLE II

THE FACILITY

     SECTION 2.1 The Revolving Credit Commitments.

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

     SECTION 2.2 Borrowing Procedures.

     (a) Each Borrowing shall be made on written notice (or verbal notice followed by written
notice within six hours of such verbal notice) given by the Borrower to the Administrative Agent
not later than 1:00 p.m. (New York City time) (i) one Business Day, in the case of a Borrowing of
Base Rate Loans and (ii) three Business Days, in the case of a Borrowing of Eurodollar Rate Loans,
prior to the date of the proposed Borrowing. Each written notice shall be in substantially the
form of Exhibit D (a “Notice of Borrowing”) specifying (A) the date of such
proposed Borrowing, (B) the aggregate amount of such proposed Borrowing, (C) whether any portion of
the proposed Borrowing will be of Base Rate Loans or Eurodollar Rate Loans, (D) the initial
Interest Period or Periods for any such Eurodollar Rate Loans, and (E) the Available Credit (after
giving effect to the proposed Borrowing). The Revolving

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Loans shall be made as Base Rate Loans unless, subject to Section 2.13, the Notice of
Borrowing specifies that all or a portion thereof shall be Eurodollar Rate Loans. Notwithstanding
anything to the contrary contained in Section 2.3(a), if any Notice of Borrowing requests a
Borrowing of Base Rate Loans, the Administrative Agent may, in its sole discretion, make a Swing
Loan available to the Borrower in an aggregate amount not to exceed such proposed Borrowing, and
the aggregate amount of the corresponding proposed Borrowing shall be reduced accordingly by the
principal amount of such Swing Loan. Each Borrowing of Eurodollar Rate Loans shall be in an
aggregate amount of not less than $5,000,000 or an integral multiple of $1,000,000 in excess
thereof and each Borrowing of Base Rate Loans shall be in an aggregate amount of not less than
$1,000,000 or an integral multiple of $1,000,000 in excess thereof, or the remaining Available
Credit, if less.

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

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

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

     SECTION 2.3 Swing Loans.

     (a) On the terms and subject to the conditions contained in this Agreement, the Swing Loan
Lender may in its sole discretion make loans (each a “Swing Loan”) otherwise available to
the Borrower under the Facility from time to time on any Business Day during the period from the
date hereof until the Revolving Credit Termination Date in an aggregate amount at any time
outstanding

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

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

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

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

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

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amount specified in such demand. Upon such payment by a Lender, such Lender shall, except as
provided in clause (f) below, be deemed to have made a Revolving Loan to the Borrower. The
Administrative Agent shall use such funds to repay the Swing Loans to the Swing Loan Lender. To
the extent that any Lender fails to make such payment available to the Administrative Agent for the
account of the Swing Loan Lender, the Borrower shall repay such Swing Loan on demand.

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

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

     SECTION 2.4 Letters of Credit.

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

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

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

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

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

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

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

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

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

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

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

     (e) Each Issuer shall comply with the following:

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

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

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

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

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

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

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

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

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

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

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

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

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

     (i) If and to the extent such Lender shall not have so made its Ratable Portion of the amount
of the payment required by clause (g) above available to the Administrative Agent for the
account of such Issuer, such Lender agrees to pay to the Administrative Agent for the account of
such Issuer forthwith on demand any such unpaid amount together with interest thereon, for the
first Business Day

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after payment was first due at the Federal Funds Rate, and thereafter until such amount is
repaid to the Administrative Agent for the account of such Issuer, at the rate per
annum applicable to Base Rate Loans under the Facility. The failure of any Lender to make
available to the Administrative Agent for the account of such Issuer its Ratable Portion of any
such payment shall not relieve any other Lender of its obligation hereunder to make available to
the Administrative Agent for the account of such Issuer its Ratable Portion of any payment on the
date such payment is to be made, but no Lender shall be responsible for the failure of any other
Lender to make available to the Administrative Agent for the account of the Issuer such other
Lender’s Ratable Portion of any such payment.

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

     SECTION 2.5 Reduction and Termination of the Revolving Credit Commitments.

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

     SECTION 2.6 Repayment of Loans.

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

     SECTION 2.7 Evidence of Debt.

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

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

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

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

     SECTION 2.8 Prepayments.

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

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

     SECTION 2.9 Interest.

     (a) Rate of Interest.

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

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

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

     (b) Interest Payments.

     (i) Interest accrued on each Base Rate Loan (other than Swing Loans) shall be payable in
arrears (A) on the last day of each calendar quarter, commencing on the first such day following
the making of such Base Rate Loan and (B) if not previously paid in full, at maturity (whether by
acceleration or otherwise) of such Base Rate Loan; (ii) interest accrued on Swing Loans shall be
payable in arrears on the last day of each calendar quarter; (iii) interest accrued on each
Eurodollar Rate Loan shall

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

     (c) Default Interest.

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

     SECTION 2.10 Conversion/Continuation Option.

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

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

     SECTION 2.11 Fees.

     (a) Applicable Unused Commitment Fee.

     The Borrower agrees to pay to each Lender a commitment fee on the daily average amount of the
Unused Commitments from the date hereof until the Revolving Credit Termination Date at the
Applicable Unused Commitment Fee Rate, payable in arrears (i) on the last day of each calendar

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quarter, commencing on the first such day following the Effective Date and (ii) on the Revolving
Credit Termination Date.

     (b) Letter of Credit Fees.

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

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

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

     (c) Additional Fees.

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

     SECTION 2.12 Payments and Computations.

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

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

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

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

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

     (f) During the continuance of an Event of Default, the Borrower hereby irrevocably waives the
right to direct the application of any and all payments in respect of the Obligations and agrees
that, notwithstanding the provisions of clause (e) above, the Administrative Agent may, and
shall upon either (A) the written direction of the Requisite Lenders or (B) the acceleration of the
Obligations pursuant to Section 8.2, apply all payments (subject in any event to the restrictions
set forth in Section 8.3 in respect of the application of amounts funded to a cash collateral
account in respect of outstanding Letter of Credit Obligations) in respect of any Obligations and
all funds on deposit in any cash collateral account in the following order:

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

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

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

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

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

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

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

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

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

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

     SECTION 2.13 Special Provisions Governing Eurodollar Rate Loans.

     (a) Determination of Interest Rate.

     The Eurodollar Rate for each Interest Period for Eurodollar Rate Loans shall be determined by
the Administrative Agent pursuant to the procedures set forth in the definition of “Eurodollar

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Rate.” The Administrative Agent’s determination shall be presumed to be correct,
absent manifest error, and shall be binding on the Borrower.

     (b) Interest Rate Unascertainable, Inadequate or Unfair.

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

     (c) Increased Costs.

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

     (d) Illegality.

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

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     (e) Breakage Costs.

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

     SECTION 2.14 Capital Adequacy.

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

     SECTION 2.15 Taxes.

