Document:

f8k0723_x104-riic.htm

    
      Exhibit
        10.4 – Assessment Report for Rico Staete B.V.

    

    
      

    

    
      ASSESSMENT
        REPORT

    

    
      

       

      A.
        Mandate/entry

    

    
      

       

      Date
        of
        mandate                                            
: June 2007

    

    
      Client                                                             
          : Rico Staete B.V.

    

    
      Mandate
        given
        to                                           :
        D. Grin, real estate adviser

    

    
      Assessor's
        address                                        :
        Oostzijde 295, 1614 MA Zaandam

    

    
      Telephone                                                    
           : 06-51393592

    

    
      Assessment
        carried out
        by                           :
        D. Grin, registered property broker/assessor

    

    
      Registration                                                   
         : SCVM, number 03R610SCVM

    

    
      

    

    
      

       

      B.
        Property

    

    
       

      The
        commercial premises including the land they are erected on and surrounding
        land
        and further appurtenances, known locally at 46446 Emmerich (Germany) as
        Tackenweide 48, consisting of approx. 9.005 m2 rentable floor surface business
        accommodation as well as 1.478 m2 rentable floor surface office
        space,

    

    
       

      C.
        Principles

    

    
       

      This
        valuation purports to determining the free private sale value in let condition
        as well as determining the forced-sale value of the property referred to
        above
        in let condition. With regard to this property it is expressly stated that
        this
        valuation is an office valuation and that actual inspection of the location
        did
        not take place.  This means that we have exclusively relied on current
        data as was provided to us by customer as well as the data of the valuation
        report (for the entire complex), carried out by Dr H.H. Flintrop, architect
        at
        Emmerich, on 9 January 2001.

    

    
       

      D.
        Details

    

    
       

      The
        property is currently let to Vink Kunststoffe GmbH with an end date of 31
        December 2008 (excluding 5 option years). Current rent per year: €
383.468.88.  There are no further particulars known to us with regard
        to this lease agreement.

    

    
       

      E.
        Value as at entry date

    

    
       

      Private
        sale value in rented condition

       

    

    
      In
        words: four million seven hundred and fifty thousand
        euro                                                                                                                          €
4.750.000,00

    

    
       

      Execution
        value in rented condition

       

    

    
      In
        words: three million and eight hundred thousand
        euro                                                                                                                                €
3.800.000,00

    

    
       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

    

    
      F.   Basic
        assumptions for valuation

    

    
      

    

    
      As
        well
        as the statements in the Definitions and Method, enclosed as an appendix,
        for
        this valuation the valuation as indicated in the report by Dr. Flintrop was
        proceeded from, the most important extracts of which have been appended to
        this
        report and are considered to form an integral part of it. Subsequently by
        way of
        rental value capitalisation the assessed value was converted back to the
        current
        measurements of the valued property.

    

    
       

    

    
      G.
        Accountability and liability

    

    
      

    

    
      The
        assessment is intended exclusively for the stated purpose and client. No
        responsibility is accepted for any other use, or for use by persons other
        than
        the client and institutions (including financial institutions) inasmuch as
        these
        are mentioned by name and all liability is limited to the amount paid in
        the
        relevant case under our professional liability insurance. If no institutions
        are
        indicated, liability is limited to the client and the financial institution
        financing the property on the basis of this report and liability is limited
        to
        the amount paid in the relevant case under our professional liability insurance.
        No part of this report may be made available to third parties except with
        the
        prior written permission of D. Grin, real estate adviser. All relevant
        information and data as provided by third parties has been incorporated in
        this
        valuation, but no liability is accepted if the information provided to us
        is
        incorrect and/or incomplete.

    

    
       

    

    
      

    

    
      Signed
        at
        Zaandam

    

    
      on
        20
        June 2007

    

    
      

    

    
      D.
        Grin

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
       

    

    
      Appendices

    

    
      

    

    
      Definitions
        & Methods

    

    
      

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      Definitions
        and method

    

    
      

    

    
      Definitions

    

    
      

    

    
      The
        following value definitions form the basis of the assessment.

    

    
      

    

    
      The
        gross market rental value is the amount reasonably
        owed by the lessee to the lessor in return for exclusive use of the registered
        property, assuming the customary terms and conditions for the type of registered
        property and assuming the rental prices usually paid for similar registered
        properties on the date the value is determined.

    

    
      

    

    
      The
        private sale value, at the buyer's expense, is the
        price in cash that would be paid in a private sale of the registered property,
        when offered in rented condition and in the manner most suitable for the
        registered property, after the best preparation, by the highest bidder, without
        any interest in the registered property, on the date the value is
        determined.

