Document:

exv10w1

 

[EXECUTION COPY]

 

STOCK PURCHASE AGREEMENT,

dated as of January 31, 2007,

among

CENTEX CONSTRUCTION GROUP, INC.,

as the Company,

CENTEX CORPORATION,

as the Seller,

BALFOUR BEATTY, INC.,

as the Purchaser

and

BALFOUR BEATTY PLC

as Guarantor

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I PURCHASE AND SALE OF SHARES
	 	 	1	 
	SECTION 1.1. Purchase and Sale
	 	 	1	 
	SECTION 1.2. Purchase Price
	 	 	2	 
	SECTION 1.3. Pre-Closing Payments
	 	 	2	 
	SECTION 1.4. Additional Payments
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II CLOSING
	 	 	4	 
	SECTION 2.1. Closing
	 	 	4	 
	SECTION 2.2. Deliveries to the Purchaser
	 	 	4	 
	SECTION 2.3. Deliveries to the Seller
	 	 	6	 
	SECTION 2.4. Proceedings at Closing
	 	 	6	 
	 
	 	 	 	 
	ARTICLE III POST-CLOSING ADJUSTMENT
	 	 	7	 
	SECTION 3.1. Post-Closing Adjustment
	 	 	7	 
	SECTION 3.2. Final Balance Sheet
	 	 	7	 
	SECTION 3.3. Dispute Resolution
	 	 	8	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLER
	 	 	9	 
	SECTION 4.1. Organization; Power and Authority
	 	 	9	 
	SECTION 4.2. Authorization; Execution and Validity
	 	 	9	 
	SECTION 4.3. Absence of Conflicts
	 	 	9	 
	SECTION 4.4. Governmental and Third Party Approvals
	 	 	9	 
	SECTION 4.5. Title to Shares
	 	 	10	 
	SECTION 4.6. Litigation
	 	 	10	 
	SECTION 4.7. Non-Foreign Person
	 	 	10	 
	SECTION 4.8. Absence of Seller Surety Defaults
	 	 	10	 
	SECTION 4.9. Fees
	 	 	10	 
	 
	 	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	10	 
	SECTION 5.1. Organization; Power and Authority
	 	 	11	 
	SECTION 5.2. Authorization; Execution and Validity
	 	 	11	 
	SECTION 5.3. Absence of Conflicts
	 	 	11	 
	SECTION 5.4. Governmental and Third Party Approvals
	 	 	11	 
	SECTION 5.5. Capitalization of the Company
	 	 	12	 
	SECTION 5.6. Financial Statements
	 	 	12	 
	SECTION 5.7. Liabilities
	 	 	13	 
	SECTION 5.8. Absence of Certain Changes
	 	 	13	 
	SECTION 5.9. Subsidiaries; Investments
	 	 	15	 
	SECTION 5.10. Real Property
	 	 	16	 
	SECTION 5.11. Title to Tangible Assets
	 	 	16	 
	SECTION 5.12. Material Contracts; Warranties and Surety Bonds
	 	 	16	 
	SECTION 5.13. Intellectual Property
	 	 	20	 
	SECTION 5.14. Litigation
	 	 	20	 
	SECTION 5.15. Labor and Employment Matters
	 	 	21	 
	SECTION 5.16. Employee Benefits
	 	 	21	 
	SECTION 5.17. Taxes
	 	 	23	 
	SECTION 5.18. Permits; Compliance with Laws
	 	 	24	 

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	 	 	Page	 
	SECTION 5.19. Environmental Laws
	 	 	24	 
	SECTION 5.20. Insurance
	 	 	25	 
	SECTION 5.21. Affiliated Transactions
	 	 	25	 
	SECTION 5.22. Fees
	 	 	25	 
	 
	 	 	 	 
	ARTICLE VI REPRESENTATIONS AND WARRANTIES OF PURCHASER
	 	 	25	 
	SECTION 6.1. Organization; Power and Authority
	 	 	26	 
	SECTION 6.2. Authorizations; Execution and Validity
	 	 	26	 
	SECTION 6.3. Absence of Conflicts
	 	 	26	 
	SECTION 6.4. Governmental and Third Party Approvals
	 	 	26	 
	SECTION 6.5. Litigation
	 	 	26	 
	SECTION 6.6. Sophisticated Purchaser; Access to Information; Investment Intent
	 	 	27	 
	SECTION 6.7. Financing
	 	 	27	 
	SECTION 6.8. Fees
	 	 	27	 
	 
	 	 	 	 
	ARTICLE VII COVENANTS
	 	 	27	 
	SECTION 7.1. Cooperation; Certain Consents and Approvals
	 	 	27	 
	SECTION 7.2. Conduct of Business
	 	 	29	 
	SECTION 7.3. Access to Information
	 	 	32	 
	SECTION 7.4. Certain Confidential Information
	 	 	33	 
	SECTION 7.5. Return or Destruction of Information
	 	 	34	 
	SECTION 7.6. Access to Documents; Preservation of Books and Records
	 	 	34	 
	SECTION 7.7. Limited Representations
	 	 	36	 
	SECTION 7.8. Use of Seller Marks
	 	 	36	 
	SECTION 7.9. Employees and Employee Benefits
	 	 	37	 
	SECTION 7.10. Directors and Officers Indemnification and Insurance
	 	 	40	 
	SECTION 7.11. Certain Surety Bonds, Guarantees and other Obligations
	 	 	42	 
	SECTION 7.12. Settlement of Intercompany Obligations
	 	 	45	 
	SECTION 7.13. Litigation Support and Cooperation
	 	 	46	 
	SECTION 7.14. Third-Party Reports
	 	 	46	 
	SECTION 7.15. Occurrence-Based Insurance Policies
	 	 	46	 
	SECTION 7.16. Updates
	 	 	47	 
	SECTION 7.17. Non-Competition
	 	 	49	 
	SECTION 7.18. Exclusivity
	 	 	51	 
	 
	 	 	 	 
	ARTICLE VIII TAX MATTERS
	 	 	51	 
	SECTION 8.1. Allocation of Tax Liabilities; Indemnification
	 	 	51	 
	SECTION 8.2. No Changes in Elections, etc.
	 	 	52	 
	SECTION 8.3. Returns and Reports; Elections
	 	 	53	 
	SECTION 8.4. Cooperation; Access to Records
	 	 	54	 
	SECTION 8.5. Refunds
	 	 	54	 
	SECTION 8.6. Disputes
	 	 	54	 
	SECTION 8.7. Survival
	 	 	55	 
	SECTION 8.8. Section 338 Election and Related Matters
	 	 	55	 
	SECTION 8.9. Price Adjustment
	 	 	55	 
	SECTION 8.10. Certificate of Non-Foreign Status
	 	 	56	 
	 
	 	 	 	 
	ARTICLE IX CONDITIONS PRECEDENT TO PURCHASER’S OBLIGATIONS
	 	 	56	 
	SECTION 9.1. Accuracy of Representations and Warranties
	 	 	56	 

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	 	 	Page	 
	SECTION 9.2. Performance of Covenants
	 	 	56	 
	SECTION 9.3. Certificates
	 	 	56	 
	SECTION 9.4. HSR Clearance
	 	 	57	 
	SECTION 9.5. CFIUS Notice
	 	 	57	 
	SECTION 9.6. No Order or Litigation
	 	 	57	 
	SECTION 9.7. Certified Resolutions
	 	 	57	 
	SECTION 9.8. Secretary’s Certificates
	 	 	57	 
	SECTION 9.9. Other Deliveries
	 	 	58	 
	 
	 	 	 	 
	ARTICLE X CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLER
	 	 	58	 
	SECTION 10.1. Accuracy of Representations and Warranties
	 	 	58	 
	SECTION 10.2. Performance of Covenants
	 	 	58	 
	SECTION 10.3. Certificate
	 	 	58	 
	SECTION 10.4. HSR Clearance
	 	 	58	 
	SECTION 10.5. No Order or Litigation
	 	 	58	 
	SECTION 10.6. Delivery of Initial Purchase Price and Other Payments
	 	 	59	 
	SECTION 10.7. Certified Resolutions
	 	 	59	 
	SECTION 10.8. Secretary’s Certificate
	 	 	59	 
	SECTION 10.9. Other Deliveries
	 	 	59	 
	 
	 	 	 	 
	ARTICLE XI TERMINATION
	 	 	59	 
	SECTION 11.1. Termination of Agreement
	 	 	59	 
	SECTION 11.2. Effect of Termination
	 	 	60	 
	 
	 	 	 	 
	ARTICLE XII INDEMNIFICATION
	 	 	60	 
	SECTION 12.1. Survival of Representations and Warranties and Covenants
	 	 	60	 
	SECTION 12.2. Seller’s Indemnification Obligations
	 	 	61	 
	SECTION 12.3. Purchaser’s Indemnification Obligations
	 	 	62	 
	SECTION 12.4. Third Party Claims; Procedures
	 	 	62	 
	SECTION 12.5. Limitations on Indemnification
	 	 	63	 
	SECTION 12.6. Exclusive Remedy
	 	 	64	 
	SECTION 12.7. Mitigation; Insurance
	 	 	65	 
	SECTION 12.8. Cooperation; Access to Documents and Information
	 	 	66	 
	 
	 	 	 	 
	ARTICLE XIII DEFINITIONS
	 	 	66	 
	SECTION 13.1. Certain Definitions
	 	 	66	 
	SECTION 13.2. Other Defined Terms
	 	 	75	 
	 
	 	 	 	 
	ARTICLE XIV PARENT GUARANTEE
	 	 	77	 
	SECTION 14.1. Guarantee
	 	 	77	 
	SECTION 14.2. Unconditional Guarantee
	 	 	79	 
	SECTION 14.3. Effect of Amendments to Guaranteed Obligations
	 	 	79	 
	SECTION 14.4. Effectiveness and Reinstatement of Guarantee
	 	 	79	 
	SECTION 14.5. Subrogation; Subordination
	 	 	79	 
	SECTION 14.6. Obligation Currency
	 	 	80	 
	SECTION 14.7. Representations and Warranties of the Guarantor
	 	 	80	 
	SECTION 14.8. Amendment
	 	 	81	 
	SECTION 14.9. Binding Effect; Benefits
	 	 	81	 
	SECTION 14.10. Costs of Enforcement
	 	 	81	 
	SECTION 14.11. Other Provisions
	 	 	81	 

iii 

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE XV GENERAL
	 	 	81	 
	SECTION 15.1. Amendments
	 	 	81	 
	SECTION 15.2. Waivers
	 	 	81	 
	SECTION 15.3. Notices
	 	 	82	 
	SECTION 15.4. Successors and Assigns; Parties in Interest
	 	 	83	 
	SECTION 15.5. Severability
	 	 	83	 
	SECTION 15.6. Entire Agreement
	 	 	83	 
	SECTION 15.7. Governing Law; Exclusive Jurisdiction
	 	 	83	 
	SECTION 15.8. Remedies
	 	 	84	 
	SECTION 15.9. Mandatory Mediation of Certain Disputes
	 	 	85	 
	SECTION 15.10. Expenses
	 	 	86	 
	SECTION 15.11. Further Assurances
	 	 	86	 
	SECTION 15.12. Release of Information
	 	 	86	 
	SECTION 15.13. Disclosure Schedules
	 	 	86	 
	SECTION 15.14. Certain Rules of Construction
	 	 	87	 
	SECTION 15.15. Counterparts
	 	 	87	 

Exhibits:

	 	 	 
	Exhibit A

	 	Form of Transition Services Agreement

iv 

 

STOCK PURCHASE AGREEMENT

          This STOCK PURCHASE AGREEMENT, dated as of January 31, 2007 (this “Agreement”), is entered
into by and among CENTEX CONSTRUCTION GROUP, INC., a Nevada corporation (the “Company”), CENTEX
CORPORATION, a Nevada corporation (the “Seller”), BALFOUR BEATTY, INC., a Delaware corporation
(the “Purchaser”), and BALFOUR BEATTY PLC, a company organized under the laws of England and Wales
(the “Guarantor”).

          WHEREAS, the Company and its Subsidiaries (as hereinafter defined) are engaged in the business
of providing commercial construction contracting services, including construction management,
general contracting, design-build and preconstruction services (“Construction Services”), to
various third parties;

          WHEREAS, the Seller owns all of the outstanding shares of Common Stock (as hereinafter
defined) of the Company (the “Shares”);

          WHEREAS, the Purchaser or one or more of its Subsidiaries or Affiliates are engaged in the
business of providing Construction Services to various Third Parties (as hereinafter defined) and
are familiar with the risks and benefits associated with such business;

          WHEREAS, the Purchaser desires to purchase from the Seller, and the Seller is willing to sell
to the Purchaser, the Shares, upon the terms and subject to the conditions set forth in this
Agreement;

          WHEREAS, simultaneously with the execution and delivery of this Agreement, each of the
Designated Executives (as hereinafter defined) has entered into a Change of Control Agreement with
the Seller and the Company effective as of the date hereof and an Employment Agreement with the
Company to be effective at the Closing (as hereinafter defined); and

          WHEREAS, capitalized terms used herein without definition have the respective meanings set
forth in Article XIII;

          NOW, THEREFORE, in consideration of the premises, the terms and provisions set forth herein,
the mutual benefits to be gained by the performance thereof and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

ARTICLE I

PURCHASE AND SALE OF SHARES

     SECTION 1.1. Purchase and Sale. Upon the terms and subject to the conditions set forth herein, on the Closing Date, (i) the
Seller shall sell, transfer and deliver the Shares to the Purchaser free and clear of all Liens,
except for Liens imposed as a result of actions

1

 

taken by the Purchaser or arising under applicable
federal or state securities laws, and (ii) the Purchaser shall pay the consideration described
herein and acquire and accept the Shares from the Seller.

     SECTION 1.2. Purchase Price.

     (a) In consideration of the sale, transfer and delivery of the Shares, at the Closing, the
Purchaser shall pay to the Seller an amount (the “Initial Purchase Price”) in cash equal to the sum
of (i) $355,000,000 and (ii) $7,000,000 (the “Reserve Payment”).

     (b) The final purchase price to be paid by the Purchaser to the Seller in consideration of the
Shares shall be the sum of (i) the Initial Purchase Price and (ii) all Additional Payments made by
the Purchaser to the Seller pursuant to Section 1.4 (the “Purchase Price”).

     (c) All documentary, stamp, sales and excise or other similar Taxes (if any) payable in
respect of the sale, transfer or delivery of the Shares pursuant to this Agreement shall be
apportioned 50% to the Seller and 50% to the Purchaser. The Seller and the Purchaser shall
cooperate with each other and use commercially reasonable efforts to minimize any such Taxes
attributable to the sale, transfer or delivery of the Shares pursuant to this Agreement.

     SECTION 1.3. Pre-Closing Payments. On the Closing Date, but immediately prior to the Effective Time, the Seller
and the Company shall make the following payments (the “Pre-Closing Payments”), the amount of which
shall be estimated on a basis consistent with the Accounting Principles and the illustrations set
forth in the Accounting Schedule:

     (a) The Seller shall pay to the Company an amount (the “Seller Pre-Closing Payment”) equal to
the aggregate outstanding cash advances by the Company or any of its Subsidiaries to any member of
the Seller Group (the “Cash Advance Amount”); and

     (b) The Company shall pay to the Seller the following amounts (the “Company Pre-Closing
Payments”):

     (i) the amount of all intercompany obligations (other than any Retained Intercompany
Obligations) owing by the Company or any of its Subsidiaries to any member of the Seller
Group, less the amount of all intercompany obligations (other than any Retained
Intercompany Obligations and the Cash Advance Amount) owing by any member of the Seller
Group to the Company or any of its Subsidiaries (the “Net Intercompany Amount”); and

     (ii) the amount of stockholder’s equity (including retained earnings) of the Company
and its consolidated subsidiaries (the “Stockholders’ Equity Amount”), which amount shall
be paid in the form of a cash dividend or dividends.

The Pre-Closing Payments to be made pursuant to paragraphs (a) and (b) above shall be offset
against each other so that, in lieu of the parties making each of the Pre-Closing Payments, either
the Seller or the Company (as the case may be) shall make a single

2

 

payment to the other party equal
to the net amount owing by the Seller to the Company or the Company to the Seller pursuant to this
Section 1.3. Each party acknowledges that the calculation of the amount of the Pre-Closing
Payments to be paid on the Closing Date will be based on estimates of the applicable amounts set
forth in the Initial CFO Certificate. Accordingly, such payments will be subject to adjustment in
accordance with the provisions of Article III. At least three Business Days prior to the Closing
Date, the Company will deliver to the Purchaser a draft of the Initial CFO Certificate.

     SECTION 1.4. Additional Payments.

     (a) Provided the Section 338(h)(10) Election is timely and validly made, on each anniversary
of the Closing Date (or, if such anniversary is not a Business Day, on the next succeeding Business
Day), the Purchaser shall pay to the Seller $4,000,000 in cash, until such time as the Purchaser
shall have made payments to the Seller pursuant to this Section 1.4 in an aggregate amount equal to
$60,000,000 (collectively, the “Additional Payments”). Each Additional Payment to be made by the
Purchaser to the Seller pursuant to this Section 1.4 shall be paid by wire transfer of immediately
available funds (to such account or accounts as the Seller shall have specified to the Purchaser at
least two Business Days prior to the due date for such payment).

     (b) Notwithstanding the foregoing, if as a result of an amendment to the applicable provisions
of the Code at any time after the date hereof, the Purchaser is not entitled to the benefits of the
Section 338(h)(10) Election as currently provided for under the Code, the parties shall negotiate
in good faith to modify the amount of the Additional Payments to be made thereafter pursuant to
this Section 1.4 so that the amount of such payments does not exceed 50% of the amount of the tax
benefits to be realized thereafter by the Purchaser as a result of the Section 338(h)(10) Election
(to be computed in an equitable manner that assumes all depreciation and amortization deductions
resulting from the Section 338(h)(10) Election are used prior to any net operating loss deductions
or deductions arising from payments made to or transactions with Affiliates of the Purchaser that
may be available to the Purchaser); provided, however, that in no event shall the Seller be
obligated to refund to the Purchaser any Additional Payments made or required to be made prior to
the effective date of the applicable amendment to the Code.

     (c) Provided the Section 338(h)(10) Election is timely and validly made, subject only to (i)
the provisions of paragraph (b) above and (ii) reduction of the Additional Payments by the amount
of any Losses that may be incurred by the Purchaser as a result of a failure on the part of the
Seller to comply with its obligations pursuant to Section 8.8, the obligation of the Purchaser to
make the Additional Payments in accordance with this
Section 1.4 shall be absolute and unconditional, and shall not be subject to reduction or
modification as a result of any change in the provisions of applicable Law or any action or
omission on the part of the Seller or its Affiliates. Without limiting the generality of the
foregoing, the Purchaser shall not be entitled to set off against its obligation to make any
Additional Payments pursuant to this Section 1.4 any obligation or amount owing or alleged to be
owing to the Purchaser or its Affiliates by the Seller or its Affiliates under or in connection
with this Agreement or otherwise, including any obligation on the part of the Seller to make
indemnification payments under Article VIII or XII.

3

 

ARTICLE II

CLOSING

     SECTION 2.1. Closing. The closing of the purchase and sale of the Shares pursuant to this Agreement (the
“Closing”) shall be deemed to occur and be effective as of the Effective Time but shall take place
at the offices of Baker Botts L.L.P., 2001 Ross Avenue, Dallas, Texas 75201 (or such other place as
the parties may agree) at 9:00 a.m., Dallas, Texas time, on March 31, 2007 or, if the conditions to
the obligations of the parties to consummate the transactions contemplated by this Agreement set
forth in Articles IX and X (other than any conditions to be satisfied through the making of
payments or the delivery of documents at the Closing) are not satisfied or waived at least three
Business Days prior to such date, on April 30, 2007 (or as soon as practicable thereafter), or at
such other time and date as the parties may agree (the “Closing Date”). Notwithstanding the
foregoing, the parties shall (subject to reaching agreement on the arrangements referred to below)
use commercially reasonable efforts to cause the Closing to be held as promptly as practicable
after the satisfaction or waiver of the conditions to the obligations of the parties referred to
above, it being understood that, if such conditions are satisfied or waived at least ten Business
Days prior to either of the month-end dates specified in this Section 2.1, the parties shall
cooperate in good faith and use commercially reasonable efforts to agree upon and implement
arrangements that would permit the Closing to take place prior to the applicable month-end date.

     SECTION 2.2. Deliveries to the Purchaser. At the Closing, the Seller shall deliver, or shall cause to be
delivered, to the Purchaser each of the following:

     (a) one or more certificates representing all of the Shares, duly endorsed in blank or
accompanied by a duly executed blank stock power;

     (b) a certificate of the chief financial officer of the Company on behalf of the Company,
dated as of the Closing Date (the “Initial CFO Certificate”), setting forth an estimated
consolidated balance sheet of the Company and its Subsidiaries as of immediately prior to the
Effective Time and without giving effect to the Pre-Closing Payments, together with a calculation
of the amount of the Pre-Closing Payments in accordance with Section 1.3, which calculation shall
be based upon the amounts shown on such estimated balance sheet, shall be prepared in a manner
consistent with the Accounting Principles and the illustrations set forth in the Accounting
Schedule and shall be in reasonable detail, setting
forth a separate calculation of each of the Cash Advance Amount, the Net Intercompany Amount
and the Stockholder’s Equity Amount and the resulting calculation of the Initial Pre-Closing
Payment Amount;

     (c) counterparts of the Transition Services Agreement duly executed by the Company and Service
Co.;

     (d) the executed originals of IRS Form 8023 as provided in Section 8.8(b);

     (e) an updated version of Section 5.12(e) of the Company Disclosure Schedules setting forth a
list of all outstanding Surety Bonds (bid, performance or other) as of a date within five Business
Days prior to the Closing Date which, to the Company’s Knowledge,

4

 

were obtained in connection with
ongoing Construction Services being performed by the Company or any of its Subsidiaries as of such
date and as to which the Company or any of its Subsidiaries have any reimbursement or similar
obligation, subject to the limitations contained in Section 5.12(e);

     (f) the executed originals of the Surety Termination Notices, duly executed by the Company and
each of its Subsidiaries and each member of the Seller Group that is a party to the Travelers
Indemnity Agreement or the Zurich Indemnity Agreement (which notices will be jointly delivered by
the parties to the sureties in accordance with Section 7.11(b));

     (g) the certificates of officers of the Seller and the Company referred to in Section 9.3;

     (h) a certificate of the Secretary or an Assistant Secretary of the Seller attesting to and
attaching (i) the resolutions of the Board of Directors of the Seller (or appropriate committee
thereof) referred to in Section 9.7, (ii) the incumbency and signature of each officer of the
Seller who executed this Agreement and (iii) the Organizational Documents of the Seller as of the
Closing Date (which certificate shall state that such Organizational Documents have not been
amended except as reflected therein);

     (i) a certificate of the Secretary or an Assistant Secretary of the Company attesting to and
attaching (i) the resolutions of the Board of Directors of the Company referred to in Section 9.7,
(ii) the incumbency and signature of each officer of the Company who executed this Agreement and
(iii) the Organizational Documents of the Company as of the Closing Date (which certificate shall
state that such Organizational Documents have not been amended except as reflected therein);

     (j) a certificate of the Secretary or an Assistant Secretary of Service Co. attesting to and
attaching (i) the resolutions of the Board of Managers of Service Co. referred to in Section 9.7,
(ii) the incumbency and signature of each officer of Service Co. who executed the Transition
Services Agreement and (iii) the Organizational Documents of Service Co. as of the Closing Date
(which certificate shall state that such Organizational Documents have not been amended except as
reflected therein);

     (k) a certificate from the Secretary of State of the State of Nevada, dated within 30 days of
the Closing Date, with respect to the existence and good standing of the Seller;

     (l) a certificate from the Secretary of State of the State of Nevada, dated within 30 days of
the Closing Date, with respect to the existence and good standing of the Company;

     (m) a certificate from the Secretary of State of the State of Nevada, dated within 30 days of
the Closing Date, with respect to the existence and good standing of Service Co.;

     (n) a certificate from the Secretary of State or other comparable Governmental Authority in
the jurisdiction of incorporation or formation of each Subsidiary of the

5

 

Company (if available
under the law of its jurisdiction of incorporation or formation) with respect to the existence and
good standing of each such Subsidiary;

     (o) written resignations of each of the directors and officers of the Company and each of its
Subsidiaries whose primary employment responsibilities are to members of the Seller Group (rather
than to the Company and its Subsidiaries), in each case effective as of the Closing Date;

     (p) a copy of documentation evidencing each of the Required Consents and any other Consents
obtained in connection with the transactions contemplated by this Agreement; and

     (q) a certificate of non-foreign status as described in Section 8.10 duly executed and
delivered by an authorized officer of the Seller, dated the Closing Date.

     SECTION 2.3. Deliveries to the Seller. At the Closing, the Purchaser shall deliver, or shall cause to be
delivered, to the Seller each of the following:

     (a) the Initial Purchase Price by wire transfer of immediately available funds (to such
account or accounts as the Seller shall have specified to the Purchaser at least 24 hours prior to
the Closing);

     (b) the certificate of an officer of the Purchaser referred to in Section 10.3;

     (c) a certificate from the Secretary of State of the State of Delaware, dated within 30 days
of the Closing Date, with respect to the existence and good standing of the Purchaser;

     (d) a certificate of the Secretary or an Assistant Secretary of the Purchaser attesting to and
attaching (i) the resolutions of the Board of Directors of the Purchaser referred to in Section
10.7, (ii) the incumbency and signature of each officer of the Purchaser who executed this
Agreement and (iii) the Organizational Documents of the Purchaser as of the Closing Date (which
certificate shall state that such Organizational Documents have not been amended except as
reflected therein); and

     (e) a certificate of the Secretary or an Assistant Secretary of the Guarantor attesting to and
attaching (i) the existence of the Guarantor, (ii) the resolutions of the Board of Directors of the
Guarantor referred to in Section 10.7, (iii) the incumbency and signature of each officer of the
Guarantor who executed this Agreement and (iv) the Organizational Documents of the Guarantor as of
the Closing Date (which certificate shall state that such Organizational Documents have not been
amended except as reflected therein).

     SECTION 2.4. Proceedings at Closing. All proceedings to be taken and all documents to be executed and delivered
by the parties at the Closing shall be deemed to have been taken and executed and delivered
simultaneously, and no proceedings shall be deemed taken nor any documents executed or delivered
until all have been taken, executed and delivered.

6

 

ARTICLE III

POST-CLOSING ADJUSTMENT

     SECTION 3.1. Post-Closing Adjustment. No later than five days after a binding determination of the Adjusted
Pre-Closing Payment Amount has been made in accordance with Section 3.2 or 3.3 (as the case may
be), (i) if the Adjusted Pre-Closing Payment Amount is greater than the Initial Pre-Closing Payment
Amount, the Company shall (and the Purchaser shall cause the Company to) pay to the Seller an
amount equal to the difference between such amounts and (ii) if the Adjusted Pre-Closing Payment
Amount is less than the Initial Pre-Closing Payment Amount, the Seller shall pay to the Company an
amount equal to the difference between such amounts (any such payment to be made by the Company or
the Seller being hereinafter referred to as the “Post-Closing Adjustment Payment”). The
Post-Closing Adjustment Payment shall be made to the Seller or the Company, as the case may be, by
wire transfer of immediately available funds (to such account as is specified by such party at
least two Business Days prior to the due date for such payment). Neither the Company nor the
Seller shall be entitled to set off against its obligation to make any Post-Closing Adjustment
Payment pursuant to this Section 3.1 any obligation or amount owing or alleged to be owing to such
Person (as the case may be) by any other party to this Agreement (or any of its Affiliates) under
or in connection with this Agreement or otherwise.

     SECTION 3.2. Final Balance Sheet. No later than 45 days after the Closing Date, the Company shall (and the
Purchaser shall cause the Company to) deliver to the Seller (i) a consolidated balance sheet of the
Company and its Subsidiaries as of immediately prior to the Effective Time and without giving
effect to the Pre-Closing Payments (the “Final Balance Sheet”) prepared in a manner consistent with
the Accounting Principles and the illustrations set forth in the Accounting Schedule and (ii) a
certificate of the chief financial officer of the Company on behalf of the Company setting forth a
calculation in reasonable detail of the Excess Reserve Amount, the Cash Advance Amount, the Net
Intercompany Amount and the Stockholder’s Equity Amount and the resulting calculation of the
Adjusted Pre-Closing Payment Amount (the “Final CFO Certificate”), which shall be based on the
Final Balance Sheet and prepared in a manner
consistent with the Accounting Principles and the illustrations set forth in the Accounting
Schedule. From the Closing Date through the date of the payment provided for in Section 3.1, the
Company shall (and the Purchaser shall cause the Company to) give the Seller reasonable access
during normal business hours to the books and records, the accounting and other appropriate
personnel and the independent accountants of the Company and its Subsidiaries (including access to
each of the specific items of information described in the Accounting Schedule) in order to enable
the Seller to review the Final Balance Sheet and the calculation of the Adjusted Pre-Closing
Payment Amount; provided, however, that if required by the independent accountants of the Company
and its Subsidiaries, such independent accountants shall not be obligated to make any work papers
or other records available to the Seller unless and until the Seller has signed a customary
agreement relating to such access and work papers or records in form and substance reasonably
acceptable to such accountants. The calculation of the Adjusted Pre-Closing Payment Amount set
forth in the Final CFO Certificate shall be binding upon each of the parties, unless the Seller
objects to such calculation in accordance with Section 3.3(a).

7

 

     SECTION 3.3. Dispute Resolution.

     (a) The Seller shall be entitled to dispute the calculation of the Adjusted Pre-Closing
Payment Amount set forth in the Final CFO Certificate if, but only if, it delivers a written notice
(an “Objection Notice”) to the Purchaser within 45 days after receipt of the Final Balance Sheet
and Final CFO Certificate in which it objects to the calculation by the Company of the Adjusted
Pre-Closing Payment Amount and provides a reasonably detailed description of each item to which it
objects and the basis therefor (the date upon which the Seller delivers an Objection Notice to the
Purchaser being hereinafter referred to as the “Objection Date”).

     (b) If the Seller delivers an Objection Notice to the Purchaser within the time period
specified in paragraph (a) above, the Seller and the Purchaser shall attempt in good faith to agree
upon the Adjusted Pre-Closing Payment Amount during the period commencing on the Objection Date and
ending 30 days thereafter (the “Negotiation Period”).

     (c) If the Purchaser and the Seller agree in writing prior to the expiration of the
Negotiation Period on the Adjusted Pre-Closing Payment Amount (whether such amount is the same as
or different from the amount set forth in the Final CFO Certificate), the payment provided for in
Section 3.1 shall be based upon the agreed upon amount.

     (d) If the Purchaser and the Seller do not agree in writing prior to the expiration of the
Negotiation Period on the Adjusted Pre-Closing Payment Amount, the items in dispute (but no other
matters) shall be submitted to KPMG LLP or such other firm of independent public accountants as may
be mutually agreed upon by the Purchaser and the Seller (in either case, the “Final Arbiter”),
which firm shall make a final and binding determination as to all matters in dispute relating to
the calculation of the Adjusted Pre-Closing Payment Amount as promptly as practicable after its
appointment. The Final Arbiter shall send its written determination of all items in dispute,
together with the
resulting calculation of the Adjusted Pre-Closing Payment Amount (including each of the
components thereof in dispute between the parties) and a reasonably detailed explanation of work
performed by the Final Arbiter. The determination of the Final Arbiter, and the resulting
calculation of the Adjusted Pre-Closing Payment Amount, shall be final and binding on the parties,
absent fraud or manifest error. The fees and expenses of the Final Arbiter shall be borne equally
by the Purchaser and the Seller.

     (e) From and after the determination of the Adjusted Pre-Closing Payment Amount in accordance
with the procedures specified in this Section 3.3, the term “Final Balance Sheet” as used in this
Agreement shall mean the Final Balance Sheet delivered pursuant to Section 3.2, as modified to
reflect any changes to the amounts reflected in such Final Balance Sheet as a result of any
agreement reached by the parties pursuant to paragraph (c) above or any determination reached by
the Final Arbiter pursuant to paragraph (d) above.

8

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

OF SELLER

     The Seller hereby represents and warrants to the Purchaser that, on and as of the date of this
Agreement, except as set forth in the Disclosure Schedule delivered to the Purchaser by the Seller
(the “Seller Disclosure Schedule”):

     SECTION 4.1. Organization; Power and Authority. The Seller is a corporation duly organized, validly existing
and in good standing under the laws of the State of Nevada. The Seller has all requisite corporate
power and authority to own the Shares.

     SECTION 4.2. Authorization; Execution and Validity. The Seller has all requisite corporate power and authority
to execute and deliver this Agreement, perform its obligations hereunder and consummate the
transactions contemplated hereby. The execution and delivery of this Agreement by the Seller, the
performance by the Seller of its obligations hereunder and the consummation by the Seller of the
transactions contemplated hereby have been duly and validly authorized by all necessary corporate
action on the part of the Seller. This Agreement has been duly and validly executed and delivered
by the Seller and constitutes a valid and binding obligation of the Seller, enforceable against the
Seller in accordance with its terms, subject to the Enforceability Exceptions.

     SECTION 4.3. Absence of Conflicts. The execution and delivery by the Seller of this Agreement, the performance
by the Seller of its obligations hereunder and the consummation by the Seller of the transactions
contemplated hereby will not (i) result in any violation or breach of any provision of the
Organizational Documents of the Seller, (ii) assuming that the filings and Consents referred to in
Section 4.3 and 4.4 of the Seller Disclosure Schedule and Section 4.4 itself are made
or obtained, result in any violation or breach of, or constitute a default under, any term or
provision of any Contract, franchise, permit, license, or other instrument or document to which the
Seller is a party or by which its properties or assets are bound, (iii) assuming that the filings
and Consents referred to in Sections 4.3 and 4.4 of the Seller Disclosure Schedule and Section 4.4
itself are made or obtained (and that the applicable “waiting period” under the HSR Act has expired
or been terminated), result in any violation of any Law or any Order applicable to the Seller or
its properties or assets or (iv) result in the creation of, or impose on the Seller any obligation
to create, any Lien upon the Shares, except for any of the matters referred to in clauses (ii) or
(iii) above which would not reasonably be expected to prevent, impede or materially delay or
otherwise affect in any material respect the transactions contemplated by this Agreement.

     SECTION 4.4. Governmental and Third Party Approvals. There is no requirement applicable to the Seller to obtain
any Consent of, or to make or effect any declaration, filing or registration with, any Governmental
Authority (“Governmental Requirement”) or other Third Party (“Third-Party Requirement”) for the
valid execution and delivery by the Seller of this Agreement, the due performance by the Seller of
its obligations hereunder or the lawful consummation by the Seller of the transactions contemplated
hereby, except for (i) the filing by or on behalf of the Seller, as the “ultimate parent entity” of
the Company, of notification with the Federal Trade Commission (the “FTC”) and the Antitrust
Division of the United States Department of Justice (the “DOJ”) under the HSR Act and the
expiration

9

 

or termination of the applicable “waiting period” thereunder and (ii) any other
requirement which, if not satisfied, would not reasonably be expected to prevent, impede or
materially delay or otherwise affect in any material respect the transactions contemplated by this
Agreement.