     (a) Any and all payments by any Loan Party under each Loan Document shall be made free and
clear of and without deduction for any and all present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto, excluding (i) in the
case of each Lender and the Administrative Agent (A) taxes measured by its net income, and
franchise taxes imposed on it, by the jurisdiction (or any political subdivision thereof) under the
laws of which such Lender or the Administrative Agent (as the case may be) is organized and (B) any
United States withholding taxes payable with respect to payments under the Loan Documents under
laws (including any statute, treaty or regulation) in effect on the Effective Date (or, in the case
of an Eligible Assignee, the date of the Assignment and Acceptance) applicable to such Lender or
the Administrative Agent, as the case may be, but not excluding any United States withholding taxes
payable as a result of any change in such laws occurring after the Effective Date (or the date of
such Assignment and Acceptance) and (ii) in the case of each Lender, taxes measured by its net
income, and franchise taxes imposed on it as a result of a present or

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former connection (but not any such connection arising solely from the Administrative Agent or
such Lender having executed, delivered or performed its obligations or received a payment under, or
enforced, this Agreement or any other Loan Document) between such Lender and the jurisdiction of
the Governmental Authority imposing such tax or any taxing authority thereof or therein (all such
non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities being
hereinafter referred to as “Taxes”). If any Taxes shall be required by law to be deducted
from or in respect of any sum payable under any Loan Document to any Lender or the Administrative
Agent (w) the sum payable shall be increased as may be necessary so that after making all required
deductions (including deductions applicable to additional sums payable under this Section 2.15 such
Lender or the Administrative Agent (as the case may be) receives an amount equal to the sum it
would have received had no such deductions been made, (x) the relevant Loan Party shall make such
deductions, (y) the relevant Loan Party shall pay the full amount deducted to the relevant taxing
authority or other authority in accordance with applicable law, and (z) the relevant Loan Party
shall deliver to the Administrative Agent evidence of such payment.

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

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

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

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

     (f) On or prior to the Effective Date in the case of each Non-U.S. Lender that is a signatory
hereto, and on the date of the Assignment and Acceptance pursuant to which it becomes a Lender in
the case of each other Non-U.S. Lender and from time to time thereafter if requested by the
Borrower or the Administrative Agent, each Non-U.S. Lender that is entitled at such time to an
exemption from United States withholding tax, or that is subject to such tax at a reduced rate
under an applicable tax treaty, shall provide the Administrative Agent and the Borrower with two
completed originals of the following: (i) Form W-8ECI (claiming exemption from withholding because
the income is effectively connected with a U.S. trade or business) (or any successor form); (ii)
Form W-8BEN (claiming exemption from, or a reduction of, withholding tax under an income tax
treaty) (or any successor form); (iii) in the case of a Non-U.S. Lender claiming exemption under
Sections 871(h) or 881(c) of the Code, a Form W-8BEN (claiming exemption from withholding under the
portfolio interest exemption) or any successor form; or (iv) any other applicable form, certificate
or document prescribed by the IRS certifying as to such Non-U.S. Lender’s entitlement to such
exemption from United States withholding tax or reduced

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rate with respect to all payments to be made to such Non-U.S. Lender under the Loan Documents.
Unless the Borrower and the Administrative Agent have received forms or other documents
satisfactory to them indicating that payments under any Loan Document to or for a Non-U.S. Lender
are not subject to United States withholding tax or are subject to such tax at a rate reduced by an
applicable tax treaty, the Borrower or the Administrative Agent shall withhold amounts required to
be withheld by applicable Requirements of Law from such payments at the applicable statutory rate.

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

     SECTION 2.16 Substitution of Lenders.

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

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shall be terminated, provided that all indemnities under the Loan Documents shall continue in
favor of such Affected Lender.

     SECTION 2.17 Facility Extension.

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

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

     (c) Partial Assignment. If on the date that is ninety (90) days after the date of
such Extension Request, less than all of the rights and obligations of the Rejecting Lenders under
this Agreement and under the other Loan Documents (including, without limitation, their Revolving
Credit Commitment and all Loans owing to them) have been assigned to Replacement Lenders in
accordance with Section 2.17(b), the Administrative Agent shall promptly notify the Borrower, each
Consenting Lender, each Replacement Lender and each Rejecting Lender, and the Scheduled Termination
Date shall be extended by one (1) year solely in respect of the aggregate Revolving Credit
Commitments of the Consenting Lenders and the Replacement Lenders and (A) the aggregate Revolving
Credit Commitment shall be automatically reduced, effective as of the Scheduled Termination Date
immediately prior to such extension (the “Previous Scheduled Termination Date”) to an
amount equal to the Revolving Credit

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Commitments of the Consenting Lenders and the Replacement Lenders; (B) all rights and obligations of
such Rejecting Lenders under this Agreement and under the other Loan Documents (including, without
limitation, their Revolving Credit Commitment and all Loans owing to them) shall be terminated,
effective as of the previous Scheduled Termination Date (or such earlier date as the Borrower and
the Administrative Agent may designate, in which case the reduction of the aggregate Revolving
Credit Commitment provided for in clause (A) above shall occur on such earlier date); and (C) the
Borrower shall pay to Administrative Agent on the date of such termination, solely for the account
of such Rejecting Lender, all amounts due and owing such Rejecting Lender hereunder or under any
other Loan Document, including without limitation the aggregate outstanding principal amount of the
Loans owed to such Rejecting Lender with respect to the terminated Revolving Credit Commitment,
together with accrued interest thereon through the date of such termination, all amounts payable
under Section 2.13 and 2.14 with respect to such Rejecting Lender and all fees payable to such
Rejecting Lender hereunder with respect to the terminated Revolving Credit Commitment (and payment
of such amount may not be waived except with the consent of each Rejecting Lender, as more
specifically provided in Section 10.1(a)(ii)); and upon such Rejecting Lender’s termination, such
Rejecting Lender shall cease to be a party hereto but shall continue to be entitled to the benefits
of Sections 2.13, 2.14 and 2.15 and Sections 10.3 and 10.4, as well as to any fees accrued
hereunder and not yet paid, and shall continue to be obligated under Section 9.5 with respect to
obligations and liabilities accruing prior to such termination of such Rejecting Lender’s Revolving
Credit Commitment.

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

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

     SECTION 2.18 Facility Increase.

     The Borrower may request, in writing, an increase in the aggregate Revolving Credit
Commitments by up to the sum of (x) $150,000,000 and (y) the aggregate amount of the Revolving
Credit Commitments of the Rejecting Lenders that have been terminated on their Scheduled
Termination Date (the “Facility Increase”); provided, however, that such
increase will only become effective if (i) the Borrower shall have given the Administrative Agent
at least 10 Business Days’ notice of its intention to effect a Facility Increase and the desired
amount of such Facility Increase, (ii) at the time of and after giving effect to such increase, the
Borrower is in pro forma compliance with the financial covenants set forth in
Article V hereof, (iii) no Default or Event of Default has occurred and is continuing or
would result therefrom, and (iv) the conditions precedent to a Borrowing set forth in Section 3.2
are satisfied as of such date. The Borrower shall have the right to offer such increase to (x) the
existing Lenders, and each existing Lender will have the right, but not the obligation, to commit
to all or a portion of the proposed increase or (y) other Eligible Assignees acceptable to the
Administrative Agent and each Issuer in its respective sole and absolute discretion;
provided, however, that the minimum Revolving Credit

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Commitment of each such new Eligible Assignee accepting a Revolving Credit Commitment as part of
such Facility Increase equals or exceeds $5,000,000, and such Lender or Eligible Assignee executes
an Assumption Agreement pursuant to which such Lender agrees to commit to all or a portion of such
Facility Increase and, in the case of an Eligible Assignee, to be bound by the terms of this
Agreement as a Lender. On the effective date provided for in the Assumption Agreement providing
for a Facility Increase (each a “Facility Increase Effective Date”), the Revolving Credit
Commitments will be increased by the amount committed to by each Lender or Eligible Assignee on the
Facility Increase Effective Date. In the event there are Lenders and Eligible Assignees that have
committed to a Facility Increase in excess of the maximum amount requested (or permitted), then the
Administrative Agent shall have the right to allocate such commitments, first to Lenders and then
to Eligible Assignees, on whatever basis the Administrative Agent determines is appropriate in
consultation with the Borrower.