    

    
      

    

    
      We
        have
        also used the following assumptions:

    

    
      

    

    
      a)           there
        is a willing buyer;

    

    
      b)           there
        is no compulsory or executorial sale due to bankruptcy;

    

    
      
        	
                c)

              	
                there
                  is a reasonable period in which negotiations on the sale are completed.
                  We
                  consider this reasonable period to be no more than six
                  months;

              

      

    

    
      d)           the
        value of the registered property we assessed will remain stable during that
        period;

    

    
      
        	
                e)

              	
                the
                  registered property can be freely offered on the market. It is
                  very
                  important for potential buyers to be able to learn of the details
                  of the
                  offer and intended sale through mailings, advertisements and/or
                  the
                  Internet;

              

      

    

    
      f)           no
        bid will be made by a buyer based on subjective interests;

    

    
      
        	
                g)

              	
                no
                  exceptions will be made for selling expenses or tax benefits that
                  may
                  arise on the sale of the registered
                  property;

              

      

    

    
      
        	
                h)

              	
                the
                  registered property is free of mortgages and/or attachments and
                  that there
                  are none registered;

              

      

    

    
      
        	
                i)

              	
                no
                  improvements and/or repairs have been prescribed or announced by
                  the
                  government and/or utility
                  companies

              

      

    

    
      

    

    
      The
        execution value, at the buyer's expense, is the cash
        price that would be paid on the date the value is determined by the highest
        bidder in the case of a compulsory sale of the registered property at public
        auction according to local practice, in which the buyer accepts the registered
        property in rented condition, with all associated rights and
        obligations.

    

    
      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

    
      Method

    

    
      

    

    
      The
        assessment is based on the following methods.

    

    
      

    

    
      Rental
        value capitalisation method

    

    
      

    

    
      The
        private sale value, at the buyer's expense, is assessed using
        the gross market rental value of the rentable floor area of the registered
        property, less property-related business and other expenses. The net market
        value is capitalised on the basis of a net yield considered realistic under
        current market conditions. The following criteria are also taken into
        account:

    

    
      

    

    
      

    

    
      Market:

    

    
      -
        supply
        and demand of comparable registered properties

    

    
      -
        yield
        trend

    

    
      -
        inflation forecast

    

    
      -
        current
        interest rate and expected interest trends

    

    
      

    

    
      Location:

    

    
      -
        location factors

    

    
      -
        parking
        options

    

    
      -
        infrastructure

    

    
      -
        accessibility by public and private transport

    

    
      -
        developments (including construction) in comparable registered
        properties

    

    
      -
        general
        amenities in the vicinity of the registered property

    

    
      

    

    
      Registered
        property:

    

    
      -
        business and other expenses

    

    
      -
        type
        and date of construction

    

    
      -
        quality
        of structural and technical facilities

    

    
      -
        state
        of repair

    

    
      -
        location and appearance

    

    
      -
        options
        for use

    

    
      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

    
      Rental
        revenue vs market rental value

    

    
      The
        cash
        value of the difference between the current rental revenue and the assessed
        market rental value is discounted based on the remaining term of the lease
        agreements.

    

    
      

    

    
      Expenses
        deducted:

    

    
      Transfer
        tax, notarial fees and register fees have been deducted.

    

    
      

    

    
      The
        cost
        of vacancy, including lost rent, service charges at the owner's expense,
        rental
        charges, and cost of advertising and brokerage have been taken into
        account.

    

    
      

    

    
      The
        principles of the value calculations can be found in the calculation models
        included in the appendices.

    

    
      

    

    
      Unattached
        land

    

    
      The
        value
        of the unattached land has been determined using the real market value in
        relation to the options for use and designation.

    

    
      

    

    
      Calculation
        of execution value

    

    
      

    

    
      Calculation
        of the execution value, at the buyer's expense, assumes the
        cash price that the buyer is prepared to pay privately, less expenses and
        risks
        for the buyer in the event of forced sale at auction by
        execution:

    

    
      

    

    
      -
        auction
        charges

    

    
      -
        transfer tax

    

    
      -
        bidder
        premium

    

    
      -
        cost of
        vacating property

    

    
      -
        increased notarial fee

    

    
      -
        any
        demands

    

    
      -
        cancellation expenses.

    

    
      

    

    
      
        
        

      

      
        6Exhibit 10.1

    
      

    

    
      EXHIBIT
        10.1

      EXECUTION
        VERSION

    

    

    THIRD
      AMENDMENT TO CREDIT AGREEMENT

     

    THIS
      THIRD AMENDMENT TO CREDIT AGREEMENT (herein called this "Amendment")
      is
      made effective as of September 14, 2007, by and between BEAZER MORTGAGE
      CORPORATION, a Delaware corporation ("Borrower"),
      the
      lenders identified on the signature pages hereof (individually referred to
      herein as a "Lender"
      and
      collectively as the "Lenders"),
      and
      GUARANTY BANK, as administrative and collateral agent for the Lenders
      ("Agent").