     SECTION 4.5. Title to Shares. The Shares are owned beneficially and of record by the Seller, and the Seller has
good and marketable title to the Shares free and clear of all Liens, other than restrictions on
transfer imposed by applicable federal or state securities laws. Other than this Agreement, the
Shares are not subject to any purchase option, call option, right of first refusal, preemptive
right, subscription right or any similar right, any voting trust agreement or any other similar
agreement, including any agreement restricting or otherwise relating to the voting, dividend rights
or disposition of the Shares. Upon the sale, transfer and delivery of the Shares to the Purchaser
pursuant to this Agreement, the Purchaser will acquire all interests of the Seller in and to the
Shares, free and clear of any Liens, other than (i) Liens imposed on the Shares as a result of
actions taken by the Purchaser or (ii) restrictions on transfer of the Shares under federal and
state securities laws as a result of the fact that the Shares have not been registered or qualified
for transfer under such laws.

     SECTION 4.6. Litigation. There are no Legal Proceedings pending or, to the Seller’s Knowledge, threatened
against the Seller or to which the Seller is a party (i) that relate to this Agreement or any
action taken or to be taken by the Seller in connection with, or which seek to enjoin or obtain
monetary damages in respect of, this Agreement or (ii) that would reasonably be expected
to adversely affect in any material respect the ability of the Seller to perform its obligations
under and consummate the transactions contemplated by this Agreement.

     SECTION 4.7. Non-Foreign Person. The Seller is not a foreign person within the meaning of section 1445(f)(3) of
the Code.

     SECTION 4.8. Absence of Seller Surety Defaults. There has been no act or omission on the part of the Seller
that constitutes a Seller Surety Default.

     SECTION 4.9. Fees. The Seller has not paid or become obligated to pay any fee or commission to any broker,
finder or other intermediary in connection with the transactions contemplated by this Agreement for
which the Purchaser or the Company will have any liability or responsibility whatsoever.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

OF THE COMPANY

     The Company hereby represents and warrants to the Purchaser that, on and as of the date of
this Agreement (or, to the extent a representation or warranty is made as of a specified date, as
of such date) except as set forth in the Disclosure Schedule delivered by the Company to the
Purchaser (the “Company Disclosure Schedule”):

10

 

     SECTION 5.1. Organization; Power and Authority. The Company is a corporation duly organized, validly existing
and in good standing under the laws of the State of Nevada. The Company is qualified to transact
business and is in good standing in each jurisdiction in which such qualification is required by
Law, except where the failure to be so qualified and in good standing would not reasonably be
expected, individually or in the aggregate, to have a Material Adverse Effect. The Company has all
requisite corporate power and authority to own, lease and operate its assets and properties and
conduct its businesses and operations as presently being conducted.

     SECTION 5.2. Authorization; Execution and Validity. The Company has all requisite corporate power and authority
to execute and deliver this Agreement and perform its obligations hereunder. The execution and
delivery of this Agreement by the Company and the performance by the Company of its obligations
hereunder have been duly and validly authorized by all necessary corporate action on the part of
the Company. This Agreement has been duly and validly executed and delivered by the Company and
(to the extent it relates to actions to be taken or covenants to be performed prior to or at
Closing) constitutes a valid and binding obligation of the Company, enforceable against the Company
in accordance with its terms, subject to the Enforceability Exceptions.

     SECTION 5.3. Absence of Conflicts. The execution and delivery by the Company of this Agreement, the performance
by the Company of its obligations hereunder and the consummation of the transactions contemplated
hereby will not (i) result in any violation or breach of any provision of the Organizational
Documents of the Company or any of its Subsidiaries, (ii) assuming that the Consents referred to in
Sections 5.3 and 5.4 of the Company Disclosure Schedule and Section 5.4 itself are made or
obtained, result in any violation or breach of, or constitute a default under, or constitute an
event creating rights in any Third Party of acceleration, termination, amendment, suspension,
revocation or cancellation or a loss of the Company’s or any of its Subsidiaries’ rights under, any
term or provision of any Contract, franchise, permit, license or other instrument or document to
which the Company or any of its Subsidiaries is a party or by which its or their respective
properties or assets are bound, (iii) assuming that the filings and Consents referred to in
Sections 5.3 and 5.4 of the Company Disclosure Schedule and in Section 5.4 itself are made or
obtained (and that the applicable “waiting period” under the HSR Act has expired or been
terminated), result in any material violation of any Law or any Order applicable to the Company or
any of its Subsidiaries or its or their respective properties or assets or (iv) result in the
creation of, or impose on the Company or any of its Subsidiaries any obligation to create, any Lien
other than Permitted Liens upon any properties or assets of the Company or any of its Subsidiaries,
except for any of the matters referred to in clause (ii) above which would not reasonably be
expected to have a Material Adverse Effect.

     SECTION 5.4. Governmental and Third Party Approvals. Assuming that the Consents referred to in Sections 5.3 and
5.4 of the Company Disclosure Schedule are made or obtained, there is no Governmental Requirement
or Third-Party Requirement applicable to the Company or any of its Subsidiaries which is necessary
for the valid execution and delivery by the Company of this Agreement, the due performance by the
Company of its obligations hereunder or the lawful consummation of the transactions contemplated
hereby, except for (i) the filing by or on behalf of the Seller, as the “ultimate parent entity” of
the Company, of notification with the FTC and DOJ under the HSR Act and the expiration or

11

 

termination of the applicable “waiting period” thereunder, (ii) any Governmental Requirement which,
if not satisfied, would not be material to the Company and its Subsidiaries, taken as a whole, and
(iii) any Third-Party Requirement which, if not satisfied, would not reasonably be expected to have
a Material Adverse Effect.

     SECTION 5.5. Capitalization of the Company. The Shares constitute all of the issued and outstanding Equity
Interests in the Company. The Shares have been duly authorized by all necessary corporate action
on the part of the Company, have been validly issued and are fully paid and nonassessable. The
corporate records of the Company reflect that all of the Shares are owned of record by the Seller.
None of the Shares were issued in violation of any preemptive rights or are subject to any
preemptive rights in favor of any Person other than a member of the Seller Group (it being
understood that, subject to the consummation of the transactions contemplated hereby, the Seller
hereby waives any such rights on behalf of itself and any member of the Seller
Group). There are no outstanding options, warrants, calls, rights, convertible securities or other
agreements or commitments of any character pursuant to which the Company is or will be obligated to
issue or sell any issued or unissued Equity Interests in the Company.

     SECTION 5.6. Financial Statements. Attached as Section 5.6 of the Company Disclosure Schedule are (i) the
audited consolidated balance sheets of the Company and its consolidated subsidiaries as of March
31, 2004, 2005 and 2006, in each case accompanied by the report of the Company’s independent public
accountants with respect thereto, together with the related unaudited consolidated statements of
operations, changes in stockholder’s equity and cash flows of the Company and its consolidated
subsidiaries for the years then ended (collectively, the “Annual Financial Statements”), and (ii)
the unaudited consolidated balance sheets of the Company and its consolidated subsidiaries as of
June 30, 2006, September 30, 2006 and December 31, 2006, together with the related unaudited
consolidated statement of operations, changes in stockholder’s equity and cash flows of the Company
and its consolidated subsidiaries for each three-month period ended on each such date
(collectively, the “Interim Financial Statements” and, together with the Annual Financial
Statements, the “Financial Statements”). The Financial Statements fairly present in all material
respects the consolidated financial position of the Company and its consolidated subsidiaries as of
the dates indicated, and the consolidated results of operations, changes in stockholder’s equity
and cash flows of the Company and its consolidated subsidiaries for the periods presented, in
accordance with GAAP applied on a consistent basis throughout the periods covered thereby, subject,
in the case of the statements of operations, changes in stockholder’s equity and cash flows
included in the Annual Financial Statements and each of the Interim Financial Statements, to (i)
the absence of footnotes thereto, (ii) the absence of normal year-end adjustments and (iii) the
other exceptions set forth in Section 5.6 of the Company Disclosure Schedule. The Company and its
Subsidiaries maintain a system of internal controls over financial reporting which provides
reasonable assurance regarding the reliability of its financial reporting and preparation of
financial statements in accordance with GAAP. In connection with their review and audit of the
Annual Financial Statements, the Company’s independent auditors have not identified to the Company,
nor is the Company aware of, any material weaknesses or significant deficiencies over the internal
controls of the Company or any of its Subsidiaries over financial reporting.

12

 

     SECTION 5.7. Liabilities. The Company and its Subsidiaries have no material liabilities or obligations (whether
absolute, contingent, accrued or otherwise), except for liabilities or obligations (i) reflected or
reserved against in the Latest Balance Sheet or described in the notes thereto, (ii) incurred by
the Company or its Subsidiaries in the Ordinary Course of Business after the date of the Latest
Balance Sheet or (iii) described in the Company Disclosure Schedule. In addition, the Company and
its Subsidiaries have no commitments to make any contributions to any university, foundation or
other organization qualified under Section 501(c)(3) of the Code in an aggregate amount exceeding
$50,000 in any fiscal year or exceeding an aggregate of $100,000 per commitment. No representation
or warranty is made in this Section 5.7 with respect to any liability or obligation arising with
respect to the subject
matter of the representations and warranties contained in Sections 5.10, 5.12, 5.13, 5.14, 5.15,
5.16, 5.17, 5.18, 5.19 or 5.22.

     SECTION 5.8. Absence of Certain Changes. From the date of the Latest Balance Sheet until the date hereof (or,
solely in the case of paragraph (a) below, from the date of the Latest Balance Sheet until the
Closing Date), the business of the Company and its Subsidiaries has been conducted in the Ordinary
Course of Business, and there has not been:

     (a) any event, occurrence or development which has had, or would reasonably be expected to
have, a Material Adverse Effect;

     (b) any damage, destruction, loss or casualty to any properties or assets of the Company or
any of its Subsidiaries, which is material to the businesses or operations of the Company and its
Subsidiaries, taken as a whole;

     (c) the creation of any Lien (other than a Permitted Lien) on any material properties or
assets of the Company or any of its Subsidiaries;

     (d) the transfer, lease, license, sale or other disposition of any properties or assets of the
Company or any of its Subsidiaries, other than dispositions of or other transactions involving
properties or assets that are not material to a Division and are in the Ordinary Course of
Business;

     (e) any capital expenditures by the Company or any of its Subsidiaries in an amount exceeding
$100,000 in the aggregate;

     (f) any change in compensation, severance or other employee benefits payable or to become
payable by the Seller Group, the Company or any of its Subsidiaries to any Designated Executive,
other than any changes (i) in the terms of Company Plans for the benefit of the Seller and its
Subsidiaries or ERISA affiliates generally that are implemented to comply with applicable Law or
that do not result in material costs to the Company or its Subsidiaries to maintain or implement or
(ii) provided for in the Change of Control Agreements;

     (g) any change (other than any immaterial change) in compensation, severance or other employee
benefits payable or to become payable by the Company or any of its Subsidiaries to its directors,
officers or employees (other than Designated Executives) other

13

 

than any changes (i) in the terms of
Company Plans for the benefit of the Seller and its Subsidiaries or ERISA affiliates generally that
are implemented to comply with applicable Law or that do not result in material costs to the
Company or its Subsidiaries to maintain or implement, (ii) required under the terms of any Company
Plans or other written or oral Contracts or (iii) in the Ordinary Course of Business pursuant to
other compensation programs (including bonus programs related to specific construction projects);

     (h) any acceleration of a material obligation of the Company or any Subsidiary under, the
termination or cancellation of, or any material modification to, a Material Contract, other than in
the Ordinary Course of Business;

     (i) any acceleration or delay in the collection of a material amount of the accounts
receivable of the Company or any of its Subsidiaries or any delay in the payment of any material
amount of accounts payable of the Company or any of its Subsidiaries, in each case outside of the
Ordinary Course of Business;

     (j) any equity or debt investment by the Company or any of its Subsidiaries in, or any loan
advances or capital contributions to, any other Person, other than investments, advances or capital
contributions to Subsidiaries of the Company or pursuant to Other Joint Venture Arrangements or
advances to employees, in each case in the Ordinary Course of Business;

     (k) any borrowing or other incurrence (including by way of guarantee) by the Company or any of
its Subsidiaries of more than $50,000 individually or in the aggregate of indebtedness for borrowed
money or in the form of capitalized lease obligations;

     (l) any issuance, sale or other disposition by the Company of any of its Equity Interests, or
the granting of any options, warrants or other rights to purchase or obtain (including upon
conversion, exchange or exercise) any of its Equity Interests;

     (m) any declaration, setting aside or payment of any dividend or distribution with respect to
the capital stock or other Equity Interests of the Company (whether in cash or in kind) or any
redemption, purchase or other acquisition of any of its capital stock or other Equity Interests;

     (n) any loan or advance by the Company or any of its Subsidiaries to, or any other transaction
between, the Company or any of its Subsidiaries on the one hand and any directors, officers or
employees of the Company or any of its Subsidiaries on the other hand, other than loans, advances
or relocation payments and the payment of compensation in the Ordinary Course of Business or as
permitted pursuant to changes in employment arrangements of the type described in paragraphs (f)
and (g) above;

     (o) any change in the accounting practices, procedures or methods, cash management practices
or practices regarding the maintenance of the books, accounts and records of the Company or any of
its Subsidiaries, except as required by GAAP and other than any increase in any reserve for Legal
Proceedings or other matters that the Company determined, in good faith, was appropriate or
advisable;

14

 

     (p) any action that, if taken after the date of this Agreement, would constitute a violation
of the covenants contained in Section 7.2(c) or (d); or

     (q) any commitment or agreement to do any of the foregoing.

     SECTION 5.9. Subsidiaries; Investments.

     (a) Section 5.9(a) of the Company Disclosure Schedule sets forth (i) the name of each
Subsidiary of the Company, (ii) the jurisdiction of incorporation or formation of each such
Subsidiary, (iii) the authorized, issued and outstanding capital stock or other Equity Interests in
each such Subsidiary and (iv) the names and addresses of the stockholders, equity holders or other
holders of Equity Interests in each such Subsidiary and the class and number of Equity Interests
held by each such holder. Section 5.9(a) also sets forth each joint venture, teaming or similar
arrangement that gives rise to a sharing of profits and expenses with respect to one or more
projects between the Company or any of its Subsidiaries on the one hand and any Third Party on the
other that is not set forth on such schedule pursuant to the immediately preceding sentence because
such joint venture or other arrangement does not constitute a Subsidiary of the Company (“Other
Joint Venture Arrangement”) in respect of which the Company or any of its Subsidiaries has an
obligation to make, or has made since April 1, 2005, any equity or debt investment, or any loans,
advances or capital contributions, in excess of $100,000. Except as set forth in Section 5.9(a) of
the Company Disclosure Schedule, the Company does not own, directly or indirectly, or have voting
rights with respect to, any capital stock or other Equity Interests in any corporation, partnership
or other Person.

     (b) Each Subsidiary of the Company that is organized as a corporation is duly incorporated,
validly existing and in good standing under the laws of the jurisdiction of its incorporation and
has all requisite corporate power and authority to own, lease and operate its properties and to
carry on its businesses as presently conducted. Each Subsidiary of the Company that is organized
as a limited partnership or a limited liability company is duly formed, validly existing and (if
applicable under the law of its jurisdiction of formation) in good standing under the laws of the
jurisdiction of its formation and has all requisite partnership or limited liability company power
and authority to own, lease and operate its properties and to carry on its businesses as presently
conducted. Each Subsidiary of the Company is duly qualified to transact business as a foreign
corporation, limited partnership or limited liability company (as the case may be) and is in good
standing in each jurisdiction in which the nature of its activities or the character of the
properties that it owns, leases or operates makes such qualification necessary, except where the
failure to be so qualified or in good standing would not reasonably be expected to have a Division
MAE. The Company has furnished or made available to the Purchaser correct and complete copies of
the Organizational Documents of each Subsidiary.

     (c) All of the issued and outstanding Equity Interests in each Subsidiary of the Company (i)
have been duly authorized, (ii) are validly issued, (iii) are (in the case of shares of capital
stock) fully paid and nonassessable or (in the case of partnership interests or limited liability
company interests) not subject to any future capital calls (except as provided in the
Organizational Documents of such Subsidiary or under applicable Law) and (iv) are owned by the
Company, directly or indirectly, free and clear of all Liens, other than

15

 

restrictions on transfer
under the Organizational Documents of such Subsidiary or under federal and state securities laws as
a result of the fact that the Equity Interests of such Subsidiary have not been registered or
qualified for transfer under such laws. None of the
issued and outstanding Equity Interests in any Subsidiary of the Company have been issued in
violation of any preemptive rights or are subject to any preemptive rights in favor of any Person
other than the Company or any of its Subsidiaries. There are no outstanding options, warrants,
calls, rights, convertible securities or other agreements or commitments of any character pursuant
to which the Company or any Subsidiary is or will be obligated to issue or sell any issued or
unissued Equity Interests in any Subsidiary of the Company.

     SECTION 5.10. Real Property.

     (a) Neither the Company nor any of its Subsidiaries owns any Real Property.

     (b) Section 5.10(b) of the Company Disclosure Schedule sets forth a correct and complete list
of all leasehold interests held by the Company or its Subsidiaries in any Real Property requiring
annual payments to be made by the Company or its Subsidiaries in excess of $5,000 (“Leasehold
Property”). The Company has heretofore made available to the Purchaser true and complete copies of
all leases under which the Company or any of its Subsidiaries uses or occupies any Leasehold
Property (the “Leases”). Each of the Leases constitutes a legal, valid and binding obligation of
the Company or the applicable Subsidiary of the Company, subject to the Enforceability Exceptions.
Neither the Company nor any of its Subsidiaries is in default under any Lease, nor has any notice
of default been received by the Company or any of its Subsidiaries, except for any such default or
notice of default that would not reasonably be expected to have a Division MAE. The Company and
its Subsidiaries hold their Leasehold Property under each Lease free and clear of any Liens, other
than Permitted Liens. There are no leases, subleases, licenses, concessions or other agreements,
written or oral, pursuant to which the Company or any of its Subsidiaries has granted to any Person
the right of use or occupancy of any portion of the Leasehold Property held by the Company or any
of its Subsidiaries under a Lease.

     SECTION 5.11. Title to Tangible Assets. The Company and its Subsidiaries own and have good and valid title to,
or have valid rights to use, all material tangible personal property used by them in connection
with the conduct of their respective businesses, in each case, free and clear of all Liens, other
than Permitted Liens.

     SECTION 5.12. Material Contracts; Warranties and Surety Bonds. As of the date hereof:

     (a) Section 5.12(a) of the Company Disclosure Schedule lists all of the following Contracts
(collectively, the “Material Construction Contracts”):

     (i) each Contract under which the Company or any of its Subsidiaries has agreed to
provide Construction Services and which contains a commitment as of November 30, 2006 on
the part of any Person or Persons to make future payments
to the Company or any of its Subsidiaries for such services in an aggregate amount in
excess of $50,000,000; and

16

 

     (ii) each subcontract, purchase order or other Contract with any Material
Subcontractor relating to the provision by such Material Subcontractor of services to the
Company or its Subsidiaries in connection with the performance of Construction Services by
the Company or any of its Subsidiaries, other than any Contract which contains a commitment
as of November 30, 2006 on the part of the Company or any of its Subsidiaries to make
future payments in an amount less than $5,000,000.

     (b) Section 5.12(b) of the Company Disclosure Schedule lists all of the following Contracts
(collectively, the “Other Material Contracts”):

     (i) each Contract (other than any Contract under which the Company or any of its
Subsidiaries has agreed to provide Construction Services) which contains a commitment on
the part of any Person or Persons to make future payments to the Company or any of its
Subsidiaries in an aggregate amount in excess of $500,000;

     (ii) each Contract (other than a subcontract, purchase order or other Contract under
which any Person or Persons have agreed to provide materials, supplies or services to the
Company or a Subsidiary in connection with the performance of Construction Services by the
Company or any of its Subsidiaries) which contains a commitment as of December 31, 2006 on
the part of the Company or any of its Subsidiaries to make future payments to any other
Person or Persons in an aggregate amount in excess of $250,000;

     (iii) each Contract governing any Other Joint Venture Arrangement which relates to a
project in respect of which the aggregate future revenues expected to be paid to the
Company or any of its Subsidiaries exceeds $10,000,000;

     (iv) each Contract which provides for the borrowing of funds, incurrence of
indebtedness or guaranty of any indebtedness of any Person by the Company or any of its
Subsidiaries, or the issuance of any letter of credit for which the Company or any of its
Subsidiaries has a reimbursement obligation;

     (v) each Contract under which the Company or any of its Subsidiaries have agreed to
indemnify or reimburse any surety in respect of amounts paid or claimed against any Surety
Bonds;

     (vi) each Contract (other than any Contract listed in Section 5.10(b) of the Company
Disclosure Schedule) which provides for the sale or lease of any material properties or
assets by or to the Company or any of its Subsidiaries;

     (vii) each Contract containing covenants limiting the freedom of the Company or any of
its Subsidiaries to compete in any line of business or with any other Person; and

     (viii) each other Contract (other than any Contract under which the Company or any of
its Subsidiaries has agreed to provide Construction Services, any subcontract, purchase
order or other Contract with a subcontractor or any

17

 

Contract listed in Section 5.10(b),
5.13(b), 5.16, 5.17(d), 5.20 or 5.21 of the Company Disclosure Schedules) that is material
to any Division, taken as a whole.

     (c) The Company has made available to the Purchaser true and correct copies of each Material
Construction Contract and Other Material Contract (collectively, the “Material Contracts”). To the
Company’s Knowledge, each Material Contract is in full force and effect and enforceable against the
Person or Person who has agreed to provide such benefits, subject to the Enforceability Exceptions.
Neither the Company nor any of its Subsidiaries is in breach or default in the performance of its
duties and obligations under any Material Contract, except for any such breach or default that
would not reasonably be expected to have a Division MAE. In addition, with respect to each
Material Contract:

     (i) since April 1, 2005, the Company has not received any written notice from the
Third Party that is a party to such Material Contract stating that such Third Party intends
to cancel or terminate such Material Contract or to assert a claim against the Company or
any of its Subsidiaries for liquidated damages thereunder;

     (ii) the Company has not received written notice of, and to the Company’s Knowledge,
there is not pending or threatened, any dispute or controversy with respect to any Material
Contract between the Company or any of its Subsidiaries on the one hand and the Third Party
or Third Parties that are parties thereto on the other hand, except, in each case, for any
dispute or controversy that is not material to the Division that is responsible for
performing such Material Contract; and

     (iii) None of the Material Contracts contains a Change of Control Provision or a
provision prohibiting direct or indirect ownership of the Equity Interests of the Company
by any Person that is a citizen of, or organized or incorporated under the laws of, any
jurisdiction other than the United States or any states or territories thereof.

     (d) Section 5.12(d) of the Company Disclosure Schedule sets forth a list of all outstanding
contractual warranties and guarantees furnished by or on behalf of the Company or any of its
Subsidiaries with respect to Construction Services performed by them or the construction projects
in connection with which such services were performed that have been completed since April 1, 2005
and which extend beyond one year from the date of completion of such Construction Services or
construction projects, excluding warranties and guarantees furnished by subcontractors, material
suppliers or other third parties and excluding warranties and guarantees for which the Company has
reasonable and appropriate insurance coverage.

     (e) Section 5.12(e) of the Company Disclosure Schedule sets forth a list of all Surety Bonds
(bid, performance or other) outstanding as of December 31, 2006 which were obtained in connection
with ongoing Construction Services being performed by the
Company or any of its Subsidiaries as of such date and as to which the Company or any of its
Subsidiaries have any reimbursement or similar obligation; provided, that for the avoidance of
doubt, Section 5.12(e) of the Company Disclosure Schedule (and any update

18

 

delivered pursuant to
Section 2.2) does not list any Surety Bonds relating to Construction Services that have been
completed as of such date but that remain outstanding for statutory or warranty purposes.

     (f) Section 5.12(f) of the Company Disclosure Schedule sets forth a list of all Claims
asserted in writing against the Company since April 1, 2005 (i) by any Third Party against the
Company or any of its Subsidiaries with respect to the warranties and guarantees listed in Section
5.12(d) of the Company Disclosure Schedule, (ii) by any Owner with respect to the warranties
provided to such Owner under a Contract for Construction Services between the Company or any of its
Subsidiaries and such Owner, (iii) by any First Tier Subcontractor against any sureties of the
Company or its Subsidiaries with respect to the outstanding Surety Bonds listed in Section 5.12(e)
of the Company Disclosure Schedule or (iv) by any subcontractor to the Company or any of its
Subsidiaries that is not a First Tier Subcontractor in an amount in excess of $1,000,000 against
any sureties of the Company or its Subsidiaries with respect to the outstanding Surety Bonds listed
in Section 5.12(e) of the Company Disclosure Schedule.

     (g) Part I of Section 5.12(g) of the Company Disclosure Schedule contains a copy of the
Company’s Project Dispute List dated December 31, 2006 (the “Project Dispute List”). The Project
Dispute List was prepared by management of the Company in the Ordinary Course of Business on a
basis in accordance with the principles and procedures described in Part II of Section 5.12(g) of
the Company Disclosure Schedule. The description contained in the Project Dispute List of each
disputed matter between the Company or any of its Subsidiaries on the one hand and any Third Party
on the other hand in connection with any Contract for the performance of Construction Services,
together with the estimated loss amounts arising out of such disputed matters and set forth in the
Project Dispute List, reflects the good faith assessment of management of the Company based on the
information available to management as of the date of the Project Dispute List. The Company has
made available to the Purchaser a true and correct copy of each Contract listed in the Project
Dispute List.

     (h) Section 5.12(h) of the Company Disclosure Schedule lists all of the following Contracts:

     (i) each Contract between the Company or any of its Subsidiaries on the one hand and
any Governmental Authority on the other hand that contains a Change of Control Provision or
a provision prohibiting direct or indirect ownership of the Equity Interests of the Company
by any Person that is a citizen of, or organized or incorporated under the laws of, any
jurisdiction other than the United States or any states or territories thereof;

     (ii) each Contract under which the Company or any of its Subsidiaries grants any power
of attorney or similar authority to (A) any Person other than any director, officer or
employee of the Company or (B) any director or officer of the Company whose resignation is
to be submitted at the Closing pursuant to Section
2.2(o) other than, in each case, any power of attorney or similar authority that is
contained in or ancillary to any Surety Bond, Organizational Documents of the

19

 

Company or
any of its Subsidiaries, any license agreement or in any Other Joint Venture Agreement
entered into in the Ordinary Course of Business.

     SECTION 5.13. Intellectual Property.

     (a) Section 5.13(a) of the Company Disclosure Schedule lists each of the following:

     (i) all issued Patents and pending Patent applications, if any, in which the Company
or any of its Subsidiaries has an ownership interest;

     (ii) all registered Trademarks and pending Trademark applications and registrations
and material unregistered Trademarks, if any, in which the Company or any of its
Subsidiaries has an ownership interest; and

     (iii) all registered Copyrights and pending Copyright applications, if any, in which
the Company or any of its Subsidiaries has an ownership interest.

     (b) Section 5.13(b) of the Company Disclosure Schedule lists each of the following:

     (i) all licenses under which any material Intellectual Property used in the businesses
of the Company or any of its Subsidiaries is licensed to the Company or any of its
Subsidiaries by a Third Party (excluding any “off the shelf,” “shrink-wrap” or
“click-through” licenses); and

     (ii) all licenses granted by the Company or any of its Subsidiaries to any Third Party
relating to any material Intellectual Property owned by the Company or any of its
Subsidiaries.

     (c) To the Company’s Knowledge, each of the Company and its Subsidiaries owns or has (or, in
the case of Trademarks identified in Section 5.13(a) of the Company Disclosure Schedule, will own
or have as of the Closing Date) a valid right to use all Intellectual Property identified in
Sections 5.13(a) and (b) of the Company Disclosure Schedule that is currently used in the
businesses of the Company and its Subsidiaries, other than any Trademarks that contain the word
“Centex” (which will be retained by Centex and as to which the Company and its Subsidiaries will
not have any rights after the Closing).

     (d) Since April 1, 2005, neither the Company nor any of its Subsidiaries has received any
written notice asserting that the conduct of their businesses infringes upon or violates any
Intellectual Property of any Person other than any immaterial infringement or violation.

     SECTION 5.14. Litigation

     (a) Section 5.14 of the Company Disclosure Schedule sets forth a correct and complete list of
all material Legal Proceedings pending or, to the Company’s Knowledge, threatened in writing
against the Company or any of its Subsidiaries or any of their respective properties, assets or
businesses.

20

 

     (b) As of the date hereof, there are no Legal Proceedings pending or, to the Company’s
Knowledge, threatened against the Company (i) that relate to this Agreement or any action taken or
to be taken by the Company in connection with, or which seek to enjoin or obtain monetary damages
in respect of, this Agreement or (ii) that would reasonably be expected to adversely affect the
ability of the Company to perform its material obligations under and consummate the transactions
contemplated by this Agreement.

     SECTION 5.15. Labor and Employment Matters. Neither the Company nor any of its Subsidiaries is a party to or
bound by any collective bargaining agreement or other similar labor contract, nor is any such
contract or agreement in the process of being negotiated. To the Company’s Knowledge, there are no
activities or proceedings of any labor union to organize any employees of the Company or any of its
Subsidiaries. No work stoppage or labor strike against the Company or any of its Subsidiaries is
pending or, to the Company’s Knowledge, threatened. There are no unfair labor practice complaints
pending or, to the Company’s Knowledge, threatened against the Company or any of its Subsidiaries
in connection with the business or operations of the Company and its Subsidiaries which would
reasonably be expected to result in a loss in excess of $50,000. The Company and its Subsidiaries
are in compliance in all material respects with all applicable state and federal Laws respecting
employment. There are no pending, or to the Company’s Knowledge, threatened material administrative
charges, complaints or other proceedings alleging discrimination, wrongful discharge, violation of
state and federal wage and hour laws, or asserting any other material claims relating to the
employment practices of the Company or any of its Subsidiaries. Since April 1, 2005, the Company
has not taken any action which has constituted a “mass layoff” or “plant closing” within the
meaning of the WARN Act or has otherwise triggered notice requirements or liability under any local
or state plant closing notice law.

     SECTION 5.16. Employee Benefits.

     (a) Schedule 5.16(a) sets forth a true and complete list of each Company Plan, which
identifies each Company Plan that is (i) sponsored or maintained by the Company or any of its
Subsidiaries at the Company or Subsidiary level and (ii) each Company Plan that is sponsored or
maintained by Seller or any other member of the Seller Group (each such Plan described in clause
(ii) shall be hereinafter referred to as a “Seller Plan”). With respect to each Company Plan, the
Company has made available to the Purchaser a true and correct copy of (A) the three most recent
annual reports (Form 5500) filed with the applicable government agency, (B) each such Company Plan
that has been reduced to writing and all amendments thereto, (C) each trust agreement, insurance
contract or
administration agreement relating to each such Company Plan, (D) a written summary of each
unwritten Company Plan, (E) the most recent summary plan description or other written explanation
of each Company Plan provided to participants, (F) the most recent actuarial report or valuation
relating to a Company Plan subject to Title IV of ERISA, (G) the most recent determination letter
or opinion letter and request therefor, if any, issued by the IRS with respect to any Company Plan
intended to be qualified under section 401(a) of the Code, (H) any request for a determination
currently pending before the IRS as to qualification under Section 401(a) of the Code, (I) all
correspondence with the IRS, the Department of Labor, or Pension Benefit Guaranty Corporation
relating to any outstanding controversy or with respect to any other material matter that has been
resolved in the

21

 

previous three years, and (J) all forms and certificate samples used to comply with
Sections 4980B, 9801 and 9802 of the Code. Each Company Plan complies in form and has complied in
operation in all material respects with its own terms and with all applicable requirements of
ERISA, the Code and all other applicable Laws. No “reportable event” (within the meaning of
Section 4043 of ERISA) has occurred with respect to any Company Plan for which the 30 day notice
requirement has not been waived. Neither the Seller, the Company nor any of their ERISA Affiliates
(as hereinafter defined) has had any obligation to contribute to any Company Multiemployer Plan
within the past six years. No action has been taken, or is currently being considered, by the
Seller or the Company or any ERISA Affiliate to terminate or withdraw from any Company Plan nor any
other plan maintained by the Seller, the Company or any ERISA Affiliate subject to Title IV of
ERISA (“Group Pension Plan”) and, to the Company’s Knowledge, the Pension Benefit Guaranty
Corporation has not taken any action to initiate the termination of any such Company Plan or Group
Pension Plan. No Company Plan nor Group Pension Plan, nor any trust created thereunder, has
incurred any “accumulated funding deficiency” (as defined in Section 302 of ERISA), whether or not
waived. No Company Plan is subject to Title IV of ERISA.

     (b) To the Company’s Knowledge, except for routine contributions due and owing, with respect
to the Company Plans, no event has occurred and there exists no condition or set of circumstances
in connection with which the Company or any of its Subsidiaries or ERISA Affiliates or Company Plan
or Group Pension Plan fiduciary could be subject to any material liability under the terms of such
Company Plans, Group Pension Plan, ERISA, the Code or any other applicable Law. All Company Plans
that are intended to be qualified under Section 401(a) of the Code have been determined by the IRS
to be so qualified, or a timely application for such determination is now pending and, to the
Company’s Knowledge, there is no reason why any such Company Plan is not so qualified in operation.
None of the Seller, the Company nor any of the Company’s Subsidiaries or ERISA Affiliates has any
liability or obligation under any welfare plan to provide benefits after termination of employment
to any employee or dependent other than as required by Section 4980B of the Code.

     (c) Section 5.16(c) of the Company Disclosure Schedule contains a list of all (i) employment
and severance agreements with directors, officers or other employees of the Company or any of its
Subsidiaries, (ii) severance programs and policies of the Company or any of its Subsidiaries with
or relating to employees of the Company or its Subsidiaries and (iii) plans, programs, agreements
and other arrangements of the Company or any of its Subsidiaries with or relating to employees of
the Company or its Subsidiaries containing Change of Control Provisions.

     (d) Neither the Company nor any of its Subsidiaries is a party to any agreement, contract or
arrangement that could result, separately or in the aggregate, in the payment, acceleration or
enhancement of any employee benefit as a result of the transactions contemplated hereby including
the payment of any “excess parachute payments” within the meaning of Section 280G of the Code.

     (e) There is no Company Plan that is subject to the laws of a foreign government or
jurisdiction.

22

 

     SECTION 5.17. Taxes.

     (a) All material Tax Returns that are or were required to be filed by or with respect to the
Company or any of its Subsidiaries, either separately or as a member of a group of corporations,
pursuant to applicable Law, have been filed and are complete and accurate in all material respects.
The Company has delivered or made available to the Purchaser copies of all federal, state and
local income Tax Returns that pertain solely to the Company or any of its Subsidiaries during the
period of ownership of such Subsidiary which were filed for periods beginning on or after April 1,
2001. The Company and its Subsidiaries have paid all Taxes that are due under applicable Law,
including any Taxes shown on any such Tax Returns.

     (b) None of the federal or state income Tax Returns of the Company or any of its Subsidiaries
has been audited by relevant federal or state tax authorities. No adjustments have been made by
the IRS to the income of the Company or any of its Subsidiaries on the United States federal income
Tax Returns filed by the Company and its Subsidiaries as members of the consolidated return group
which includes the Company and its Subsidiaries. Neither the Company, the parent of its
consolidated return group, nor any of the Company’s Subsidiaries has given or been requested to
give waivers or extensions (or is or would be subject to a waiver or extension given by any other
Person) of any statute of limitations relating to the payment of Taxes for which the Company or any
such Subsidiary may be liable. No audit or other proceeding by any Governmental Authority is
pending or, to the Company’s Knowledge, threatened with respect to any Taxes due from or with
respect to the Company or any of its Subsidiaries or any Tax Return filed by or with respect to the
Company or any of its Subsidiaries.