ARTICLE III

CONDITIONS TO LOANS AND LETTERS OF CREDIT

     SECTION 3.1 Conditions Precedent to the Effectiveness of this Agreement.

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

     (a) Certain Documents.

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

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

     (ii) the Guaranty, duly executed and delivered by each Restricted Subsidiary of the
Borrower, such that after giving effect thereto, the Borrower would be in compliance with
Section 6.13;

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

     (iv) a copy of the articles or certificate of incorporation (or equivalent Constituent
Document) of each Loan Party, certified as of a recent date by the Secretary of State of the
state of organization or formation of such Loan Party, together with certificates of such
official attesting to the good standing of each such Loan Party;

     (v) a certificate of the Secretary or an Assistant Secretary of each Loan Party
certifying (A) the names and true signatures of each officer of such Loan Party who has been
authorized to execute and deliver any Loan Document or other document required hereunder to
be executed and delivered by or on behalf of such Loan Party, (B) the by-laws (or equivalent
Constituent Document) of such Loan Party as in effect on the date of such certification, (C)
the resolutions of

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such Loan Party’s Board of Directors (or equivalent governing body) approving and
authorizing the execution, delivery and performance of this Agreement and the other Loan
Documents to which it is a party and (D) that there have been no changes in the certificate
of incorporation (or equivalent Constituent Document) of such Loan Party from the
certificate of incorporation (or equivalent Constituent Document) delivered pursuant to the
immediately preceding clause;

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

     (vii) a Borrowing Base Certificate otherwise complying with the provisions of Section
6.1(i) calculated as of January 31, 2006; and

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

     (b) Fee and Expenses Paid.

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

     (c) Consents, Etc.

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

     (d) Existing Credit Agreement.

     The Borrower and its Subsidiaries shall have delivered evidence (satisfactory in form and
substance to the Administrative Agent) of the termination of the commitments under, and the payment
of all amounts owing under, the Company’s Existing Credit Agreement and delivered to the
Administrative Agent all documents or instruments necessary to release all Liens securing all
Indebtedness or other obligations of the Borrower and its Subsidiaries thereunder and made
arrangements satisfactory to the Administrative Agent with respect to the rollover of any letters
of credit outstanding thereunder.

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

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

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

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

     (b) Representations and Warranties; No Defaults.

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

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

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

     (c) Additional Matters.

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

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

     SECTION 3.3 Determinations of Initial Borrowing Conditions.

     For purposes of determining compliance with the conditions specified in Section 3.1, each
Lender shall be deemed to have consented to, approved, accepted or be satisfied with, each document
or other matter required thereunder to be consented to or approved by or acceptable or satisfactory
to the Lenders unless an officer of the Administrative Agent responsible for the transactions
contemplated by the Loan Documents shall have received notice from such Lender prior to the initial
Borrowing or Issuance hereunder specifying its objection thereto and such Lender shall not have
made available to the Administrative Agent such Lender’s Ratable Portion of such Borrowing.

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ARTICLE IV

REPRESENTATIONS AND WARRANTIES

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

     SECTION 4.1 Corporate Existence; Compliance with Law.

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

     SECTION 4.2 Corporate Power; Authorization; Enforceable Obligations.

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

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

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

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

     (iv) do not require the consent of, authorization by, approval of, notice to, or filing
or registration with, any Governmental Authority or any other Person, other than those
listed on Schedule 4.2 and which have been or will be, prior to the Effective Date,
obtained or made,

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copies of which have been or will be delivered to the Administrative Agent pursuant to
Section 3.1, and each of which on the Effective Date will be in full force and effect.

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

     SECTION 4.3 Ownership of Subsidiaries.

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

     SECTION 4.4 Financial Statements.

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

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

     (c) The One Year Projections were prepared by the Borrower in light of the past operations of
its business, and reflect projections for the one year period beginning on January 1, 2006 on a
quarterly basis. The One Year Projections are based upon estimates and assumptions stated therein,
that the Borrower believes in each case to be reasonable and fair in light of current conditions
and current

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facts known to the Borrower and, as of the Effective Date, reflect the Borrower’s good faith
and reasonable estimates of the future financial performance of the Borrower and its Restricted
Subsidiaries and of the other information projected therein for the periods set forth therein.

     SECTION 4.5 Material Adverse Change.

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

     SECTION 4.6 Litigation.

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

     SECTION 4.7 Taxes.

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

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

     SECTION 4.8 Full Disclosure.

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

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

     SECTION 4.9 Margin Regulations.

     The Borrower is not engaged in the business of extending credit for the purpose of purchasing
or carrying margin stock (within the meaning of Regulation U of the Federal Reserve Board), and no
proceeds of any Loan or Letter of Credit will be used to purchase or carry any such margin stock or
to extend credit to others for the purpose of purchasing or carrying any such margin stock in
contravention of Regulation T, U or X of the Federal Reserve Board.

     SECTION 4.10 No Burdensome Restrictions; No Defaults.

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

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

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

     SECTION 4.11 Investment Company Act.

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

     SECTION 4.12 Use of Proceeds.

     The proceeds of the Loans and the Letters of Credit have been or are being used by the
Borrower solely (a) to repay amounts due and owing under the Existing Credit Agreement on the
Effective Date and to pay transaction costs, fees and expenses related thereto and to this
Agreement and (b) on and after the Effective Date, for working capital from time to time and for
other general corporate purposes.

     SECTION 4.13 Insurance.

     Except as set forth on Schedule 4.13, all policies of insurance of any kind or nature
of the Borrower or any of its Restricted Subsidiaries, including policies of life, fire, theft,
product liability, public liability, property damage, other casualty, employee fidelity, workers’
compensation and employee health and welfare insurance, are in full force and effect and are of a
nature and provide such coverage as is customarily carried by, and to the best knowledge and belief
of the Borrower is sufficient for,

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businesses of the size and character of such Person. Except as set forth on Schedule
4.13, none of the Borrower or any of its Restricted Subsidiaries has in the three years
preceding the Effective Date been refused insurance for any material coverage for which it had
applied or had any policy of insurance terminated (other than at its request).

     SECTION 4.14 Labor Matters.

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

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

     SECTION 4.15 ERISA.

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

     SECTION 4.16 Environmental Matters.

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

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

     SECTION 4.17 Intellectual Property.

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

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     SECTION 4.18 Title; Real Property.

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

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

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

     SECTION 4.19 Anti-Terrorism Laws.

