Document:

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                                                                    EXHIBIT 4.16

                             SUPPLEMENTAL INDENTURE

         This SUPPLEMENTAL INDENTURE, dated as of March 31, 2003 is among
Technical Olympic USA, Inc., a Delaware corporation (the "Company"), each of the
parties identified under the caption "Subsidiary Guarantors" on the signature
page hereto (the "Guarantors") and Wells Fargo Bank Minnesota, National
Association, a national banking association, as Trustee.

                                    RECITALS

         WHEREAS, the Company, certain Subsidiary Guarantors and the Trustee
entered into an Indenture, dated as of February 3, 2003 (the "Indenture"),
pursuant to which the Company has originally issued $100,000,000 in aggregate
principal amount of 9% Senior Notes due 2010 (the "Notes"); and

         WHEREAS, Section 9.01(a)(iv) of the Indenture provides that the
Company, the Subsidiary Guarantors and the Trustee may amend or supplement the
Indenture in order to add any new Subsidiary Guarantor to comply with Section
10.04 thereof, without the consent of the Holders of the Notes; and

         WHEREAS, all acts and things prescribed by the Indenture, by law and by
the charter and the bylaws (or comparable constituent documents) of the Company,
of the Subsidiary Guarantors and of the Trustee necessary to make this
Supplemental Indenture a valid instrument legally binding on the Company, the
Subsidiary Guarantors and the Trustee, in accordance with its terms, have been
duly done and performed;

         NOW, THEREFORE, to comply with the provisions of the Indenture and in
consideration of the above premises, the Company, the Subsidiary Guarantors and
the Trustee covenant and agree for the equal and proportionate benefit of the
respective Holders of the Notes as follows:

                                   ARTICLE 1.

         Section 1.01. This Supplemental Indenture is supplemental to the
Indenture and does and shall be deemed to form a part of, and shall be construed
in connection with and as part of, the Indenture for any and all purposes.

         Section 1.02. This Supplemental Indenture shall become effective
immediately upon its execution and delivery by each of the Company, the
Subsidiary Guarantors and the Trustee.

                                       1
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                                   ARTICLE 2.

         Section 2.01. From this date, in accordance with Section 10.04 and by
executing this Supplemental Indenture and the accompanying notation of
Subsidiary Guarantee (a copy of which is attached hereto), the Subsidiary
Guarantors whose signatures appear below are subject to the provisions of the
Indenture to the extent provided for in Article 10 thereof.

                                   ARTICLE 3.

         Section 3.01. Except as specifically modified herein, the Indenture and
the Notes are in all respects ratified and confirmed (MUTATIS MUTANDIS) and
shall remain in full force and effect in accordance with their terms with all
capitalized terms used herein without definition having the same respective
meanings ascribed to them as in the Indenture.

         Section 3.02. Except as otherwise expressly provided herein, no duties,
responsibilities or liabilities are assumed, or shall be construed to be
assumed, by the Trustee by reason of this Supplemental Indenture. This
Supplemental Indenture is executed and accepted by the Trustee subject to all
the terms and conditions set forth in the Indenture with the same force and
effect as if those terms and conditions were repeated at length herein and made
applicable to the Trustee with respect hereto.

         Section 3.03. THE LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED
TO CONSTRUE AND ENFORCE THIS SUPPLEMENTAL INDENTURE.

         Section 3.04. The parties may sign any number of copies of this
Supplemental Indenture. Each signed copy shall be an original, but all of such
executed copies together shall represent the same agreement.

                                       2
<PAGE>

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

                            TECHNICAL OLYMPIC USA, INC.