     (c) All Taxes that are or were required by Law to be withheld or collected by the Company or
any of its Subsidiaries have been duly withheld or collected and, to the extent required, have been
paid to the proper Governmental Authority or other Person.

     (d) The tax sharing policy of the Seller and its Affiliates shall be terminated as it applies
to the Company and its Subsidiaries prior to the Closing and neither the Company nor any Subsidiary
will have any obligations with respect to any tax sharing agreement or policy from and after the
Closing.

     (e) There are no Liens with respect to Taxes which have been placed on the assets or stock of
the Company or any of its Subsidiaries, except for Permitted Liens.

     (f) In the last five years, neither the Company nor any of its Subsidiaries has been a party
to a transaction that has been reported as a reorganization within the meaning of Code section 368,
or distributed as a corporation (or been distributed) in a transaction that is reported to qualify
under Code section 355.

     (g) In the last five years, no claim has been made in writing by any taxing authority in a
jurisdiction where the Company or its Subsidiaries do not file Tax Returns that it is or may be
subject to taxation by, or required to file any Tax Return in, that jurisdiction with respect to
any income or other material Taxes.

23

 

     (h) Neither the Company nor any of its Subsidiaries has been a party to a “reportable
transaction” as such term is defined in Treasury Regulation Section 1.6011-4(b)(1) or to a
transaction that is or is substantially similar to a “listed transaction,” as such term is defined
in Treasury Regulation Section 1.6011-4(b)(2).

     (i) Under United States federal, state and local and foreign Tax law, neither the Purchaser
nor the Company is required to deduct and withhold any amount from the Purchase Price to be paid to
any Person pursuant to Article I.

     (j) Each of the entities identified in Section 5.17(j) of the Company Disclosure Schedule
qualifies (and has since the date of each such entity’s formation qualified), and will qualify
immediately after the Closing Date, to be treated as a partnership or entity disregarded as
separate from its owners for United States federal income tax purposes, and none of the Company,
any person in the Seller Group, or the IRS has taken a position inconsistent with such treatment.

     SECTION 5.18. Permits; Compliance with Laws. The Company and its Subsidiaries hold all Permits that are material
to the Company and its Subsidiaries, taken as a whole, or material to any Division and are required
to conduct the business and operations of the Company and its Subsidiaries (“Material Permits”).
The Company and each of its Subsidiaries has fulfilled and performed in all material respects its
obligations under each of its Material Permits, and each such Material Permit is valid, existing
and in full force and effect. Since April 1, 2005, neither the Company nor any of its Subsidiaries
has received any written notice or, to the Company’s Knowledge, any other notice, that it is in
violation of any of the terms or conditions of any such Material Permit other than any immaterial
violation. The Company and its Subsidiaries have conducted their operations in material compliance
with all applicable Laws, including Laws regulating the performance of Construction Services;
provided, however, that the foregoing representations and warranties do not address any of the
matters expressly covered by Section 5.1, 5.9(b), 5.13, 5.15, 5.16, 5.17 or 5.19.

     SECTION 5.19. Environmental Laws.

     (a) The Company and its Subsidiaries have obtained or filed applications for all material
Permits required under applicable Environmental Laws to conduct their respective businesses as they
are currently being conducted.

     (b) The Company and its Subsidiaries have conducted their respective businesses in compliance
in all material respects with all applicable Environmental Laws.

     (c) No written notification, demand, request for information, citation or order under and
arising out of any actual or alleged material violation of any Environmental Law has been issued to
or filed against the Company or its Subsidiaries since April 1, 2002.

     (d) No investigation or review is pending for which the Company has received written
notification and, to the Company’s Knowledge, no investigation or review is threatened against the
Company or its Subsidiaries, in either case by any Governmental

24

 

Authority under and arising out of
any actual or alleged material violation of any applicable Environmental Law in connection with the
conduct of their respective businesses.

     (e) To the Company’s Knowledge, there are no Claims for personal injury which have been
asserted against the Company or any of its Subsidiaries since April 1, 1996 as a result of damages
caused by the presence of mold or asbestos at any Owner’s site where the Company or any of its
Subsidiaries has provided or is providing Construction Services.

     SECTION 5.20. Insurance. Part I of Section 5.20 of the Company Disclosure Schedule lists the insurance policies
maintained by the Company and its Subsidiaries. Part II of Section 5.20 of the Company Disclosure
Schedule lists the insurance policies maintained by the Seller Group that provide coverage for the
businesses, assets and/or properties of the Company and its Subsidiaries. All of such policies are
in full force and effect and none of the Company or any of its Subsidiaries is in material default
of any provision thereof or has received notice of cancellation or termination thereof. Except as
described in Part I of Section 5.20 of the Company Disclosure Schedule, the policies listed therein
will continue in effect after the consummation of the transactions contemplated by this Agreement
until the termination or expiration thereof in accordance with their respective terms. The
policies listed in Part II of Section 5.20 of the Company Disclosure Schedule will terminate as to
the Company and its Subsidiaries upon the consummation of the transactions contemplated by this
Agreement, and the Company and its Subsidiaries will have no further coverage or rights thereunder,
except that this sentence shall not apply to the rights of the Company under Section 7.15 in
respect of coverage that continues to be provided to members of the Seller Group thereunder.

     SECTION 5.21. Affiliated Transactions. There is no written or oral Contract, arrangement, liability or
obligation between the Company or any of its Subsidiaries, on the one hand, and any member of the
Seller Group, on the other hand, that will continue in effect or give rise to any obligation on the
part of the Company or any of its Subsidiaries after the Closing Date in excess of $50,000. Other
than
travel advances made to employees of the Company or any of its Subsidiaries in the Ordinary Course
of Business, neither the Company nor any of its Subsidiaries has any loan outstanding to, and since
January 1, 2005 has not extended or maintained credit to, any director, officer or employee of the
Company or any of its Subsidiaries.

     SECTION 5.22. Fees. Neither the Company nor any of its Subsidiaries has paid or become obligated to pay any fee
or commission to any broker, finder or intermediary in connection with the transactions
contemplated hereby.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

OF PURCHASER

     The Purchaser hereby represents and warrants to the Seller that, except as set forth in the
Disclosure Schedule delivered by the Purchaser to the Seller (the “Purchaser Disclosure Schedule”):

25

 

     SECTION 6.1. Organization; Power and Authority. The Purchaser is a corporation duly organized,
validly existing and in good standing under the laws of Delaware. The Purchaser has all requisite
corporate power and authority to own and operate its properties and assets and conduct its business
and operations as presently being conducted.

     SECTION 6.2. Authorizations; Execution and Validity. The Purchaser has all requisite power and
authority to execute and deliver this Agreement, perform its obligations hereunder and consummate
the transactions contemplated hereby. The execution and delivery of this Agreement by the
Purchaser, the performance by the Purchaser of its obligations hereunder and the consummation by
the Purchaser of the transactions contemplated hereby have been duly authorized by all necessary
action on the part of the Purchaser. This Agreement has been duly and validly executed and
delivered by the Purchaser, constitutes a valid and binding obligation of the Purchaser and is
enforceable against the Purchaser in accordance with its terms, subject to the Enforceability
Exceptions.

     SECTION 6.3. Absence of Conflicts. The execution and delivery by the Purchaser of this Agreement,
the performance by the Purchaser of its obligations hereunder and the consummation by the Purchaser
of the transactions contemplated hereby will not (i) result in any violation or breach of any
provision of the Organizational Documents of the Purchaser, (ii) result in any violation or breach
of, or constitute a default under, any term or provision of any Contract, franchise, permit,
license or other instrument or document to which the Purchaser is a party or by which its
properties or assets are bound or (iii) assuming that the filings referred to in Section 6.4 are
made (and that the applicable “waiting period” under the HSR Act has
expired or been terminated), result in any violation of any Law or any Order applicable to the
Purchaser or its properties or assets, except for any of the matters referred to in clauses (ii) or
(iii) above which would not reasonably be expected to prevent, impede or materially delay or
otherwise affect in any material respect the transactions contemplated by this Agreement.

     SECTION 6.4. Governmental and Third Party Approvals. There is no Governmental Requirement or
Third-Party Requirement applicable to the Purchaser which is necessary for the valid execution and
delivery by the Purchaser of this Agreement, the due performance by the Purchaser of its
obligations hereunder or the lawful consummation by the Purchaser of the transactions contemplated
hereby, except for (i) the filing by or on behalf of the Purchaser or its “ultimate parent entity”
of notification with the FTC or DOJ under the HSR Act and the expiration or termination of the
applicable “waiting period” thereunder and (ii) any other requirement which, if not satisfied,
would not reasonably be expected to prevent, impede, delay or materially delay or otherwise affect
in any material respect the transactions contemplated by this Agreement.

     SECTION 6.5. Litigation. There are no Legal Proceedings pending or, to the Purchaser’s knowledge,
threatened against the Purchaser or to which the Purchaser is a party (i) that relate to this
Agreement or any action taken or to be taken by the Purchaser in connection with, or which seek to
enjoin or obtain monetary damages in respect of, this Agreement or (ii) that would reasonably be
expected to adversely affect in any material respect the ability of the Purchaser to perform its
obligations under and consummate the transactions contemplated by this Agreement.

26

 

     SECTION 6.6. Sophisticated Purchaser; Access to Information; Investment Intent.

     (a) The Purchaser (i) is knowledgeable, sophisticated and experienced in business and
financial matters of the type contemplated by this Agreement, (ii) is able to bear the economic
risks associated with its investment in the Shares, (iii) has been furnished with certain
information relating to the Company and its Subsidiaries relevant to the investment by the
Purchaser in the Shares and (iv) has been afforded the opportunity to ask questions regarding such
matters; provided, that nothing in this Section 6.6(a) shall (or is intended to) limit the
Purchaser’s rights to indemnification pursuant to Article XII.

     (b) The Purchaser is acquiring the Shares for its own account for the purpose of investment
and not with a view to or for sale in connection with any distribution thereof in violation of the
Securities Act or any other applicable federal or state securities laws. The Purchaser has not
agreed to transfer the Shares to any other Person or to grant any rights in the Shares to any other
Person except in compliance with the Securities Act or any other applicable federal or state
securities laws.

     (c) The Purchaser understands that the Shares have not been registered under the Securities
Act or the applicable securities or blue sky laws of any State or other
jurisdiction and, accordingly, must be held indefinitely unless a subsequent sale or other
transfer thereof is registered under the Securities Act and such securities or blue sky laws or is
exempt from registration thereunder.

     (d) The Purchaser is an “accredited investor” as defined in Rule 501(a) under the Securities
Act.

     (e) The Purchaser understands that the exemptions from registration under the Securities Act
and state securities or blue sky laws relied upon by the Seller in connection with the sale of the
Shares pursuant to this Agreement are based in part on the matters addressed in this Section 6.6.

     SECTION 6.7. Financing. The Purchaser has, and will have as of the Closing Date, sufficient funds
with which to pay the Initial Purchase Price, together with all fees and expenses incurred by or on
its behalf in connection with the transactions contemplated by this Agreement.

     SECTION 6.8. Fees. The Purchaser and its Affiliates have not paid or become obligated to pay any
fee or commission to any broker, finder or intermediary in connection with the transactions
contemplated hereby.

ARTICLE VII

COVENANTS

     SECTION 7.1. Cooperation; Certain Consents and Approvals.

     (a) From the date hereof until the Closing Date, upon the terms and subject to the conditions
of this Agreement, each of the parties shall use commercially reasonable efforts to take, or cause
to be taken, all actions, and to do, or cause to be done, all things

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necessary, proper or advisable
(subject to any applicable Laws) to consummate the transactions contemplated by this Agreement as
promptly as practicable, including the preparation and filing of all forms, registrations and
notices required to be filed to consummate the transactions contemplated hereby, and the taking of
such actions as are necessary to obtain any requisite Consents, Orders, Permits, qualifications,
exemptions or waivers from any Third Party or Governmental Authority. As used in this Section 7.1,
the term “commercially reasonable efforts” shall not be deemed to include (i) entering into any
settlement, undertaking, consent decree, stipulation or agreement with any Governmental Authority
in connection with the transactions contemplated hereby or (ii) divesting or otherwise holding
separate (including by establishing a trust or otherwise), or taking any other similar action (or
otherwise agreeing to do any of the foregoing) with respect to any party hereto or any of its
Subsidiaries or any of their respective Affiliates’ businesses, assets or properties; provided,
however, that, (A) in the case of any actions that are necessary to obtain any required security
clearances or any requisite Consents, Orders, Permits,
qualifications, exemptions or waivers from the Defense Security Service, clause (ii) above
shall not be construed to limit the obligation of the Purchaser or the Company to enter into any
security agreement, enter into any voting trust, hold separate any Subsidiaries of the Company or
any assets or personnel used in the performance of Contracts of the Company or any of its
Subsidiaries for which a security clearance is required or take any other similar action (or agree
to do any of the foregoing) and (B) in the case of actions that are necessary in order to satisfy
the condition set forth in Section 9.5, clause (ii) above shall not be construed to limit the
obligation of the Purchaser or the Company to modify the terms of, or divest or transfer to a Third
Party, any Contract of the Company or any of its Subsidiaries if required in order to satisfy the
requests or demands of any Governmental Authority that is a party to such Contract or for whom the
work in connection with such Contract is to be performed. In addition, no party shall knowingly
take any action from the date hereof until the Closing Date (other than any action required to be
taken under this Agreement or to which the other parties shall have granted their consent) that
would reasonably be expected to materially delay the obtaining of, or result in not obtaining, any
Consent, Order, Permit, qualification, exemption or waiver from any Governmental Authority or other
Person required to be obtained prior to Closing.

     (b) To the extent permitted by applicable Law and subject to any limitations on access to
information provided for in Section 7.3, each party shall consult with the other parties with
respect to, and provide any information reasonably requested by the other parties in connection
with, all material filings made with any Governmental Authority in connection with this Agreement
and the transactions contemplated hereby. If any party or any of its Affiliates receives a request
for information or documentary material from any Governmental Authority with respect to any of the
transactions contemplated hereby, such party shall endeavor in good faith to make, or cause to be
made, as soon as reasonably practicable and, to the extent permitted by applicable Law, after
consultation with the other parties, an appropriate response in compliance with such request.

     (c) In addition to and without limiting any of the other covenants of the parties contained in
this Section 7.1, the Purchaser and the Company shall (i) take promptly all actions necessary to
make the filings required of them or their “ultimate parent entities” under the HSR Act, (ii)
comply, at the earliest practicable date, with any request for additional information or
documentary material received by them, or any of their respective

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Affiliates from the FTC or the
DOJ pursuant to the HSR Act or from any state attorney general or other Governmental Authority in
connection with antitrust matters, (iii) cooperate with each other in connection with any filing
under the HSR Act and in connection with resolving any investigation or other inquiry concerning
the transactions contemplated hereby commenced by the FTC, DOJ, any state attorney general or any
other Governmental Authority, (iv) use commercially reasonable efforts to resolve such objections,
if any, as may be asserted with respect to the transactions contemplated hereby under any antitrust
Law (subject to the proviso contained in the first sentence of Section 7.1(a)), (v) not agree to
participate in any meeting or discussion with any Governmental Authority in connection with
proceedings under or relating to the HSR Act or the Exon-Florio Amendment, unless it consults with
the other parties in advance, and, to the extent permitted by such Governmental Authority, gives
the other parties the opportunity to attend and participate thereat, (vi) consult and cooperate
with one another in connection with all analyses, appearances, presentations, memoranda, briefs,
arguments, opinions and proposals
made or submitted by or on behalf of any party hereto in connection with proceedings under or
relating to the HSR Act or the Exon-Florio Amendment and (vii) advise the other parties promptly of
any material communication received by such party from the FTC, DOJ, CFIUS, any state attorney
general or any other Governmental Authority regarding any of the transactions contemplated hereby,
and of any understandings, undertakings or agreements (oral or written) such party proposes to make
or enter into with the FTC, DOJ, CFIUS any state attorney general or any other Governmental
Authority in connection with the transactions contemplated hereby. Concurrently with the filing of
notifications under the HSR Act or as soon thereafter as practicable, the Purchaser and the Company
shall each request early termination of the applicable “waiting period” under the HSR Act.

     (d) The Purchaser and the Seller shall prepare and file within three Business Days following
the date hereof a joint notice under the Exon-Florio Amendment with the Committee on Foreign
Investment in the United States (“CFIUS”) with respect to the transactions contemplated by this
Agreement (the “CFIUS Notice”). The Purchaser and Seller shall use commercially reasonable efforts
to obtain confirmation from the staff of CFIUS that the transactions contemplated by this Agreement
do not fall within the scope of transactions requiring investigation under the Exon-Florio
Amendment. Notwithstanding the provisions of section 7.1(a), if requested by any Governmental
Authority in connection with its consideration of the transactions contemplated by this Agreement,
the Purchaser and Seller shall use commercially reasonable efforts to mitigate Foreign Ownership,
Control or Influence on the Purchaser and/or any concerns raised by CFIUS.

     SECTION 7.2. Conduct of Business. From the date hereof until the Closing Date, the Company shall
(and shall cause each of its Subsidiaries to), unless the Purchaser shall otherwise consent in
writing (which consent shall not be unreasonably withheld or delayed) or except as described in
Section 7.2 of the Company Disclosure Schedule or as otherwise specifically contemplated by this
Agreement:

     (a) operate its businesses only in the Ordinary Course of Business;

     (b) maintain its books, accounts and records in the usual, regular and ordinary manner, on a
basis consistent with prior years, and not make any material change to any of its accounting
principles, except as required by GAAP in effect at the time of the relevant

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determination;
provided, however, that this paragraph (b) shall not prohibit the Company from increasing any
reserve for Legal Proceedings or other matters if it determines in good faith that such increase is
appropriate or advisable;

     (c) not adopt a plan of complete or partial liquidation, dissolution, merger, consolidation,
restructuring, recapitalization or other corporate or other legal entity reorganization of the
Company or any of its Subsidiaries or otherwise alter the legal structure or form of the Company or
any of its Subsidiaries;

     (d) not amend or modify, or cause or permit to be amended or modified, the Company’s or any
Subsidiary’s Organizational Documents;

     (e) not issue, sell, transfer or pledge any of its Equity Interests nor issue or grant any
options, warrants, calls, rights, convertible securities or other agreements or commitments of any
character pursuant to which it would be obligated to issue or sell any Equity Interests or split,
combine or reclassify any Equity Interests;

     (f) not make or commit to make any change in compensation, severance or other employee
benefits payable or to become payable by the Seller Group, the Company or any of its Subsidiaries
to any Designated Executive, other than any change (i) in the terms of Company Plans for the
benefit of the Seller and its Subsidiaries or ERISA affiliates generally that are implemented to
comply with applicable Law or that do not result in material costs to the Company or its
Subsidiaries to maintain or implement, (ii) that, when taken together with all such changes, does
not increase the aggregate amount of such compensation, severance or other employee benefits
payable or to become payable by more than 5% over the aggregate amount payable as of the date of
this Agreement, (iii) provided in the Change of Control Agreements or (iv) under the terms of any
Company Plans or other written or oral Contracts in effect on the date hereof;

     (g) not make or commit to make any change (other than any immaterial change) in compensation
(including bonuses or other incentive compensation), severance or other employee benefits payable
or to become payable by the Company or any of its Subsidiaries to any of its directors, officers or
employees (other than any Designated Executives), other than any change (i) in the terms of Company
Plans for the benefit of the Seller and its Subsidiaries or ERISA affiliates generally that are
implemented to comply with applicable Law or that do not result in material costs to the Company or
its Subsidiaries to maintain or implement or (iv) made in the Ordinary Course of Business pursuant
to other compensation programs (including bonus programs related to specific construction projects)
in effect on the date of this Agreement, (ii) that, when taken together with all such changes, does
not increase the aggregate amount of such compensation, severance or other employee benefits
payable or to become payable by more than 5% over the aggregate amount payable as of the date of
this Agreement or (ii) required under the terms of any Company Plans or other written or oral
Contracts in effect on the date of this Agreement;

     (h) not transfer, by way of dividend, distribution, contribution or otherwise, any material
assets used in the business of the Company or any of its Subsidiaries to any member of the Seller
Group, except in the Ordinary Course of Business;

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     (i) consult with the Purchaser in connection with the entry into any new Contract under which
the Company or its Subsidiaries would agree to provide Construction Services and which is expected
to contain a commitment on the part of any Person or Persons to make future payments to the Company
or any of its Subsidiaries for such services in an aggregate amount in excess of $100,000,000, it
being understood that the approval of the Purchaser shall not be required in order to enter into
any such Contract;

     (j) consult with the Purchaser if the Company determines that it will terminate the employment
of any Designated Executive with or without cause, it being understood that the approval of the
Purchaser shall not be required in order to effect any such termination;

     (k) not enter into any material Contract that contains a Change of Control Provision that
would be applicable to the transactions contemplated by this Agreement;

     (l) not accelerate any material obligation of the Company or any of its Subsidiaries under,
terminate or cancel, or make any material modification to, any Material Contract, other than in the
Ordinary Course of Business;

     (m) not enter into or adopt any bonus, incentive, deferred compensation, insurance, medical,
hospital, disability or severance plan, agreement or arrangement, employee benefit plan or
employment, consulting or management agreement maintained for the benefit of employees of the
Company and its Subsidiaries, other than consulting agreements entered into in the Ordinary Course
of Business, or amend any Company Plan in any material respect if the applicable amendment affects
employees of the Company and its Subsidiaries, other than any such amendment that is made to
maintain the qualified status of such plan or its continued compliance with applicable Law;

     (n) except with respect to the consolidated federal income Tax Return of the Seller and its
Subsidiaries and any similar consolidated or combined state Tax Returns, and items reported on any
such Tax Returns, not make any material Tax election, change an annual accounting period, adopt or
change any accounting method with respect to Taxes, file any amended material Tax Return, enter
into any material closing agreement with respect to Taxes or a Tax Return, settle or compromise any
proceeding with respect to any material Tax claim or assessment relating to the Company or any of
its Subsidiaries, surrender any right to claim a material Tax refund or consent to any extension or
waiver of the limitation period applicable to any material Tax claim or assessment relating to the
Company or any of its Subsidiaries;

     (o) not make any capital expenditure in an amount in excess of $50,000, individually, and not
commit to make any capital expenditure in an amount in excess of $100,000, individually, in each
case, other than capital expenditures made or committed to be made in connection with the Company’s
or any of its Subsidiaries’ performance of Construction Services provided or to be provided under
any Contract for Construction Services;

     (p) not incur, assume or guarantee any indebtedness for borrowed money or in the form of
capitalized lease obligations other than in the Ordinary Course of Business or

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pay, discharge or
satisfy any material claims, liabilities or obligations (absolute, accrued, asserted or unasserted,
contingent or otherwise), other than in the Ordinary Course of Business;

     (q) not sell, lease (as lessor), license (as licensor), transfer or otherwise dispose of to a
Third Party, mortgage or pledge to a Third Party, or create or impose any Lien (other than any
Permitted Lien) on, any properties or assets of the Company or any of its Subsidiaries, other than
sales or other dispositions of property that is not material to a Division in the Ordinary Course
of Business;

     (r) not accelerate or delay the collection of a material amount of the accounts receivable of
the Company or any of its Subsidiaries or delay the payment of any material
amount of accounts payable of the Company or any of its Subsidiaries, in each case outside of
the Ordinary Course of Business; and

     (s) not agree to take any action or actions prohibited by any of the foregoing paragraphs (a)
through (r); provided, however, that this Section 7.2 shall not be construed to prohibit (i) the
advance of any cash by the Company to any member of the Seller Group in accordance with past
practice, (ii) any payments by the Company or its Subsidiaries in respect of any intercompany
obligations owing to any member of the Seller Group or (iii) without limiting the generality of
clauses (i) or (ii) above, any Pre-Closing Payments.

     SECTION 7.3. Access to Information. From the date hereof until the Closing Date, the Company
shall, and shall cause its Subsidiaries to, make its management personnel reasonably available to
the Purchaser and its representatives and, subject to and in compliance with any obligations of
confidentiality or non-disclosure provided by applicable Law or contained in any Contracts to which
the Company or any of its Subsidiaries is a party or by which it is bound, provide the Purchaser
and its accountants, employees, attorneys and other representatives reasonable access to, and
permit such Persons to review, during normal business hours and upon reasonable prior written
request, its books, Contracts, accounts, records and files and shall provide such other information
to the Purchaser and its representatives as they may reasonably request in connection with the
transactions contemplated hereby. In addition, upon request by the Purchaser, the Company shall
permit the individuals designated in Section 7.3 of the Purchaser Disclosure Schedule, to contact
and engage in discussions, on behalf of the Purchaser, with certain customers and other Third
Parties who have significant commercial relationships with the Company regarding such
relationships; provided, that (i) the timing, manner of such contact and substance of such
discussions shall be approved in advance by the Seller and the Company (such approval not to be
unreasonably withheld or delayed) in order to ensure that such discussions will not interfere with
the business of the Company and the relationships between the Company and its Subsidiaries on the
one hand and the applicable Third Party on the other hand and (ii) representatives of the Seller
and the Company shall be entitled to participate fully in such discussions. Notwithstanding the
foregoing, the Purchaser acknowledges that none of the Seller, the Company and their respective
Subsidiaries or Affiliates shall be obligated to provide to the Purchaser (i) any information
relating to any offers or indications of interest received by the Seller, the Company or their
respective Affiliates or representatives from any Person other than the Purchaser to acquire the
Company or any of its Subsidiaries or any of its or their Equity Interests, properties or

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assets or
any communications between the Seller, the Company or their respective Affiliates or
representatives on the one hand and any such other Person on the other hand relating to such offers
or indications of interest or the transactions contemplated thereby (it being understood that the
Seller may retain all such documents, information and communications, which shall be the sole
property of the Seller at all times prior to and after the Closing), (ii) any work papers or
similar materials prepared by the independent public accountants of the Company, except to the
extent that such accountants agree to provide access to such work papers or similar materials upon
such terms and conditions as shall be determined by such accountants in their sole discretion (it
being understood that the Seller and the Company and its Subsidiaries shall use commercially
reasonable efforts to facilitate such access), and (iii) any documents or information that are
protected by the attorney-client privilege or work product doctrines if the Company determines in
its reasonable discretion that providing copies or access to such documents or information could
give rise to a possible waiver of such privilege or doctrine (it being understood that the Seller
shall use commercially reasonable efforts to make alternative arrangements to provide to the
Purchaser any factual information contained in such documents or information in a manner that would
not jeopardize any such privilege or doctrine).

     SECTION 7.4. Certain Confidential Information.

     (a) The Purchaser hereby acknowledges that in connection with the transactions contemplated by
this Agreement, it and its Affiliates have received and will continue to receive certain Evaluation
Material (as defined in the Confidentiality Agreement). The Purchaser acknowledges that it and its
Affiliates are bound by the Confidentiality Agreement and agrees that it will not, and it will not
permit any of its Affiliates, directors, officers, independent accountants, agents or other
representatives to, use or disclose any Evaluation Material except as permitted by such agreement.
The provisions of this Section 7.4, insofar as they relate to Evaluation Material with respect to
the businesses, operations, properties, assets, liabilities, financial condition and results of
operations of the Company and its Subsidiaries, shall terminate upon the Closing. Except as
provided in the immediately preceding sentence, the provisions of this Section 7.4 shall survive
the Closing or any termination of this Agreement.

     (b) The Seller recognizes that by reason of its ownership of the Company and its Subsidiaries,
the Seller has acquired proprietary, secret or confidential information concerning the operation of
the business of the Company and its Subsidiaries and may acquire certain additional proprietary,
secret or confidential information pursuant to Section 7.11(b) or (c). Accordingly, the Seller
covenants to the Purchaser that, from and after the Closing Date, the Seller will not, and it will
not permit any of its Affiliates to, for a period of three years following the Closing, except in
performance of the terms of this Agreement or the Transition Services Agreement, in the enforcement
of its rights under this Agreement or the Transition Services Agreement or with the prior written
consent of the Purchaser, directly or indirectly, disclose any proprietary, secret or confidential
information relating to the Company or any of its Subsidiaries or their respective businesses that
it may learn or has learned by reason of its ownership of the Company or the performance of the
Transition Services Agreement or pursuant to the provisions of Section 7.11(b) or (c), unless (i)
it is or becomes generally available to the public other than as a result of disclosure by either
the Seller or any of its Affiliates, (ii) it is known by reason of ownership or operation of a

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business (owned or operated as of the date hereof) other than that of the Company and its
Subsidiaries or (iii) disclosure is required by applicable Law.

     (c) Notwithstanding anything to the contrary contained herein, the parties and their
Affiliates (and each employee, representative, or other agent of the parties and their Affiliates)
may disclose to any and all Persons, without limitation of any kind, the tax treatment and tax
structure of the transactions contemplated by this Agreement and all materials of any kind that are
provided to the parties and their Affiliates relating to such tax
treatment and tax structure (as such terms are defined in Treasury Regulation section
1.6011-4). This authorization of tax disclosure is retroactively effective to the commencement of
discussions between Purchaser and Seller regarding the transactions contemplated herein.

     SECTION 7.5. Return or Destruction of Information. If this Agreement is terminated for any reason,
the Purchaser shall return or cause to be returned to the Seller and the Company all Evaluation
Material and all other documents, materials and records (including records in electronic form)
obtained from the Seller or the Company or any of their Affiliates or any other Person acting on
their behalf in connection with the transactions contemplated hereby; provided that in lieu of
returning or causing to be returned any documents, materials or records that contain or reflect any
Evaluation Material created by the Purchaser or any Person acting on its behalf in connection with
the transactions contemplated hereby, the Purchaser may destroy any such documents, materials or
records pursuant to the terms and subject to the exceptions and limitations set forth in the
Confidentiality Agreement, and will continue to keep confidential and not use or disclose any
information not returned because it is not included or reflected in any documents, materials or
records.

     SECTION 7.6. Access to Documents; Preservation of Books and Records.

     (a) For a period of seven years from and after the Closing Date, (i) the Purchaser shall cause
the Company and its Subsidiaries not to dispose of or destroy any of the material books and records
of the Company or its Subsidiaries relating to periods prior to the Closing (“Books and Records”)
without first offering to turn over possession thereof to the Seller, at the Seller’s expense, by
written notice to the Seller at least 90 days prior to the proposed date of such disposition or
destruction; (ii) the Purchaser shall cause the Company and its Subsidiaries to allow the Seller
and its agents reasonable access to and to copy, for any proper purpose, including for making any
tax or regulatory filing, all Books and Records, at the Seller’s expense; provided, however, the
Seller shall use commercially reasonable efforts to see that any such access or copying shall be
had or done in such a manner so as not to unduly interfere with the normal conduct of the
businesses of the Company and its Subsidiaries; and (iii) the Purchaser shall cause the Company and
its Subsidiaries to make available to the Seller upon written request (1) the personnel of the
Company and its Subsidiaries to assist the Seller in locating and obtaining any Books and Records,
and (2) any personnel of the Company and its Subsidiaries whose assistance or participation is
reasonably required by the Seller or any of its Affiliates in anticipation of, or preparation for,
existing or future Legal Proceeding or other matters in which the Seller or their Affiliates is or
becomes involved relating to the business conducted by the Company or any of its Subsidiaries prior
to Closing. Notwithstanding the foregoing, (A) nothing

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herein shall require the Purchaser, the
Company or its Subsidiaries to disclose any information to the Seller if such disclosure would
jeopardize any attorney-client or other legal privilege available to the Purchaser, the Company or
any of its Subsidiaries or contravene any applicable Law and (B) to the extent that any Books and
Records or other information are withheld from the Seller pursuant to clause (A) above because
disclosure
thereof would jeopardize any attorney-client privilege or other legal privilege, the Purchaser
and the Company shall use their commercially reasonable efforts to make alternative arrangements to
provide to the Seller any factual information contained in such Books and Records or other
information in a manner that would not jeopardize any such privilege. All information regarding
the Company and any of its Subsidiaries obtained by the Seller pursuant to this Section shall be
kept confidential to the extent required by and in accordance with Section 7.4.

     (b) For a period of seven years from the Closing Date, (i) the Seller shall not dispose of or
destroy any material books and records of the Company or any of its Subsidiaries for periods prior
to the Closing (“Seller Books and Records”) without first offering to turn over possession thereof
to the Purchaser, at the Purchaser’s expense, by written notice to the Purchaser at least 90 days
prior to the proposed date of such disposition or destruction; (ii) the Seller shall allow the
Purchaser and its agents reasonable access to and to copy, for any proper purpose, all Seller Books
and Records, at the Purchaser’s expense; provided that the Purchaser shall use commercially
reasonable efforts to see that any such access or copying shall be had or done in such a manner so
as not to unduly interfere with the normal conduct of the Seller’s businesses; and (iii) the Seller
shall make available to the Purchaser upon reasonable written request (1) the Seller’s personnel to
assist the Purchaser in locating and obtaining any Seller Books and Records, and (2) any of the
Seller’s personnel whose assistance or participation is reasonably required by the Purchaser or any
of its Affiliates in anticipation of, or preparation for, existing or future Legal Proceeding or
other matters in which the Purchaser or their Affiliates is or becomes involved relating to the
business conducted by the Company and its Subsidiaries prior to Closing. Notwithstanding the
foregoing, (A) nothing herein shall require the Seller to disclose any information to the Purchaser
if such disclosure would jeopardize any attorney-client or other legal privilege available to the
Seller or its Affiliates or contravene any applicable Law and (B) to the extent that any Seller
Books and Records or other information are withheld from the Purchaser pursuant to clause (A) above
because disclosure thereof would jeopardize any attorney-client privilege or other legal privilege,
the Seller shall use its commercially reasonable efforts to make alternative arrangements to
provide to the Purchaser any factual information contained in such Seller Books and Records or
other information in a manner that would not jeopardize any such privilege. All information
regarding the Seller obtained by the Purchaser pursuant to this Section shall be kept confidential
to the extent required by and in accordance with Section 7.4.

     (c) The seven-year period referred to in this Section 7.6 shall be extended if the Seller or
the Purchaser, as the case may be, advises the other in writing that any Legal Proceeding or
investigation is pending or threatened at the termination of such seven-year period, in which case
such extension shall continue until any such Legal Proceeding or investigation has been settled
through judgment or otherwise and/or is no longer pending or threatened.

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     SECTION 7.7. Limited Representations. The Purchaser expressly acknowledges and agrees that (a) the
Seller has not made and shall not be deemed to have made to the Purchaser any representation or
warranty other than those expressly made by the Seller in this Agreement and (b) the
Company has not made and shall not be deemed to have made to the Purchaser any representation or
warranty other than those expressly made by the Company in this Agreement. Without limiting the
generality of the foregoing, the Purchaser further acknowledges and agrees that neither the Seller
nor the Company nor any of their respective Affiliates or representatives has made or is making any
representations or warranties of any kind, express or implied or statutory, at law or equity, with
respect to the Company or any of its Subsidiaries or their actual or prospective businesses,
operations, assets, liabilities, results of operations or financial condition other than as set
forth in this Agreement, including any (i) express or implied warranties as to any financial
projections or other forward-looking information with respect to the businesses of the Company or
any of its Subsidiaries, (ii) implied warranties of merchantability and fitness for a particular
purpose or (iii) express or implied warranties as to any other matter which, under applicable law,
will be deemed to give rise to any express or implied warranty unless such warranties are expressly
disclaimed by the Seller or the Company, and the Seller and the Company hereby disclaim any other
representations or warranties that would otherwise be deemed to be made by themselves, their
Affiliates or any of their respective officers, directors, employees, agents, financial and legal
advisors or other representatives, in connection with this Agreement or the transactions
contemplated hereby.