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

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

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

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

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

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

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

     (c) Neither the Borrower nor, to the knowledge of any Loan Party, any of its Affiliates acting
in any capacity in connection with the Loans (i) conducts any business or engages in making or
receiving any contribution of funds, goods or services to or for the benefit of any Person
described in

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clause (b) above, (ii) deals in, or otherwise engages in any transaction relating to,
any property or interests in property blocked pursuant to the Executive Order, or (iii) engages in
or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or
avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law.

ARTICLE V

FINANCIAL COVENANTS

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

     SECTION 5.1 Adjusted Consolidated Tangible Net Worth.

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

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

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

     SECTION 5.3 Minimum Interest Coverage Ratio.

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

     SECTION 5.4 Unsold Land to Adjusted Consolidated Tangible Net Worth.

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

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     SECTION 5.5 Unsold Units to Units Closed.

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

ARTICLE VI

AFFIRMATIVE COVENANTS

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

     SECTION 6.1 Reporting Requirements.

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

     (a) Quarterly Reports.

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

     (b) Annual Reports.

     Within 90 days after the end of each fiscal year, financial information regarding the Borrower
and its Subsidiaries consisting of Consolidated and consolidating balance sheets of the Borrower
and its Subsidiaries as of the end of such year and related statements of income and cash flows of
the Borrower and its Subsidiaries for such fiscal year, all prepared in conformity with GAAP and
certified, in the case of such Consolidated Financial Statements, without qualification as to the
scope of the audit or as to the Borrower being a going concern by Ernst & Young LLP or another
nationally recognized independent certified public accountant, together with the report of such
accounting firm stating that (i) such Financial Statements fairly present the Consolidated
financial position of the Borrower and its Subsidiaries as at the dates indicated and the results
of their operations and cash flow for the periods indicated in conformity with GAAP applied on a
basis consistent with prior years (except for changes with which such

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independent certified public accountants shall concur and which shall have been disclosed in the notes
to the Financial Statements) and (ii) the examination by such accountants in connection with such
Consolidated Financial Statements has been made in accordance with generally accepted auditing
standards, and accompanied by a certificate stating that in the course of the regular audit of the
business of the Borrower and its Subsidiaries such accounting firm has obtained no knowledge that a
Default or Event of Default in respect of the financial covenant contained in Section 5.2 has
occurred and is continuing or, if in the opinion of such accounting firm, a Default or Event of
Default has occurred and is continuing in respect of such financial covenant, a statement as to the
nature thereof. To the extent the information set forth in this clause (b) of Section 6.1
are included in the Borrower’s Annual Report on Form 10-K as filed with the Securities and Exchange
Commission, such information shall be deemed delivered for the purposes hereof.

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

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

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

     (d) Projections/Business Plan.

     Not later than the end of each fiscal year, and containing substantially the types of
financial information contained in the One Year Projections, the annual business and financial
plans of the Borrower for the next succeeding fiscal year.

     (e) Default Notices.

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

     (f) Notice of Litigation.

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

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     (g) ERISA Matters.

     The Borrower shall furnish the Administrative Agent the following:

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

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

     (h) Environmental Matters.

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

     (i) Borrowing Base Determination.

     (i) No later than 30 days after the last day of each calendar month or more frequently as
requested by the Administrative Agent, the Borrower shall provide a Borrowing Base Certificate as
of the first day of such month executed by a Responsible Officer of the Borrower. The Borrower
agrees that each Borrowing Base Certificate delivered by the Borrower shall be accompanied by
appropriate supporting data and shall not be deemed delivered until verified by the Administrative
Agent to the Administrative Agent’s satisfaction. Upon verification by the Administrative Agent,
each Borrowing Base Certificate shall be deemed delivered for purposes of determining the Borrowing
Base as of the date of its actual delivery. The Borrower agrees that the Administrative Agent in
the process of its verification may determine, in its reasonable discretion, the particular
category to which any Borrowing Base Asset belongs.

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

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     (j) Other Information.

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

     SECTION 6.2 Preservation of Corporate Existence, Etc.

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

     SECTION 6.3 Compliance with Laws, Etc.

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

     SECTION 6.4 Conduct of Business.

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

     SECTION 6.5 Payment of Taxes, Etc.

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

     SECTION 6.6 Maintenance of Insurance.

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

     SECTION 6.7 Transactions with Affiliates.

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

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under the Management Services Agreement (or another similar agreement) and (b) the Borrower
may perform its obligations under the Tax Allocation Agreement.

     SECTION 6.8 Access.

     The Borrower shall from time to time permit the Administrative Agent and the Lenders, or any
agents or representatives thereof, promptly after written notification of the same (except that
during the continuance of an Event of Default, no such notice shall be required) to (a) examine and
make copies of and abstracts from the records and books of account of the Borrower and each of its
Subsidiaries, (b) visit the properties of the Borrower and each of its Subsidiaries, (c) discuss
the affairs, finances and accounts of the Borrower and each of its Subsidiaries with any of their
respective officers or directors and (d) communicate directly with any of the Borrower’s certified
public accountants. The Borrower shall authorize its independent certified public accountants to
disclose to the Administrative Agent or any Lender during the continuance of an Event of Default of
the type described in Section 9.1(a) or (b) any and all Financial Statements and other information
of any kind, as the Administrative Agent or any Lender reasonably requests from the Borrower and
that such accountants may have with respect to the business, financial condition, results of
operations or other affairs of the Borrower or any of its Subsidiaries.

     SECTION 6.9 Keeping of Books.

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

     SECTION 6.10 Maintenance of Properties, Etc.

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

     SECTION 6.11 Application of Proceeds.

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

     SECTION 6.12 Environmental.

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

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business practice to address the Release or event and otherwise ensure compliance with
Environmental Laws.

     SECTION 6.13 Additional Guaranties.

     To the extent not delivered to the Administrative Agent on or before the Effective Date, the
Borrower promptly shall, and shall cause each of its Restricted Subsidiaries promptly to, in the
case of any Restricted Subsidiary that is a Domestic Subsidiary owning 5% or more of the Total
Assets of the Borrower and its Restricted Subsidiaries or contributing 5% or more of the
Consolidated Net Income of the Borrower and its Restricted Subsidiaries for the immediately
preceding four fiscal quarters, cause such Restricted Subsidiary to become a party to the Guaranty.
Notwithstanding anything herein to the contrary, in the event that at any time the Subsidiaries of
the Borrower (other than those Subsidiaries engaged in the business of originating residential home
loans, title insurance and reinsurance) that are not Guarantors own, in the aggregate for all such
Subsidiaries, 5% or more of the Total Assets of the Borrower and its Restricted Subsidiaries or
contribute 5% or more of the Consolidated Net Income of the Borrower and its Restricted
Subsidiaries for the immediately preceding four fiscal quarters, the Borrower shall promptly cause
such number of its Subsidiaries to become a party to the Guaranty so that the Subsidiaries of the
Borrower that are not Guarantors do not own, in the aggregate for all such Subsidiaries, 5% or more
of the Total Assets of the Borrower and its Restricted Subsidiaries or contribute 5% or more of the
Consolidated Net Income of the Borrower and its Restricted Subsidiaries for the immediately
preceding four fiscal quarters. In the event that any Subsidiary of the Borrower incurs, or has
outstanding (including, without limitation, the Senior Notes or the Senior Subordinated Notes) any
guaranty obligation in respect of other Indebtedness of the Borrower or any Restricted Subsidiary,
the Borrower or any Guarantor shall promptly cause such Subsidiary to become a party to the
Guaranty.