     

    W
      I T N E
      S S E T H:

     

    WHEREAS,
      Borrower, Agent and Lenders have entered into that certain Credit Agreement,
      dated as of January 11, 2006, as amended by that certain First Amendment to
      Credit Agreement, dated as of December 29, 2006, and as further amended by
      that
      certain Second Amendment to Credit Agreement dated as of February 7, 2007 (as
      the same may be further amended, restated, supplemented or otherwise modified
      from time to time, the "Credit
      Agreement"),
      for
      the purposes and consideration therein expressed; and

     

    WHEREAS,
      Borrower has requested that each of the Lenders party to the Credit Agreement
      immediately prior to the effectiveness of this Amendment (other than Guaranty
      Bank) (collectively, the "Assigning
      Lenders")
      sell
      and assign to Guaranty Bank, as a Lender (the "Assignee"),
      all
      of its rights and obligations as a Lender under the Credit Agreement and any
      other Loan Document pursuant to the terms and conditions of a certain Assignment
      and Assumption, dated as of September 14, 2007, executed by each of the
      Assigning Lenders and the Assignee (the "Assignment
      and Assumption");
      and

     

    WHEREAS,
      Borrower has requested that the Agent and the Lenders waive the items listed
      on
      Schedule 1 hereto, which may or may not constitute Defaults or Events of Default
      under the Credit Agreement (the "Specified
      Possible Defaults");
      and

     

    WHEREAS,
      (A) the Assigning Lenders and the Assignee have agreed to execute and deliver
      the Assignment and Assumption, and (B) the Agent and Lenders have agreed to
      (i)
      waive the Specified Possible Defaults and (ii) amend the Credit Agreement for
      the purpose of reducing the Total Commitments and for certain other purposes
      as
      provided herein upon the terms and conditions set forth herein;

    

    NOW,
      THEREFORE, in consideration of the premises and the mutual covenants and
      agreements contained herein and in the Credit Agreement, in consideration of
      the
      Loans which may hereafter be made by Lenders to Borrower, and for other good
      and
      valuable consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties hereto do hereby agree as follows:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      I  

     

    Definitions
      and References

     

    1.1  Terms
      Defined in the Credit Agreement.
      Unless
      the context otherwise requires or unless otherwise expressly defined herein,
      the
      terms defined in the Credit Agreement shall have the same meanings whenever
      used
      in this Amendment.

     

    ARTICLE
      II  

     

    Amendments
      to Credit Agreement

     

    2.1  Definitions.
      Section
      1.1
      of the
      Credit Agreement is hereby amended by amending the following defined terms
      set
      forth therein as follows: 

     

    "'Approved
      Letter of Credit'
      means,
      collectively, one or more irrevocable, unconditional standby letters of credit
      issued by a domestic commercial bank having capital and surplus in excess of
      $100,000,000. The letters of credit must be issued for the account of Parent
      to
      the Agent for the benefit of the Lenders, as additional security and as an
      additional source of repayment of the Obligations, in substantially the form
      of
Exhibit
      F or
      such
      other form reasonably acceptable to Agent, and in an aggregate amount not less
      than the Total Commitments."

     

    "'Commitment'
      means,
      as to any Lender, the obligation of such Lender to make Committed Loans (or
      purchase participations in Swingline Loans as set forth in Section 2.1(b)(ii))
      to
      Borrower pursuant to Section 2.1
      hereof
      in an aggregate amount not to exceed the amount set forth under the heading
      "Commitment" opposite such Lender's name on Schedule
      1.1
      hereof.
      The aggregate amount of all Lenders' Commitments as of September 14, 2007 is
      $17,500,000.00, provided,
      however,
      that
      notwithstanding the aggregate amount of the Lenders' Commitments, at all times
      the aggregate amount advanced by the Lenders hereunder shall not exceed the
      least of (i) the aggregate amount of the Lenders' Commitments, (ii) the
      Collateral Value of the Borrowing Base or (iii) the available undrawn amount
      of
      the Approved Letter of Credit."

     

    "'Swingline
      Amount'
      means
      Seventeen Million Five Hundred Thousand and No/100 Dollars
      ($17,500,000.00)."

     

    2.2  Definitions.
      Section
      1.1
      of the
      Credit Agreement is hereby amended by adding thereto the following defined
      term
      in its appropriate alphabetical order:

     

    "'Total
      Commitments'
      means,
      at any time, the aggregate amount of all Lenders' Commitments then in
      effect."