     SECTION 7.8. Use of Seller Marks. At or as soon as practicable after the Closing, the Purchaser
shall cause the Company to change the name of each of the Company, any of its Subsidiaries and any
joint venture controlled by the Company to remove the word “Centex” and any derivatives thereof
from its name. The Purchaser acknowledges and agrees that it is not obtaining any rights or
licenses with respect to the name “Centex” or any derivative thereof or associated logos or trade
dress (the “Seller Marks”). The Purchaser, the Company and its Subsidiaries shall discontinue use
of the Seller Marks as soon as practicable after the Closing Date, but not more than 90 days after
the Closing Date; provided, however, that if the approval of a Governmental Authority is required
to change the name of the Company or one of its Subsidiaries under or in connection with a Material
Contract, then the Purchaser, the Company and its Subsidiaries will discontinue using such name as
soon as practicable after such approval is obtained (provided that the Purchaser continues to
diligently pursue such approvals). Notwithstanding the previous sentence, the Company and its
Subsidiaries may use the phrase “formerly known as Centex Construction” to refer to itself for a
period of three years following the Closing Date. Except as permitted by the previous sentence,
from and after the Closing, none of the Company, any of its Subsidiaries nor any joint venture
controlled by the Company may use the word “Centex” or any of the Seller Marks to market or promote
the Company, its Subsidiaries or its Construction Services or in any marketing or promotional
materials or media (including its internet website). Following the Closing Date, neither the
Company nor its Subsidiaries shall be prohibited from making factual historical references to
Construction Services projects completed by the Company and its Subsidiaries prior to the Closing
Date as projects performed by the Company and its Subsidiaries.

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     SECTION 7.9. Employees and Employee Benefits.

     (a) On or prior to the date hereof, the Company, the Seller and the Purchaser have agreed upon
a form of joint announcement to employees concerning this Agreement and the transactions
contemplated hereby and a communication plan concerning the method and timing of the delivery of
such announcement. Contemporaneously with the execution and delivery of this Agreement, the
parties will deliver such announcement to employees in accordance with such communication plan.

     (b) On and after the Closing Date, the Purchaser shall be responsible with respect to all
employees of the Company and any of its Subsidiaries for compliance with the Worker Adjustment and
Retraining Notification Act of 1988 (the “WARN Act”) and any similar state or local Laws. Section
7.9(b) of the Company Disclosure Schedule lists the names and the sites of employment or facilities
of those individuals who suffered an “employment loss” (as defined in the WARN Act) at any site of
employment or facility of the Company or any of its Subsidiaries during the 90-day period prior to
the date hereof, together with the date of each such employment loss, which schedule shall be
updated with respect to the 90-day period prior to the Closing Date. The Purchaser shall not, and
shall cause each of its Affiliates and Subsidiaries not to, with respect to any site of employment
or facility of any of the Company or any of its Subsidiaries, at any time during the 90-day period
following the Closing Date, take any employment action that would result in (i) a “plant closing”
(as defined in the WARN Act), (ii) a “mass layoff” (as defined in the WARN Act), or (iii) any
similar action under any applicable state or local Laws requiring notice to employees in connection
with a plant closing or layoff, in each case without complying fully with the notice and other
requirements of the WARN Act and any similar state or local Laws requiring notice to employees. In
addition, the Purchaser hereby agrees to indemnify the Seller Indemnified Parties and to defend and
hold the Seller Indemnified Parties harmless from and against any and all Losses which the Seller
Indemnified Parties may incur in connection with any lawsuit, claim, arbitration, action or other
proceeding brought against the Seller Indemnified Parties under the WARN Act or any similar state
or local Laws, which relates, in whole or in part, to any actions taken by the Purchaser or any of
its Affiliates or Subsidiaries with regard to any site of employment or facility of the Company or
any of its Subsidiaries.

     (c) For a period from the Closing Date through December 31, 2007, Purchaser shall use its
commercially reasonable efforts to provide (i) base compensation for the employees of the Company
and its Subsidiaries, (ii) health and welfare benefits and profit sharing/401(k) benefits for said
employees, and (iii) except with respect to the Designated Executives, incentive compensation and
bonus schemes for said employees, which in the aggregate as to each such category are substantially
equal (in all material respects) to the compensation or benefits in said category provided to said
employees by the Company or its Subsidiaries immediately prior to the Closing Date and reflected in
Section 5.16(a) of the Company Disclosure Schedule.

     (d) With respect to each employee benefit plan of the Purchaser (“Purchaser Benefit Plan”) in
which employees of the Company and its Subsidiaries (“Company
Employees”) participate after the Closing Date, for purposes of determining vesting and
entitlement to benefits, including for severance benefits and vacation entitlement, service

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with
the Company or its Subsidiaries (or predecessor employers to the extent the Company provides past
service credit) shall be treated as service with the Purchaser; provided, however, that such
service need not be recognized to the extent that such recognition would result in a duplication of
benefits or to the extent that such service was not recognized under the corresponding Company
Plan. To the extent permitted by applicable Law, the Purchaser shall cause any and all
pre-existing condition (or actively at work or similar) limitations, eligibility waiting periods
and evidence of insurability requirements under Purchaser Benefit Plans to be waived with respect
to such Company Employees and their eligible dependents and shall provide them with credit for any
co-payments, deductibles, and offsets (or similar payments) made during the plan year including the
period prior to the Closing Date for the purposes of satisfying any applicable deductible,
out-of-pocket, or similar requirements under any Purchaser Benefit Plans in which they are eligible
to participate after the Closing Date.

     (e) To the extent legally and practically possible, the Purchaser intends to continue the
benefits provided pursuant to the broad-based Seller Plans listed in Section 5.16(a) of the Company
Disclosure Schedule for at least the period ending December 31, 2007. To accommodate this intent,
the parties shall take the following actions:

     (i) No later than March 15, 2007, the Seller shall have spun off from Seller’s Profit
Sharing/401(k) Plan, those accounts which are maintained for current employees of the
Company, into a successor profit sharing/401(k) plan which shall be created, adopted and
maintained by the Company prior to said date; provided, however, recognizing that there
will be issues concerning the physical transfer of those assets held in the current trust
for the Seller’s said plan, such as the disposition or maintenance of accounts invested in
the Seller’s common stock and in commingled funds which may not be available as investment
choices for the plan established solely for eligible employees of the Company, if such spin
off does not occur by March 15, 2007, the parties covenant to cooperate with the
fiduciaries and administrators of the Seller’s said plan to provide legal documentation and
participant communications necessary and appropriate for the transition and shall cause the
spin off to occur as soon as practicable thereafter. As of the Closing, the plan
maintained by the Company will be independent of the Seller’s Profit Sharing/401(k) Plan
and after the Closing Date (and, to the extent possible using commercially reasonable
efforts, for the completed payroll period immediately preceding the Closing Date)
contributions from Company employees after the Closing Date shall be made into the
Company’s new plan. Prior to or on May 31, 2007, the Company shall, and the Purchaser
shall cause the Company to, contribute cash to the Company’s new profit sharing plan in the
Ordinary Course of Business in the amount of the accrual on the Latest Balance Sheet.

     (ii) With respect to the Seller’s Salary Continuation Plan, the Seller shall create a
separate plan, with otherwise identical terms, and provide for its adoption by the Company,
for the benefit of participating employees of the Company, prior to March 15, 2007. The
parties will cooperate in negotiations with the insurance company which underwrites the
policy used by the Seller as the funding mechanism
for benefits provided by said plan, to provide for the transfer of the appropriate
portion of

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the existing group policy to the Company, which intends to continue said funding
arrangement.

     (iii) With respect to the Seller’s health and death benefit and other welfare benefit
plans which are Company Plans and are listed in Section 5.16(a) of the Company Disclosure
Schedule, the Seller will establish separate such plans for the benefit of eligible
employees of the Company prior to March 15, 2007. The parties will cooperate to negotiate
with the insurance companies, plan administrators and other applicable parties to provide
for the continuation of necessary services for the continued maintenance of said plans, and
the Seller shall transfer to the Company, no later than 30 days following Closing, cash
equal to the net positive balances in all spending accounts maintained for the Company
employees who participate in the health care and dependent care spending account plans
listed in Section 5.16(a) of the Company Disclosure Schedule; the Company shall hold said
assets for purposes of meeting the obligations to said participants pursuant to the terms
of said continued plans.

     (iv) No later than the Closing Date, the Seller shall have spun off from Seller’s
Supplemental Executive Retirement Plan, those accounts which are maintained for current
employees of the Company, into a successor supplemental executive retirement plan which
shall be created, adopted and maintained by the Company prior to said date. As of the
Closing, the plan maintained by the Company will be independent of the Seller’s
Supplemental Executive Retirement Plan, and the Company shall be responsible for
accumulations both before and after the Closing under such plans.

     (v) All reasonable out-of-pocket costs incurred by the Seller or its Affiliates in
connection with establishing new Company plans pursuant to paragraphs (i) through (iv)
above shall be reimbursed by the Purchaser within 30 days after invoice therefor.

     (vi) Except as otherwise contemplated by this Section 7.9(e) in connection with the
creation of new Company plans or by the Change of Control Agreements, with respect to the
Seller’s equity incentive plans and deferred cash compensation paid pursuant to Seller’s
incentive plans, the Seller shall cause the outstanding awards of all Company employees to
become fully vested no later than Closing, and the Company shall distribute the appropriate
benefits thereunder according to the terms of said plans.

     (f) The Seller shall retain the liability for payment of all covered claims (including
medical, dental, life insurance, long-term disability and workers’ compensation) or expenses
arising prior to the Closing Date by any Person under all Seller Plans and for all related benefits
and amounts payable thereunder with respect to pre-Closing periods. The Company shall (and the
Purchaser shall cause the Company to) pay to the Seller all fees, costs, expenses, self-insured
retention amounts or deductibles incurred by the Seller in connection with such covered claims
within 20 days after receipt of invoice therefor from the Seller in accordance with past practice.

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     (g) The parties acknowledge that prior to or concurrently with the execution of this
Agreement, (i) the Seller and the Company have entered into the Change of Control Agreements with
the Designated Executives and (ii) the Company has entered into the Employment Agreements with the
Designated Executives.

     (h) The parties hereto acknowledge and agree that all provisions contained in this Section 7.9
with respect to employees are included for the sole benefit of the respective parties hereto and
shall not create any right (i) in any other person, including any employees, former employees, any
participant in any Company Plan or any beneficiary thereof or (ii) to continued employment with the
Company or the Purchaser.

     (i) From and after the Closing Date, the Seller shall indemnify and hold the Purchaser
Indemnified Parties harmless from and against any Losses arising out of the Legal Proceedings
identified in Section 7.9(i) of the Company Disclosure Schedule. Notwithstanding anything herein
to the contrary, the Seller’s indemnification obligations pursuant to this Section 7.9(i) shall not
include any Claims arising out of the ownership of Seller stock from and after the Closing Date by
any new plan created for the Company in accordance with this Section 7.9 or otherwise. In
addition, the parties agree that Sections 12.6 and 12.8 and the last sentence of Section 12.7 shall
apply to this Section 7.9(i). Notwithstanding any other provision of this Agreement, each
Purchaser Indemnified Party shall cooperate in good faith with the reasonable requests of the
Seller to take all steps necessary to trigger, effectuate and/or preserve coverage under any
insurance policy applicable to any Losses covered by this Section 7.9(i), including providing
prompt notice to the Seller of any relevant claim or Losses.

     (j) The Seller shall pay to each of the Designated Executives all amounts (as and when due
thereunder) required to be paid by the Seller pursuant to the Change of Control Agreements and the
Company shall pay to each of the Designated Executives all amounts (as and when due thereunder)
required to be paid by the Company pursuant to the Change of Control Agreements.

     SECTION 7.10. Directors and Officers Indemnification and Insurance.

     (a) From and after the Closing, in the case of any threatened or actual Claim or Legal
Proceeding, including any such Claim or Legal Proceeding by a Third Party or by or in the right of
the Company or any of its Subsidiaries, in which any individual who is as of the Closing Date or
was at any time on or after the date hereof a director or officer of the Company or any of its
Subsidiaries (a “D&O Indemnified Party”) is, or is threatened to be, made a party by reason of the
fact that such D&O Indemnified Party is or was, prior to the Closing Date, (x) a director, officer,
manager, employee or agent of the Company or any of its Subsidiaries or (y) serving as a director,
officer, manager, employee or agent of another corporation, partnership, joint venture, trust or
other enterprise at the request of the Company or any of its Subsidiaries (whether such Claim or
Legal Proceeding arises before, on or after the Closing Date), the Purchaser shall, and shall cause
the Company to, indemnify and hold harmless, to the fullest extent permitted by Law, each such D&O
Indemnified Party against any Losses and amounts paid in settlement in connection with
any such Claim or Legal Proceeding except to the extent that the facts and circumstances which
gave rise to such Losses, amounts paid, Claim or Legal Proceeding include actions or

40

 

omissions
which involve intentional misconduct or fraud by such D&O Indemnified Party. In the case of any
such Claim or Legal Proceeding with respect to which the Purchaser or the Company is required to
provide indemnification hereunder, (i) the Purchaser or the Company (as specified by the Purchaser)
may, at its election, assume the defense of such matter, in which case, any D&O Indemnified Party
may participate, at its own expense and through legal counsel of its choice, in any such Claim or
Legal Proceeding; provided, however, that if the Purchaser or the Company fails to assume such
defense or, under applicable standards of professional conduct, there exists a conflict of interest
on any significant issue between the Purchaser and the Company, on the one hand, and any of the D&O
Indemnified Parties, on the other hand, the D&O Indemnified Parties may retain counsel satisfactory
to them, and the Purchaser or the Company shall pay all reasonable fees and expenses of such
counsel for the D&O Indemnified Parties promptly as statements therefor are received and (ii) the
Purchaser shall, and shall cause the Company to, use commercially reasonable efforts to assist in
the vigorous defense of any such matter; provided, however, that neither the Purchaser nor the
Company, as the case may be, shall be liable for any settlement effected without its prior written
consent (which consent shall not be unreasonably withheld).

     (b) The Purchaser shall cause the Company and each of its Subsidiaries, for a period of three
years from and after the Closing Date, to keep in effect in the Organizational Documents of the
Company and each such Subsidiary provisions providing for indemnification of the D&O Indemnified
Parties that are at least as favorable as the provisions of the Organizational Documents of the
Company and each such Subsidiary in effect as of immediately prior to the Closing except to the
extent otherwise required by a change in Applicable Law.

     (c) The covenants in this Section 7.10 are intended to be for the benefit of, and shall be
enforceable by, each of the D&O Indemnified Parties and their respective heirs and successors. The
indemnification provided for herein shall not be deemed exclusive of any other rights to which a
D&O Indemnified Party is entitled, whether pursuant to Law, contract or otherwise. The Purchaser
shall, or shall cause the Company to, pay all expenses, including reasonable attorneys’ fees, that
may be incurred by any D&O Indemnified Party which is the prevailing party in any action or
proceeding to enforce the indemnity and other obligations provided for in this Section 7.10.

     (d) If the Company (i) consolidates with or merges into any other Person and is not the
continuing or surviving corporation or entity of such consolidation or merger or (ii) transfers or
conveys all or substantially all of its properties and assets to any Person, then, and in each such
case, to the extent necessary to effectuate the purposes of this Section 7.10, the Purchaser shall
cause the successors and assigns of the Company to, make proper provision to succeed to the
obligations set forth in this Section 7.10 or, as long as the Purchaser retains a substantial
portion of its properties and assets following such transaction, the Purchaser may elect to assume
and succeed to the obligations of the Company set forth in this Section 7.10.

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     SECTION 7.11. Certain Surety Bonds, Guarantees and other Obligations.

     (a) Prior to the Closing Date, the Company shall cooperate, at the request of the Purchaser
and at the sole cost and expense of the Purchaser, with the Purchaser in connection with its
efforts to obtain a new bonding facility to be utilized by the Company and its Subsidiaries after
the Closing; provided, however, that, prior to the Closing, nothing contained in this Section 7.11
shall require the Company or any of its Subsidiaries to undertake or assume any liabilities or
obligations, deliver any certificates, make any representations or warranties or provide any
opinions of counsel or similar assurances to or for the benefit of any financing sources or other
Third Parties who are to provide such new bonding facility.

     (b) The Company and the Purchaser hereby acknowledge that, in connection with the businesses
of the Company and its Subsidiaries, the Company and its Subsidiaries have arranged for the
issuance of Surety Bonds and the Seller and certain other members of the Seller Group, as obligors,
indemnitors or guarantors or in any other capacity, have assumed, undertaken or otherwise become
subject to certain liabilities and obligations, whether existing or inchoate, matured or unmatured,
unconditional or contingent, arising under or with respect to Surety Bonds, including, but not
limited to, obligations on the part of any member of the Seller Group to provide indemnification,
make any payments, perform any covenant or undertake any obligation under the Surety Indemnity
Agreements (any such liabilities and obligations, a “Surety Bond Obligation”). From and after the
Closing, (i) the Company hereby assumes and agrees to pay and perform all Surety Bond Obligations,
other than the Retained Bond Obligations (the “Assumed Bond Obligations”), and (ii) the Purchaser
shall indemnify and hold harmless each member of the Seller Group from and against all payments
made or other Losses asserted against, imposed on or incurred by any member of the Seller Group as
a result of or based upon the Assumed Bond Obligations (but excluding any Losses in respect of any
Retained Bond Obligations). It is understood and agreed that the Losses for which the members of
the Seller Group are entitled to indemnification under clause (ii) of the immediately preceding
sentence shall include any reimbursement obligations in respect of amounts drawn under any letter
of credit provided to Travelers Casualty and Surety Company of America pursuant to the Ratings
Amendment dated as of August 21, 2002 in respect of the Travelers Indemnity Agreement or the
letters of credit listed in Section 7.11(b) of the Company Disclosure Schedule and any Losses
arising from the use or application by the sureties of any cash collateral or other security
provided by the Seller under the Surety Indemnity Agreements (except to the extent that such
reimbursement obligations or Losses are in respect of any Retained Bond Obligations). From and
after the Closing, the fees and expenses incurred in connection with the maintenance of the letters
of credit listed in Section 7.11(b) of the Company Disclosure Schedule shall be borne 50% by the
Company and 50% by the Seller. The Company and the Purchaser hereby further agree (I) to comply
(in the case of the Company), to cause the Company to comply (in the case of the Purchaser) and to
cause each of the Subsidiaries of the Company to comply (in the case of the Purchaser and the
Company) with each of the obligations of the Company and any of such Subsidiaries under the Surety
Indemnity Agreements (other than the Retained Bond Obligations), (II) to provide to the Seller
notice within 5 Business Days of the Company or any its Subsidiaries
becoming aware of any Claims made by the sureties under the Surety Indemnity Agreements or of
any affirmative exercise by any of such sureties of such

42

 

surety’s rights to payment or performance
under the Surety Indemnity Agreements, such notice to describe the applicable Claim or exercise of
rights of payment or performance and the related circumstances in reasonable detail, (III) to
provide to the Seller the same books, records, information and documents of the Company or any of
its Subsidiaries which are provided to the sureties under the Surety Indemnity Agreements
contemporaneously with the delivery of such books, records, information and documents to the
sureties and, promptly after either a Claim by any such surety in respect of Surety Bond
Obligations or any other circumstance leading to a notice or request by any such surety for access
to books, records, information or documents of the Company or any of its Subsidiaries, to provide
to the Seller the same access rights to books, records, information or documents of the Company or
any of its Subsidiaries as are provided to such surety under the Surety Indemnity Agreements and
(IV) to not, and to cause each of the Company’s Subsidiaries to not, request, cause or otherwise
consent to the issuance under any Surety Indemnity Agreement. after the Closing, of any Surety
Bonds, it being understood that certain actions taken by the Company or its Subsidiaries prior to
the Closing may result in the issuance of Bonds under such indemnity agreements after the Closing.
The Seller (A) shall not, and shall cause the other members of the Seller Group to not, after the
Closing, affirmatively request, or take any other affirmative action to cause, the issuance under
either the Travelers Indemnity Agreement or the Zurich Indemnity Agreement of any Bonds (as defined
in either of such indemnity agreements), it being understood that certain actions taken by the
Company or its Subsidiaries prior to the Closing may result in the issuance of Surety Bonds under
such indemnity agreements after the Closing, (B) shall comply, from and after the Closing, with
each of the Retained Bond Obligations required to be complied with by it under the Surety Indemnity
Agreements, (C) shall provide to the Purchaser notice within 5 Business Days of the Seller becoming
aware of any Claims made by the sureties against Seller under the Surety Indemnity Agreements or of
any affirmative exercise by any of such sureties against the Seller of such surety’s rights to
payment or performance under the Surety Indemnity Agreements, such notice to describe the
applicable Claim or exercise of rights to payment or performance and the related circumstances in
reasonable detail and (D) shall provide to the Purchaser the same books, records, information and
documents of the Company or any of its Subsidiaries in the possession of the Seller (if any) which
are provided to the sureties under the Surety Indemnity Agreements contemporaneously with the
delivery of such books, records, information and documents to the sureties and, promptly after
either a Claim by any such surety in respect of Surety Bond Obligations or any other circumstance
leading to a notice or request by any such surety for access to books, records, information or
documents of the Company or any of its Subsidiaries in the possession of the Seller (if any), to
provide to the Purchaser the same access rights to books, records, information or documents of the
Company or any of its Subsidiaries in the possession of the Seller (if any) as are provided to such
surety under the Surety Indemnity Agreements. At the Closing, the parties shall cause to be
executed notices (the “Surety Termination Notices”) of the termination of the Travelers Indemnity
Agreement and Zurich Indemnity Agreement with respect to the Company and each of its Subsidiaries
and each member of the Seller Group that is a party thereto (which notices shall be in form and
substance reasonably satisfactory to the Seller and the Purchaser) and, pursuant to the terms of
such agreements, shall cause such notices to be delivered to the sureties under the Travelers
Indemnity Agreement and
the Zurich Indemnity Agreement on a date mutually agreed upon by the Seller and the Purchaser,
which date shall be no more than five Business

43

 

Days after the Closing Date. Notwithstanding
anything to the contrary contained in this Agreement, the obligations of the Purchaser under this
paragraph (b) are absolute and unconditional, and shall not be subject to reduction or modification
as a result of any change in the terms of the Surety Bonds (including increases thereof) or the
Contracts underlying the Surety Bonds or the Surety Indemnity Agreements (other than changes under
the Surety Indemnity Agreements to which the Seller has affirmatively consented after the Closing
and neither the Company nor any of its Subsidiaries has affirmatively consented), any change after
the date hereof in any provision of applicable Law relating to the Surety Bonds or such Contracts
or the Surety Indemnity Agreements or any action or omission on the part of any member of the
Seller Group, including, but not limited to, any failure on the part of the Seller to comply with
any representation, warranty, covenant or agreement contained herein (in each case, other than acts
or omissions giving rise to Losses in respect of the Retained Bond Obligations or a breach or
violation of the obligations of the Seller under the express terms of this paragraph (b)). Without
limiting the generality of the foregoing, the Purchaser shall not be entitled to set off against
any indemnification or payment obligations provided for in this paragraph (b) any obligation or
amount owing or alleged to be owing to the Purchaser or its Affiliates by any member of the Seller
Group under or in connection with this Agreement or otherwise, including any obligation on the part
of the Seller to make indemnification payments under Article VIII or XII.

     (c) Prior to the Closing Date, the Purchaser shall cooperate, at the request of the Seller and
at the sole cost and expense of the Seller, with the Seller in connection with its efforts to enter
into an arrangement (the “Merrill Lynch Indemnity and Reimbursement Arrangement”) with Merrill
Lynch Bank USA, or one or more of its Affiliates acceptable to the Seller or the Purchaser (except
that, in the case of the Purchaser, its acceptance shall not be unreasonably withheld or delayed)
(“Merrill Lynch”), under which Merrill Lynch will agree to indemnify and hold harmless each member
of the Seller Group from and against all payments made or other Losses asserted against, imposed on
or incurred by any member of the Seller Group as a result of or based upon the Assumed Bond
Obligations; provided, however, that the neither the Purchaser nor the Guarantor nor any of their
respective Subsidiaries (including, after the Closing, the Company and its Subsidiaries) shall be
required to become parties to the definitive agreements providing for the Merrill Lynch Indemnity
and Reimbursement Arrangement, it being understood that the execution of such definitive agreements
shall not change the obligations of the parties hereunder, except that, if any rights and benefits
of the Seller are assigned to Merrill Lynch as permitted under Sections 14.9 and 15.4, Merrill
Lynch shall be entitled to exercise such rights as fully and to the same extent as the Seller. In
the event that the Seller determines that it will not be feasible to enter into the Merrill Lynch
Indemnity and Reimbursement Arrangement, the Purchaser and the Guarantor agree to provide to the
Seller the additional rights relating to the Surety Bonds described in Section 7.11(c) of the
Company Disclosure Schedule.

     (d) The Purchaser further acknowledges that, in connection with the businesses of the Company
and its Subsidiaries, the Seller and certain other members of the Seller Group, as obligors or
guarantors or in any other capacity undertaken, have assumed or otherwise become subject to certain
liabilities and obligations, whether existing or inchoate,
matured or unmatured, unconditional or contingent, arising under or with respect to the leases
or other Contracts (other than the Surety Bonds) listed on Section 7.11(d) of the

44

 

Company
Disclosure Schedule (each, an “Other Seller Obligation”). The Purchaser shall use commercially
reasonable efforts to cause each such member of the Seller Group to (and the Seller shall cooperate
with the Purchaser’s reasonable requests in connection therewith) be fully, unconditionally and
irrevocably released and discharged from the Other Seller Obligations prior to or at Closing, in
each case through arrangements satisfactory to the Seller under which the Purchaser or one or more
of its Affiliates shall (if necessary) act as a substituted obligor, guarantor or other
counterparty. To the extent that any of the Other Seller Obligations have not been fully,
unconditionally and irrevocably released and discharged prior to or at Closing in accordance with
this Section 7.11(d), from and after the Closing, the Purchaser shall continue to use commercially
reasonable efforts to cause each such member of the Seller Group to be fully, unconditionally and
irrevocably released and discharged from such Other Seller Obligations as promptly as practicable.
In addition, from and after the Closing, the Purchaser shall indemnify and hold harmless each
member of the Seller Group from and against all payments made or other Losses incurred by any
member of the Seller Group after the Closing Date under or in connection with any Other Seller
Obligation. Until such time as each Other Seller Obligation has been fully, unconditionally and
irrevocably released and discharged, neither the Company nor any of its Subsidiaries shall, and the
Purchaser shall cause the Company and its Subsidiaries not to, increase or materially modify such
Other Seller Obligation without Seller’s prior written consent.

     (e) For the avoidance of doubt, (i) the obligations of the Purchaser under this Section 7.11
are not subject to the limitations set forth in Section 12.5(c), and (ii) nothing in this Section
7.11 shall (or is intended to) limit the Purchaser’s rights to indemnification pursuant to Article
XII in respect of a breach by the Seller of any of the provisions of this Section 7.11 or any other
provision contained herein.

     (f) Each of the parties hereby expressly acknowledges and agrees that the rights to
indemnification provided to any member of the Seller Group pursuant to this Section 7.11 shall
apply regardless of whether such Losses arise in whole or in part from any negligence or other
fault on the part of any member of the Seller Group, but subject to any express limitations
contained in this Section 7.11.

     SECTION 7.12. Settlement of Intercompany Obligations. Other than obligations arising under the
Transition Services Agreement or the intercompany obligations related to Contracts for Construction
Services between the Company or any of its Subsidiaries on the one hand or any member of the Seller
Group on the other hand (i) listed in Section 5.21 of the Company Disclosure Schedule or (ii)
arising out of a Contract entered into in the Ordinary Course of Business after the date hereof
(collectively, the “Retained Intercompany Obligations”), the parties agree that the Pre-Closing
Payments and the post-closing adjustment provided for in Article III shall cause all obligations
for the payment of intercompany accounts which are owed by the Company or any of its Subsidiaries
to any member of the Seller Group or which are owed by any member the Seller Group to the Company
or any of its Subsidiaries to be settled and fully and completely discharged. In addition, the
Seller and the Company agree to enter into appropriate agreements and take other appropriate
actions to implement each of the
arrangements described in Section 7.12 of the Company Disclosure Schedule prior to the Closing.

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     SECTION 7.13. Litigation Support and Cooperation. If and for so long as any party hereto is
actively contesting or defending against any Claim or Legal Proceeding arising in connection with
(i) the transactions contemplated under this Agreement or (ii) any fact, situation, circumstance,
status, condition, activity, practice, plan, occurrence, event, incident, action, failure to act or
transaction on or prior to the Closing Date involving the Company or any of its Subsidiaries (other
than an action brought by one party to this Agreement against another party or parties under the
terms of this Agreement or in connection with the transactions contemplated hereby), each of the
parties will cooperate with the contesting or defending party and its counsel in the contest or
defense, make available its personnel, and provide such testimony and access to its books and
records as shall be reasonably necessary in connection with the contest or defense, all at the sole
cost and expense of the contesting or defending party (unless the contesting or defending party is
entitled to indemnification therefor under Article XII); provided, however, that the obligations of
the parties contained in this Section 7.13 with respect to Claims or Legal Proceedings of the type
described in clause (ii) above shall not apply until after the Closing unless any such Claims or
Legal Proceedings would reasonably be expected to prevent, impede or otherwise materially delay or
otherwise affect in any material respect the transactions contemplated by this Agreement.

     SECTION 7.14. Third-Party Reports. Attached as Part I of Section 7.14 of the Purchaser Disclosure
Schedule is a list of all reports prepared or to be prepared by any consultant, professional or
other third party (other than reports prepared by accountants or legal counsel to the Purchaser and
comparative salary reports or employee compensation matters) for or on behalf of the Purchaser in
connection with their due diligence review of the Company and its subsidiaries and their respective
businesses, operations, assets, liabilities, results of operations or financial condition.
Purchaser has caused to be delivered to the Seller copies of, or in respect of reports not yet
delivered to the Purchaser, within five days after the delivery thereof to the Purchaser (but in no
event later than three Business Days prior to the Closing Date), the Purchaser shall cause to be
delivered to the Seller copies of, all reports relating to insurance and environmental matters.
Nothing in this Section 7.14 shall limit (or is intended to limit) the Purchaser’s rights to
indemnification pursuant to Article XII.

     SECTION 7.15. Occurrence-Based Insurance Policies. The Purchaser and the Seller agree that the
parties shall cooperate with each other upon the terms set forth in this Section 7.15 so that the
Company and its Subsidiaries shall retain the benefit of “occurrence” based insurance policies of
the type listed in Part II of Schedule 5.20 of the Disclosure Schedule in relation to events
occurring prior to the Closing but in respect of which no claim has yet arisen at the Effective
Time; provided, however, that the retention by the Company and its Subsidiaries of the benefit of
such “occurrence” based policies shall, to the extent such coverage also exists with respect to the
Seller Group, be without prejudice to the rights of the Seller Group to continue to retain (at the
Seller’s
expense) the benefit of such “occurrence” based policies at and after the Closing Date as such
policies were in effect prior to the Closing. If requested by the Company at any time from and
after the Closing Date, to the extent necessary to effectuate coverage, the Seller shall, at the
sole cost and expense of the Company, (i) submit claims to the insurers issuing such “occurrence”
based policies in respect of losses incurred by the Company and its Subsidiaries that are insured
thereby and (ii) pursue enforcement of such right of recovery

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for so long as the pursuit thereof is
commercially reasonable, using the same degree of effort and otherwise in a manner consistent with
the practices of the Seller during the three-year period prior to the Closing Date in respect of
claims involving the Company and its Subsidiaries. Any monies received by the Seller as a result
of such claims shall be paid promptly by the Seller to the Company, net of any fees, costs,
expenses, self-insured retention amounts or deductibles (other than any applicable “deductible
buy-down” amount described in Section 7.15 of the Company Disclosure Schedule, in respect of any
claims which may be made under such “occurrence” based insurance policies arising out of events or
omissions from October 1, 1996 through September 30, 2002) incurred by the Seller in connection
with its or the Company’s pursuit of such claims that have not been paid or reimbursed by the
Company (collectively, “Reimbursement Amounts”). The Company shall (and the Purchaser shall cause
the Company to) pay to the Seller all Reimbursement Amounts within 20 days after receipt of such
invoice therefore from the Seller. Section 7.15 of the Company Disclosure Schedule also sets forth
the deductible and self-insured retention amounts applicable to workers’ compensation insurance.

     SECTION 7.16. Updates.

     (a) Within a reasonable period of time prior to the Closing, the Seller shall notify the
Purchaser of any adverse development which is reasonably expected to prevent the Seller from
delivering to the Purchaser the certificates described in Section 9.3 without any qualification not
contemplated by such provision; provided, that no such disclosure shall be deemed to amend or
supplement the Disclosure Schedules.

     (b) Until Closing, no later than the 25th day of each calendar month beginning after the date
hereof, the Company shall deliver to the Purchaser an update of the Project Dispute List as of the
end of the previous calendar month (each, an “Updated Project Dispute List”). Within three
Business Days prior to the Closing Date, the Company shall deliver to the Purchaser the most recent
Updated Project Dispute List with any updates, as of the most recent practicable date, that, to the
Company’s Knowledge, would reasonably be expected to be disclosed on the next Updated Project
Dispute List. For purposes of this Section 7.16, such updated information shall be deemed an
Updated Project Dispute List. Each Updated Project Dispute List shall be prepared by the Company
in the Ordinary Course of Business and in accordance with the principles and procedures described
in Part III of Section 5.12(g) of the Company Disclosure Schedule.

     (c) If any Updated Project Dispute List delivered to the Purchaser pursuant to paragraph (b)
above discloses any new contractual or other dispute between the Company or any of its Subsidiaries
on the one hand and any Third Party on the other hand in connection with the performance by the
Company or any of its Subsidiaries of Construction
Services which was not disclosed in the Project Dispute List or in Part I of Section 5.14 of
the Company Disclosure Schedule (without duplication of disputes previously disclosed on any prior
Updated Project Dispute List, each a “New Contractual Dispute”), the following provisions shall
apply:

     (i) Notwithstanding anything herein to the contrary, the Seller shall have no
liability under or in connection with this Agreement in respect of Losses related to any
such New Contractual Disputes to the extent that the aggregate

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amount of Losses incurred by
the Company or its Subsidiaries in respect of such New Contractual Disputes is equal to or
less than an amount equal to (x) $500,000 multiplied by (y) the number of months in respect
of which Updated Project Dispute Lists have been delivered (and such amount shall be
prorated for any time periods less than a full month, the “Ordinary Course Amount”).

     (ii) If the aggregate amount of Losses incurred by the Company or its Subsidiaries in
respect of such New Contractual Disputes that are disclosed on an Updated Project Dispute
List exceeds the Ordinary Course Amount, then all Losses incurred by the Company or any of
its Subsidiaries in connection with such New Contractual Disputes (including any reasonable
fees, costs, expenses, self-insured retention amounts or deductibles incurred by a party
hereto in connection with its or the Company’s pursuit of insurance recoveries or other
third-party reimbursements for such Losses consistent with past practice) in an amount
exceeding the Ordinary Course Amount shall be borne 50% by the Purchaser and 50% by the
Seller.