                            By: /s/ TOMMY L. MCADEN
                                ----------------------------------------
                                 Tommy L. McAden
                                 Vice President - Finance and Administration
                                 and Chief Financial Officer

                            SUBSIDIARY GUARANTORS:

                            Engle Homes Delaware, Inc.
                            Engle Homes/Arizona Construction, Inc.
                            Newmark Finance Affiliate, Ltd.
                            Newmark Finance Corporation
                            Newmark Home Corporation
                            Newmark Homes L.P.
                            Newmark Homes Purchasing, L.P.
                            NHC Homes, Inc.
                            Pacific United Development Corp.
                            Pacific United L.P.
                            PUDC, Inc.
                            Silverlake Interests, L.C.
                            TOUSA Financing, Inc.
                            TOUSA Shared Services, LLC

                            By: /s/ TOMMY L. MCADEN
                                ----------------------------------------
                                 Tommy L. McAden
                                 Vice President - Finance and Administration

                                       3
<PAGE>

                          Alliance Insurance and Information Services, LLC
                          Engle Homes/Arizona, Inc.
                          Engle Homes/Broward, Inc.
                          Engle Homes/Colorado, Inc.
                          Engle Homes Residential Construction, LLC
                          Engle Homes/Virginia, Inc.
                          Newmark Homes, LLC
                          Pembroke Falls Realty, Inc.
                          Preferred Builders Realty, Inc.
                          Preferred Home Mortgage Company
                          Prestige Abstract & Title, LLC
                          Professional Advantage Title, Ltd.
                          TOUSA Homes, Inc.
                          TOUSA Ventures, LLC
                          Universal Land Title, Inc.
                          Universal Land Title Investment #1, L.L.C.
                          Universal Land Title Investment #2, L.L.C.
                          Universal Land Title Investment #3, L.L.C.
                          Universal Land Title Investment #4, L.L.C.
                          Universal Land Title of South Florida, Ltd.
                          Universal Land Title of Texas, Inc.
                          Universal Land Title of The Palm Beaches, Ltd.

                          By: /s/ TOMMY L. MCADEN
                              -----------------------------------------
                               Tommy L. McAden
                               Vice President and Treasurer

                                       4
<PAGE>

                     TOUSA Associates Services Company

                     By: /s/ PATRICIA M. PETERSEN
                         --------------------------------------------------
                          Patricia M. Petersen
                          Vice President and Secretary

                     Homes Business Trust

                     By: /s/ TERRY WHITE
                         --------------------------------------------------
                          Name:  Terry White
                          Title:  Managing Trustee

                     FARGO BANK MINNESOTA, NATIONAL ASSOCIATION, as Trustee

                     By: /s/ JOSEPH P. O'DONNELL
                         --------------------------------------------------
                          Joseph P. O'Donnell
                          Corporate Trust Officer

                                       5exv10w1

 

	 	 	 
	Company Contact:	 	
Investor Relations Contact:
	Martin McDermut	 	
Lippert / Heilshorn & Associates
	Senior Vice President, Chief Financial Officer	 	
Lillian Armstrong, Moriah Shilton
	Email: mmcdermut@suptech.com	 	
Email:lillian@lhai-sf.com
	(805) 690-4500	 	
(415) 433-3777

SUPERCONDUCTOR TECHNOLOGIES INC. REPORTS FOURTH QUARTER

AND YEAR-END 2002 RESULTS

SANTA BARBARA, CA – March 31, 2003: Superconductor Technologies Inc. (Nasdaq:
SCON) (“STI”) the global leader in high-temperature superconducting (HTS)
products for wireless voice and data applications, today announced financial
results for the quarter and year-ended December 31, 2002.

Total net revenues for the fourth quarter 2002 were $7.0 million, an increase
of 119 percent vs. $3.2 million for the fourth quarter ended December 31, 2001.
Net commercial product revenues, which give effect to the accounting treatment
of warrants issued to one customer under a long term sales agreement, were $4.3
million for the fourth quarter 2002, an increase of 139 percent compared to
$1.8 million in the year ago period. Government contract revenues for the
fourth quarter 2002 were $2.7 million compared to $1.4 million in the fourth
quarter ended December 31, 2001.

The total net loss for the quarter ended December 31, 2002 was $2.9 million vs.
a loss of $5.0 million for the quarter ended December 31, 2001. The net loss
available to common stockholders for the quarter ended December 31, 2001
included deemed distributions to preferred stockholders. As a result, the net
loss attributable to common stockholders for the fourth quarter 2001 was $5.7
million, or $0.31 per diluted share.

On December 18, 2002, the Company acquired 100 percent of the outstanding
shares of Conductus, Inc. The results of Conductus, Inc. are included in the
consolidated financial statement for 13 days following its acquisition through
December 31, 2002.