     SECTION 6.14 Designation of Restricted and Unrestricted Subsidiaries.

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

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

     (b) has no Indebtedness other than Indebtedness:

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

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

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

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

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

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

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

     Upon designation of a Restricted Subsidiary as an Unrestricted Subsidiary in compliance with
this covenant, such Restricted Subsidiary shall be released from any Guaranty previously made by
such Restricted Subsidiary.

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

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

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

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

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

ARTICLE VII

NEGATIVE COVENANTS

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

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     SECTION 7.1 Liens, Etc.

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

     (a) Liens (other than Customary Permitted Liens and purchase money Liens) granted by the
Borrower or any Restricted Subsidiary of the Borrower existing on the date of this Agreement and
disclosed on Schedule 7.1;

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

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

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

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

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

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

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

     SECTION 7.2 Investments.

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

     (a) Investments existing on the date of this Agreement and disclosed on Schedule
7.2;

     (b) Investments in cash and Cash Equivalents;

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

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

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

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

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

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

     (i) net cash Investments (including letters of credit) in, contributions and loans to,
and guaranty obligations of Indebtedness of, Unaffiliated Joint Ventures and Unaffiliated
Unrestricted Subsidiaries, the then cost value of which shall not at any time exceed in the
aggregate for all such Investments 35% of the Adjusted Consolidated Tangible Net Worth of
the Borrower and its Restricted Subsidiaries (with cost value defined as the aggregate cost
plus all additions minus all returns thereon in cash); provided that
on the date which is the eighteen month anniversary date of July 28, 2005, (x) the foregoing
percentage shall be reduced to 30% and (y) after giving effect to clause (x), the Borrower
shall be in compliance with this clause (i) on and as of such date;

     (j) Investments in Permitted Acquisitions; and

     (k) Investments under deferred compensation agreements.

     SECTION 7.3 Restricted Payments.

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

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

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

     (c) other Restricted Payments in an aggregate amount not to exceed the sum of (i)
$10,000,000 plus (ii) 5% of cumulative Consolidated Net Income since January 1,
2006; provided that (x) all dividends paid in cash pursuant to this clause (c)(x) in
any consecutive four fiscal

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quarter period ending on or prior to the first anniversary of the Closing Date shall
not exceed 4% of Consolidated Net Income for such four fiscal quarter period and (y) all
dividends paid in cash pursuant to this clause (c)(y) in any consecutive four fiscal quarter
period ending thereafter shall not exceed 5% of consolidated Net Income for such four
quarter fiscal period;

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

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

     SECTION 7.4 Restriction on Fundamental Changes.

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

     SECTION 7.5 Change in Nature of Business.

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

     SECTION 7.6 Transactions with Affiliates.

     The Borrower shall not, and shall not permit any of its Restricted Subsidiaries to, except as
otherwise expressly permitted herein, do any of the following: (a) make any Investment in an
Affiliate of the Borrower that is not a Restricted Subsidiary of the Borrower; (b) transfer, sell,
lease, assign or otherwise dispose of any asset to any Affiliate of the Borrower that is not a
Restricted Subsidiary of the Borrower; (c) merge into or consolidate with or purchase or acquire
assets from any Affiliate of the Borrower that is not a Restricted Subsidiary of the Borrower; (d)
repay any Indebtedness to any Affiliate of the Borrower that is not a Restricted Subsidiary of the
Borrower; or (e) enter into any other transaction directly or indirectly with or for the benefit of
any Affiliate of the Borrower that is not a Guarantor (including guaranties and assumptions of
obligations of any such Affiliate), except for (i) transactions in the ordinary

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course of business on a basis no less favorable to the Borrower or such Guarantor as would be
obtained in an arm’s length transaction with a Person not an Affiliate, (ii) salaries and other
director or employee compensation or benefits to officers or directors of the Borrower or any of
its Subsidiaries commensurate with current compensation and benefits levels, and (iii) indemnities
of officers, directors and employees of the Borrower and its Subsidiaries permitted by their
respective organizational documents and by applicable law; provided, however, that
the Borrower shall not be prohibited under this Section 7.6 from (x) making payments of up to
$5,000,000 per fiscal year to TOSI under the Management Services Agreement (or another similar
agreement) or (y) performing its obligations under the Tax Allocation Agreement.

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

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

     SECTION 7.8 Sale/Leasebacks.

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

     SECTION 7.9 Compliance with ERISA.

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

     SECTION 7.10 Environmental.

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

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ARTICLE VIII

EVENTS OF DEFAULT

     SECTION 8.1 Events of Default.

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

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

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

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

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

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

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

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

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

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

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

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

     SECTION 8.2 Remedies.

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

     SECTION 8.3 Actions in Respect of Letters of Credit.

     If at any time the Revolving Credit Commitments terminate while any Letters of Credit are
outstanding or any Event of Default shall have occurred and be continuing, the Borrower shall (x)
pay to the Administrative Agent in immediately available funds at the Administrative Agent’s office
referred

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

     SECTION 8.4 Rescission.

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

ARTICLE IX

THE ADMINISTRATIVE AGENT

     SECTION 9.1 Authorization and Action.

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

     (b) As to any matters not expressly provided for by this Agreement and the other Loan
Documents (including enforcement or collection), the Administrative Agent shall not be required to
exercise any discretion or take any action, but shall be required to act or to refrain from acting
(and shall be fully protected in so acting or refraining from acting) upon the instructions of the
Requisite Lenders, and such instructions shall be binding upon all Lenders and each Issuer;
provided, however, that the Administrative Agent shall not be required to take any
action that (i) the Administrative Agent in good faith

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believes exposes it to personal liability unless the Administrative Agent receives an
indemnification satisfactory to it from the Lenders and the Issuers with respect to such action or
(ii) is contrary to this Agreement or applicable law. The Administrative Agent agrees to give to
each Lender and each Issuer prompt notice of each notice given to it by any Loan Party pursuant to
the terms of this Agreement or the other Loan Documents.

     (c) In performing its functions and duties hereunder and under the other Loan Documents, the
Administrative Agent is acting solely on behalf of the Lenders and the Issuers and its duties are
entirely administrative in nature. The Administrative Agent does not assume and shall not be
deemed to have assumed any obligation other than as expressly set forth herein and in the other
Loan Documents or any other relationship as the agent, fiduciary or trustee of or for any Lender,
Issuer or holder of any other Obligation. The Administrative Agent may perform any of its duties
under any Loan Document by or through its agents or employees.

     SECTION 9.2 Administrative Agent’s Reliance, Etc.

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

     SECTION 9.3 The Administrative Agent Individually.

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

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     SECTION 9.4 Lender Credit Decision.

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

     SECTION 9.5 Indemnification.

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

     SECTION 9.6 Successor Administrative Agent.