     (d) Notwithstanding anything herein to the contrary, all liability of the Seller for any
Losses pursuant to this Section 7.16, together with all liability for Purchaser Covered Losses
pursuant to Article XII, shall be subject to the limitations set forth in Section 12.5(b) and
therefore limited to an aggregate amount of $40,000,000; provided, however, that if the estimated
liability, as determined in accordance with the principles and procedures set forth in Section
5.12(g) of the Company Disclosure Schedule and set forth in the relevant Updated Project Dispute
List (the “Estimated Liability Amount”), for all New Contractual Disputes that are disclosed on any
Updated Project Dispute List (without duplication) exceeds $10,000,000, and the Purchaser delivers
a written notice to such effect to the Seller within two Business Days after receipt of the Updated
Project Dispute List containing an Estimated Liability Amount for all New Contractual Disputes
disclosed thereon in excess of $10,000,000, all liability of the Seller for any Losses pursuant to
this Section 7.16 shall be excluded from the limitations set forth in Section 12.5(b) and Seller
shall immediately and automatically have the right to terminate this Agreement upon not less than
two Business Days prior written notice to the Purchaser to that effect (or immediately upon written
notice if the notice delivered by the Purchaser described in this paragraph is delivered to the
Seller on a date that is less than two Business Days prior to Closing).

     (e) The limitations set forth in Section 12.5(a) shall not apply to any liability of the
Seller for any Losses pursuant to this Section 7.16. However, the limitations and other provisions
set forth in Sections 12.5(e), 12.6 and 12.7 shall always apply to all Losses incurred by the
parties in connection with any New Contractual Disputes pursuant to this Section 7.16.

     (f) The provisions of this Section 7.16 shall provide the sole and exclusive remedies
available to the Purchaser or any of its Affiliates in respect of any Losses shared pursuant to
paragraph (c) of this Section 7.16, it being understood that the Purchaser and its Affiliates shall
not seek to recover any such Losses from the Seller or any of its Affiliates based on a claim of a
breach of any other provision of this Agreement, including Sections 5.7, 5.12(c) or 5.14. The
foregoing provisions of this paragraph (f) shall not prevent any Purchaser Indemnified Party from
seeking indemnification pursuant to the provisions of

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Article XII for any beach by the Seller of
its obligation to pay any Losses for which it is liable under the terms of paragraph (c) above.

     SECTION 7.17. Non-Competition.

     (a) For a period of 18 months from and after the Closing Date (the “Non-Competition Period”),
Seller shall not, and shall cause each other member of the Seller Group not to, engage, whether
directly as a principal or indirectly as a shareholder, partner, investor or contractor, in the
business of providing Construction Services to any Third Party in connection with the construction
of multi-unit residential, healthcare, education, corporate office, corrections or other commercial
projects of a type similar to those undertaken by the Company or any of its Subsidiaries during the
three-year period prior to the Closing Date (the “Covered Business”) in the area consisting of the
United States of America (the “Territory”).

     (b) Notwithstanding paragraph (a) above, this Section 7.17 shall not prohibit any member of
the Seller Group from:

     (i) engaging in any businesses, operations or activities of a type currently conducted
by any member of the Seller Group, including (A) the businesses, operations or activities
of the Seller’s home building segment relating to the purchase and development of land or
lots and the construction and sale of detached and attached single-family homes and land or
lots (including (1) resort and second home properties and lots and (2) urban properties of
the type constructed and sold by the CityHomes division of the Seller) and the engagement
by any member of the Seller Group of any Affiliate or Third Party to provide Construction
Services in connection with the development, construction and sale of homes by its home
building business and (B) the activities of the Seller’s financing segment, including
mortgage lending, mortgage origination and servicing, title agency services and the sale of
other insurance products and other related services;

     (ii) acquiring a Person or business (whether in the form of a purchase of stock,
merger, consolidation, asset purchase or in any other form) whose principal line of
business does not consist of operations within the scope of the Covered Business, and
operating and controlling any such Person or business, whether or not such Person or
business has ancillary operations within the scope of the Covered Business, so long as (A)
the applicable member of the Seller Group uses commercially reasonable efforts to divest
(to an unaffiliated Third Party) as soon as
commercially practicable, and actually divests within one year from the date of such
acquisition or business combination, the portion of such Person or business engaged in
operations within the scope of the Covered Business (except that the applicable member of
the Seller Group shall not be required to divest such operations to the extent that they
are of a type permitted to be conducted under subparagraph (b)(i) above) or (B) the annual
revenues of such acquired Person or business for the last completed fiscal year ending
prior to the time of such acquisition that are attributable to operations within the scope
of the Covered Business (excluding operations of a type permitted to be conducted under
subparagraph (b)(i) above) are

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less than $250,000,000 when aggregated with the annual
revenues of any other acquired Person or business for the last completed fiscal year ending
prior to the time of such acquisition that are attributable to operations within the scope
of the Covered Business (excluding operations of a type permitted to be conducted under
subparagraph (b)(i) above); or

     (iii) acquiring, holding and disposing of not more than 5% of the then outstanding
capital stock of any Person whose capital stock is publicly traded at the time it is
acquired by the applicable member of the Seller Group.

Notwithstanding any term or provision of this paragraph (b) to the contrary, the exceptions set
forth in subparagraph (b)(i) and (ii) above shall not be construed to permit any member of the
Seller Group to engage in operations within the scope of the portion of the Covered Business that
relates to the Company’s participation in the Military Housing Privatization Initiative (or any
successor program or program with substantially similar objectives) unless the annual revenues
attributable to all such operations are less than $25,000,000 in the aggregate; provided, that
nothing contained herein shall be construed to prohibit the Seller and its Affiliates from building
homes and providing related services to individuals who are members of the military outside of the
Company’s participation in the Military Housing Privatization Initiative (or any successor program
or program with substantially similar objectives).

     (c) Notwithstanding anything to the contrary contained in this Section 7.17, if the Seller is
acquired by any Person or Persons (an “Acquiror”) in a transaction (whether in the form of an
acquisition of stock, merger, consolidation, asset purchase or in any other form) that would
constitute a change in control of the Seller within the meaning of Item 6(e) of Schedule 14A under
the Exchange Act, the provisions of this Section 7.17 shall, after the consummation of such
transaction, apply only to the assets and operations of the Seller Group as constituted immediately
prior to such transaction, and shall not apply to any other assets and operations of the Acquiror.

     (d) If any of the provisions of this Section 7.17 is held to be unreasonably broad, oppressive
or unenforceable by a court or other Governmental Authority, such court or other Governmental
Authority (i) shall narrow the Non-Competition Period, the scope of the Covered Business or the
Territory or shall otherwise endeavor to reform the scope of such provisions in order to ensure
that the application thereof is not unreasonably broad, oppressive or unenforceable and (ii) to the
fullest extent permitted by Law, shall enforce such provisions as so reformed.

     (e) In furtherance and not in limitation of the foregoing, for a period of three years from
and after the Closing Date, the Seller shall discontinue the use of, and shall not, and shall not
permit any member in the Seller Group to, engage in the business of providing Construction Services
under the name “Centex Construction Group, Inc.” or “Centex Construction”, “CCG” or “CCS” or any
direct derivation thereof which a reasonable person would be reasonably likely to mistake for any
such name. Furthermore, the Seller shall not market or promote any member in the Seller Group who
is engaging in the business of providing Construction Services as the entity that performed the
Construction Services projects completed by the Company and its Subsidiaries prior to the Closing;
provided,

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however, that the Seller and its Affiliates shall be entitled to (i) state as a part of
their marketing and promotional activities that such projects were completed by a former affiliate
or subsidiary of the Seller and no longer owned by the Seller and (ii) for a period of one year
following the Closing Date, use any marketing or promotional materials or media (including its
internet website) in existence as of the Closing Date until such materials or media are exhausted
or are updated in the ordinary course of the Seller’s and its Affiliates’ business.

     SECTION
7.18. Exclusivity. During the period commencing on the date hereof and ending on
the earlier of the termination of this Agreement or the Closing Date, the Seller will not (and the
Seller will not cause or permit the Company or any of its Subsidiaries to) (i) solicit, initiate,
or encourage the submission of any proposal or offer from any Person other than the Purchaser
relating to the acquisition of any Shares or other Equity Interests in, or any substantial portion
of the assets of, any of the Company and its Subsidiaries (including any acquisition structured as
a merger, consolidation, or share exchange) or (ii) participate in any discussions or negotiations
with any Person other than the Purchaser regarding, furnish any non-public information regarding
the Company or its Subsidiaries to any Person other than the Purchaser with respect to, assist or
participate in, or facilitate in any other manner any effort or attempt by any Person other than
the Purchaser to make any proposal or offer or effect any transaction referred to in clause (i)
above. The Seller will not vote its Shares in favor of any such acquisition.

ARTICLE VIII

TAX MATTERS

     SECTION 8.1. Allocation of Tax Liabilities; Indemnification.

     (a) Subject to the remainder of this Section 8.1, the Seller shall be liable for and shall
indemnify and hold the Purchaser harmless against (i) any liability for Taxes and any related
Losses of the Company or any of its Subsidiaries (including all Taxes of the Company or any of its
Subsidiaries pursuant to Treas. Reg. Section 1.1502-6 or that otherwise result from any of them
being a member of a consolidated federal income Tax Return or a combined/consolidated unitary state
income Tax Return which includes the Seller) for any Pre-Closing Period and the portion of any
Straddle Period that begins prior
to and ends at the Effective Time, except to the extent that such Taxes are reflected or
reserved for on the Final Balance Sheet, and (ii) all liability for Taxes of the Company or any of
its Subsidiaries resulting from making the Section 338(h)(10) Elections, including any liability
for Taxes arising from any election comparable to Section 338(h)(10) of the Code under state or
local laws.

     (b) The Purchaser shall be liable for and shall hold the Seller harmless against any liability
for Taxes and any related Losses (i) for any Pre-Closing Period and the portion of any Straddle
Period that begins prior to and ends at the Effective Time, but only to the extent that such Taxes
are reflected or reserved for on the Final Balance Sheet, and (ii) for any Post-Closing Period and
the portion of any Straddle Period that begins after the Effective Time.

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     (c) Wherever it is necessary for purposes of this Section 8.1 to determine liability for Taxes
for a Straddle Period, the determination shall be made by assuming (i) real, personal and
intangible property Taxes (“Property Taxes”) of the Company and its Subsidiaries allocable to the
Pre-Closing Period shall be equal to the amount of such Property Taxes for the entire Straddle
Period multiplied by a fraction, the numerator of which is the number of days during the Straddle
Period that are in the Pre-Closing Period and the denominator of which is the number of days in the
Straddle Period; and (ii) Taxes (other than Property Taxes) of the Company and its Subsidiaries
allocable to the Pre-Closing Period shall be computed as if such taxable period ended as of the
close of business on the Closing Date, provided that exemptions, allowances or deductions that are
calculated on an annual basis (including depreciation and amortization deductions) shall be
allocated between the period ending on the Closing Date and the period after the Closing Date in
proportion to the number of days in each period.

     (d) The Purchaser shall promptly notify the Seller in writing upon receipt by the Purchaser,
or any of its Affiliates, of notice of any pending or threatened audits or assessments relating to
Taxes for which the Seller would be required to indemnify the Purchaser pursuant to Section 8.1(a).

     (e) The Seller shall have the sole right to represent the interests of the Seller or the
Company or any of its Subsidiaries in any audit or administrative or court proceeding relating to
any Tax as to which the Seller is required to provide indemnification pursuant to Section 8.1(a)
(including the right to conduct and control the conduct of such audit or proceeding and to settle
any obligation for which the Seller is responsible), and may employ counsel of its own choice,
which shall be reasonably acceptable to the Purchaser, in connection with such audit or proceeding.
The Purchaser shall be entitled to participate, at its own expense, in any such audit or
proceeding. Notwithstanding the foregoing, the Seller shall not be entitled to settle, either
administratively or after the commencement of litigation, any claim for Taxes which would
materially adversely affect the liability for Taxes of the Purchaser or the Company or any of its
Subsidiaries for Post-Closing Period without the prior written consent of the Purchaser, which
consent shall not be unreasonably withheld. If the Seller elects not to assume the defense of any
claim for Taxes as to which the Seller is required to provide indemnification pursuant to Section
8.1(a), the Purchaser shall be entitled to conduct the defense thereof. Regardless of whether the
Seller assumes the defense of any claim for Taxes as to which the Seller is required to provide
indemnification pursuant to Section 8.1(a), none of the Purchaser nor the Company or any of
its Subsidiaries shall be entitled to settle any claim for such Taxes without the prior written
consent of the Seller, which consent shall not be unreasonably withheld.

     (f) The Seller shall have no liability under Section 8.1(a) for the payment of any Tax or
related Losses attributable to or resulting from any action of the type described in Section 8.2.

     (g) The indemnification provided under this Article VIII shall be in addition to any
indemnification provided for in Article XII.

     SECTION 8.2. No Changes in Elections, etc. Other than the Section 338(h)(10) Election, the
Purchaser shall not, and it shall cause its Affiliates not to, make or change any

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Tax election,
amend any Tax Return or take any Tax position on any Tax Return, take any action, omit to take any
action or enter into any transaction that results in any increased Tax liability or reduction of
any Tax asset of the Seller or the Company or any of its Subsidiaries in respect of any Pre-Closing
Period or Straddle Period.

     SECTION 8.3. Returns and Reports; Elections.

     (a) The Seller shall file or cause to be filed when due (i) all Tax Returns with respect to
Taxes that are required to be filed by or with respect to the Company or any of its Subsidiaries
for any Pre-Closing Period and (ii) all state and local Tax Returns in jurisdictions, if any, where
the laws of such jurisdiction do not follow the federal income tax treatment of an election made
pursuant to Code Section 338(h)(10). In the case of a Tax Return prepared by the Seller pursuant
to clause (ii) of the preceding sentence, the Seller shall provide to Purchaser a copy of such Tax
Return within 30 days prior to the due date (including extensions) for the filing thereof, and
Purchaser shall have the right to approve (which approval shall not be unreasonably withheld) such
Tax Return.

     (b) The Purchaser shall file or cause to be filed when due all Tax Returns with respect to
Taxes that are required to be filed by or with respect to the Company or any of its Subsidiaries
for any Straddle Period or Post-Closing Period.

     (c) With respect to any Tax Return filed by the Purchaser pursuant to paragraph (b) above with
respect to a Straddle Period, a copy of such Tax Return shall be provided to the Seller within 30
days prior to the due date (including extensions) for the filing thereof, and the Seller shall have
the right to approve (which approval shall not be unreasonably withheld) such Tax Return, to the
extent it reflects a Tax liability to be paid by the Seller. The Seller shall promptly pay to the
Purchaser the amount of the Tax liability disclosed on such Tax Return to be paid by the Seller in
accordance with Section 8.1 at the time such tax return is filed or upon adjustment of such Tax
amount by a Governmental Entity, as finally determined.

     (d) For each Subsidiary’s taxable period within which the Closing Date occurs, the Seller
shall, except as described in Section 8.3(d) of the Company Disclosure Schedule, make or cause to
be made an election pursuant to Code section 754 with respect to each Subsidiary. With respect to
the entity described in Section 8.3(d) of the Company Disclosure Schedule, the Company shall use
commercially reasonable efforts to obtain any Consent from the other owners of such entity that is
required in order to cause such election to be made.

     (e) The Seller will prepare, or cause to be prepared, all final partnership Tax Returns of the
Subsidiaries (consistent with the Allocation Schedule) for taxable periods that include the Closing
Date. A copy of such Tax Return shall be provided to Purchaser within 30 days prior to the due date
(including extensions) for the filing thereof, and the Purchaser shall have the right to comment on
each such Tax Return and suggest changes thereto in good faith, which the Seller shall incorporate
therein.

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For purposes of this Section 8.3(d) and Section 8.3(e), the term “Subsidiary” shall mean any entity
characterized as a partnership for United States federal income tax purposes regardless of the
percentage of the Seller’s ownership interest therein.

     SECTION 8.4. Cooperation; Access to Records. After the Closing Date, each of the Seller and the
Purchaser shall:

     (a) assist (and cause its respective Affiliates to assist) the other party in preparing any
Tax Returns which such other party is responsible for preparing and filing in accordance with
Section 8.3;

     (b) cooperate fully in preparing for and conducting any audits of, or disputes with taxing
authorities regarding, any Tax Returns of the Seller or the Company or any of its Subsidiaries;

     (c) make available to the other party and to any taxing authority as reasonably requested all
records, documents, accounting data and other information relating to Taxes of the Seller or the
Company or any of its Subsidiaries;

     (d) furnish the other party with copies of all correspondence received from any taxing
authority in connection with any Tax audit or information request with respect to any such taxable
period for which the other party may have any liability under Section 8.1; and

     (e) execute and deliver such powers of attorney and other documents as are necessary to carry
out the purposes and intent of this Article VIII.

     SECTION 8.5. Refunds.

     (a) Any refunds (including interest thereon) of Taxes paid or indemnified by the Seller
pursuant to Section 8.1(a) shall be for the account of the Seller. The Purchaser
agrees to assign and promptly remit (and to cause the Company and its Subsidiaries to assign
and promptly remit) to the Seller all refunds (including interest thereon) of Taxes which the
Seller is entitled to hereunder and which are received by the Purchaser or the Company or any of
its Subsidiaries or any other Affiliate of the Purchaser.

     (b) Any refunds (including interest thereon) of Taxes paid or indemnified by the Purchaser
pursuant to Section 8.1(b) shall be for the account of the Purchaser. The Seller agrees to assign
and promptly remit to the Purchaser all refunds (including interest thereon) of Taxes which the
Purchaser is entitled to hereunder and which are received by the Seller or any of its Affiliates.

     SECTION 8.6. Disputes. If the Purchaser and the Seller cannot agree on any calculation required to
be made under this Article VIII, the Purchaser and the Seller shall jointly engage an independent
accounting firm selected in the same manner as set forth in Section 3.3(d) to make such calculation
as promptly as practicable, and to deliver a written notice to each of the Purchaser and the Seller
setting forth the results of such calculation. The results of such calculation as made by such
firm shall be final and binding, and the fees and expenses of such firm shall be borne equally by
the Purchaser and the Seller.

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     SECTION 8.7. Survival. Notwithstanding anything in this Agreement to the contrary, the provisions
of this Article VIII shall survive until 30 days after the expiration of the statute of limitations
applicable to the obligation to pay the relevant Taxes covered hereby.

     SECTION 8.8. Section 338 Election and Related Matters.

     (a) The Seller and the Purchaser shall make or cause to be made, with respect to the Company
and each of its eligible Subsidiaries, an election pursuant to Section 338(h)(10) of the Code and
under any similar provisions of state or foreign law (the “Section 338(h)(10) Election”). No party
shall take any action (i) inconsistent with the treatment of this transaction as a “qualified stock
purchase” within the meaning of Section 338(d)(3) of the Code or (ii) which would otherwise make an
election under Section 338(h)(10) of the Code unavailable.

     (b) The Seller shall prepare and provide to the Purchaser drafts of IRS Form 8023 (Elections
Under Section 338 for Corporations Making Qualified Stock Purchases) and any similar state and
local forms at least five Business Days prior to the Closing Date. At the Closing, the Seller
shall deliver to the Purchaser three originals of Form 8023 and any similar state or local forms
executed by the Seller and such forms shall executed by the Purchaser on or prior to Closing. The
Purchaser shall retain one executed original, and the Seller shall retain two executed originals,
of the fully executed Form 8023 and any similar state or local forms. The Seller shall file one
original of the Form 8023 with the IRS and
one original of any similar state or local forms with each appropriate Tax authority prior to
or on the due date for such filings.

     (c) The “aggregate deemed sales price” (as defined in Treas. Reg. §1.338-4) (the “ADSP”) and
the “adjusted gross-up basis” (as defined in Treas. Reg. §1.338-5) (the “AGUB”) shall be allocated
among the assets of the Company in accordance with Treas. Reg. §1.338-6 and §1.338-7. The Seller
shall deliver to the Purchaser a proposed allocation schedule (“Allocation Schedule”) consistent
with the principles described in Section 8.8 of the Company Disclosure Schedule no later than 120
days after the Final Balance Sheet is determined or agreed pursuant to Section 3.3. The Purchaser
and the Seller shall, as promptly as practicable thereafter, agree in writing upon the allocation
of the ADSP among the assets of the Company in a final Allocation Schedule. If the Purchaser and
the Seller shall fail to reach agreement on the final Allocation Schedule within 30 days after the
delivery by the Seller of the proposed Allocation Schedule, then all matters in dispute relating to
such schedule shall be submitted to and resolved by the Final Arbiter. The Purchaser and the
Seller shall file Internal Revenue Service Form 8023 and Form 8883 and any other state, local and
foreign forms required for the Section 338(h)(10) Election in accordance with the Allocation
Schedule. The parties agree not to take any position inconsistent with the Allocation Schedule for
Tax reporting purposes.

     SECTION 8.9. Price Adjustment. The Purchaser and the Seller agree that any payment by either such
party under this Article VIII or Article XII shall be treated by the parties on their Tax Returns
as an adjustment to the Purchase Price.

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     SECTION 8.10. Certificate of Non-Foreign Status. The Seller shall deliver at closing a certificate
of its non-foreign status that complies with Treasury Regulation Section 1.1445-2(b)(2).

ARTICLE IX

CONDITIONS PRECEDENT TO PURCHASER’S OBLIGATIONS

     The obligation of the Purchaser to consummate the transactions contemplated hereby on the
Closing Date is subject to the satisfaction (or waiver by the Purchaser) of the following
conditions at or prior to the Closing:

     SECTION 9.1. Accuracy of Representations and Warranties.

     (a) Each of the representations and warranties of the Seller and the Company contained in
Articles IV and V (excluding the Fundamental Representations) shall be true and correct, in each
case on and as of the Closing Date as if made on and as of the Closing Date (except for the
representations and warranties that address matters only as of a particular date, including all
representations and warranties made “as of the date hereof,” or only with respect to a specific
period of time, which need only be true and correct as of such date or with respect to such
period), except to the extent that the breach of or failure of any such representations and
warranties to be true and correct would not, individually or in the aggregate, have or be
reasonably be expected to have a Material Adverse Effect; provided, that for the purposes of
determining satisfaction of this Section 9.1(a), all Materiality Qualifications contained in any
such representations and warranties shall be disregarded.

     (b) The Fundamental Representations of the Seller and the Company shall be true and correct in
all material respects, in each case on and as of the Closing Date as if made on and as of the
Closing Date (except for the representations and warranties that address matters only as of a
particular date, including all representations and warranties made “as of the date hereof,” or only
with respect to a specific period of time, which need only be true and correct as of such date or
with respect to such period); provided, that for the purposes of determining satisfaction of this
Section 9.1(b), all Materiality Qualifications contained in any such representations and warranties
shall be disregarded.

     SECTION 9.2. Performance of Covenants. The Seller and the Company shall have performed and
complied in all material respects with the covenants and provisions of this Agreement required to
be performed or complied with by them between the date hereof and the Closing Date.

     SECTION 9.3. Certificates. The Purchaser shall have received certificates to the effect set forth
in Sections 9.1 and 9.2, dated the Closing Date, signed on behalf of the Seller and the Company by
their duly authorized officers. The delivery of each such certificate by the Seller or the Company
(as the case may be) shall have the same effect as a representation and warranty by the Seller or
the Company pursuant to Article IV or V (as the case may be) that the representations and
warranties of the Seller or the Company contained in such Article are true and correct as of the
Closing Date (except for the representations and warranties that address matters only as of a
particular date, including all

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representations and warranties made “as of the date hereof,” or only with respect to a specific
period of time, which need only be true and correct as of such date or with respect to such
period), subject to any qualifications or exceptions contained in such certificate. The condition
set forth in this Section 9.3 shall not be satisfied by the delivery of any certificate by the
Seller or the Company, unless such certificate is consistent with Section 9.1 and 9.2.

     SECTION 9.4. HSR Clearance. Any “waiting period” applicable under the HSR Act to the transactions
contemplated by this Agreement shall have expired or been terminated.

     SECTION 9.5. CFIUS Notice. Either (i) after the acceptance by CFIUS of the CFIUS Filing made
pursuant to Section 7.1(d) in a manner sufficient to cause the initial 30-day review period to be
commenced, such initial review period shall have expired without the parties having received
written notice that CFIUS has made a determination that there are issues of national security
sufficient to warrant the commencement of an investigation under the Exon-Florio Amendment or (ii)
if the parties have received written notice that CFIUS has made the determination referred to in
clause (i) above, the Purchaser shall have received notice that CFIUS has completed its
investigation and the time period in which the President of the United States must announce a
decision to take action authorized under the Exon-Florio Amendment shall have elapsed without any
action having been taken. .

     SECTION 9.6. No Order or Litigation. No Order shall be in effect prohibiting, enjoining or
restraining the consummation of the transactions contemplated in this Agreement. No Governmental
Authority shall have commenced a Legal Proceeding against the Seller, the Company, any of the
Company’s Subsidiaries or the Purchaser seeking to enjoin or prohibit, or to obtain material
damages from the Company, any of the Company’s Subsidiaries or the Purchaser with respect to, the
consummation of the transactions contemplated hereby. No other Third Party shall have commenced a
Legal Proceeding against the Seller, the Company, any of the Company’s Subsidiaries or Purchaser
with respect to the transactions contemplated hereby which would reasonably be expected to
adversely affect the ability of the Company or the Seller to consummate such transactions or result
in the imposition of material damages on the Company, any of the Company’s Subsidiaries or the
Purchaser.

     SECTION 9.7. Certified Resolutions. The Purchaser shall have received certificates of the
Secretary or an Assistant Secretary of each of the Seller, the Company and Service Co., dated the
Closing Date, setting forth resolutions of the Board of Directors (or appropriate committee
thereof) of each of the Seller, the Company and Service Co., as applicable, authorizing the
consummation of the transactions contemplated hereby, and certifying that such resolutions were
duly adopted and have not been rescinded or amended as of the Closing Date.

     SECTION 9.8. Secretary’s Certificates. The Purchaser shall have received certificates of the
Secretary or an Assistant Secretary of each of the Seller and the Company attesting as to the
incumbency and signature of each officer of the Seller and the Company, respectively, who executed
this Agreement.

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     SECTION 9.9. Other Deliveries. The Purchaser shall have received the items to be delivered by the
Seller and the Company pursuant to Section 2.2.

     Notwithstanding the foregoing, the Purchaser may not rely on the failure of any condition set
forth in this Article IX to be satisfied if such failure (i) resulted from an action or inaction on
the part of the Seller, the Company or their Affiliates requested or consented to by the Purchaser
or (ii) was caused by the failure of the Purchaser to act in good faith or comply with its
obligations under this Agreement.

ARTICLE X

CONDITIONS PRECEDENT TO

THE OBLIGATIONS OF SELLER

     The obligation of the Seller to consummate the transactions contemplated hereby on the Closing
Date is subject to the satisfaction (or waiver by the Seller) of the following conditions at or
prior to the Closing:

     SECTION 10.1. Accuracy of Representations and Warranties. Each of the representations and
warranties of the Purchaser and the Guarantor contained herein shall be true and correct in all
material respects, in each case on and as of the Closing Date as if made on and as of the Closing
Date (except for the representations and warranties that address matters only as of a particular
date or only with respect to a specific period of time which need only be true and correct as of
such date or with respect to such period).

     SECTION 10.2. Performance of Covenants. The Purchaser shall have performed and complied in all
material respects with the covenants and provisions in this Agreement required herein to be
performed or complied with by it between the date hereof and the Closing Date.

     SECTION 10.3. Certificate. The Seller shall have received certificates to the effect set forth in
Sections 10.1 and 10.2 hereof, dated the Closing Date, signed on behalf of the Purchaser and the
Guarantor by their duly authorized officers. The delivery of such certificate by the Purchaser or
the Guarantor shall have the same effect as a representation and warranty by the Purchaser or the
Guarantor pursuant to Article VI or Section 14.7 (as the case may be) that the representations and
warranties of the Purchaser contained in such Article are true and correct as of the Closing Date,
subject to any qualifications or exceptions contained in such certificate. The condition set forth
in this Section 10.3 shall not be satisfied by the delivery of any certificate by the Purchaser,
unless such certificate is consistent with Sections 10.1 and 10.2.

     SECTION 10.4. HSR Clearance. Any “waiting period” applicable under the HSR Act to the transactions
contemplated by this Agreement shall have expired or been terminated.  

     SECTION 10.5. No Order or Litigation. No Order shall be in effect prohibiting, enjoining or
restraining the consummation of the transactions contemplated hereby. No Governmental Authority
shall have commenced a Legal Proceeding against the Seller, the Company, any of the Company’s
Subsidiaries, the Purchaser or the Guarantor seeking to

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enjoin or prohibit, or to obtain material damages from the Company, any of the Company’s
Subsidiaries or the Seller with respect to, the consummation of the transactions contemplated
hereby. No other Third Party shall have commenced a Legal Proceeding against the Seller, the
Company, any of the Company’s Subsidiaries, the Purchaser or the Guarantor, with respect to the
transactions contemplated hereby which would reasonably be expected to adversely affect the ability
of the Purchaser to consummate such transactions or result in the imposition of material damages on
the Company, any of the Company’s Subsidiaries or the Seller.

     SECTION 10.6. Delivery of Initial Purchase Price and Other Payments. The Seller shall have
received the Initial Purchase Price.

     SECTION 10.7. Certified Resolutions. The Seller shall have received a certificate of a duly
authorized officer of each of the Purchaser and the Guarantor, dated the Closing Date, setting
forth the resolutions of the Board of Directors of the Purchaser and the Guarantor, as applicable,
authorizing the execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby, and certifying that such resolutions were duly adopted and have not been
rescinded or amended as of the Closing Date.

     SECTION 10.8. Secretary’s Certificate. The Seller shall have received certificates of the
Secretary or an Assistant Secretary of each of the Purchaser and Guarantor attesting as to the
incumbency and signature of each officer of the Purchaser and Guarantor, respectively, who executed
this Agreement.

     SECTION 10.9. Other Deliveries. The Seller shall have received the items to be delivered by the
Purchaser pursuant to Section 2.3.

     Notwithstanding the forgoing, the Seller may not rely on the failure of any condition set
forth in this Article X to be satisfied if such failure (i) resulted from an action or inaction on
the part of the Purchaser requested or consented to by the Seller or (ii) was caused by the failure
of the Seller to act in good faith or comply with its obligations under this Agreement.

ARTICLE XI

TERMINATION

     SECTION 11.1. Termination of Agreement. Anything herein to the contrary notwithstanding, this
Agreement may be terminated at any time before the Closing, as follows:

     (a) Mutual Consent. By mutual written consent of the Seller and the Purchaser;

     (b) Failure to Close. By the Seller or the Purchaser, if at any time after the scheduled date
of the Closing fixed in accordance with Section 2.1 the conditions to the obligations of the other
party to consummate the transactions contemplated hereby (other than any conditions to be satisfied
through the making of payments or the delivery of documents at the Closing) shall have been
satisfied, but the other party shall have failed or refused to consummate such transactions;

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     (c) Breach by Seller or the Company. By the Purchaser, if the Seller or the Company shall
have breached or failed to perform any of their respective representations, warranties, covenants
or agreements set forth in this Agreement (or if any of such representations or warranties shall
fail to be true as and when required to be true hereunder), which breach or failure (i) would (A)
result in a Material Adverse Effect or (B) if it occurred or was continuing as of the Closing Date,
give rise to the failure of a condition set forth in Article IX and (ii) is incapable of being
cured or is not cured within 30 days following receipt of written notice from the Purchaser of such
breach or failure;

     (d) Breach by Purchaser. By the Seller, if the Purchaser shall have breached or failed to
perform any of its representations, warranties, covenants or agreements set forth in this Agreement
(or if any of such representations or warranties shall fail to be true as and when required to be
true hereunder), which breach or failure (i) would (A) have a material adverse effect on the
Purchaser’s ability to consummate the transactions contemplated hereby or (B) if it occurred or was
continuing as of the Closing Date, give rise to the failure of a condition set forth in Article X
and (ii) is incapable of being cured or is not cured within 30 days following receipt of written
notice from the Seller of such breach or failure;

     (e) Expiration Date. By the Seller or the Purchaser, if the Closing shall not have occurred
prior to or on June 1, 2007 (which date may be extended by the mutual written agreement of the
Seller and the Purchaser); provided, however, that a party may not terminate this Agreement
pursuant to this paragraph (c) if the failure of the Closing to occur on or before such date is
attributable in whole or in any substantial part to the breach by such party of any covenant or
obligation of such party contained in this Agreement; or

     (f) Consummation Prohibited. By the Seller or the Purchaser, if consummation of the
transactions contemplated hereby would violate any non-appealable final Order of a Governmental
Authority having competent jurisdiction.

     SECTION 11.2. Effect of Termination. If this Agreement is terminated pursuant to Section 11.1, all
further obligations of the parties to this Agreement shall terminate without further liability of
any party to another except that this Section 11.2, Sections 7.4 and 7.5 and Article XIV shall
survive any termination; provided, however, that nothing herein shall relieve a breaching or
defaulting party for liability arising from any breach or default on the part of such party prior
to the date of termination of this Agreement.

ARTICLE XII

INDEMNIFICATION

     SECTION 12.1. Survival of Representations and Warranties and Covenants. The representations and
warranties of the parties contained in this Agreement, and rights to indemnification in respect
thereof, shall survive the Closing and continue in effect (i) in the case of all representations
and warranties other than (a) those set forth in Sections 4.1 [Seller Organization; Power and
Authority], 4.2 [Seller Authorization; Execution and Enforceability], 4.5 [Seller Title to Shares],
4.8 [Absence of Seller Surety Defaults], 5.1 [Company Organization; Power and Authority], 5.2
[Company Authorization; Execution and Enforceability], 5.5 [Company Capitalization], 5.22 [Company
Fees], 6.1 [Purchaser Organization; Power and Authority], 6.2 [Purchaser Authorization; Execution
and

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Enforceability] and 6.8 [Purchaser Fees] (collectively, the “Fundamental Representations”), (b)
Sections 5.14 [Company Litigation], 5.15 [Company Labor and Employment Matters], 5.16 [Company
Employee Benefits] and 5.19 [Company Environmental Matters] (the “Extended Representations”) and
(c) Section 4.7 [Seller Non-Foreign Person] and Section 5.17 [Company Taxes] (collectively, the
“Tax Representations”), for a period of 18 months following the Closing Date, (ii) in the case of
the Fundamental Representations, indefinitely and without limitation, (iii) in the case of the
Extended Representations, for a period of three years following the Closing Date, and (iv) in the
case of the Tax Representations, for a period ending 30 days after the expiration of the statute of
limitations applicable to any Taxes that are the subject thereof. The covenants and agreements set
forth in Article VIII shall survive for the period ending 30 days after the expiration of the
statute of limitations applicable to any Taxes that are the subject thereof. Other than as
described in the immediately preceding sentence, all covenants and agreements contained herein
shall remain in full force and effect for a period of 18 months following the Closing Date, except
for those covenants and agreements that by their terms are to be performed after the Closing, which
shall remain in full force and effect until performed or otherwise satisfied in full or the
applicable statute of limitations for breaches or defaults of such covenants or agreements has
expired.