     

    2.3  Section
      2.1(a).
      Section
      2.1(a)
      of the
      Credit Agreement is hereby amended by amending the last sentence thereof to
      read
      as follows:

     

    "After
      giving effect to the transactions contemplated by the Borrowing Request pursuant
      to which a Loan is requested, and at all other times, the aggregate amount
      of
      all Committed Loans and all Swingline Loans outstanding shall not exceed the
      least of (i) the aggregate amount of the Lenders' Commitments, (ii) the
      Collateral Value of the Borrowing Base or (iii) the available undrawn amount
      of
      the Approved Letter of Credit."

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    2.4  Section
      2.11.
      Section
      2.11
      of the
      Credit Agreement is hereby amended in its entirety to read as
      follows:

     

    "Section
      2.11 Approved
      Letter of Credit.
      Borrower shall provide Agent with an Approved Letter of Credit, and Agent,
      for
      the benefit of the Lenders, may draw upon the Approved Letter of Credit at
      any
      time for any reason up to an amount not to exceed the aggregate outstanding
      Obligations at such time; provided,
      however,
      that
      prior to making any such draw, and so long as no Event of Default shall have
      occurred and then be continuing, Agent shall give Borrower not less than three
      (3) Business Days’ prior written notice of its intention to make such draw and
      the amount of such intended draw; and provided,
      further,
      that if
      Borrower shall, within three (3) Business Days after receiving such written
      notice, make or cause to be made a principal payment in respect of the
      outstanding Loans in the amount of such intended draw, then Agent agrees that
      no
      such draw shall be made by Agent under the Approved Letter of Credit. The then
      available undrawn amount of the Approved Letter of Credit shall be automatically
      reduced by the amount of any draws by Agent under the Approved Letter of Credit,
      and by the amount of any payments made or caused to be made by Borrower pursuant
      to this Section
      2.11,
      and
      Agent agrees to enter into an amendment of, or accept a replacement of, or
      agree
      to the cancellation of, as the case may be, such Approved Letter of Credit
      to
      reflect such reduction in the available undrawn amount. In addition, if Borrower
      reduces the Total Commitments pursuant to the terms of Section
      2.12,
      Borrower shall be entitled to provide the Agent with a new or amended Approved
      Letter of Credit in an amount not less than the Total Commitments as so reduced
      and the Agent agrees to enter into an amendment of, or accept a replacement
      of,
      as the case may be, such Approved Letter of Credit to reflect such reduction.
      Notwithstanding anything to the contrary set forth in this Agreement, the amount
      of any payment made or caused to be made by Borrower pursuant to this
Section
      2.11,
      and the
      amount of any draw made by Agent under the Approved Letter of Credit, shall
      be
      applied against the outstanding Obligations."

     

    2.5  Article
      II.
      Article
      II of the Credit Agreement is hereby amended by adding to the end thereof a
      new
Section
      2.12
      to read
      as follows:

     

    "Section
      2.12. Reduction
      of Total Commitments.
      Borrower shall have the right, upon five (5) Business Days prior written notice
      specifying a date for reduction of the Total Commitments, which notice shall
      be
      irrevocable unless revoked in writing to the Agent at least two (2) Business
      Days prior to the date for such reduction, to reduce ratably in part, the Total
      Commitments; provided that,
      each
      partial reduction shall be in the minimum amount of $2,500,000 and in integral
      multiples of $1,000,000 in excess thereof. At the time of sending such written
      notice, Borrower (in consultation with the Agent) shall specify the amount
      of
      such decrease in the Total Commitments. Any reduction of the Total Commitments
      pursuant to this Section
      2.12
      shall
      automatically be applied ratably to each Lender's Commitment and shall be
      permanent, with no obligation of any Lender to reinstate such portion of its
      Commitment. The Borrower shall prepay any Loans outstanding on the date of
      reduction in the Total Commitments (and pay any additional amounts required
      pursuant to the terms and conditions of the Credit Agreement) to the extent
      necessary to remain in compliance with all of the terms, conditions and
      covenants of the Credit Agreement."

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    2.6  Section
      5.1(a).
      Subparts (iii), (iv) and (v) of Section
      5.1(a)
      of the
      Credit Agreement are hereby amended in their respective entireties to read
      as
      follows:

     

    "(iii) Promptly
      after becoming available, and in any event within forty-five (45) days after
      the
      end of each calendar month, including the twelfth calendar month in each Fiscal
      Year, a Consolidated balance sheet of Borrower as of the end of such month
      and
      the related Consolidated statements of income, stockholders' equity and cash
      flows of Borrower for such month and the period from the first day of the then
      current Fiscal Year through the end of such month, prepared internally by
      Borrower;

     

    (iv) Promptly
      and in any event within forty-five (45) days after the end of each calendar
      month (except the last) in each Fiscal Year of Borrower, and within fifteen
      (15)
      days after the completion of each year-end audit by Borrower's independent
      public accountants, a completed Compliance Notification in the form of
Exhibit E
      hereto;