     The Administrative Agent may resign at any time by giving written notice thereof to the
Lenders and the Borrower. Upon any such resignation, the Requisite Lenders shall have the right to
appoint a successor Administrative Agent. If no successor Administrative Agent shall have been so
appointed by the Requisite Lenders, and shall have accepted such appointment, within 30 days after
the retiring Administrative Agent’s giving of notice of resignation, then the retiring
Administrative Agent may, on behalf of the Lenders, appoint a successor Administrative Agent,
selected from among the Lenders. In either case, such appointment shall be subject to the prior
written approval of the Borrower (which approval may not be unreasonably withheld and shall not be
required upon the occurrence and during the continuance of an Event of Default). Upon the
acceptance of any appointment as Administrative Agent by a successor Administrative Agent, such
successor Administrative Agent shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations under this Agreement and the other Loan
Documents. Prior to any retiring Administrative Agent’s resignation hereunder as Administrative
Agent, the retiring Administrative Agent shall take such action as may be reasonably necessary

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to assign to the successor Administrative Agent its rights as Administrative Agent under the
Loan Documents. After such resignation, the retiring Administrative Agent shall continue to have
the benefit of this Article IX as to any actions taken or omitted to be taken by it while it was
Administrative Agent under this Agreement and the other Loan Documents. Anything herein to the
contrary notwithstanding, the Administrative Agent shall resign if at any time the Administrative
Agent is not a Lender having a Revolving Credit Commitment of at least $10,000,000 (or such ratably
lesser amount if the Revolving Credit Commitments have been reduced in accordance with this
Agreement).

ARTICLE X

MISCELLANEOUS

     SECTION 10.1 Amendments, Waivers, Etc.

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

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

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

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

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

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

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

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

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

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

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

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

     SECTION 10.2 Assignments and Participations.

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

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assignment, a Lender or an Affiliate or Approved Fund of a Lender, such assignment shall be
subject to the prior consent of the Administrative Agent, the Swing Loan Lender, each Issuer and
the Borrower (which consent shall not be unreasonably withheld or delayed); and provided,
further, that, notwithstanding any other provision of this Section 10.2, the consent of the
Borrower shall not be required for any assignment occurring when any Event of Default shall have
occurred and be continuing.

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

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

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

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

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

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

     (h) Any Issuer may at any time assign its rights and obligations hereunder to any other Lender
by an instrument in form and substance satisfactory to the Borrower, the Administrative

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Agent, such Issuer and such Eligible Assignee. If any Issuer ceases to be a Lender hereunder
by virtue of any assignment made pursuant to this Section 10.2, then, as of the effective date of
such cessation, such Issuer’s obligations to Issue Letters of Credit pursuant to Section 2.4 shall
terminate and such Issuer shall be an Issuer hereunder only with respect to outstanding Letters of
Credit issued prior to such date.

     SECTION 10.3 Costs and Expenses.

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

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

     SECTION 10.4 Indemnities.

     (a) The Borrower agrees to indemnify and hold harmless the Administrative Agent, each
Arranger, each Lender and each of their respective Affiliates, and each of the directors, officers,
employees, agents, representative, attorneys, consultants and advisors of or to any of the
foregoing

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

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

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

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

     SECTION 10.5 Limitation of Liability.

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

     SECTION 10.6 Right of Set-off.

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

     SECTION 10.7 Sharing of Payments, Etc.

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

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

     (c) The Borrower agrees that any Purchasing Lender so purchasing a participation from a
Selling Lender pursuant to this Section 10.7 may, to the fullest extent permitted by law, exercise

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all its rights of payment (including the right of set-off) with respect to such participation
as fully as if such Lender were the direct creditor of the Borrower in the amount of such
participation.

     SECTION 10.8 Notices, Etc.

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

     (a)  if to the Borrower:

			
	          	 	Technical Olympic USA, Inc.

4000 Hollywood Boulevard

Suite 500 N.

Hollywood, FL 33021

Attention: David Keller, Chief Financial Officer

Telecopy no: (954) 364-4010

E-Mail Address: dkeller@tousa.com

     with a copy to:

			
	          	 	Technical Olympic USA, Inc.

4000 Hollywood Boulevard

Suite 500 N.

Hollywood, Florida 33021

Attention: Patricia M. Petersen, Esq., General Counsel

Telecopy no: (954) 364-4037

E-Mail Address: ppetersen@tousa.com

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

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

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

			
	          	 	Citigroup Global Markets Inc.

Two Penns Way, Suite 200

New Castle, Delaware 19720

Attention: Elizabeth J. Wier

Telecopy no: (212) 994-0961

E-Mail Address: elizabeth.j.wier@citigroup.com

     with a copy to:

			
	          	 	Cahill Gordon & Reindel llp

80 Pine Street

New York, New York 10005

Attention: Michael A. Becker, Esq.

Telecopy no: (212) 269-5420

E-Mail Address: mbecker@cahill.com

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

     SECTION 10.9 No Waiver; Remedies.

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

     SECTION 10.10 Binding Effect.

     This Agreement shall become effective when it shall have been executed by the Borrower and the
Administrative Agent and when the Administrative Agent shall have been notified by each Lender and
Issuer that such Lender or Issuer has executed it and thereafter shall be binding upon and inure to
the benefit of the Borrower, the Administrative Agent and each Lender and Issuer and, in each case,
their respective successors and assigns, provided, however, that the Borrower shall
not have the right to assign its rights hereunder or any interest herein without the prior written
consent of the Lenders.

     SECTION 10.11 Governing Law.

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

     SECTION 10.12 Submission to Jurisdiction; Service of Process.

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

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

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

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

     SECTION 10.13 Waiver of Jury Trial.

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

     SECTION 10.14 Section Titles.

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

     SECTION 10.15 Execution in Counterparts.

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

     SECTION 10.16 Entire Agreement.

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

     SECTION 10.17 Confidentiality.

     (a) None of the Administrative Agent or any Lender may disclose to any Person any
confidential, proprietary or non-public information of the Borrower and its Subsidiaries furnished
to the Administrative Agent or the Lenders by the Borrower (such information being referred to
collectively herein as the “Borrower Information”), except that the Administrative Agent
and each of the Lenders may disclose Borrower Information (i) to its and its Affiliates’ employees,
officers, directors, agents and

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advisors on a need to know basis (it being understood that the Persons to whom such disclosure is
made will be informed of the confidential nature of such Borrower Information and instructed to
keep such Borrower Information confidential on substantially the same terms as provided herein),
(ii) to the extent requested by any regulatory authority or any self regulatory organization, (iii)
to the extent required by applicable laws or regulations or by any subpoena or similar legal
process, (iv) to any other party to this Agreement, (v) if reasonably necessary in connection with
the exercise of any remedies hereunder or under any other Loan Document or any suit, action or
proceeding relating to this Agreement or any other Loan Document or the enforcement of rights
hereunder or thereunder, (vi) subject to an agreement containing provisions substantially the same
as those of this Section 10.17, to any assignee of or participant in, or any prospective assignee
of or participant in, any of its rights or obligations under this Agreement or any derivatives
counter party, (vii) to the extent such Borrower Information (A) is or becomes generally available
to the public on a non-confidential basis other than as a result of a breach of this Section 10.17
by the Administrative Agent or such Lender, or (B) is or becomes available to such Agent or such
Lender on a nonconfidential basis from a source other than the Borrower and (viii) with the prior
written consent of the Borrower.