     SECTION 12.2. Seller’s Indemnification Obligations.

     (a) Subject to the limitations set forth in this Article XII, from and after the Closing Date,
the Seller shall indemnify and hold the Purchaser and each of its officers, directors, managers,
partners, members, employees and agents (the “Purchaser Indemnified Parties”) harmless from and
against any and all Claims, judgments, causes of action, liabilities, obligations, damages, losses,
deficiencies, costs, penalties, interest and expenses (collectively, “Losses”) arising out of (a)
any breach of any representation or warranty of the Seller or the Company contained in Articles IV
or V, (b) any breach of any agreement or covenant on the part of the Seller contained in this
Agreement or (c) any breach of any agreement or covenant on the part of the Company contained in
this Agreement, but only to the extent that such agreement or covenant is required to be performed
prior to or at Closing; provided, that in the case of clauses (a), (b) and (c) above, notice of the
applicable breach is given to the Seller prior to the expiration of the applicable survival period
specified in Section 12.1.

     (b) Solely for purposes of the indemnification obligations of the Seller pursuant to this
Article XII (including the calculation of Losses pursuant to Section 12.5), in order to determine
whether a breach of any representation, warranty, agreement or covenant of the Seller or the
Company has occurred, all Materiality Qualifications contained in any such representation,
warranty, agreement or covenant shall be disregarded; provided, however, that there shall not be
disregarded any Materiality Qualifications which (i) are included in Section 4.8, the last sentence
of Section 5.6 or Section 5.8(a) or (ii) are included in the representations and warranties
contained in Sections 5.10, 5.12, 5.13, 5.16, 5.18 and 5.21 to the extent any such Materiality
Qualification modifies the identification or provision of a list of material Contracts, Permits,
instruments or documents referred to in such sections.

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     SECTION 12.3. Purchaser’s Indemnification Obligations.

     (a) Subject to the limitations set forth in this Article XII, from and after the Closing Date,
the Purchaser shall indemnify and hold the Seller and its Affiliates and each of their respective
officers, directors, managers, partners, members, employees and agents (the “Seller Indemnified
Parties”) harmless from and against any and all Losses arising out of (a) any breach of any
representation or warranty of the Purchaser contained in Article VI, (b) any breach of any
agreement or covenant on the part of the Purchaser contained in this Agreement or (c) any breach of
any agreement or covenant on the part of the Company contained in this Agreement, but only to the
extent that such agreement or covenant is required to be performed after Closing; provided, that in
the case of clauses (a), (b) and (c) above, notice of the applicable breach is given to the
Purchaser prior to the expiration of the applicable survival period specified in Section 12.1.

     (b) Solely for purposes of the indemnification obligations of the Purchaser pursuant to this
Article XII (including the calculation of Losses pursuant to Section 12.5), in order to determine
whether a breach of any representation, warranty, agreement or covenant of the Purchaser or the
Company has occurred, all Materiality Qualifications contained in any such representation,
warranty, agreement or covenant shall be disregarded.

     SECTION 12.4. Third Party Claims; Procedures.

     (a) If any Third Party asserts a Claim (a “Third-Party Claim”) against an Indemnified Party
that would reasonably be expected to give rise to a right on the part of the Indemnified Party to
indemnification under this Article XII, the Indemnified Party shall give notice of such Third-Party
Claim to the Indemnifying Party as soon as practicable (but in no event later than fifteen Business
Days after receiving notice of such Third-Party Claim or otherwise acquiring actual knowledge of
the assertion thereof); provided, however, that the failure to so notify the Indemnifying Party
will not relieve the Indemnifying Party from any liability that the Indemnifying Party may have
hereunder with respect to such Third-Party Claim, except to the extent that the Indemnifying Party
is materially prejudiced as a result of such failure.

     (b) In the event of a Third-Party Claim, the Indemnifying Party shall have the right to assume
the defense of such Third-Party Claim and shall retain counsel of its choice, which shall be
reasonably acceptable to the relevant Indemnified Parties, to represent such Indemnified Parties in
connection with such Legal Proceeding, in which case the Indemnifying Party shall pay the fees and
disbursements of such counsel. The Indemnified Parties may participate, at their own expense and
through legal counsel of their choice, in any such Legal Proceeding; provided that (i) the
Indemnifying Party shall have the right to defend such Third-Party Claim by all appropriate
proceedings and, so long as it diligently pursues such defense, shall have full control of such
defense and such proceedings, and (ii) the Indemnified Parties and their counsel shall cooperate
with the Indemnifying Party and its counsel in connection with such Legal Proceeding. The
Indemnifying Party shall not settle any such Legal Proceeding without the prior written consent of
the Indemnified Parties who are parties to such Legal Proceeding and are entitled to
indemnification in respect thereof (which shall not be unreasonably withheld or delayed), unless
the terms of

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such settlement provide for no relief other than the payment of monetary damages for which the
relevant Indemnified Parties will be indemnified in full.

     (c) Notwithstanding the provisions of paragraph (b) above which grant to the Indemnifying
Party the right to assume the defense of a Third-Party Claim, if (i) the Indemnifying Party elects
not to assume the defense or fails to assume the defense in a timely manner, (ii) the Indemnifying
Party and any Indemnified Party are both parties to such Legal Proceeding and a conflict of
interests exists between the Indemnifying Party and such Indemnified Party which has the potential
of materially and adversely affecting the interests of the Indemnified Party in the defense of such
Legal Proceeding or (iii) the Indemnified Party reasonably determines in good faith that the
Indemnified Party or its Affiliates could be adversely affected in any material respect in such
Legal Proceeding other than as a result of monetary damages, then the Indemnified Party may employ
counsel reasonably satisfactory to the Indemnifying Party to represent or defend it against any
such Third-Party Claim and the Indemnifying Party will pay the reasonable fees and disbursements of
such counsel; provided, however, that the Indemnified Party shall not, in connection with any Legal
Proceeding or separate but substantially similar Legal Proceedings arising out of the same general
allegations, be liable for the fees and expenses of more than one separate firm of attorneys at any
time for all Indemnified Persons, except to the extent that local counsel, in addition to its
regular counsel, is required in order to effectively defend against such Legal Proceeding. If the
Indemnified Party retains its own counsel, the Indemnifying Party shall reasonably cooperate in
providing information to and consulting with the Indemnified Party and its counsel about the
Third-Party Claim. Notwithstanding anything to the contrary contained herein, in no event shall
the Indemnified Party consent to the entry of judgment or enter into any settlement with respect to
a Third-Party Claim for which it is seeking indemnification without the prior written consent of
the Indemnifying Party.

     SECTION 12.5. Limitations on Indemnification. Notwithstanding anything to the contrary contained
in this Agreement:

     (a) The Seller shall not have any obligation to provide indemnification for Losses of the type
identified in clause (a) of Section 12.2 (excluding Losses that arise from a breach of any
Fundamental Representation or Tax Representation) or clauses (b) or (c) of Section 12.2 (other than
Losses arising from a breach of any covenants or agreements to be performed by the Seller after the
Closing) (“Purchaser Covered Losses”), except to the extent that (i) the Purchaser Covered Loss
arising from any specific breach exceeds $50,000 (the “Per Occurrence Basket”), in which case the
Seller shall (subject to the other limitations contained elsewhere in this Section 12.5, including
the limitation provided for in clause (ii) below) be liable under this Article XII for the entire
amount of such Covered Loss arising from the applicable breach (including the portion that is less
than the Per Occurrence Basket) and (ii) the aggregate amount of all Purchaser Covered Losses
exceeds $5,000,000 (the “Aggregate Basket”), in which case the Seller shall be liable under this
Article XII only for Purchaser Covered Losses which exceed the Aggregate Basket; provided that, for
the avoidance of doubt, the limitation on indemnification set forth in this paragraph (a) shall not
apply to any Losses resulting from breaches of or inaccuracies in the Fundamental Representations,
Tax Representations or Losses resulting from breaches of

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covenants or agreements to be performed after the Closing Date (including Section 7.9(i) and
(j)).

     (b) The maximum obligation of the Seller to provide indemnification for all Purchaser Covered
Losses incurred by the Purchaser Indemnified Parties, together with that portion of all Losses
incurred by the Company or its Subsidiaries in connection with any New Contractual Disputes for
which the Seller is responsible pursuant to Section 7.16 (unless excluded pursuant to the notice
described in Section 7.16(d)), shall be limited to an aggregate amount equal to $40,000,000;
provided that, for the avoidance of doubt, the limitation on indemnification set forth in this
paragraph (b) shall not apply to any Losses resulting from breaches of or inaccuracies in the
Fundamental Representations, the Tax Representations or breaches of covenants or agreements to be
performed after the Closing Date (including Section 7.9(i) and (j)).

     (c) The Purchaser shall not have any obligation to provide indemnification for Losses of the
type identified in clause (a) of Section 12.3 (other than Losses that arise from a breach of a
Fundamental Representation) or clauses (b) or (c) of Section 12.3 (other than Losses arising from
breaches of covenants or agreements to be performed after the Closing) (“Seller Covered Losses”),
except to the extent that (i) the Seller Covered Loss arising from any specific breach exceeds the
Per Occurrence Basket, in which case the Purchaser shall (subject to the other limitations
contained elsewhere in this Section 12.5, including the limitation provided for in clause (ii)
below) be liable under this Article XII for the entire amount of such Seller Covered Loss arising
from the applicable breach (including the portion that is less than the Per Occurrence Basket) and
(ii) the aggregate amount of all Seller Covered Losses exceeds the Aggregate Basket, in which case
the Purchaser shall be liable under this Article XII only for Seller Covered Losses which exceed
the Aggregate Basket; provided that for the avoidance of doubt, the limitation on indemnification
set forth in this paragraph (c) shall not apply to any Losses for which the Purchaser is
responsible pursuant to the terms of Section 7.16 or Losses resulting from breaches of covenants
and agreements to be performed after the Closing Date.

     (d) No member of the Seller Group shall have any rights of subrogation or similar rights with
respect to the Company or any of its Subsidiaries on and following the Closing Date in connection
with any indemnification obligations under this Agreement.

     (e) Notwithstanding anything to the contrary contained in this Article XII, any amount payable
by Seller pursuant to Section 12.2 in respect of any Losses shall be decreased by the full amount
of any reserve or accrual in respect of such Losses reflected on the Final Balance Sheet.

     SECTION 12.6. Exclusive Remedy. Unless otherwise prohibited by applicable Law (pursuant to
statutory or other provisions that cannot be waived by the parties), from and after the Closing,
the provisions contained herein with respect to the final determination and payment of the Purchase
Price (including the provisions of Sections 1.4 and 3.3) and the provisions of Article VIII and
this Article XII shall provide the sole and exclusive remedies of the parties for all matters
covered or contemplated by this Agreement; provided, however, that nothing herein shall limit the
right of any party to seek specific performance or injunctive relief in connection with a breach by
another party of its

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obligations under this Agreement that occurs after the Closing Date. Without limiting the
generality of the foregoing, the Purchaser hereby expressly agrees that (a) the Purchaser’s sole
remedy for breaches by the Seller or the Company of representations and warranties set forth in
Articles IV and V (including pursuant to Section 9.3) and any covenants to be performed prior to
Closing shall be the indemnification claims and rights set forth in Section 12.2 (subject to the
limitations set forth in Section 12.5), and neither the Seller nor the Company shall have any other
or additional liability to the Purchaser arising out of or related to any breach by the Seller or
the Company of any of the representations and warranties set forth in Articles IV and V (including
pursuant to Section 9.3) or any covenants to be performed prior to Closing, and (b) the Purchaser
shall not seek any indemnification, contribution, repayment or other remedy or recourse directly or
indirectly (through any director or officer of the Company or the Seller or otherwise) from the
Seller or its Affiliates with respect to any matter relating to the Company or its Subsidiaries or
their respective businesses, operations, properties or assets (including any matters relating to
the merchantability, value or use of any such properties or assets) or the subject matter of this
Agreement (whether on the basis of a claim sounding in tort, contract, statute or otherwise)
outside of the provisions of Article VIII and this Article XII. In no event shall any party be
liable for special, punitive, exemplary, incidental, consequential or indirect damages, lost
profits, diminution in value, damage to reputation or loss to goodwill, whether based in contract,
tort, strict liability or otherwise. The Guarantor expressly acknowledges the provisions of this
Section 12.6 and agrees to be subject to such provisions in the same manner and to the same extent
as the Purchaser.

     SECTION 12.7. Mitigation; Insurance. In the case of any Third-Party Claims that would reasonably
be expected to give rise to a right of indemnification under Article XII, if there is a reasonable
likelihood that such Indemnified Party may have a direct or indirect right of recovery against one
or more Third Parties (including rights of recovery under insurance policies or indemnification
arrangements with subcontractors or other Third Parties), (i) the Indemnified Party shall promptly
notify the Indemnifying Party of such right of recovery, (ii) the Indemnified Party shall pursue
enforcement of such right of recovery for so long as the Indemnified Party reasonably determines,
consistent with past practice, that the pursuit thereof is commercially reasonable, using the same
degree of effort and otherwise in a manner consistent with the practices of the Company and its
Subsidiaries during the three year period prior to the Closing Date and (iii) the Indemnifying
Party shall cooperate with the Indemnified Party in connection with the enforcement of such right
of recovery as contemplated by clause (ii) above; provided, however, that in no event shall it be a
prerequisite to making any claim for indemnification pursuant to this Article XII or a condition to
the obligations of the Indemnifying Party in respect of any such claim that the Indemnified Party
shall have successfully enforced any right of recovery against a Third Party. To the extent that
an Indemnified Party obtains recovery in respect of any such Third-Party Claims from any Third
Parties, the amount of any Losses with respect to any Third-Party Claim for which indemnification
is available under this Article XII shall be reduced by the amount of such insurance proceeds or
other such funds realized or paid to the Indemnified Party, net of any applicable deductible or
self-insurance retention and all reasonable fees, costs and expenses incurred by such Indemnified
Party in obtaining such recovery. If, after the making of any payment in respect of a Third-Party
Claim under this Article XII, the amount of the Losses to which such payment relates is reduced by
recovery, settlement or otherwise under any insurance coverage, or pursuant to any claim, recovery,

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settlement or payment by or against any other Person, the amount of such reduction will promptly be
repaid by the Indemnified Party to the Indemnifying Party, net of all reasonable fees and expenses
incurred by such party in obtaining such recovery. Each Indemnified Party shall take commercially
reasonable steps to mitigate its Losses upon and after becoming aware of any event which would
reasonably be expected to give rise to any Losses.

     SECTION 12.8. Cooperation; Access to Documents and Information. The parties shall cooperate with
each other in connection with resolving any Claims (including, Third-Party Claims) as to which
indemnification is or may be required to be provided in accordance with the terms of this
Agreement. Without limiting the generality of the foregoing, any Indemnified Party who desires to
assert a Claim for indemnification pursuant to this Agreement shall, at the cost of the
Indemnifying Party, (i) provide to the Indemnifying Party all documents and information relating to
such Claim which are in the possession of the Indemnified Party or its Affiliates or can be
obtained by the Indemnified Party without undue cost or expense as promptly as practicable and (ii)
give the Indemnifying Party reasonable access to the accounting and other appropriate personnel and
the independent accountants of the Indemnified Party and its Affiliates in order to permit the
Indemnifying Party to obtain information reasonably required to evaluate such Claim.

ARTICLE XIII

DEFINITIONS

     SECTION 13.1. Certain Definitions. As used in this Agreement, the terms set forth below shall have
the following respective meanings:

     “Accounting Principles” means GAAP (as in effect on December 31, 2006 and not any later date)
as applied in the preparation of the Latest Balance Sheet; provided, that with respect to profit
and excess reserves, the principles used shall conform to the historical fiscal year-end practices
of the Company and its Subsidiaries.

     “Accounting Schedule” means Schedule I to this Agreement.

     “Adjusted Pre-Closing Payment Amount” means an amount (which may be positive or negative)
equal to (i) Excess Reserve Amount, plus (ii) the sum of the Net Intercompany Amount and the
Stockholder’s Equity Amount, less (iii) the sum of the Cash Advance Amount, in each case as such
amounts are finally determined in accordance with the procedures set forth in Sections 3.2 and 3.3.

     “Affiliate” means, with respect to any Person, (a) any Subsidiary of such Person or (b) any
other Person that, directly or indirectly, controls, is controlled by, or is under common control
with, such Person. For the purposes of this definition, “control” means the possession of the
power to direct or cause the direction of the management and policies of such Person, whether
through the ownership of voting securities, by contract or otherwise.

     “Business Day” means any day except a Saturday, Sunday or federal holiday.

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     “Change of Control Agreements” means the Change of Control Agreements, dated as of the date
hereof among the Seller, the Company and each Designated Executive.

     “Change of Control Provision” means, in the case of any Contract to which the Company or any
of its Subsidiaries is a party, a provision contained in such Contract to the effect that a sale,
transfer or other disposition to any Person who is not an Affiliate of the Seller of a specified
portion of the Equity Interests in the Company will result in a violation or breach of, or
constitute a default under, or constitute an event creating rights in any Third Party of
acceleration, termination, amendment, suspension, revocation or cancellation or a loss of the
rights of the Company or any of its Subsidiaries under, such Contract.

     “Claim” means any demand, claim or action that is asserted or arises in a Legal Proceeding or
otherwise.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Common Stock” means the Common Stock, par value $10.00 per share, of the Company.

     “Company Multiemployer Plan” means a “multiemployer plan” (as defined in Section 4001(a)(3) of
ERISA) to which the Seller is or has been obligated to contribute or otherwise may have any
liability in respect of employees of the Company or its Subsidiaries, or to which the Company or
any of its Subsidiaries or ERISA Affiliates is or has been obligated to contribute or otherwise may
have any liability

     “Company Plan” means a “pension plan” (as defined in Section 3(2) of ERISA (including a
Company Multiemployer Plan)), a “welfare plan” (as defined in Section 3(1) of ERISA), and any other
bonus, profit sharing, deferred compensation, incentive compensation, stock ownership, stock
purchase, stock option, phantom stock, restricted stock, stock appreciation right, holiday pay,
vacation, severance, medical, dental, vision, disability, death benefit, sick leave, fringe
benefit, personnel policy, insurance or other plan, program, agreement or arrangement in each case
established or maintained by the Seller or one of its Affiliates for the benefit of employees of
the Company or its Subsidiaries or by the Company or any of its Subsidiaries or ERISA Affiliates
for the benefit of employees of the Company or its Subsidiaries or as to which the Seller is or has
been obligated to contribute or otherwise may have any liability in respect of employees of the
Company or its Subsidiaries or to which the Company or any of its Subsidiaries or ERISA Affiliates
has contributed or otherwise may have any liability in respect of employees of the Company or its
Subsidiaries.

     “Company’s Knowledge” means the actual knowledge as of the applicable date of any of (a) with
respect to the Company, any Subsidiary or any Division, Robert Van Cleave, Mark Layman, Glenn Burns
and Mark Crouser, (b) with respect to Division I, Ray Southern, Al Petrangeli, (c) with respect to
Division II, John Tarpey, (d) with respect to Division III, Doug Jones, (e) with respect to
Division V, Bob Hambright and James C. Taylor, (f) with respect to Section 5.12(c), any of the
individuals named in clauses (a) through (e) above, (g) with respect to Sections 5.12 (solely as it
relates to the Surety Indemnity Agreements) and 5.16, Mike Albright and (h) with respect to Section
5.17, Blake

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Huggins, in each case based upon information that comes to the attention of any such
individual (i) in the course of performing his or her duties as an officer or manager of the
Company or any of its Subsidiaries or (ii) in connection with the negotiation or consummation of
the transactions contemplated by this Agreement, it being understood that this definition shall not
require any further inquiry or investigation on the part of any such persons.

     “Confidentiality Agreement” means that certain Confidentiality Agreement, dated as of June 14,
2006, between the Seller and the Purchaser.

     “Consent” means any consent, approval, waiver or authorization required to be obtained from
any Governmental Authority or Third Party.

     “Contract” means any written contract, agreement, indenture, note, bond, loan, instrument,
lease, conditional sale contract, mortgage or insurance policy.

     “Copyrights” means United States and foreign copyrights and maskwork rights, whether
registered or unregistered, and pending applications to register the same.

     “Designated Executives” means Glenn S. Burns, Robert B. Hambright, Douglas H. Jones, Mark W.
Layman, John L. Parolisi, Albert J. Petrangeli, Raymond C. Southern, John P. Tarpey, James C.
Taylor and Robert Van Cleave.

     “Disclosure Schedule” means a disclosure schedule provided by a party to one or more other
parties from time to time in connection with this Agreement.

     “Division” means each of Division I, Division II, Division III and Division V.

     “Division I” means the Company’s (and its applicable Subsidiaries’) division headquartered in,
and with operations primarily in, Florida.

     “Division II” means the Company’s (and its applicable Subsidiaries’) division headquartered in
Fairfax, Virginia and with operations primarily in the Washington, D.C. metro area.

     “Division III” means the Company’s (and its applicable Subsidiaries’) division headquartered
in Dallas, Texas and with operations primarily in Texas.

     “Division V” means the Company’s (and its applicable Subsidiaries’) division headquartered in
Charlotte, North Carolina and with operations primarily in the southeastern United States.

     “Division MAE” means (i) a material adverse effect on the businesses, operations, properties,
assets or condition (financial or otherwise) of or with respect to any Division, excluding any such
effect attributable to or resulting from any of the factors listed in clauses (a) through (g) of
the definition of the term Material Adverse Effect (and taking into account any considerations
specifically referred to in the last sentence of such definition).

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     “Effective Time” means the close of business of the Company (Dallas, Texas time) on the
Closing Date.

     “Employment Agreements” means the Employment Agreements, dated as of the date hereof but to be
effective as of the Closing Date, between the Company and each of the Designated Executives.

     “Enforceability Exceptions” means, with reference to the enforcement of the terms and
provisions of this Agreement or any other Contract, that the enforcement thereof is or may be
subject to the effect of (i) applicable bankruptcy, receivership, insolvency, reorganization,
moratorium, fraudulent conveyance, fraudulent transfer and other similar laws relating to or
affecting the enforcement of the rights and remedies of creditors or parties to executory contracts
generally; (ii) general principles of equity (regardless of whether such enforceability is
considered in a proceeding at law or in equity) and the exercise of equitable powers by a court of
competent jurisdiction; and (iii) applicable law or public policy limiting the enforcement of
provisions providing for the indemnification of any Person.

     “Environmental Laws” means any Laws relating to the protection of the environment, persons or
the public welfare, or the protection of the public health and safety, from actual or potential
exposure (or the effects of exposure) to any actual or potential release, discharge, spill or
emission of, or regarding the manufacture, processing, production, gathering, transportation, use,
treatment, storage or disposal of, any Hazardous Materials including the federal Clean Air Act, the
federal Clean Water Act, the federal Resource Conservation and Recovery Act, and the federal
Comprehensive Environmental Response, Compensation, and Liability Act, and comparable state
equivalents, as those statutes have been amended and are in effect as of the Closing Date.

     “Equity Interests” means (i) with respect to any corporation, all shares, interests,
participations or other equivalents of capital stock of such corporation, however designated, and
(ii) with respect to any partnership or limited liability company, all partnership or limited
liability company interests, units, participations or equivalents of partnership or limited
liability company interests of such partnership or limited liability company, however designated.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “ERISA Affiliate” means any trade or business (whether or not incorporated) which would be
considered a single employer with the Company pursuant to Section 414(b), (c), (m) or (o) of the
Code and the regulations promulgated under those sections or pursuant to Section 4001(b) of ERISA
and the regulations promulgated thereunder.

     “Excess Reserve Amount” means an amount (which may be positive or negative) equal to (x)
$12,000,000 less (y) an amount obtained by subtracting (i) the amount of excess reserves of the
Company and its consolidated subsidiaries as of immediately prior to the Effective Time, as
determined in accordance with the Accounting Principles and the illustrations set forth in the
Accounting Schedule from (ii) $35,200,000.

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

     “Exon-Florio Amendment” means Section 721 of the Defense Production Act of 1950, as amended.

     “First Tier Subcontractor” means a subcontractor engaged by or on behalf of the Company to
provide materials or services in connection with a project for which the Company or any of its
Subsidiaries is providing Construction Services as the prime contractor (or equivalent).

     “GAAP” means United States generally accepted accounting principles in effect as of the date
of the relevant financial statements or at the time of the relevant determination contemplated by
this Agreement.

     “Governmental Authority” means any federal, state, provincial or local government and any of
their respective subdivisions, agencies, instrumentalities, authorities or tribunals.

     “Hazardous Materials” means any contaminant, pollutant, toxic substance, hazardous material,
hazardous waste or hazardous chemical as those terms are defined by any Environmental Law, or any
other substance that is declared or defined to be hazardous under or pursuant to any Environmental
Law.

     “HSR Act” means Section 7A of the Clayton Act (Title II of the Hart-Scott-Rodino Antitrust
Improvements Act of 1976), as amended (including any successor statute).

     “Indemnified Party” means a Seller Indemnified Party or a Purchaser Indemnified Party.

     “Indemnifying Party” means the party from whom an Indemnified Party is entitled to
indemnification under the terms of this Agreement.

     “Initial Pre-Closing Payment Amount” means an amount (which may be positive or negative) equal
to (i) the Reserve Payment, plus (ii) the sum of the Net Intercompany Amount and the Stockholder’s
Equity Amount, less (iii) the Cash Advance Amount, in the case of clauses (ii) and (iii), as
calculated and paid on the Closing Date in accordance with Section 1.3.

     “Intellectual Property” means Copyrights, Patents, Trademarks and Trade Secrets.

     “IRS” means the Internal Revenue Service.

     “Latest Balance Sheet” means the unaudited consolidated balance sheet of the Company and its
consolidated subsidiaries as of December 31, 2006 referred to in Section 5.6.

     “Law” means any foreign, federal, state, provincial or local law, statute, rule, ordinance,
code or regulation.

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     “Legal Proceeding” means any judicial, administrative or arbitral action, suit or proceeding
(whether public or private and whether civil, criminal or administrative) by or before any court or
other Governmental Authority.

     “Lien” means any lien, pledge, mortgage, easement, deed of trust, security interest,
attachment, levy or other similar encumbrance affecting title.

     “Material Adverse Effect” means (i) a material adverse effect on the businesses, operations,
properties, assets or condition (financial or otherwise) of the Company and its Subsidiaries, taken
as a whole, or (ii) an event or circumstance affecting the Company that would reasonably be
expected to prevent, impede or materially delay or otherwise affect in any material respect the
consummation of the transactions contemplated by this Agreement, but, in the case of clause (i)
above, excluding any such effect attributable to or resulting from (a) the public announcement of
the transactions contemplated hereby, (b) any change in the Laws of general applicability or
interpretations thereof by any courts or other Governmental Authorities, (c) any change in general
economic conditions or in interest rates, to the extent that the effect thereof on the Company and
its Subsidiaries, taken as a whole, is proportionate to the effect on other Persons operating in
similar industries and markets, (d) any change in conditions affecting the contracting and
construction industries generally or any sector thereof, to the extent that the effect thereof on
the Company and its Subsidiaries, taken as a whole, is proportionate to the effect on other Persons
operating in similar industries and markets, (e) any change in the overall businesses, results of
operations or financial condition of any member of the Seller Group, (f) any action or omission of
the Company or any of its Subsidiaries taken in accordance with the terms of this Agreement (other
than the obligation to operate the Company and its Subsidiaries in the Ordinary Course of Business)
or with the prior consent of the Purchaser or (g) any expenses incurred by the Seller or the
Company or its Subsidiaries in connection with this Agreement or the transactions contemplated
hereby.

     “Material Subcontractor” means each Person to whom the Company and its Subsidiaries (including
through each of the Divisions on an aggregate basis) have commitments to make future payments to
such Person, under all subcontracts, purchase orders and other Contracts with such Person, in an
amount exceeding $10,000,000 in respect of materials, supplies or services to be provided to the
Company or a Subsidiary in connection with the performance of Construction Services by the Company
or any of its Subsidiaries.

     “Materiality Qualifications” means, with respect to the representations, warranties, covenants
and agreements of any party or parties, all qualifications or exceptions contained therein relating
to materiality, Material Adverse Effect or Division MAE.

     “Order” means any order, judgment, injunction, ruling or decree of any court or other
Governmental Authority.

     “Ordinary Course of Business” means, with respect to the Company and any of its Subsidiaries,
the ordinary course of business contemplated by the current operating plans of the Company or such
Subsidiary or consistent with the past custom and practice of the

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Company or such Subsidiary, including (a) making expenditures contemplated by the 2007 Annual
Budget, (b) executing change orders with customers, Owners, suppliers and subcontractors in a
manner consistent with past custom and practice, (c) advancing cash to any member of the Seller
Group in a manner consistent with past custom and practice, (d) incurring any expenses in
connection with the negotiation and execution of this Agreement and the consummation of the
transactions contemplated hereby (other than the fees and expenses described in Section 15.10 of
the Company Disclosure Schedule), (e) the Pre-Closing Payments or (f) taking any actions
contemplated by this Agreement.

     “Organizational Documents” means (i) in the case of any Person organized as a corporation, the
certificate or articles of incorporation of such corporation (or, if applicable, the memorandum and
articles of association of such corporation) and bylaws, (ii) in the case of any Person organized
as a limited liability company, the certificate of formation or organization and the limited
liability company agreement, operating agreement or regulations of such limited liability company,
(iii) in the case of any Person organized as a limited partnership, the certificate of limited
partnership and partnership agreement of such limited partnership and (iv) in the case of any other
Person, all constitutive or organizational documents of such Person which address all matters
relating to the business and affairs of such Person similar to the matters addressed by the
documents referred to in clauses (i) through (iii) above in the case of Persons organized as
corporations, limited liability companies or limited partnerships.

     “Owner” means any Third Party who owns or controls a project for which the Company or any of
its Subsidiaries provides Construction Services.

     “Patents” means United States and foreign patents and patent applications, including
provisional patent applications, continuations, continuations-in-part, divisions, reissues,
reexaminations and extensions.

     “Permit” means any permit, license, authorization or approval issued by a Governmental
Authority.

     “Permitted Lien” means any (i) mechanic’s, materialman’s, warehouseman’s, carrier’s and
similar liens for labor, materials or supplies incurred, arising by Contract or under applicable
Law in the Ordinary Course of Business, (ii) purchase money security interests arising in the
Ordinary Course of Business, (iii) Liens for Taxes, assessments and other governmental levies, fees
or charges which are not due and payable or which are being contested by appropriate proceedings,
(iv) rights of landlords in respect of any Leasehold Property provided for under leases provided or
made available to the Purchaser, (v) imperfections of title, Liens, claims, easements, covenants,
conditions, restrictions, title and survey defects and other charges and encumbrances the existence
of which would not reasonably be expected to materially and adversely affect the use or enjoyment
of the applicable asset or (vi) Liens identified in Section 13.1 of the Company Disclosure
Schedule.

     “Person” means any natural person, corporation, partnership, limited liability company, trust,
unincorporated organization or other entity.

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     “Post-Closing Period” means any taxable year or other taxable period that begins after the
Effective Time.

     “Pre-Closing Period” means any taxable year or other taxable period that ends prior to or at
the Effective Time.

     “Real Property” means any lot, parcel or tract of land in which any Person has a property
interest.

     “Retained Bond Obligations” means (i) Losses arising in respect of a Seller Surety Default,
(ii) the obligation of any member of the Seller Group to provide an irrevocable letter of credit to
Travelers Casualty and Surety Company of America pursuant to the Ratings Amendment dated as of
August 21, 2002 in respect of the Travelers Indemnity Agreement (it being understood that the
obligation described in this clause (ii) shall include only the obligation to provide the
applicable letter of credit, and shall not include any reimbursement or other obligations under any
such letter of credit, except to the extent that such reimbursement or other obligations are in
respect of any other Retained Bond Obligations specified in this definition), (iii) obligations of
any member of the Seller Group under the paragraph entitled “Books, Records and Credit” of the
Travelers Indemnity Agreement, (iv) obligations of any member of the Seller Group under paragraph
Ninth entitled “Books and Records” of the Zurich Indemnity Agreement and (v) obligations of any
member of the Seller Group to provide cash collateral or other security to the sureties under the
Travelers Indemnity Agreement or the Zurich Indemnity Agreement arising as a result of the
bankruptcy, receivership or insolvency of the Seller or a general assignment by the Seller to its
creditors (it being understood that the obligation described in this clause (v) shall include only
the obligation to provide the cash collateral or other security to the sureties and shall not
include the use or application by the sureties of such cash collateral or other security to satisfy
any obligation in respect of the Surety Bonds, except to the extent that any such cash collateral
or other security has been used or applied to any Losses in respect to any other Retained Bond
Obligations specified in this definition).

     “Securities Act” means the Securities Act of 1933, as amended, together with the rules and
regulations promulgated thereunder.

     “Seller Group” means the Seller and its Subsidiaries, other than the Company or any of its
Subsidiaries listed in Section 5.9(a) of the Company Disclosure Schedule.

     “Seller Surety Default” means a material breach or violation prior to the Closing by the
Seller of its obligations under the Travelers Indemnity Agreement or the Zurich Indemnity Agreement
that will directly or proximately result in any Losses to be incurred by the Company or any of its
Subsidiaries under such agreements. For the avoidance of doubt, a “Seller Surety Default” does not
include any violation by the Company or any of its Subsidiaries of their respective obligations
under the Travelers Indemnity Agreement or the Zurich Indemnity Agreement, and no such violation
shall be attributed to the Seller hereunder. In determining whether any Losses will directly or
proximately result from a breach or violation by the Seller of the Travelers Indemnity Agreement or
the Zurich Indemnity Agreement, to the extent that Losses result from breaches or violations of any
such agreement by both (i) any member of the Seller Group and (ii) the Company or any of

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its Subsidiaries, each Person referred to in clause (i) or (ii) above shall be responsible for
the portion of the applicable Losses (but only the portion of such applicable Losses) caused by its
own breach or violation, and shall not be relieved of responsibility therefor as a result of a
breach or violation by any other Person.

     “Seller’s Knowledge” means the actual knowledge as of the applicable date of each of the
executive officers of the Seller who is involved in the implementation of the transactions
contemplated by this Agreement, it being understood that this definition shall not require any
inquiry or investigation on the part of any such persons.

     “Service Co.” means Centex Service Company LLC, a Nevada limited liability company and a
Subsidiary of Seller.

     “Straddle Period” means any taxable year or other taxable period that begins prior to and ends
after the Effective Time.

     “Subsidiary” means, with respect to any Person (the “parent”) at any date, any other Person of
which the parent, directly or indirectly, owns Equity Interests that (i) represent more than 50% of
the total number of outstanding common or other residual Equity Interests (however denominated) of
such Person, (ii) represent more than 50% of the total voting power of all outstanding Equity
Interests of such Person which are entitled to vote in the election of directors, managers or other
persons performing similar functions for and on behalf of such Person, (iii) are entitled to more
than 50% of the dividends paid and other distributions made by such Person prior to liquidation or
(iv) are entitled to more than 50% of the assets of such Person or proceeds from the sale thereof
upon liquidation.