     

    (v) (a)
      Promptly after becoming available, and in any event, within forty-five (45)
      days
      after the end of each calendar month, a report in form and detail reasonably
      acceptable to Agent including, without limitation, detail on Borrower's
      repurchase requests by Investors and production statistics;

     

    (b)
      Promptly upon written request by Agent (which request may be delivered by
      facsimile or other electronic means), and in any event, not later than five
      (5)
      Business Days after such request, a report in form and detail reasonably
      acceptable to Agent including, without limitation, detail on Borrower's pipeline
      position, commitment position, and any other information reasonably requested
      by
      Agent;"

     

    2.7  Section
      7.1.
      Section
      7.1
      is
      hereby amended by adding the following sentence at the end thereof:

     

    "Notwithstanding
      anything to the contrary in this Agreement (including Sections
      7.1(c) and 7.1(e)),
      (i) no
      breach or failure to perform by an Related Person of any of the covenants or
      agreements contained in Sections
      6.13, 6.14, 6.15 or 6.16
      (the
“Financial
      Covenants”)
      shall
      constitute a Default or Event of Default hereunder and (ii) no misrepresentation
      by any Related Person or any officer thereof with respect to any of the
      Financial Covenants (including any inaccuracy in any calculation or
      certification with respect thereto) shall constitute a Default or Event of
      Default hereunder."

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    2.8  Section
      11.11.
      Section
      11.11
      of the
      Credit Agreement is hereby amended by (i) deleting the current heading and
      substituting in lieu thereof the phrase "Assignments.",
      and
      (ii) deleting subpart (d) in its entirety. 

     

    2.9  Schedules.
      Schedule
      1.1
      of the
      Credit Agreement is hereby amended in its entirety and replaced with
Schedule
      1.1
      attached
      hereto. 

     

    2.10  Exhibits.
      Exhibit
      E
      of the
      Credit Agreement is hereby amended in its entirety and replaced with
Exhibit
      E
      attached
      hereto. 

     

    2.11  Exhibits.
      Exhibit
      F
      of the
      Credit Agreement is hereby amended in its entirety and replaced with
Exhibit
      F
      attached
      hereto. 

     

    2.12  Exhibits.
      Exhibit
      G
      of the
      Credit Agreement is hereby amended in its entirety and replaced with
Exhibit
      G
      attached
      hereto. 

     

    2.13  Exhibits.
      The
      Credit Agreement is hereby amended by deleting Exhibit
      H
      in its
      entirety.

     

    ARTICLE
      III  

     

    Waiver
      of Specified Possible Defaults

     

    3.1  The
      Agent
      and the Lenders, upon the satisfaction of the conditions precedent listed in
      Article IV hereof, hereby (i) agree to waive the Specified Possible Defaults
      and
      (ii) agree that any future breach that would occur upon Borrower remaking (or
      bringing down) any of the representations or warranties that relate to both
      a
      date prior to the date of this Amendment and to matters underlying the Specified
      Possible Defaults shall not be considered a Default or Event of Default
      hereunder. Notwithstanding the foregoing, the execution of this Amendment shall
      not be deemed to be (x) except as set forth in the immediately preceding
      sentence, a waiver of, or consent by the Agent or any Lender to, any Default
      or
      Event of Default which may exist or hereafter occur under any of the Loan
      Documents, (y) a waiver of Borrower's obligations under the Loan Documents,
      or
      (z) a waiver of any rights, remedies, offsets, claims, or other causes of action
      that the Agent or any Lender may have against Borrower under the Loan Documents,
      all of which rights the Agent and the Lenders specifically reserve.

     

    ARTICLE
      IV

     

    Conditions
      to Effectiveness

     

    4.1  Effective
      Date.
      This
Amendment
      shall become effective as of the date first above written when and only when
      Agent shall have received, at Agent's office, (a) four (4) original duly
      executed counterparts of this Amendment from the Borrower and the Parent, (b)
      an
      amendment to the Letter of Credit referenced in Section 4.2 of this Amendment
      reflecting an increase in such Letter of Credit to an amount not less than
      $17,500,000.00, (c) an original of that certain Assignment and Assumption,
      dated
      as of September 14, 2007, duly executed by the Assigning Lenders and the
      Assignee, and (d) all
      other
      documents, instruments, certificates or other evidence which Agent or its legal
      counsel may reasonably request in connection herewith.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    ARTICLE
      V

     

    Miscellaneous

     