     (b) The Borrower may not disclose to any Person the amount or terms of any fees payable to the
Administrative Agent, the Arrangers or any Lender (such information being collectively referred to
herein as the “Facility Information”), except that the Borrower may disclose the Facility
Information (i) to its and its respective Affiliates’ employees, officers, directors, agents and
advisors who have a need to know the Facility Information in connection with this Agreement and the
transactions contemplated hereby or (ii) to the extent required by applicable laws or regulations
or by any subpoena or similar legal process.

     SECTION 10.18 USA Patriot Act.

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

     SECTION 10.19 Agent Communications.

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

     (b) Each Loan Party further agrees that the Administrative Agent may make the Communications
available to the Lenders by posting the Communications on Intralinks (the “Platform”).

-78-

 

Each Loan Party acknowledges that the distribution of material through an electronic medium is
not necessarily secure and that there are confidentiality and other risks associated with such
distribution.

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

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

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

[Signature Pages Follow]

-79-

 

	 	 	 	 	 
	 	TECHNICAL OLYMPIC USA, INC., 

     as Borrower

 	 
	 	By:  	/s/ David J. Keller
 	 
	 	 	Name:  	David J. Keller 	 
	 	 	Title:  	Sr. Vice President, Chief
Financial Officer and Treasurer 	 
	 
	 	CITIGROUP GLOBAL MARKETS INC.,

     as Joint Lead Arranger and Joint Bank

     Manager

 	 
	 	By:  	/s/ Carolyn A. Keen
 	 
	 	 	Name:  	Carolyn A. Keen 	 
	 	 	Title:  	Managing Director 	 
	 
	 	CITICORP NORTH AMERICA, INC.,

     as Administrative Agent and Lender

 	 
	 	By:  	/s/ Carolyn A. Keen
 	 
	 	 	Name:  	Carolyn A. Keen 	 
	 	 	Title:  	Vice President 	 
	 
	 	DEUTSCHE BANK SECURITIES INC.,

     as Joint Lead Arranger and Joint Book

     Manager and Syndication Agent

 	 
	 	By:  	/s/ Brenda Casey
 	 
	 	 	Name:  	Brenda Casey 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                                                     /s/ Linda Wang
 	 
	 	 	Name:  	Linda Wang 	 
	 	 	Title:  	Director 	 
	 

Technical Olympic USA, Inc.

2006 Credit Agreement

 

 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,

     as Lender

 	 
	 	By:  	/s/ Brenda Casey
 	 
	 	 	Name:  	Brenda Casey 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                                                     /s/ Linda Wang
 	 
	 	 	Name:  	Linda Wang 	 
	 	 	Title:  	Director 	 
	 
	 	JPMORGAN CHASE BANK, N.A.,

     as Co-Documentation Agent and Lender

 	 
	 	By:  	/s/
Michael O’Keefe
 	 
	 	 	Name:  	Michael O’Keefe 	 
	 	 	Title:  	Associate 	 
	 
	 	WACHOVIA CAPITAL MARKETS, LLC

     as Co-Documentation Agent

 	 
	 	By:  	/s/  Darrell Perry
 	 
	 	 	Name:  	Darrell Perry 	 
	 	 	Title:  	Vice President 	 
	 
	 	WACHOVIA BANK, N.A.

     as Lender

 	 
	 	By:  	/s/  R. Scott Holtzbook
 	 
	 	 	Name:  	R. Scott Holtzbook 	 
	 	 	Title:  	Senior Vice President 	 
	 

Technical Olympic USA, Inc.

2006 Credit Agreement

 

 

	 	 	 	 	 
	 	BANK OF THE WEST, a California Banking

Corporation, as Lender

 	 
	 	By:  	/s/ Jan Manista
 	 
	 	 	Name:  	Jan Manista 	 
	 	 	Title:  	Vice President 	 
	 
	 	 	 
	 	By:  	                                                     /s/ Stacey Michrowski
 	 
	 	 	Name:  	Stacey Michrowski 	 
	 	 	Title:  	Vice President 	 
	 
	 	BRANCH BANKING AND TRUST COMPANY, as Lender

 	 
	 	By:  	/s/ John L. Tomlinson
 	 
	 	 	Name:  	John L. Tomlinson 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	BANKUNITED, FSB, as Lender

 	 
	 	By:  	/s/ Arthur L. Bigelow
 	 
	 	 	Name:  	Arthur L. Bigelow 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	CALYON NEW YORK BRANCH, as Lender

 	 
	 	By:  	/s/ Samuel L. Hill
 	 
	 	 	Name:  	Samuel L. Hill 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                                                     /s/ David P. Cagle
 	 
	 	 	Name:  	David P. Cagle 	 
	 	 	Title:  	Managing Director 	 
	 

Technical Olympic USA, Inc.

2006 Credit Agreement

 

 

	 	 	 	 	 
	 	COMPASS BANK, an Alabama banking corporation,

as Lender

 	 
	 	By:  	/s/ Johanna Duke Paley
 	 
	 	 	Name:  	Johanna Duke Paley 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	COMERICA BANK, as Lender

 	 
	 	By:  	/s/ Charles Weddell
 	 
	 	 	Name:  	Charles Weddell 	 
	 	 	Title:  	Vice President 	 
	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as

Lender

 	 
	 	By:  	/s/
Bill O’Daly
 	 
	 	 	Name:  	Bill O’Daly 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                                                     /s/ Cassandra Droogan
 	 
	 	 	Name:  	Cassandra Droogan 	 
	 	 	Title:  	Vice President 	 
	 
	 	GUARANTY BANK, as Lender

 	 
	 	By:  	/s/ Amy Satsky
 	 
	 	 	Name:  	Amy Satsky 	 
	 	 	Title:  	Vice President 	 
	 
	 	KEYBANK NATIONAL ASSOCIATION, as Lender

 	 
	 	By:  	/s/ Andrew D. Stickney
 	 
	 	 	Name:  	Andrew D. Stickney 	 
	 	 	Title:  	Senior Banker 	 
	 

Technical Olympic USA, Inc.

2006 Credit Agreement

 

 

	 	 	 	 	 
	 	NATEXIS BANQUES POPULAIRES, as Lender

 	 
	 	By:  	/s/ Marie-Edith Dugeny
 	 
	 	 	Name:  	Marie-Edith Dugeny 	 
	 	 	Title:  	VP and Real Estate Finance Group
Manager 	 
	 
	 	 	 
	 	By:  	                                                     /s/ Guillaume de Parscau
 	 
	 	 	Name:  	Guillaume de Parscau 	 
	 	 	Title:  	First VP – Business Development 	 
	 
	 	NATIONAL CITY BANK, as Lender

 	 
	 	By:  	/s/ John Osberg
 	 
	 	 	Name:  	John Osberg 	 
	 	 	Title:  	Vice President 	 
	 
	 	PNC BANK, NATIONAL ASSOCIATION, as Lender

 	 
	 	By:  	/s/ Douglas G. Paul
 	 
	 	 	Name:  	Douglas G. Paul 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	SOVEREIGN BANK, as Lender

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

Technical Olympic USA, Inc.