     “Surety Bonds” means any surety bonds arranged for the benefit of or in connection with
projects of the Company or any of its current or former Subsidiaries, including, but not limited
to, bid, payment, performance, maintenance, warranty or other bonds that (i) relate to such
projects that are active projects which have not yet been completed or (ii) provide coverage for
warranty or maintenance claims for such projects that have been completed but for which the surety
would remain liable, whether such bonds were issued prior to or on the date hereof or are issued at
any time hereafter (other than any bond issued under the new bonding facilities referred to in
Section 7.11(a)) and, in the case of all of the foregoing surety bonds, as amended, supplemented,
increased or otherwise modified from time to time (but excluding amendments, supplements, increases
or other modifications as to which the Seller has affirmatively consented after the Closing and
neither the Company nor any of its Subsidiaries has affirmatively consented).

     “Surety Indemnity Agreements” means the Travelers Indemnity Agreement, the Zurich Indemnity
Agreement and the other indemnity agreements identified in Section 7.11(b) of the Company
Disclosure Schedule.

     “Tax” means all taxes, levies, imposts and similar assessments paid or payable to a
Governmental Entity, including all net income, gross income, gross receipts, sales, use, value
added, services, ad valorem, occupation, transfer, franchise, capital stock, profits, license,
withholding, payroll, employment, unemployment, excise, estimated, severance,

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stamp, occupancy or property taxes, together with any interest, penalty or addition to any
such tax.

     “Tax Return” means any return, report, declaration, estimate, information return or other
document (including any related or supporting information) filed or required to be filed with any
Governmental Entity with respect to Taxes.

     “Third Party” means any Person (including as defined in Section 13(d) of the Exchange Act)
other than the applicable parties hereto or their Affiliates.

     “Trade Secrets” means trade secret rights and other similar rights in confidential ideas,
know-how, concepts, methods, processes, formulae, reports, data, customer lists, mailing lists,
business plans, and other proprietary information, all of which derive value, monetary or
otherwise, from being maintained in confidence and not known to the Company’s competitors.

     “Trademarks” means United States, state and foreign trademarks and service marks, logos,
designs, slogans, product and service names, product descriptions, trade dress, trade names,
corporate names, and other trade designations, whether the foregoing are registered or
unregistered, and all United States, state and foreign registrations and applications to register
the foregoing.

     “Transition Services Agreement” means the Transition Services Agreement, to be entered into as
of the Closing Date between the Company and Service Co., in the form attached as Exhibit A
hereto.

     “Travelers Indemnity Agreement” means the Agreement of Indemnity, dated August 21, 2002, among
the Seller, the Company, Centex Construction Company, Inc., Centex Rodgers, Inc., Centex Rooney
Construction Company, Centex Forcum Lannom, Inc., Centex Engineering and Construction, and
Travelers Casualty and Surety Company of America, St. Paul Fire and Marine Insurance Company and
their subsidiaries and affiliates.

     “Zurich Indemnity Agreement” means the Agreement of Indemnity, dated February 14, 2005, the
Seller, the Company, Centex Engineering and Construction, Centex Construction, LLC, Centex
Construction, Inc. and Zurich American Insurance Company and its subsidiaries and affiliates.

     SECTION 13.2. Other Defined Terms. Each of the terms set forth below has the meaning set forth in
the provision set forth opposite such term in the following table:

	 	 	 
	Term	 	Provision
	Acquiror

	 	Section 7.17(c)
	Additional Payments

	 	Section 1.4(a)
	ADSP

	 	Section 8.8(c)
	Aggregate Basket

	 	Section 12.5(a)
	Agreement

	 	Preamble
	AGUB

	 	Section 8.8(c)
	Allocation Schedule

	 	Section 8.8(c)

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	Term	 	Provision
	Annual Financial Statements

	 	Section 5.6
	Assumed Bond Obligations

	 	Section 7.11(b)
	Books and Records

	 	Section 7.6(a)
	Cash Advance Amount

	 	Section 1.3(a)
	CFIUS

	 	Section 7.1(d)
	CFIUS Notice

	 	Section 7.1(d)
	Closing

	 	Section 2.1
	Closing Date

	 	Section 2.1
	Company

	 	Preamble
	Company Disclosure Schedule

	 	Article V
	Company Employees

	 	Section 7.9(d)
	Company Pre-Closing Payments

	 	Section 1.3(b)
	Construction Services

	 	Recitals
	Covered Business

	 	Section 7.17(a)
	Dispute

	 	Section 15.9(a)
	Dispute Notice

	 	Section 15.9(b)
	D&O Indemnified Party

	 	Section 7.10(a)
	DOJ

	 	Section 4.4
	Estimated Liability Amount

	 	Section 7.16(d)
	Extended Representations

	 	Section 12.1
	Final Arbiter

	 	Section 3.3(d)
	Final Balance Sheet

	 	Section 3.2 and 3.3(e)
	Final CFO Certificate

	 	Section 3.2
	Financial Statements

	 	Section 5.6
	FTC

	 	Section 4.4
	Fundamental Representations

	 	Section 12.1
	Governmental Requirement

	 	Section 4.4
	Guarantee

	 	Section 14.1
	Guaranteed Obligations

	 	Section 14.1
	Guarantor

	 	Preamble
	Initial CFO Certificate

	 	Section 2.2(b)
	Initial Purchase Price

	 	Section 1.2(a)
	Interim Financial Statements

	 	Section 5.6
	Leasehold Property

	 	Section 5.10(b)
	Leases

	 	Section 5.10(b)
	Losses

	 	Section 12.2
	Material Construction Contracts

	 	Section 5.12(a)
	Material Contracts

	 	Section 5.12(c)
	Material Permits

	 	Section 5.18
	Merrill Lynch

	 	Section 7.11(c)
	Merrill Lynch Indemnity and Reimbursement
Arrangement

	 	Section 7.11(c)
	Negotiation Period

	 	Section 3.3(b)
	Net Intercompany Amount

	 	Section 1.3(b)(i)
	Non-Competition Period

	 	Section 7.17(a)
	New Contractual Dispute

	 	Section 7.16

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	Term	 	Provision
	Objection Date

	 	Section 3.3(a)
	Objection Notice

	 	Section 3.3(a)
	Ordinary Course Amount

	 	Section 7.16(c)(i)
	Other Joint Venture Arrangement

	 	Section 5.9(a)
	Other Material Contracts

	 	Section 5.12(b)
	Other Seller Obligation

	 	Section 7.11(d)
	Per Occurrence Basket

	 	Section 12.5(a)
	Post-Closing Adjustment Payment

	 	Section 3.1
	Pre-Closing Payments

	 	Section 1.3
	Project Dispute List

	 	Section 5.12(g)
	Property Taxes

	 	Section 8.1(c)
	Purchase Price

	 	Section 1.2(b)
	Purchaser

	 	Preamble
	Purchaser Benefit Plan

	 	Section 7.9(d)
	Purchaser Covered Losses

	 	Section 12.5(a)
	Purchaser Disclosure Schedule

	 	Article VI
	Purchaser Indemnified Parties

	 	Section 12.2(a)
	Reimbursement Amounts

	 	Section 7.15
	Reserve Payment

	 	Section 1.2(a)
	Retained Intercompany Obligations

	 	Section 7.12
	Section 338(h)(10) Election

	 	Section 8.8(a)
	Seller

	 	Preamble
	Seller Books and Records

	 	Section 7.6(b)
	Seller Covered Losses

	 	Section 12.5(c)
	Seller Disclosure Schedule

	 	Article IV
	Seller Indemnified Parties

	 	Section 12.3(a)
	Seller Marks

	 	Section 7.8
	Seller Plan

	 	Section 5.16(a)
	Seller Pre-Closing Payment

	 	Section 1.3(a)
	Shares

	 	Recitals
	Stockholders’ Equity Amount

	 	Section 1.3(b)(ii)
	Surety Bond Obligation

	 	Section 7.11(b)
	Surety Termination Notices

	 	Section 7.11(b)
	Tax Representations

	 	Section 12.1
	Territory

	 	Section 7.17(a)
	Third-Party Claim

	 	Section 12.4(a)
	Third-Party Requirement

	 	Section 4.4
	Updated Project Dispute List

	 	Section 7.16(b)
	WARN Act

	 	Section 7.9(b)

ARTICLE XIV

PARENT GUARANTEE

     SECTION 14.1. Guarantee. The Guarantor hereby unconditionally, absolutely and irrevocably
guarantees, as a primary obligor and not merely as a surety, for the benefit of the Seller, the due
and punctual payment in full of all payment obligations and the

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performance of all other obligations of the Purchaser under this Agreement, including, but not
limited to, (i) the obligation of the Purchaser to consummate the transactions contemplated hereby
and pay the Initial Purchase Price to the Seller at the Closing, (ii) the obligation of the
Purchaser to make the Additional Payments to the Seller and (iii) the obligation of the Purchaser
to make any indemnification payments to the Seller or any other Seller Indemnified Parties pursuant
to Section 7.11 or Articles VIII and XII (collectively, the “Guaranteed Obligations”), in each case
in accordance with and subject to the terms hereof. The Guarantor acknowledges and agrees that the
guarantee granted pursuant to this Article XIV (the “Guarantee”) constitutes an unconditional
guarantee of payment and performance and irrevocably waives any right to require that any resort be
had to the Purchaser or any other Person or any security held for payment of the Guaranteed
Obligations, to any other guarantor or to any fund or account as a condition to the enforcement of
this Guarantee. Notwithstanding the foregoing, the Guarantor shall not be required to pay or
perform any Guaranteed Obligation hereunder unless and until there has been a failure to pay or
perform by the Purchaser with respect to such obligation in accordance with this Agreement and the
Seller shall have given written notice or demand to the Purchaser of such failure; provided,
however, that (i) the provisions of this sentence shall not be construed to require that the Seller
take any action to enforce its rights against the Purchaser (other than giving the notice or demand
provided for above) prior to seeking enforcement of this Guarantee and (ii) the requirement that
the Seller provide prior written notice or demand to the Purchaser shall not apply if the giving of
such notice or demand is prohibited by law or the Seller reasonably determines in good faith that
complying or attempting to comply with such requirement would reasonably be expected to jeopardize
its ability to enforce the Guarantee. Except as provided in the immediately preceding sentence,
the Guarantor also waives presentment to, demand of payment from and protest to the Purchaser with
respect to the Guaranteed Obligations and also waives notice of acceptance of this Guarantee and
notice of protest for nonpayment, except to the extent the Purchaser is entitled to the same under
the express terms of this Agreement. This Guarantee creates a primary obligation of the Guarantor,
and the Guarantor shall perform its obligations hereunder whether or not the Purchaser would
otherwise have the power or right to do so. Accordingly, if the Purchaser should fail to comply
with any of its obligations set forth in this Agreement for any reason, the Guarantor shall be
responsible therefor and hereby agrees to perform such obligations unconditionally without regard
to any defense or other basis for nonperformance that it would otherwise have or be entitled to
claim, except that the Guarantor shall be entitled to assert any and all defenses that would be
available to the Purchaser in an action brought by the Seller against the Purchaser to enforce the
Guaranteed Obligations, other than any defense that (i) arises as a result of facts or
circumstances giving rise to a breach of or inaccuracy in any of the representations or warranties
of the Purchaser contained in this Agreement or (ii) arises as a result of the voluntary or
involuntary liquidation or dissolution of the Purchaser, the sale of all or substantially all of
the properties, assets or liabilities of the Purchaser, the appointment of a trustee, custodian,
receiver, liquidator, sequestrator or conservator for all or any part of the properties or assets
of the Purchaser, or any insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization, moratorium, arrangement, composition, readjustment or other similar Legal
Proceedings affecting the Purchaser or is provided for under any Law providing for relief of
debtors in connection with any such Legal Proceedings.

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     SECTION 14.2. Unconditional Guarantee. Without limiting the provisions of Section 14.1, the
obligations of Guarantor hereunder are absolute and unconditional under any and all circumstances,
and such obligations shall not be subject to any reduction, limitation, impairment or termination,
to any claim of waiver, release, surrender, alteration or compromise, or, to the fullest extent
permitted by Law, to any defense, setoff, counterclaim, recoupment or termination whatsoever, by
reason of the invalidity, illegality or unenforceability of the Guaranteed Obligations, the
voluntary or involuntary liquidation or dissolution of the Purchaser, the sale of all or
substantially all of the properties, assets or liabilities of the Purchaser, the appointment of a
trustee, custodian, receiver, liquidator, sequestrator or conservator for all or any part of the
properties or assets of the Purchaser, or any insolvency, bankruptcy, assignment for the benefit of
creditors, reorganization, moratorium, arrangement, composition, readjustment or other similar
Legal Proceedings affecting the Purchaser, including, without limitation, (i) the release or
discharge of the Purchaser from the payment or performance of its obligations under this Agreement
by operation of Law in the event of any such Legal Proceeding with respect to the Purchaser or its
properties or assets, or (ii) the impairment, limitation or modification of the liability of the
Purchaser or of any remedy for the enforcement of the Guaranteed Obligations under this Agreement
or any other documents entered into from time to time in connection therewith in the event of any
such Legal Proceeding. To the fullest extent permitted by Law, the obligations of the Guarantor
hereunder shall not be affected by any act or omission or delay to do any act which might in any
manner or to any extent vary the risk of Guarantor or which would otherwise operate as a discharge
of a guarantor as a matter of Law.

     SECTION 14.3. Effect of Amendments to Guaranteed Obligations. The Guarantor further agrees that
the Guaranteed Obligations may be amended, extended or renewed, in whole or in part, without notice
or further assent from it and it will remain bound by its guarantee notwithstanding any amendment,
extension or renewal of the Guaranteed Obligations, including agreements and arrangements for
payment, extension, subordination, composition, arrangement, discharge or release of the whole or
any part of the Guaranteed Obligations, or for compromise, whether by way of acceptance of partial
payment or otherwise, and the same shall in no way impair Guarantor’s liability hereunder. Nothing
shall discharge or satisfy the liability of Guarantor under this Article XIV except the full and
indefeasible performance and payment of the Guaranteed Obligations; provided, however, that if the
Seller executes a written instrument waiving enforcement of any Guaranteed Obligation against the
Purchaser, the Seller shall not be entitled to seek enforcement of such obligation against the
Guarantor to the extent rights of enforcement are waived pursuant to such instrument.

     SECTION 14.4. Effectiveness and Reinstatement of Guarantee. The Guarantor further agrees that this
Guarantee shall continue to be effective or shall be reinstated, as the case may be, if at any time
payment, or any part thereof, on any Guaranteed Obligation is rescinded or must otherwise be
restored by the Seller in connection with the bankruptcy or reorganization of the Purchaser or any
other Legal Proceeding referred to in Section 14.2, or otherwise.

     SECTION 14.5. Subrogation; Subordination. Until the date upon which all of the Guaranteed
Obligations have been indefeasibly paid or performed in full, (a) the

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Guarantor shall not exercise any subrogation, contribution, indemnity or any other right to enforce
any other remedy which the Guarantor now or hereafter shall have against the Purchaser by reason of
any one or more payments or acts of performance in compliance with the obligations of Guarantor
hereunder or otherwise and (b) the Guarantor hereby agrees that all rights and claims of the
Guarantor described in clause (a) of this Section 14.5, shall be subordinated to the prior
indefeasible payment and performance in full of the Guaranteed Obligations due and payable
hereunder.

     SECTION 14.6. Obligation Currency. All obligations of Guarantor hereunder shall be payable in
United States dollars. The obligations hereunder of Guarantor to make payments in United States
dollars shall not be discharged or satisfied by any tender or recovery pursuant to any judgment
expressed in or converted into any other currency, except to the extent that such tender or
recovery results in the effective receipt by the Seller of the full amount of in United States
dollars owing to it hereunder.

     SECTION 14.7. Representations and Warranties of the Guarantor. The Guarantor hereby represents and
warrants to the Seller as follows:

     (a) The Guarantor is a corporation validly existing under the laws of England and Wales.

     (b) The Guarantor has all requisite power and authority to execute and deliver this Agreement
and perform its obligations hereunder. The execution and delivery of this Agreement by the
Guarantor and the performance by the Guarantor of its obligations hereunder have been duly
authorized by all necessary action on the part of the Guarantor. This Agreement has been duly and
validly executed and delivered by the Guarantor, constitutes a valid and binding obligation of the
Guarantor and is enforceable against the Guarantor in accordance with its terms, subject to the
Enforceability Exceptions.

     (c) The execution and delivery by the Guarantor of this Agreement and the performance by the
Guarantor of its obligations hereunder will not (i) result in any violation or breach of any
provision of the Organizational Documents of the Guarantor, (ii) result in any violation or breach
of, or constitute a default under, any term or provision of any Contract, franchise, permit,
license or other instrument or document to which the Guarantor is a party or by which its
properties or assets are bound or (iii) result in any violation of any Law or any Order applicable
to the Guarantor or its properties or assets, except for any of the matters referred to in clauses
(ii) or (iii) above which would not reasonably be expected to affect in any material respect the
performance by the Guarantor of its obligations hereunder.

     (d) There is no requirement applicable to the Guarantor to obtain any Consent of, or to make
or effect any declaration, filing or registration with, any Governmental Authority or other Person
for the valid execution and delivery by the Guarantor of this Agreement or the due performance by
the Guarantor of its obligations hereunder, except for any requirement which, if not satisfied,
would not reasonably be expected to affect in any material respect the performance by Guarantor of
its obligations hereunder.

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     (e) There are no Legal Proceedings pending or, to the knowledge of the Guarantor, threatened
against the Guarantor or to which the Guarantor is a party that relate to this Agreement or any
obligation of the Guarantor hereunder.

     (f) The Purchaser is a wholly owned Subsidiary of the Guarantor, and the Guarantor expects to
derive substantial direct and indirect benefits from the acquisition of the Shares by the Purchaser
and the consummation of the other transactions contemplated hereby, which benefits are at least
equal to the obligations undertaken by Guarantor pursuant to this Article XIV. The Guarantor
directly or indirectly controls the business and affairs of the Purchaser. Based on the facts
described above, the Guarantor has determined that it is in its best interest to enter into this
Guarantee.

     SECTION 14.8. Amendment. This Guarantee may not be amended except by a written instrument executed
by the Guarantor and the Seller (and, to the extent that any rights and benefits in respect of the
Guarantee have been assigned by the Seller to Merrill Lynch, by Merrill Lynch).

     SECTION 14.9. Binding Effect; Benefits. This Guarantee shall be binding upon the Guarantor and its
successors and assigns and shall inure to the benefit of the Seller and its successors and assigns.
The Seller shall be entitled, without the consent of the Guarantor or any other party, to assign
its rights under this Article XIV, insofar as they relate to the Guarantee by the Guarantor of the
indemnification and other provisions contained in Section 7.11(b) and (c), to Merrill Lynch, and
any such assignee will be entitled to enforce such rights in the same manner and to the same extent
as the Seller.

     SECTION 14.10. Costs of Enforcement. If a judgment is obtained against Guarantor with respect to a
dispute arising pursuant to this Guarantee, reasonable attorneys’ fees and actual costs shall be
included in such judgment.

     SECTION 14.11. Other Provisions. The provisions contained in Article XV shall apply to the
Guarantee, except to the extent that such provisions are inconsistent with the provisions of this
Article XIV, in which case the provisions of this Article XIV shall govern.

ARTICLE XV

GENERAL

     SECTION 15.1. Amendments. This Agreement may only be amended by an instrument in writing executed
by each of the parties hereto (and, to the extent that any rights and benefits of Seller have been
assigned by the Seller to Merrill Lynch, by Merrill Lynch).

     SECTION 15.2. Waivers. The observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively) by the party
entitled to the benefits of such term, but such waiver shall be effective only if it is in a
writing signed by the party entitled to the benefits of such term and against which such waiver is
to be asserted. Unless otherwise expressly provided in this Agreement, no delay or omission on the
part of any party in exercising any right or privilege under this

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Agreement shall operate as a waiver thereof, nor shall any waiver on the part of any party of any
right or privilege under this Agreement operate as a waiver of any other right or privilege under
this Agreement nor shall any single or partial exercise of any right or privilege preclude any
other or further exercise thereof or the exercise of any other right or privilege under this
Agreement.

     SECTION 15.3. Notices. Any notices or other communications required or permitted hereunder shall
be in writing and shall be sufficiently given (and shall be deemed to have been duly given upon
receipt) if sent by overnight mail, registered mail or certified mail, postage prepaid, or by
facsimile or telecopier, or by hand, to the parties at the following addresses (or at such other
address for a party as shall be specified by like notice).

     (a) If to the Seller or the Company, to:

Centex Corporation

2728 North Harwood

Dallas, Texas 75201

Attn: Brian J. Woram

Senior Vice President and Chief Legal Officer

Facsimile: (214) 981-6855

With a copy (which shall not constitute effective notice) to:

Baker Botts L.L.P.

2001 Ross Avenue

Dallas, Texas 75201

Attn: Geoffrey L. Newton

Facsimile: (214) 661-4753

     (b) If to the Purchaser, to:

Balfour Beatty, Inc.

c/o Balfour Beatty plc

130 Wilton Road

London SW1V 1LQ

Attn: Company Secretary

Facsimile: 44 20 7216 6936

With a copy (which shall not constitute effective notice) to:

Mayer, Brown, Rowe & Maw LLP

1675 Broadway, 19th Floor

New York, NY 10019

Attn: Mark S. Wojciechowski

Facsimile: (212) 262-1910

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     (c) If to the Guarantor, to:

Balfour Beatty plc

130 Wilton Road

London SW1V 1LQ

Attn: Ian P. Tyler

Facsimile: 44 20 7216 6936

     SECTION 15.4. Successors and Assigns; Parties in Interest. This Agreement shall be binding upon
and shall inure solely to the benefit of the parties hereto and their respective successors, legal
representatives and permitted assigns. Neither this Agreement nor any rights or obligations
hereunder (including under Article XIV) may be assigned without the written consent of the other
parties; provided, however, that the Seller shall be expressly entitled, without the consent of any
other party, to assign its rights to indemnification and any other rights and benefits provided to
it under Section 7.11(b) (and any related rights set forth in Article XIV) to Merrill Lynch, and
any such assignee will be entitled to enforce such rights in the same manner and to the same extent
as the Seller. Nothing in this Agreement, express or implied, is intended to or shall confer upon
any Person, other than the parties hereto and the D&O Indemnified Parties (with respect to the
provisions of Section 7.10) and the Indemnified Parties (with respect to the provisions of Article
XII) and the Persons referred to in the proviso to the immediately preceding sentence, any rights,
benefits or remedies of any nature whatsoever under or by reason of this Agreement, and no other
Person shall be deemed a third-party beneficiary under or by reason of this Agreement.

     SECTION 15.5. Severability. If any provision of this Agreement or the application of any such
provision to any Person or circumstance, shall be declared judicially to be invalid, unenforceable
or void, such decision shall not have the effect of invalidating or voiding the remainder of this
Agreement.

     SECTION 15.6. Entire Agreement. This Agreement (including the Disclosure Schedules and the
Exhibits hereto, and the documents and instruments executed and delivered in connection herewith)
constitutes the entire agreement among the parties hereto with respect to the subject matter hereof
and supersedes all prior and contemporaneous agreements and understandings, whether written or
oral, among the parties or any of them with respect to the subject matter hereof, and there are no
representations, understandings or agreements relating to the subject matter hereof that are not
fully expressed in this Agreement and the documents and instruments executed and delivered in
connection herewith. All Exhibits and Disclosure Schedules attached to this Agreement are
expressly made a part of, and incorporated by reference into, this Agreement.

     SECTION 15.7. Governing Law; Exclusive Jurisdiction.

     (a) This Agreement shall be governed by and construed in accordance with the laws of the State
of Delaware for contracts made and to be fully performed in such state, without giving effect to
any choice-of-law rules that would require the application of the laws of another jurisdiction.

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     (b) The parties agree that, subject to Section 15.9, any Legal Proceeding seeking to enforce
any provision of, or based on any matter arising out of or in connection with, this Agreement or
the transactions contemplated hereby shall be brought in federal district court in the Northern
District of Texas or, if such federal district court does not have subject matter jurisdiction over
the applicable matter, any Texas state court located in Dallas County, Texas.

     (c) Each of the parties: (i) consents to submit itself to the personal jurisdiction of any
federal court located in the Northern District of Texas or, if such federal district court does not
have subject matter jurisdiction over the applicable matter, any Texas state court located in
Dallas County, Texas; (ii) agrees that it shall not attempt to deny or defeat such personal
jurisdiction by motion or other request for leave from any such court; (iii) agrees that it shall
not bring any Legal Proceeding to enforce any provision of, or based on any matter arising out of
or in connection with this Agreement or the transactions contemplated hereby in any court other
than a federal district court located in the Northern District of Texas or, if such federal
district court does not have subject matter jurisdiction over the applicable matter, any Texas
state court located in Dallas County, Texas; and (iv) agrees that it will not assert, to the
fullest extent permitted by applicable Law, any claim that (A) any such Legal Proceeding in such
court is brought in an inconvenient forum, (B) the venue of such Legal Proceeding is improper or
(C) this Agreement, or the subject matter of this Agreement, may not be enforced in or by such
courts.

     (d) Each party acknowledges that it is the intention of the parties that any Legal Proceeding
of the type referred to in paragraph (b) will be brought in the federal district court located in
the Northern District of Texas, if such court has subject matter jurisdiction, and agrees that it
shall not challenge the existence of diversity jurisdiction or participate with any other Person in
challenging the existence of diversity jurisdiction and shall not take any action or omit to take
any action that would have the effect of challenging the existence of diversity jurisdiction. If
the parties have complied with paragraphs (a)-(c) of this Section 15.7, but a Legal Proceeding of
the type referred to in paragraph (b) is transferred from the Northern District of Texas to a
United States federal court outside that District, following the transfer, the provisions of this
Section 15.7 shall apply as if the Legal Proceeding were in federal district court in the Northern
District of Texas.

     (e) Process in any Legal Proceeding of the type referred to in paragraph (b) may be served on
any party anywhere in the world, whether within or without the jurisdiction of any such court.
Without limiting the foregoing, Seller, Purchaser and Guarantor agree that notice to any party that
is not a resident of the United States by the method set forth in Section 15.3 shall be deemed
effective service of process on such party in any Legal Proceeding seeking to enforce any provision
of, or based on any matter arising out of or in connection with, this Agreement or the transactions
contemplated hereby.

     SECTION 15.8. Remedies. Each of the parties hereto acknowledges and agrees that (i) the provisions
of this Agreement are reasonable and necessary to protect the proper and legitimate interests of
the other parties hereto and (ii) the other parties hereto would be irreparably damaged if any of
the provisions of this Agreement were not performed in accordance with their specific terms or were
otherwise breached. It is accordingly agreed that the parties hereto shall be entitled to
preliminary and permanent injunctive relief to

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prevent breaches of the provisions of this Agreement by other parties hereto without the necessity
of proving actual damages or of posting any bond, and to enforce specifically the terms and
provisions hereof, which rights shall be cumulative and in addition to any other remedy to which
the parties hereto may be entitled hereunder or at law or equity.

     SECTION 15.9. Mandatory Mediation of Certain Disputes.

     (a) From and after the Closing Date, if any dispute arises between the parties in connection
with this Agreement or the transactions contemplated hereby (a “Dispute”), subject to clause (e)
below, neither party shall initiate litigation or any other Legal Proceeding until the dispute
resolution procedures set forth in this Section 15.9 have been exhausted. All communications or
negotiations pursuant to this Section 15.9 are confidential and shall be treated as compromise and
settlement negotiations for purposes of the Federal Rules of Evidence and applicable state rules of
evidence.

     (b) Any party shall give notice of a Dispute by the method set forth in Section 15.3. The
notice shall describe the nature of the Dispute and any proposed remedy (the “Dispute Notice”). If
such notice is given, the parties shall attempt to resolve the Dispute promptly by negotiation
between executives who have authority to settle the Dispute. The executives shall confer within
ten days following receipt of the Dispute Notice in person or by telephone. The parties shall work
together in good faith to resolve the Dispute in this manner.

     (c) If the parties do not resolve the Dispute within 30 days following receipt of the Dispute
Notice, then the Dispute shall be submitted to mediation. Any party shall initiate mediation of
the Dispute by notifying each other party by the method set forth in Section 15.3 that mediation is
demanded. Following such notice, the Dispute shall be submitted to mediation administered by the
CPR International Institute for Conflict Prevention & Resolution under its Mediation Procedures
(except as such procedures are modified by the provisions of this Section 15.9(c)), or, upon the
agreement of all parties, by any other entity or person offering mediation services. No person
shall serve as a mediator in any Dispute in which the person has any financial or personal interest
in the result of the mediation, except by the written consent of all parties. Before accepting any
appointment, the prospective mediator shall disclose any circumstances likely to create a
presumption of bias or to prevent a prompt meeting with the parties.

     (i) Unless the parties agree otherwise, within 10 days following the selection of the
mediator, each party shall submit to the mediator a confidential “mediator-eyes only”
letter concisely describing its position regarding the issues that need to be resolved
(“Position Statement”). Unless the parties agree otherwise, the mediation shall be
commenced within 10 days following the submission of all Position Statements and shall be
concluded within 10 days from the commencement of the mediation. Unless the parties agree
otherwise, the mediation shall be held in Dallas, Texas.

     (ii) The mediator has discretion to conduct the mediation in the manner in which the
mediator believes is most appropriate for reaching a settlement of the Dispute. The
mediator is authorized to conduct joint and separate meetings with the

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parties and to make oral and written recommendations for settlement. The mediator
shall not have the authority to impose a settlement on the parties, but will attempt to
help them reach a satisfactory resolution of their Dispute.

     (iii) Confidential information disclosed to a mediator in the course of the mediation
shall remain confidential throughout and after the mediation.

     (iv) Each party to the mediation shall bear its own attorneys’ fees and costs in
connection with such mediation. Unless the parties agree otherwise, the fees and costs
charged by the mediator or the organization administering the mediation shall be divided
equally among all the parties to the mediation.

     (d) If and only if the Dispute is not resolved within 30 days following the conclusion of the
mediation, any party may initiate a Legal Proceeding regarding the Dispute, subject to the
provisions in section 15.7.

     (e) The provisions of this Section 15.9 will not be construed to prevent a party from (i)
seeking a temporary restraining order or injunctive or other equitable relief hereunder or (ii)
instituting litigation or other appropriate proceedings to the extent necessary to avoid the
expiration of any applicable limitations period or to preserve a superior position with respect to
creditors.

     SECTION 15.10. Expenses. Except as otherwise expressly provided herein, each of the parties hereto
shall bear its own expenses (including fees and disbursements of its counsel, accountants and other
experts) incurred by it in connection with the preparation, negotiation, execution, delivery and
performance of this Agreement, each of the other documents and instruments executed in connection
with or contemplated by this Agreement and the consummation of the transactions contemplated
hereby. Notwithstanding the foregoing, the Seller shall pay the expenses described in Section
15.10 of the Company Disclosure Schedule.

     SECTION 15.11. Further Assurances. On and after the Closing Date each party hereto shall take such
other actions and execute such other documents and instruments reasonably requested by the other
parties as are reasonably necessary to effectuate the purposes of this Agreement, including the
conveyance and transfer of the Shares to the Purchaser in accordance with the terms of this
Agreement.

     SECTION 15.12. Release of Information. The parties shall cooperate with each other in releasing
information concerning this Agreement and the transactions contemplated hereby. No press releases
or other public announcements concerning the transactions contemplated by this Agreement shall be
made by any party without prior consultation with, and agreement of, the other parties, except for
any legally required communication by any party and then only with prior consultation with the
other party.

     SECTION 15.13. Disclosure Schedules. For purposes of the representations and warranties of each
party contained herein, disclosure in any section of a Disclosure Schedule delivered by such party
of any facts or circumstances shall not be deemed to be adequate disclosure of such facts or
circumstances with respect to any other representations

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or warranties made by such party, unless (i) such disclosure is specifically identified or purports
to respond to (whether by specific cross-reference or otherwise) one or more of such other
representations and warranties or (ii) with respect to any specific item of the relevant Disclosure
Schedule, a reasonable person would be reasonably likely to conclude that a matter disclosed on
such item of such Disclosure Schedule is responsive to matters to be disclosed on another item of
such Disclosure Schedule. Any information provided in a Disclosure Schedule (other than the
Allocation Schedule or Sections 7.11(c) and 7.12 of the Company Disclosure Schedule, which reflect
agreements among the parties hereto) is solely for informational purposes, and the inclusion of
such information shall not be deemed to enlarge or enhance any of the representations or warranties
of the party providing the Disclosure Schedule pursuant to this Agreement, or otherwise alter in
any way the terms of this Agreement. The inclusion of any information in any section of the
Disclosure Schedule or other document delivered by the parties pursuant to this Agreement shall not
be deemed to be an admission or evidence of the materiality of such item, nor shall it establish a
standard of materiality for any purpose whatsoever.

     SECTION 15.14. Certain Rules of Construction. The article and section headings and the table of
contents, and the recitals (except to the extent terms are expressly defined therein) contained in
this Agreement are illustrative and for convenience of reference only and shall in no way define,
limit, extend or describe the scope or intent of any provisions of this Agreement. Whenever the
context may require, any pronoun used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular form of nouns, pronouns and verbs shall include the
plural and vice versa. In addition, as used in this Agreement, unless otherwise provided to the
contrary, (a) all references to days, months or years shall be deemed references to calendar days,
months or years or (b) any reference to a “Section,” “Article” or “Exhibit” shall be deemed to
refer to a section or article of this Agreement, a Disclosure Schedule or an exhibit attached to
this Agreement. Unless the context otherwise requires, the words “hereof,” “herein,” and
“hereunder” and words of similar import referring to this Agreement refer to this Agreement as a
whole and not to any particular provision of this Agreement. The words “include,” “includes,” or
“including” shall be deemed to be followed by the words “without limitation.” Unless otherwise
specifically provided for herein, the term “or” shall not be deemed to be exclusive. Whenever this
Agreement refers to an event, occurrence or development that “would reasonably be expected to have”
or “would not reasonably be expected to have” a specified effect on the Company or any of its
Subsidiaries or any other Person (including a Material Adverse Effect) a determination as to
whether such effect would reasonably be expected to occur shall be made from the viewpoint of a
reasonable and objective third party as of the date of such event, occurrence or development that
is experienced in the contracting and construction services industry, and not from the viewpoint
of, or taking into account any special circumstances applicable to, any particular Person
(including the Purchaser).

     SECTION 15.15. Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original (whether such counterpart is originally executed or an electronic
copy of an original) and all of which taken together shall constitute one instrument binding on all
the parties, notwithstanding that all the parties are not signatories to the original or the same
counterpart.

[signature page follows]

87

 

     IN WITNESS WHEREOF, this Agreement has been duly executed as of the date first above written.

	 	 	 	 	 	 	 
	 	 	SELLER:	 	 
	 

	 	 	 	 	 	 
	 	 	CENTEX CORPORATION,

a Nevada corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Brian J. Woram	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Brian J. Woram	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Senior Vice President	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	CENTEX CONSTRUCTION GROUP, INC.,

a Nevada corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert C. Van Cleave	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Robert C. Van Cleave	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Chief Executive Officer	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	PURCHASER:	 	 
	 
	 	 	 	 	 	 
	 	 	BALFOUR BEATTY, INC.,

a Delaware Corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Peter Zinkin	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Peter Zinkin	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Authorized Signatory	 	 
	 

	 	 	 	 	 	 

88

 

	 	 	 	 	 	 	 
	 	 	Solely for purposes of Section 7.11(c) (as to the last
sentence thereof),12.6, Article XIV and (to the extent
provided in Section 14.11) Article XV:	 	 
	 
	 	 	 	 	 	 
	 	 	GUARANTOR:	 	 
	 
	 	 	 	 	 	 
	 	 	BALFOUR BEATTY PLC,

a company organized under the laws of England and Wales	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Peter Zinkin	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Peter Zinkin	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Authorized Signatory	 	 
	 

	 	 	 	 	 	 

89

 

Exhibit A

FORM OF

TRANSITION SERVICES AGREEMENT

     This TRANSITION SERVICES AGREEMENT (this “Agreement”) is entered into as of ___, 2007
(the “Effective Date”) by and between CENTEX SERVICE COMPANY LLC, a Nevada limited liability
company (“Service Co.”), and CENTEX CONSTRUCTION GROUP, INC., a Nevada corporation (the “Company”).