    5.1  Borrower
      Acknowledgment.
      Except
      as otherwise specified herein, the terms and provisions of the Credit Agreement
      are ratified and confirmed by Borrower and shall remain in full force and
      effect, enforceable in accordance with their terms. Borrower hereby
      acknowledges, agrees and represents that (i) contemporaneously with the
      effectiveness of this Amendment and after giving effect to the waivers set
      forth
      herein, the representations and warranties of Borrower contained in the Credit
      Agreement are true and correct in all material respects (except to the extent
      such representations and warranties relate, by their terms, to a specific
      earlier date, in which case they shall be true and correct in all material
      respects on and as of such earlier date), and (ii) Borrower has no
      set-offs, counterclaims, defenses or other causes of action against Lender
      arising out of the Credit Agreement, this Amendment, any other Loan Document
      or
      otherwise, and to the extent any such set-offs, counterclaims, defenses or
      other
      causes of action may exist, whether known or unknown, such items are hereby
      waived by Borrower. 

     

    5.2  Parent
      Acknowledgment.
      Parent
      hereby acknowledges, agrees and represents that (i) the Letter of Credit No.
      CPCS-227543 (such letter of credit and any and all renewals, rearrangements,
      replacements, substitutions, amendments, supplements and other modifications,
      the "Letter
      of Credit")
      issued
      by JPMorgan Chase Bank, National Association to Agent for the account of the
      Parent constitutes for all purposes and in all respects an "Approved Letter
      of
      Credit" under the Credit Agreement (as amended hereby); (ii) without notice
      to
      Parent, the Agent may draw on the Letter of Credit pursuant to the terms and
      conditions thereof and in accordance with Section 2.11 of the Credit Agreement
      to satisfy the Obligations of the Borrower under the Notes and the other Loan
      Documents regardless of whether (a) the Loan Documents are modified, amended,
      supplemented, joined, increased, restated, or otherwise changed without notice
      to Parent; (b) terms and conditions of the Loan Documents are waived, or parties
      or Collateral thereto are released without notice to Parent; and (c) the Agent
      has made demand on Borrower without notice to Parent and pursued any other
      remedies under the Loan Documents without notice to Parent; and (iii) any
      suretyship rights, defenses or claims that it may have under applicable law
      as a
      result of any draw by Agent under the Letter of Credit are hereby waived by
      Parent.

     

    5.3  Reference
      to and Effect on the Loan Documents.
      (a)
      Upon the effectiveness of this Amendment, on and after the date hereof, each
      reference in the Credit Agreement to "this Agreement," "hereunder," "hereof"
      or
      words of like import referring to the Credit Agreement, and each reference
      in
      the other Loan Documents to "the Credit Agreement," "thereunder," "thereof"
      or
      words of like import referring to the Credit Agreement, shall mean and be a
      reference to the Credit Agreement as amended hereby.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    (b)
      The
      execution, delivery and effectiveness of this Amendment shall not operate as
      a
      waiver of any right, power or remedy of Agent under any of the Loan Documents,
      nor constitute a waiver of any provision of any of the Loan
      Documents.

     

    5.4  Costs
      and Expenses.
      Borrower shall pay, or cause to be paid, by check or wire transfer, all
      reasonable costs and expenses related to the preparation for and the closing
      of
      the transaction contemplated by this Amendment, including, but not limited
      to,
      the reasonable fees and expenses of legal counsel to Agent (which
      fees and expenses, as to legal counsel of Agent, shall be paid directly to
      legal
      counsel of Agent promptly upon presentation of a bill for legal services
      rendered).

     

    5.5  CHOICE
      OF LAW; VENUE.
      THIS AMENDMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF TEXAS.
BORROWER
      AND LENDERS HEREBY AGREE THAT THE OBLIGATIONS CONTAINED HEREIN ARE PERFORMABLE
      IN DALLAS
      COUNTY, TEXAS.
      ALL PARTIES HERETO AGREE THAT (I) ANY ACTION ARISING OUT OF THIS TRANSACTION
      SHALL BE FILED IN DALLAS
      COUNTY, TEXAS,
      (II) VENUE FOR ENFORCEMENT OF ANY OF THE OBLIGATIONS CONTAINED IN THIS AMENDMENT
      SHALL BE IN DALLAS
      COUNTY, TEXAS
      (III) PERSONAL JURISDICTION SHALL BE IN DALLAS
      COUNTY, TEXAS,
      (IV) ANY ACTION OR PROCEEDING UNDER THIS AMENDMENT SHALL BE COMMENCED AGAINST
      BORROWER IN DALLAS
      COUNTY, TEXAS
      (V) SUCH ACTION SHALL BE INSTITUTED IN THE COURTS OF THE STATE OF TEXAS LOCATED
      IN DALLAS
      COUNTY, TEXAS
      OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS
      LOCATED IN DALLAS COUNTY, TEXAS, AT THE OPTION OF AGENT AND (VI) BORROWER AND
      LENDERS HEREBY WAIVE ANY OBJECTION TO THE VENUE OF ANY SUCH SUIT, ACTION OR
      PROCEEDING AND ADDITIONALLY WAIVE ANY RIGHT IT MAY HAVE TO BE SUED ELSEWHERE.
      NOTHING HEREIN SHALL AFFECT THE RIGHT OF ANY PARTY TO ACCOMPLISH SERVICE OF
      PROCESS IN ANY MANNER PERMITTED BY LAW.