2006 Credit Agreement

 

 

	 	 	 	 	 
	 	UBS LOAN FINANCE, LLC, as Lender

 	 
	 	By:  	/s/ Richard L. Tavrow
 	 
	 	 	Name:  	Richard L. Tavrow 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                                                     /s/ Irja R. Otsa
 	 
	 	 	Name:  	Irja R. Otsa 	 
	 	 	Title:  	Associate Director 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION, as Lender

 	 
	 	By:  	/s/ Michael Raarup
 	 
	 	 	Name:  	Michael Raarup 	 
	 	 	Title:  	Senior Vice President 	 
	 
	 	WASHINGTON MUTUAL BANK, as Lender

 	 
	 	By:  	/s/ Anne D. Brehony
 	 
	 	 	Name:  	Anne D. Brehony 	 
	 	 	Title:  	Vice President 	 
	 

Technical Olympic USA, Inc.

2006 Credit AgreementLetter Agreement

 

Exhibit 10.1

 

 

 

Private Client Group 

Merrill Lynch Business

Financial Services Inc.

222 North LaSalle Street

17th Floor

Chicago, Illinois 60601

(312) 269-4485

FAX: (312) 845-9093

March 6, 2006

Continucare Corporation

7200 Corporate Center Drive

Suite 600

Miami, FL 33126

Re: WCMA Line of Credit Increase and Extension

Ladies & Gentlemen:

This Letter Agreement will serve to confirm certain agreements of Merrill Lynch Business Financial
Services Inc. (“MLBFS”) and Continucare Corporation (“Customer”) with respect to: (i) that certain
WCMA LOAN AND SECURITY AGREEMENT NO. 81V-07064 between MLBFS and Customer (including any previous
amendments and extensions thereof), and (ii) all other agreements between MLBFS and Customer in
connection therewith (collectively, the “Loan Documents”). Capitalized terms used herein and not
defined herein shall have the meaning set forth in the Loan Documents.

Subject to the terms hereof, effective as of the “Effective Date” (as defined below) the Loan
Documents are hereby amended as follows:

(a) The “Maturity Date” of the WCMA Line of Credit is hereby extended to September 30, 2007.

(b) The “Maximum WCMA Line of Credit” is hereby increased to $5,000,000.00.

(c) The “Line Fee” for the period ending September 30, 2007, shall be $37,500.00. Customer hereby
authorizes and directs MLBFS to charge said amount to WCMA Account No. 81V-07064 on or at any time
after the Effective Date. Subject to any further change in the WCMA Line of Credit and/or other
amendment of terms, if the WCMA Line of Credit is renewed beyond the new Maturity Date, the annual
Line Fee during the renewal period shall be $25,000.00.

(d) “Interest Rate” shall mean a variable per annum rate of interest equal to the sum of 2.50%,
plus the 30-day Dealer Commercial Paper Rate. “30-day Dealer Commercial Paper Rate” shall mean, as
of the date of any determination, the interest rate then most recently published in the “Money
Rates” section of The Wall Street Journal as the Dealer Commercial Rate for 30-day high-grade
unsecured notes sold through dealers by major corporations (or if more than one such rate is
published, the highest of such rates). The Interest Rate will change as of the date of publication
in The Wall Street Journal of a 30-day Dealer Commercial Paper Rate that is different from that
published on the preceding Business Day. In the event that The Wall Street Journal shall, for any
reason, fail or cease to publish the 30-day Dealer Commercial Paper Rate, MLBFS will choose a
reasonably comparable index or source to use as the basis for the Interest Rate.

 

 

(e) Customer shall no longer be required to maintain a Minimum Corporate Liquidity covenant as of
the Effective Date.

(f) For all purposes of the Loan Documents, Customer’s address shall be 7200 Corporate Center
Drive, Suite 600, Miami, FL 33126.

(g) Customer’s “EBITDA” shall at all times exceed $1,500,000.00. For purposes hereof, “EBITDA”
shall mean Customer’s income before interest (including payments in the nature of interest under
capital leases), taxes, depreciation, amortization, and other non-cash charges; all as determined
on a trailing 12-month basis as set forth in Customer’s regular quarterly financial statements
prepared in accordance with GAAP.

Except as expressly amended hereby, the Loan Documents shall continue in full force and effect upon
all of their terms and conditions.

Customer acknowledges, warrants and agrees, as a primary inducement to MLBFS to enter into this
Agreement, that: (a) no Default or Event of Default has occurred and is continuing under the Loan
Documents; (b) each of the warranties of Customer in the Loan Documents are true and correct as of
the date hereof and shall be deemed remade as of the date hereof; (c) Customer does not have any
claim against MLBFS or any of its affiliates arising out of or in connection with the Loan
Documents or any other matter whatsoever; and (d) Customer does not have any defense to payment of
any amounts owing, or any right of counterclaim for any reason under, the Loan Documents.

Provided that no Event of Default, or event which with the giving of notice, passage of time, or
both, would constitute an Event of Default, shall then have occurred and be continuing under the
terms of the Loan Documents, the amendments and agreements in this Letter Agreement will become
effective on the date (the “Effective Date”) upon which: (a) Customer shall have executed and
returned the duplicate copy of this Letter Agreement enclosed herewith; (b) Customer shall furnish
to MLBFS a check in the amount of $2,450.00 made payable to “UCC Direct Services” representing the
documentary stamp tax required by the Secretary of State, Florida. Consult your tax advisor about
this tax, since it may not be due if the Loan Document is executed outside the State of Florida, as
evidenced by a notary’s acknowledgment at the end of the Loan Document; and (c) an officer of MLBFS
shall have reviewed and approved this Letter Agreement as being consistent in all respects with the
original internal authorization hereof.

Notwithstanding the foregoing, if Customer does not execute and return the duplicate copy of this
Letter Agreement within 7 days from the date hereof, or if for any other reason (other than the
sole fault of MLBFS) the Effective Date shall not occur within said 7-day period, then all of said
amendments and agreements will, at the sole option of MLBFS, be void.

Very truly yours,

Merrill Lynch Business Financial Services Inc.

By: /s/Michael Kozak                              

     Michael Kozak

     Senior Credit Underwriter

 

 

Accepted:

	 	 	 	 	 
	Continucare Corporation

 	 
	 	By:  	/s/ Richard C. Pfenniger, Jr.
 	 
	 	Printed Name:  	Richard C. Pfenniger, Jr. 	 
	 	Title:  	Chief Executive Officer 	 
	 

	 	 	 	 	 
	STATE OF MARYLAND
	 	}	 	 
	 
	 	}	 	SS.
	COUNTY OF BALTIMORE
	 	}	 	 

The foregoing instrument was acknowledged before me this day of 8 March AD, 2006 by
Richard C. Pfenninger of Continucare Corporation, a Florida corporation, on behalf of the
corporation. Said person is personally known to me or has produced said license as
identification.

	 	 	 	 	 
	 	 
	Marcella M. Szyjko
 	 
	 	NOTARY PUBLIC 	 
	 	 	 
	 
	 	 
	Marcella M. Szyjko
 	 
	 	PRINTED NAME OF NOTARY PUBLIC 	 
	 	 	 
	 
	 	My Commission Expires:

 	 
	 	1/1/07	 
	 	[S E A L]

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