RECITALS

     WHEREAS, on January ___, 2007, the Company, Centex Corporation, a Nevada corporation (the
“Seller”), Balfour Beatty, Inc., a Delaware corporation (the “Purchaser”), and Balfour Beatty plc,
a company organized under the laws of England and Wales, entered into a Stock Purchase Agreement
(the “Purchase Agreement”), pursuant to which the Seller agreed to sell all of the outstanding
capital stock of the Company to the Purchaser;

     WHEREAS, on the date hereof, the Seller and the Purchaser are consummating the transactions
contemplated by the Purchase Agreement; and

     WHEREAS, prior to the date hereof, certain business operations of the Company have been
supported by functions and services provided by the Seller or its Affiliates (including Service
Co.), and Service Co. is willing to continue to provide certain of such services to the Company for
an interim period, upon the terms and conditions set forth in this Agreement;

     NOW THEREFORE, in consideration of the premises, the terms and conditions set forth herein,
the mutual benefits to be gained by the performance thereof, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and
Service Co. agree as follows:

     SECTION 1. Definitions; Rules of Construction. Unless otherwise defined herein, all
capitalized terms used in this Agreement shall have the respective meanings assigned to them in the
Purchase Agreement. As used in this Agreement, the terms set forth below shall have the following
meanings:

     “Agreement” has the meaning specified in the preamble to this Agreement.

     “Company” has the meaning specified in the preamble to this Agreement.

     “Effective Date” has the meaning specified in the preamble to this Agreement.

     “Invoice” has the meaning specified in Section 4.3 of this Agreement.

 

 

     “Partial Termination” has the meaning specified in Section 8.2 of this Agreement.

     “Party” shall mean the Company or Service Co.

     “Purchase Agreement” has the meaning specified in the recitals to this Agreement.

     “Purchaser” has the meaning specified in the recitals to this Agreement.

     “Seller” has the meaning specified in the preamble to this Agreement.

     “Service Fees” has the meaning specified in Section 4.1 of this Agreement.

     “Services” shall mean all services described in Exhibit A that are to be provided by
Service Co. pursuant to this Agreement. For the avoidance of doubt, the Services shall not include
any services which are not being provided by Seller or its Affiliates on the date hereof, unless
the Parties otherwise agree in writing and a mutually agreeable adjustment is made to the payment
to be made to Service Co. pursuant to Section 4.

     “Term” has the meaning specified in Section 2 of this Agreement.

     SECTION 2. Term. Service Co. agrees to provide, or cause to be provided, on the
terms and subject to the conditions of this Agreement, the Services to the Company during the
period commencing on the Effective Date and ending on December 31, 2007 (the “Term”), unless this
Agreement is earlier terminated in accordance with the terms hereof; provided, however, that, in
the case of any Service that, in accordance with Exhibit A, is scheduled to be provided for
a different period or until a specified date set forth therein, Service Co. shall provide such
Service during such period or until such date.

     SECTION 3. Performance of Services.

     3.1 General. Upon the terms and conditions set forth in this Agreement, Service Co. shall, or
shall cause its Affiliates to, provide the Services to the Company and its Subsidiaries. Unless
specifically provided to the contrary in Exhibit A, all Services provided for under this
Agreement shall be performed or provided, as applicable, in substantially the same manner as those
Services have been provided to the Company and its Subsidiaries prior to the Effective Date and in
a manner consistent with the usual and customary practices of Seller and its Affiliates with
respect to the Company and its Subsidiaries prior to the Effective Date. Each of the Parties
acknowledges and agrees that neither Service Co. nor any of its Affiliates shall be responsible for
any Losses or other consequences arising from the inability or failure on the part of the Company
or any of its Subsidiaries to provide the Services for itself or to arrange for replacement
services to be provided by Third Parties, in either case, from and after the expiration of the
Term.

2

 

     3.2 Partial Expiration or Termination. As described in Exhibit A, Service Co.’s
obligation to provide certain services shall terminate prior to the expiration of the Term if the
Company is able to provide such services for itself or arrange replacement services to be provided
by Third Parties on terms reasonably satisfactory to the Company. If a Partial Termination occurs,
Service Co. and its Affiliates shall no longer provide any Services which are the subject of such
Partial Termination. Notwithstanding anything to the contrary herein, neither a partial expiration
of services nor a Partial Termination shall have any effect on other Services provided by Service
Co. or its Affiliates hereunder and this Agreement shall remain in full force and effect with
respect to the Services which have not been expired or terminated by the Company as provided
herein.

     3.3 Third Party Consents. Service Co. shall be responsible for obtaining any Consents
from Third Parties necessary to provide the Services under this Agreement. The Company shall be
responsible for obtaining any Consents from Third Parties to use and access any software, hardware,
databases, data or other third-party property or materials to be used by the Company and its
Subsidiaries to replace any Services after the expiration of the Term.

     3.4 No Implied Representations. Except as otherwise provided in this Section 3,
neither Service Co. nor any of its Affiliates makes any express or implied representations,
warranties or guarantees relating to the Services to be performed under this Agreement, including,
without limitation, any warranty of merchantability or fitness for a particular purpose.

     3.5 Subcontracting. If Seller or Service Co., as applicable, subcontracts or outsources any
intercompany services it provides to its Affiliates generally, to the extent the Services provided
hereunder are affected, the Company agrees to cooperate in good faith with the reasonable request
of the Seller and Service Co. to reach arrangements with such third-party subcontractor or service
provider for the provision of the Services to the Company and its Subsidiaries by such third-party
directly. Nothing herein shall prevent Service Co. from subcontracting its obligations hereunder.

     SECTION 4. Fees; Costs and Expenses.

     4.1. Service Fees. In consideration of the provision of the Services, the Company shall pay
to Service Co. the fees described in Exhibit A (the “Service Fees”). If the Company
terminates any Service prior to the end of a monthly period and the Service Fee therefor is not
based on usage, such Service Fee for the monthly period in which the termination date occurs shall
be determined by multiplying the amount of such Service Fee by a fraction, the numerator of which
is the number of days in the portion of such monthly period during which the Services were provided
and the denominator of which is the number of days in such monthly period.

     4.2. Reimbursement of Expenses. In addition, the Company shall pay all out-of-pocket costs
and expenses due to Third Parties associated with the performance of the Services, including the
cost of special order supplies and reasonable expenses of travel made pursuant to the Company’s
request. To the extent that any such out-of-pocket costs

3

 

and expenses are paid by Service Co. or its Affiliates, the Company shall reimburse Service
Co. for all such out-of-pocket expenses.

     4.3. Invoices; Payment. Promptly after the end of each month, Service Co. shall prepare and
deliver to the Company an invoice for the Service Fees and out of pocket costs and expenses
applicable to such month (an “Invoice”). All amounts reflected in the Invoice shall be due and
payable 30 calendar days following receipt by the Company of the Invoice. Any amount not paid on
or before the date such amount is due shall bear interest from and after such date until paid in
full a rate equal to 8.00% per annum. Unless otherwise specified in Exhibit B or mutually
agreed by the Parties, all payments shall be made by wire transfer of immediately available funds
in U.S. Dollars.

     4.4. Taxes. Each Party shall be responsible for (i) any real or personal property Taxes on
property it owns or leases, (ii) franchise and similar Taxes on its business, (iii) the employment
Taxes of its employees and (iv) Taxes based on its net income. Except as provided in the
immediately preceding sentence, the Company shall be responsible for all Taxes in connection with
this Agreement, including any sales, use, excise, value-added, services, consumption and other
Taxes assessed on the provision of Services by Service Co. or its Affiliates to the Company or its
Subsidiaries, on the Service Fees and other charges to the Company pursuant to this Agreement, and
on any goods or Services used or consumed by either Party in connection with the provision of
Services under this Agreement.

     SECTION 5. Force Majeure. Neither Service Co. nor any of its Affiliates shall be
responsible or liable to the Company or its Affiliates for any delay or failure to perform under
this Agreement due to circumstances beyond its control, including any acts of God, acts of any
Governmental Authority or military authority, fires, explosions, power failures, telecommunications
service failures, floods, storms, tornadoes, earthquakes, elements of nature, epidemics, riots or
civil disturbances, wars, sabotage, terrorism, rebellions or revolutions or similar events and any
delays or failures caused by the nonperformance of the Company or any of its Subsidiaries or the
nonperformance of any Third Party under the control or responsibility of the Company or any of its
Subsidiaries. Seller will promptly notify the Company in writing upon learning of the occurrence
of such event of force majeure. Upon the cessation of the force majeure event, Seller and its
Affiliates will use commercially reasonable efforts to resume their performance as promptly as
practicable.

     SECTION 6. Confidentiality. Service Co. recognizes that, by reason of performing
the Services pursuant to this Agreement, Service Co. will acquire proprietary, secret or
confidential information concerning the business and operations of the Company and its
Subsidiaries. Similarly, the Company recognizes that, by reason of receiving the Services pursuant
to this Agreement, the Company will acquire proprietary, secret or confidential information
concerning the business and operations of Service Co. and its Affiliates. Accordingly, (i)
Service Co. covenants to the Company that Service Co. will not, and it will not permit any of its
Affiliates to, for a period of three years following the Effective Date, except in performance of
the terms of this Agreement, in connection with the enforcement of its rights under this Agreement
or with the prior written consent of the

4

 

Company, disclose to any Third Party any proprietary, secret or confidential information
obtained in the course of performing the Services hereunder relating to the Company or its
Subsidiaries or their respective businesses and operations and (ii) the Company covenants to
Service Co. that the Company will not, and it will not permit any of its Affiliates to, for a
period of three years following the Effective Date, except in the performance of the terms of this
Agreement, in connection with the enforcement of its rights under this Agreement or with the prior
written consent of Service Co., disclose to any Third Party any proprietary, secret or confidential
information obtained in connection with this Agreement relating to Service Co. or its Affiliates or
their respective businesses and operations. The foregoing obligations of each Party shall not
apply to any information that (i) is or becomes generally available to the public other than as a
result of disclosure by such Party or its Affiliates, (ii) it is known by reason of ownership or
operation of a business (owned or operated as of the date hereof) other than that of the Company
and its Subsidiaries or (iii) is to be disclosed by such Party as required by applicable Law.

     SECTION 7. Relationship of the Parties. In connection with this Agreement, each
Party is acting as a principal or an independent contractor and, as such, shall not have any
authority to bind or commit the other Party. Nothing in this Agreement will be deemed or construed
to create a joint venture, partnership or agency relationship between the Parties for any purpose.
The Parties are not joint employers for any purpose, and Service Co. and its Affiliates (or their
subcontractors) will have the sole right to exercise all authority with respect to the employment
(including termination of employment), assignment and compensation of its employees and
representatives providing Services hereunder.

     SECTION 8. Termination.

     8.1 General. This Agreement shall terminate, and the obligation of Service Co. and its
Affiliates to provide all Services shall cease, on the earliest to occur of (i) the expiration of
the Term, (ii) the date on which all Services have been terminated by the Company pursuant to
Section 8.2 or (iii) the date on which this Agreement is terminated pursuant to Section 8.3.

     8.2 Partial Termination. The Company may terminate all or a portion of the Services provided
hereunder upon at least 15 days’ prior written notice to Service Co. if it determines in its sole
discretion that such Services are no longer desired (a “Partial Termination”).

     8.3 Termination of Entire Agreement. Either Party may terminate this Agreement upon delivery
of written notice to the other Party if the other Party: (a) makes an assignment for the benefit
of creditors, or becomes bankrupt or insolvent, or is the subject of a petition in bankruptcy, or
takes advantage of any state, federal or foreign bankruptcy or insolvency act, or if a receiver or
receiver/manager is appointed for all or any substantial part of its property and business and such
receiver or receiver/manager remains undischarged for a period of 15 days or (b) materially
defaults in the performance of any of its covenants or obligations contained in this Agreement and
such default is not remedied to

5

 

the nondefaulting Party’s reasonable satisfaction within 15 days after notice to the
defaulting Party of such default.

     8.4 Procedures on Termination. Upon the expiration or termination of this Agreement for any
reason, the Company shall promptly pay Service Co. for all Services provided and all Service Fees
and other charges due pursuant to Section 4, through the effective date of such expiration or
termination.

     8.5 Effect of Termination. Sections 1, 4, 5, 6, 7, 8.4, 8.5 and 9 through 12 shall survive
any termination of this Agreement.

     SECTION 9. Indemnification; Limitation of Liability.

     9.1 Indemnification by the Company. The Company shall indemnify and hold harmless Service Co.
and its Affiliates from and against all Losses incurred by Service Co. or its Affiliates based upon
or arising from any third-party Claim relating to the performance of the Services (regardless of
whether such Losses arise from the negligence of other fault of Service Co. or any of its
Affiliates), except to the extent that such damages are determined by final judgment of a court of
competent jurisdiction or a mediator pursuant to Section 15.9 of the Purchase Agreement to arise
out of the willful misconduct or gross negligence of Service Co. or any of its Affiliates.

     9.2 Limitation on Liability.

     (a) Notwithstanding anything to the contrary contained herein, Service Co. and its
Affiliates shall have no liability to the Company or its Affiliates with respect to the performance
of any Services hereunder (regardless of whether such liability arises from the negligence or other
fault of Service Co. or any of its Affiliates), except to the extent such liability is
determined by a court of competent jurisdiction to arise from the willful misconduct or gross
negligence of Service Co. or any of its Affiliates.

     (b) If either Party becomes liable to the other Party for or in connection with any
matter relating to or arising from this Agreement, whether based upon an action or claim in
contract, warranty, equity, negligence, intended conduct or otherwise, the aggregate amount of
damages recoverable against the liable Party with respect to any and all breaches, performance,
nonperformance, acts or omissions hereunder will not exceed an amount equal to the aggregate amount
of Service Fees paid hereunder.

     (c) In no event shall either Party be liable for consequential, indirect, incidental,
exemplary or punitive damages (including, without limitation, damages due to business interruption
or lost profits, savings, competitive advantage or goodwill) arising from or related to this
Agreement, regardless of the type of claim, whether in contract, warranty, equity, negligence,
intended conduct or otherwise and regardless of the cause of such damages even if such damages were
foreseeable.

6

 

     (d) The limitations set forth in this Section 9.2 shall not apply to (i) either Party’s
obligations of confidentiality set forth in Section 6, (ii) the indemnification provisions
contained herein or (iii) the Company’s payment obligations hereunder.

     SECTION 10. Entire Agreement; Amendment. This Agreement, together with the
Purchase Agreement, contains the entire understanding of the Parties hereto with regard to the
subject matter contained herein, and supersedes and terminates all prior agreements (other than the
Purchase Agreement), understandings or letters of intent between the Parties with regard to the
subject matter contained herein. This Agreement shall not be amended, modified or supplemented
except by a written instrument signed by an authorized representative of each Party.

     SECTION 11. Successors and Assigns; Parties in Interest. This Agreement shall be
binding upon and shall inure solely to the benefit of the Parties and their respective successors,
legal representatives and permitted assigns. Neither this Agreement nor any rights or obligations
hereunder may be assigned without the written consent of the other Party. Nothing in this
Agreement, express or implied, is intended to or shall confer upon any Person, other than the
indemnified parties specified in Section 9 (with respect to the provisions of Section 9), any
rights, benefits or remedies of any nature whatsoever under or by reason of this Agreement, and no
other Person shall be deemed a third-party beneficiary under or by reason of this Agreement.

     SECTION 12. Incorporation of Terms. The following provisions of the Purchase
Agreement are hereby incorporated into and specifically made applicable to this Agreement with
respect to Service Co. and the Company (provided, that, in construing such incorporated provisions,
(i) any reference to the “Seller” shall be deemed to refer to Service Co., (ii) any reference to
the “parties” shall be deemed to refer to the Parties to this Agreement and (iii) any reference to
“this Agreement” shall be deemed to refer to this Agreement):

	 	 	 	 	 
	 

	 	Section 15.2
	 	Waivers
	 

	 	Section 15.3
	 	Notices
	 

	 	Section 15.5
	 	Severability
	 

	 	Section 15.7
	 	Governing Law; Exclusive Jurisdiction
	 

	 	Section 15.9
	 	Mandatory Mediation of Certain Disputes
	 

	 	Section 15.15
	 	Counterparts

In the event there is any inconsistency or conflict between a provision of this Agreement
(including any Exhibit hereto) and any incorporated provision of the Purchase Agreement, the
provisions of this Agreement shall control.

* * * * * * * * * * * *

7

 

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their authorized
representatives as of the Effective Date.

	 	 	 	 	 
	 	CENTEX SERVICE COMPANY LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	CENTEX CONSTRUCTION GROUP, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:exv10w1

 

Exhibit 10.1

     SEPARATION AGREEMENT

     This
Separation Agreement (the “Agreement”) is effective
as of January 31, 2007, by
and between Dick Chang (“Executive”) and Avago Technologies Limited, a company organized
under the laws of Singapore (the “Company”), with reference to the following facts:

          A.      Executive’s status as an employee and/or officer of Avago Technologies U.S. Inc., a
subsidiary of the Company (“Avago U.S.”), the Company and any subsidiary or other affiliate
of the Company terminated effective on October 31, 2006. Executive continues to serve as a member
of the Company’s board of directors.

          B.      Executive and the Company desire to resolve all matters pertaining to Executive’s full-time
employment relationship amicably.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth,
the parties agree as follows:

          1.      Termination Date. Executive agrees that his status as an employee and/or officer
of Avago U.S., the Company and any subsidiary or other affiliate of the Company terminated on
October 31, 2006 (the “Termination Date”). Following the Termination Date, Executive has
served and shall continue to serve as a non-employee member of the Company’s board of directors.

          2.      Payments and Benefits. The Company hereby agrees, subject to the execution, and,
as applicable, the non-revocation, of this Agreement by both parties to provide Executive payments
and benefits as follows:

        (a)      Termination Payments. Executive acknowledges that on the Termination Date, Avago
U.S. paid to Executive any accrued but unpaid Base Salary and Flexible Time Off in
accordance with Avago U.S.’s normal termination pay procedures.

        (b)      Director Fees. For so long as Executive shall serve as a non-employee member of
the Company’s board of directors, he shall receive director fees at the rate then in
effect, currently $50,000 per annum, prorated for any partial period. Executive hereby
acknowledges that following the Termination Date, he has not been and shall not be an
employee of the Company and that he and not the Company has been and shall be responsible
for any income tax liability that has arisen or will arise as a result of the payment of
such director fees.

        (c)      Target Bonus. Executive acknowledges that on or about December 21, 2006, Avago
U.S. paid to Executive any and all bonuses due Executive for his service in fiscal year
2006 or otherwise.

        (d)      Healthcare. Executive acknowledges that Avago U.S. provided Executive a form
whereby he could elect to receive continued healthcare coverage pursuant to the provisions
of the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended
(“COBRA”).

        (e)      Equity.

     (i)      The Company and Executive acknowledge that subject to the terms of the
Equity Incentive Plan for Executive Employees of Avago Technologies

1

 

Limited and Subsidiaries, as amended from time to time (the “Equity
Incentive Plan”), Executive has been granted options to purchase an aggregate of
1,350,000 ordinary shares of the Company in the amounts and with the exercise prices
set forth on Exhibit A (the “Current Options”). The Company and
Executive agree that Executive shall not exercise any Current Options and that all
Current Options shall terminate unexercised pursuant to such Current Options terms
on the 90th day following the Termination Date.

     (ii)      Subject to Executive’s fulfillment of his obligations pursuant to
subparagraph (i), as soon as administratively practicable following Executive’s
execution and, as applicable, non-revocation of this Agreement, the Company shall
grant to Executive options to purchase 1,033,332 ordinary shares of the Company
pursuant to the Equity Incentive Plan in the amounts and with the exercise prices
and vesting schedules set forth on Exhibit B (the “New Options”).
All then vested New Options shall automatically be exercised upon the earliest to
occur of (A) a change in control of the Company (within the meaning of Section 409A
of the Internal Revenue Code of 1986, as amended, and the Department of Treasury
proposed and final regulations promulgated thereunder), (B) a termination of
Executive’s service as a member of the Company’s board of directors for any reason
or no reason, or (C) immediately prior to the fifth anniversary of the date of grant
of such New Options.

     (iii)      Notwithstanding anything in subparagraph (ii) to the contrary and subject
to Executive’s fulfillment of his obligations pursuant to subparagraph (i), if as of
June 30, 2007 the Company’s shareholders have not approved a plan or agreement
necessary for the New Options to begin to vest and become exercisable, the Company
shall cause Avago U.S. to pay to Executive as soon as practicable thereafter a cash
lump sum of $1,715,329. Upon such payment the New Options shall be automatically
terminated.

        (f)      Bonus and Other Compensation Arrangements. The Company and Executive acknowledge
and agree that Executive will not be eligible to receive any bonus compensation or any
other award under any Company bonus, equity or other compensation plan except as set forth
herein.

        (g)      Taxes. Executive understands and agrees that all payments and benefits under
this Agreement will be subject to appropriate tax withholding and other deductions, as and
to the extent required by law. To the extent any taxes may be payable by the Executive
for the benefits provided to him by this Agreement beyond those withheld by the Company,
the Executive agrees to pay them himself and to indemnify and hold the Company and the
other entities released herein harmless for any tax claims or penalties, and associated
attorneys’ fees and costs, resulting from any failure by him to make required payments.

        (h)      Sole Benefit. Executive agrees that the payments and benefits provided by this
Agreement are not required under the Company’s normal policies and procedures and are
provided solely in connection with this Agreement. Executive further acknowledges and
agrees that the payments and benefits referenced in this Agreement constitute adequate and
valuable consideration, in and of themselves, for the promises contained in this
Agreement.

2

 

          3.      Full Payment; Termination of Employment Agreement; Survival. Executive
acknowledges that the payment and arrangements herein shall constitute full and complete
satisfaction of any and all amounts properly due and owing to Executive as a result of his
employment with the Company and any subsidiary or affiliate thereof, and the termination thereof.

          4.      General Release. As a material inducement for the Company to enter into this
Agreement, and in exchange for the performance of the Company’s obligations under this Agreement
provided for herein, Executive knowingly and voluntarily waives and releases all rights and claims,
known and unknown, which Executive may have against the Company and/or any of the Company’s related
or affiliated entities or successors, or any of their current or former officers, directors,
managers, employees, agents, insurance carriers, auditors, accountants, attorneys or
representatives, including any and all charges, complaints, claims, liabilities, obligations,
promises, agreements, contracts, controversies, damages, actions, causes of action, suits, rights,
demands, costs, losses, debts and expenses of any kind. This includes, but is not limited to,
claims for employment discrimination, harassment, wrongful termination, constructive termination,
violation of public policy, breach of any express or implied contract, breach of any implied
covenant, fraud, intentional or negligent misrepresentation, emotional distress, defamation, or any
other claims relating to Executive’s relationship with the Company. This also includes a release
of any claims under any federal, state or local laws or regulations, including, but not limited to:
(1) Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000(e) et seq. (race,
color, religion, sex, and national origin discrimination); (2) the Age Discrimination in Employment
Act, as amended, 29 U.S.C. § 621 et seq. (the “ADEA”) (age discrimination);
(3) Section 1981 of the Civil Rights Act of 1866, 42 U.S.C. 1981 (race discrimination); (4) the
Equal Pay Act of 1963, 29 U.S.C. § 206 (equal pay); (5) the Fair Labor Standards Act, 29 U.S.C. §
201, et seq. (wage and hour matters, including overtime pay); (6) COBRA; (7)
Executive Order 11141 (age discrimination); (8) Section 503 of the Rehabilitation Act of 1973, 29
U.S.C. § 701, et seq. (disability discrimination); (9) the Employee Retirement
Income Security Act of 1974, as amended, 29 U.S.C. § 1001, et seq. (employee
benefits); (10) Title I of the Americans with Disabilities Act (disability discrimination); and
(11) any applicable state law counterpart of any of the foregoing, including the California Fair
Employment and Housing Act, the California Family Rights Act, claims for wages under the California
Labor Code. Notwithstanding the generality of the foregoing, Executive does not release (i) claims
for unemployment compensation or any state disability insurance benefits pursuant to the terms of
applicable state law; (ii) claims to continued participation in certain of the Company’s group
benefit plans pursuant to the terms and conditions of COBRA; (iii) claims to any benefit
entitlements vested as of the date of separation of his employment, pursuant to written terms of
any employee benefit plan of the Company or its subsidiaries; (iv) Executive’s right to bring to
the attention of the Equal Employment Opportunity Commission claims of discrimination;
provided, however, that Executive does release Executive’s right to secure any
damages for alleged discriminatory treatment; and (v) Executive’s right under applicable law and
the Company’s D&O policy to seek indemnity for acts committed, or omissions, within the course and
scope of the Executive’s employment duties. EXECUTIVE ACKNOWLEDGES THAT EXECUTIVE HAS BEEN ADVISED
OF AND IS FAMILIAR WITH THE PROVISIONS OF CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS
FOLLOWS: “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT
TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY H
IM OR HER
MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” BEING AWARE OF SAID CODE
SECTION, EXECUTIVE HEREBY EXPRESSLY WAIVES ANY RIGHTS EXECUTIVE MAY HAVE THEREUNDER, AS WELL AS
UNDER ANY OTHER STATUTES OR COMMON LAW PRINCIPLES OF SIMILAR EFFECT. The matters that are the
subject of the releases referred to in this Paragraph 4 of this Agreement shall be referred to
collectively as the “Released Matters.”

3

 

          5.      OWBPA Notice. In accordance with the Older Workers Benefit Protection Act of 1990,
Executive agrees and expressly acknowledge that Executive is aware that this Agreement includes a
waiver and release of all claims which Executive has or may have had under the ADEA. The following
terms and conditions apply to and are part of the waiver and release of the ADEA claims under this
Agreement:

        (a)      This paragraph, and this Agreement are written in a manner calculated to be
understood by Executive.

        (b)      The waiver and release of claims under the ADEA contained in this Agreement does
not cover rights or claims that may arise after the date on which Executive signs this
Agreement.

        (c)      This Agreement provides for consideration in addition to anything of value to
which Executive is already entitled.

        (d)      Executive has been advised to consult an attorney before signing this Agreement.

        (e)      Executive has been granted twenty-one (21) days after Executive was presented
with this Agreement to decide whether or not to sign this Agreement. If Executive
executes this Agreement prior to the expiration of such period, Executive does so
voluntarily and after having had the opportunity to consult with an attorney, and hereby
waives the remainder of the twenty-one (21) day period.

        (f)      Executive has the right to revoke this general release within seven (7) days of
signing this Agreement. In the event this general release is revoked, this Agreement will
be null and void in its entirety, and Executive will not receive any of its benefits.

If Executive wishes to revoke this agreement, Executive must deliver written notice stating the
intent to revoke this Agreement to General Counsel, 350 West Trimble Road, San Jose California,
fax: 408-435-4172 on or before 5:00 p.m. on the seventh (7th) Day after the date on
which Executive signs this Agreement.

          6.      Transition and Consulting; Other Agreements. The parties further agree that:

        (a)      Personal Expenses. Any personal expenses incurred by the Company on the
Executive’s behalf, including personal charges to any Company credit card (if any), shall
promptly be reimbursed by Executive upon presentation by the Company.

        (b)      Transfer of Company Property. On or before the signing of this Agreement,
Executive agrees to turn over to the Company any and all property, tangible or intangible,
relating to its business, which he possessed or had control over at any time (including,
but not limited to, Company-provided credit cards, building or office access cards, keys,
computer or other business equipment, manuals, files, documents, records, software,
employee database and other data), and that he shall not retain any copies, compilations,
extracts, excerpts, summaries or other notes of any such manuals, files, documents,
records, software, customer or employee database or other data files, memoranda, records,
and other documents, and any other physical or personal property which are the property of
the Company and which he had in his possession, custody or

4

 

control, including any computers, cellular phones, PDAs or similar business
equipment. Notwithstanding the foregoing, Executive shall be entitled to retain any
Company property necessary for use in his service as a member of the Company’s board of
directors.

          7.      Executive Representations. Executive warrants and represents that (a) he has not
filed or authorized the filing of any complaints, charges or lawsuits against the Company with any
governmental agency or court, and that if, unbeknownst to Executive, such a complaint, charge or
lawsuit has been filed on his behalf, he will immediately cause it to be withdrawn and dismissed,
(b) he has reported all hours worked as of the date of this Agreement and has been paid all
compensation, wages, bonuses, commissions, and/or benefits to which he may be entitled and no other
compensation, wages, bonuses, commissions and/or benefits are due to him, except as provided in
this Agreement, (c) he has no known workplace injuries or occupational diseases and has been
provided and/or has not been denied any leave requested under the Family and Medical Leave Act or
any state law counterpart, (d) the execution, delivery and performance of this Agreement by the
Executive does not and will not conflict with, breach, violate or cause a default under any
agreement, contract or instrument to which the Executive is a party or any judgment, order or
decree to which the Executive is subject, and (e) upon the execution and delivery of this Agreement
by the Company and the Executive, this Agreement will be a valid and binding obligation of the
Executive, enforceable in accordance with its terms.

          8.      No Assignment. Executive warrants and represents that no portion of any of the
Released Matters, and no portion of any recovery or settlement to which Executive might be
entitled, has been assigned or transferred to any other person, firm or corporation not a party to
this Agreement, in any manner, including by way of subrogation or operation of law or otherwise (it
being acknowledged, however, that upon his prior death the cash severance otherwise payable to
Executive shall be paid to his heirs). If any claim, action, demand or suit should be made or
instituted against the Company because of any such purported assignment, subrogation or transfer,
Executive agrees to indemnify and hold harmless the Company against such claim, action, suit or
demand, including necessary expenses of investigation, attorneys’ fees and costs.

          9.      Company Representations. The Company warrants and represents that (a) the
execution, delivery and performance of this Agreement by the Company has been duly authorized and
that this Agreement constitutes the valid and binding obligation of the Company, enforceable in
accordance with its terms and (b) no director or executive officer of the Company is, as of the
date hereof, aware of any legal claim the Company has against Executive relating in any manner to
his employment by the Company or service as an officer thereof.

          10.      Dispute Resolution. To ensure the timely and economical resolution of disputes
that arise in connection with this Agreement the Company and Executive agree that any and all
disputes, claims, or causes of action arising from or relating to the enforcement, breach,
performance or interpretation of this Agreement, Executive’s employment, or the termination of
Executive’s employment, shall be resolved to the fullest extent permitted by law by final, binding
and confidential arbitration, by a single arbitrator, in Santa Clara County, California, conducted
by Judicial Arbitration and Mediation Services, Inc. (“JAMS”) under the applicable JAMS employment
rules. By agreeing to this arbitration procedure, both Executive and the Company waive the right
to resolve any such dispute through a trial by jury or judge or administrative proceeding. The
arbitrator shall: (a) have the authority to compel adequate discovery for the resolution of the
dispute and to award such relief as would otherwise be permitted by law; and (b) issue a written
arbitration decision, to include the arbitrator’s essential findings and conclusions and a
statement of the award. The arbitrator shall be authorized to award any or all remedies that
Executive or the Company would be entitled to seek in a court of law. The Company shall pay all
JAMS’ arbitration fees in excess of the amount of court fees that would be required if the dispute
were decided in a court of law. Nothing

5

 

in this Agreement is intended to prevent either the Company or Executive from obtaining
injunctive relief in court to prevent irreparable harm pending the conclusion of any such
arbitration. Notwithstanding the foregoing, the Company and Executive each have the right to
resolve any issue or dispute over intellectual property rights by Court action instead of
arbitration.

          11.      Miscellaneous. This Agreement is the entire agreement between the parties with
regard to the subject matter hereof. This Agreement shall be interpreted in accordance with the
laws of California and federal law where applicable. Whenever possible, each provision of this
Agreement shall be interpreted in a manner as to be effective and valid under applicable law, but
if any provision shall be held to be prohibited or invalid under applicable law, such provision
shall be ineffective only to the extent of such prohibition or invalidity, without invalidating or
affecting the remainder of such provision or any of the remaining provisions of this Agreement.
Executive acknowledges that there are no other agreements, written, oral or implied, and that he
may not rely on any prior negotiations, discussions, representations or agreements. This Agreement
may be modified only in writing, and such writing must be signed by both parties and recited that
it is intended to modify this Agreement. This Agreement may be executed in separate counterparts,
each of which is deemed to be an original and all of which taken together constitute one and the
same agreement. In the event of any material breach of this Agreement, not cured within ten (10)
days after written notice, the non-defaulting party shall have all rights and remedies available
under law. Each party shall be solely responsible for and shall bear all of its own costs and
expenses incident to its obligations under and in respect of this Agreement, including, but not
limited to, any such costs and expenses incurred by such party in connection with the negotiation,
preparation, performance of and compliance with the terms of this Agreement (including, without
limitation, the fees and expenses of legal counsel or other representatives).

(Signature page(s) follow)

6

 

     IN WITNESS WHEREOF, the undersigned have caused this Separation Agreement to be duly executed
and delivered as of the date indicated next to their respective signatures below.

DATED: January 31, 2007

	 	 	 	 	 
	 	 	 
	 	/s/ Dick Chang
 
 	 
	 	Dick Chang 	 
	 	 	 
	 

AVAGO TECHNOLOGIES LIMITED

DATED: January 31, 2007

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Hock E. Tan

 	 
	 	 	Hock E. Tan, President and CEO 	 
	 	 	 	 
	 

S-1

 

Exhibit A

Current Options

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Vesting	 	 	Options	 	 	Exercise Price	 	 	Expiration Date	 
	 	Fully Vested

	 	 	 	266,666	 	 	 	$	1.25	 	 	 	11/18/2012	 
	 	Fully Vested

	 	 	 	216,666	 	 	 	$	5.00	 	 	 	11/30/2015	 
	 	Time Based

	 	 	 	433,334	 	 	 	$	5.00	 	 	 	11/30/2015	 
	 	Performance Based

	 	 	 	433,334	 	 	 	$	5.00	 	 	 	11/30/2015	 
	 

A-1

 

Exhibit B

New Options

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Vesting	 	 	Options	 	 	Exercise Price	 	 	Expiration Date	 
	 	The options shall fully
vest immediately upon
shareholder approval of
a plan or agreement that
allows the options to
become vested and
exercisable.

	 	 	 	266,666	 	 	 	$	1.25	 	 	 	5 years from date of
grant	 
	 	The options shall fully
vest immediately upon
shareholder approval of
a plan or agreement that
allows the options to
become vested and
exercisable.

	 	 	 	216,666	 	 	 	$	5.00	 	 	 	5 years from date of
grant	 
	 	The options shall vest
as to 25% of the
ordinary shares subject
thereto on each
anniversary of the date
of grant so that the
option is fully vested
on the fourth anniversary
of the date of grant.

	 	 	 	550,000	 	 	 	$	5.00	 	 	 	5 years from date of
grant	 
	 

B-1

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