     

    5.6  WAIVER
      OF JURY TRIAL.
      EACH OF THE PARTIES HERETO WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE
      LAW, ITS RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION
      BASED UPON OR ARISING OUT OF OR RELATED TO THIS AMENDMENT, THE CREDIT AGREEMENT,
      THE OTHER LOAN DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY
      IN
      ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE
      PARTIES AGAINST ANY OTHER PARTY, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT
      CLAIMS, OR OTHERWISE. EACH OF THE PARTIES HERETO AGREES THAT ANY SUCH CLAIM
      OR
      CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING
      THE FOREGOING, THE PARTIES FURTHER AGREE THAT THEIR RESPECTIVE RIGHT TO A TRIAL
      BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM
      OR
      OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY
      OR
      ENFORCEABILITY OF THIS AMENDMENT, THE CREDIT AGREEMENT OR ANY OTHER LOAN
      DOCUMENT OR ANY PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY
      SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THE CREDIT
      AGREEMENT AND ANY OTHER LOAN DOCUMENTS.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

       

    

    5.7  Release
      of Claims and Covenant Not to Sue.
      As a material inducement to the Agent and each Lender to enter into this
      Amendment, Borrower, for and on behalf of itself and its respective successors
      and assigns and Affiliates, (a) does hereby remise, release, acquit, satisfy
      and
      forever discharge the Agent and each Lender and each of their Affiliates, and
      all of the past, present and future officers, directors, employees, agents,
      attorneys, representatives, participants, heirs, successors and assigns of
      the
      Agent and each Lender and each of their Affiliates (collectively, the
      "Released
      Parties"),
      from any and all liabilities, obligations, expenses, damages, judgments,
      actions, claims, demands and causes of action of any nature whatsoever, whether
      at law or in equity, whether now accrued or hereafter maturing and whether
      known
      or unknown, which Borrower or any of its successors, assigns or Affiliates
      now
      has or hereafter can, shall or may have by reason of any action, inaction,
      matter, cause or thing, occurring on or prior to the date of this Amendment,
      arising out of, in connection with or relating to (i) the Collateral or the
      Obligations, including, but not limited to, the administration or funding
      thereof, (ii) the Loan Documents (or any of the transactions contemplated
      thereby) or the indebtedness evidenced and secured thereby, and (iii) any other
      agreement or transaction between Borrower, the Agent, and/or any Lender or
      any
      subsidiary or affiliate of such parties relating to the Loan Documents; and
      (b)
      does hereby covenant and agree never to institute or cause to be instituted
      or
      continue prosecution of any suit or other form of action or proceeding of any
      kind or nature whatsoever against any Released Party, by reason of or in
      connection with any of the foregoing matters, claims or causes of action,
provided,
      however,
      that the foregoing release and covenant not to sue shall not apply to any claims
      arising after the date of this Amendment with respect to acts or events that
      occur after the date of this Amendment. 

     

    5.8  Time
      is of the Essence.
      Time is
      of the essence in the performance of the covenants contained herein and in
      the
      Loan Documents.

     

    5.9  Binding
      Agreement.
      This
      Amendment shall be binding upon the successors and assigns of the parties
      hereto; provided, however, the foregoing shall not be deemed or construed to
      (i)
      permit, sanction, authorize or condone the assignment of all or any part of
      any
      interest in and to Borrower except as expressly authorized in the Loan
      Documents, or (ii) confer any right, title, benefit, cause of action or remedy
      upon any person or entity not a party hereto, which such party would not or
      did
      not otherwise possess.

     

    5.10  Headings.
      The
      section headings hereof are inserted for convenience of reference only and
      shall
      in no way alter, amend, define or be used in the construction or interpretation
      of the text of such section.

     

    5.11  Construction.
      Whenever the context hereof so required, reference to the singular shall include
      the plural and likewise, the plural shall include the singular; words denoting
      gender shall be construed to mean the masculine, feminine or neuter, as
      appropriate; and specific enumeration shall not exclude the general but shall
      be
      construed as cumulative of the general recitation.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

    5.12  Counterparts;
      Fax.
      This
      Amendment may be separately executed in counterparts and by the different
      parties hereto in separate counterparts, each of which when so executed shall
      be
      deemed to constitute one and the same Amendment. This Amendment may be duly
      executed by facsimile or other electronic transmissions.

     

    5.13  No
      Reliance.
      In executing this Amendment, Borrower warrants and represents that Borrower
      is
      not relying on any statement or representation other than those in the Credit
      Agreement and this Amendment and is relying upon its own judgment and advice
      of
      its attorneys.

     

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

     

    [SIGNATURE
      PAGE FOLLOWS]

     

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this instrument to be duly
      executed effective as of the date first above written.

     

    
      	
              BORROWER:

            	
              BEAZER
                MORTGAGE CORPORATION,

            
	
              Borrower's
                Address:

            	
              a
                Delaware corporation

            
	
              1000
                Abernathy Road, Suite 1200

            	 
	
              Atlanta,
                GA 30328

            	 
	
              Attention: President

            	 
	 	 
	 	
              By:      /s/
                Cory J. Boydston

            
	
              With
                a copy of all notices to:

            	
              Name:
                Cory
                J. Boydston

            
	 	
              Title: 
                Senior
                Vice President

            

    

     

    General
      Counsel

    Beazer
      Homes USA, Inc.

    1000
      Abernathy Road

    Atlanta,
      GA 30328

     

     

    

      
        	
                STATE
                  OF   Georgia         
                       

              	
                §

              
	 	
                §

              
	
                COUNTY
                  OF    Fulton           
                  

              	
                §

              

      

       

    

    

    Before
      me, the undersigned notary public, on this 14th day of September, 2007,
      personally appeared 
      Cory J. Boydston  of
      Beazer
      Mortgage Corporation, a Delaware corporation, known to me (or proved to me
      by
      the production of a driver's license as identification) to be the person whose
      name is subscribed to the foregoing instrument and acknowledged to me that
      he
      executed the same on behalf of said corporation for the purposes and
      consideration therein expressed.

    

    

    

    
      	 	 	
                /s/Patricia
                Bal                            

            
	 	 	
              Notary
                Public - State of  Georgia      

            
	 	 	 
	
              My
                Commission expires:

            	 	
                        
                Patricia
                Bal                                    
                

            
	
                             11/3/2007                    
                

            	 	
                               
                Printed Name of Notary

            
	 	 	 

    

    

    

    
      
        
          Signature
            Page - Third Amendment to Credit Agreement

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

     

    
      	
              AGENT:

            	 	
              GUARANTY
                BANK

            
	
              Address:

            	 	 
	
              8333
                Douglas Avenue, 11th
                Floor

            	 	 
	
              Dallas,
                Texas 75225

            	 	 
	
              Attention:
                Ms. Amy Satsky

            	 	 
	
              Fax:
                214.360.3328

            	 	 
	
              Tel:
                214.360.2674

            	 	
              By:/s/
                Amy Satsky

            
	 	 	
              Name:
                Amy Satsky

            
	 	 	
              Title:
                Senior Vice President

            

    

    

    

    

    
      
        
          Signature
            Page - Third Amendment to Credit Agreement

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    

     

    
      	
              LENDER:

            	 	
              GUARANTY
                BANK,

            
	
              Address:

            	 	
              as
                a Lender and as Swingline Lender

            
	
              8333
                Douglas Avenue, 11th
                Floor

            	 	 
	
              Dallas,
                Texas 75225

            	 	 
	
              Attention:
                Ms. Amy Satsky

            	 	 
	
              Fax:
                214.360.3328

            	 	 
	
              Tel:
                214.360.2674

            	 	
              By:
                /s/
                Amy Satsky

            
	 	 	
              Name:
                Amy Satsky

            
	 	 	
              Title:
                Senior Vice President

            

    

    

     

    

    
      
        
          Signature
            Page - Third Amendment to Credit Agreement

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    ACKNOWLEDGED
      AND ACCEPTED BY:

     

     

    BEAZER
      HOMES USA, INC.

    

     

    By:  
      /s/ Cory J.
      Boydston                                     

    Name: 
      Cory
      J.
      Boydston                                       

    Title:      
      Senior
      Vice
      President                             

    

     

    

     

    

     

    

    
      
        
          
            Signature
              Page - Third Amendment to Credit Agreement

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

    

    

    SCHEDULE
      1.1

    

    COMMITMENTS
      AND COMMITMENT PERCENTAGES

     

    
      	
              LENDER

            	
              (A)

               

               

              COMMITMENT

            	
              (B)

              COMMITMENT

              PERCENTAGE

              (A÷Total

              Commitments)

            
	
              Guaranty
                Bank

               

            	
              $17,500,000

               

            	
              100
                %

               

            
	
              Total

               

            	
              $17,500,000

               

            	
              100%

               

            

    

     

     

     

     

    
 

     

    
      Signature
        Page - Third Amendment to Credit Agreement

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