For the year ended December 31, 2002, total net revenues increased 81 percent
to $22.4 million, vs. $12.4 million for fiscal 2001. Net commercial product
revenues for fiscal 2002 were $17.6 million, an increase of 132 percent
compared to $7.6 million a year ago. The company recorded $4.8 million in
government contract revenues for the fiscal years 2002 and 2001. The total net
loss for fiscal 2002 was $19.5 million vs. $17.2 million in fiscal 2001.

The net loss available to common stockholders for the fiscal years 2001 and
2002 included deemed distributions to preferred stockholders. As a result, the
net loss attributable to common stockholders for the year ended December 31,
2002 was $21.3 million, or $0.89 per diluted share, compared to a net loss of
$19.8 million, or $1.10 per share for fiscal 2001.

 

 

STI had $18.2 million in cash and cash equivalents, and $16.5 million in
working capital as of December 31, 2002. The total number of common shares
outstanding was 59,823,553 as of December 31, 2002. Commercial product backlog
stood at approximately $1.4 million at December 31, 2002.

2002 milestones included:

	 	•	 	The merger with Conductus, Inc., completed in mid December.
	 
	 	•	 	A $20 million dollar equity private placement.
	 
	 	•	 	Conversion of Series E preferred stock
	 
	 	•	 	Surpassing more than 20 million hours of operation in the field for
STI’s flagship product, the SuperFilter
	 
	 	•	 	Expansion of SuperLinkTM Rx family with introduction of SuperLink Rx 850
	 
	 	•	 	General availability of HTS-ReadyTM Duplexer 850 Series HP

Financial Guidance

STI had previously given guidance of approximately $40 million in commercial
product sales and an additional approximate $10 million in government revenue
in 2003, for net sales of roughly $50 million in 2003. STI anticipates
reaching breakeven by the third quarter, and profitability in the fourth
quarter, 2003. The company is currently involved in a patent litigation, and
believes that if STI wins the lawsuit, the company remains on track to reach
its financial goals for 2003.

While the company continues to believe it has meritorious defenses to this
lawsuit, STI cannot predict the outcome of a jury trial. STI’s auditors,
PricewaterhouseCoopers, have determined that there is substantial doubt about
STI’s ability to continue as a going concern, based upon the material adverse
effect the patent litigation could have on STI’s business, coupled with the
company’s recurring losses and its use of $20 million in cash for operations in
2002.

Investor Conference Call

STI is currently involved in a patent litigation, and as a result has elected
to postpone its investor conference call until early April, 2003. The company
has tentatively set a date of April 10, 2003, dependent upon the timing of the
resolution of the litigation. STI anticipates being able at the time of the
call to discuss both the company results for the fourth quarter and full year
2002 and the outcome of the patent litigation.

About Superconductor Technologies Inc.

Superconductor Technologies Inc., headquartered in Santa Barbara, CA, is the
global leader in developing, manufacturing, and marketing superconducting
products for wireless networks. STI’s SuperLinkTM Solutions are proven to
increase capacity utilization, lower dropped and blocked calls, extend
coverage, and enable higher wireless transmission data rates. SuperFilter®,
the company’s flagship product in the SuperLink Rx product line, incorporates
patented high-temperature superconductor (HTS) technology to create a cryogenic
receiver front-

 

 

end (CRFE) used by wireless operators to enhance network performance while
reducing capital and operating costs.

     More than 2,000 SuperFilter Systems have been shipped worldwide, logging
in excess of 25 million hours of cumulative operation. In 2002, STI was named
one of Deloitte & Touche’s prestigious “Technology Fast 50” companies for the
Los Angeles area, a ranking of the 50 fastest-growing technology companies in
the area.

     SuperFilter and SuperLink are trademarks or registered trademarks of
Superconductor Technologies Inc. in the United States and in other countries.
For information about STI, please visit www.suptech.com.

Safe Harbor Statement

The press release contains forward-looking statements made in reliance upon the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, but are not limited to, STI’s views on the
outcome of the patent litigation with ISCO International, the expected closing
date of the merger, future commercial revenues, market growth, capital
requirements and new product introductions, and are generally identified by
phrases such as “thinks,’’ “anticipates,’’ “believes,’’ “estimates,’’
“expects,’’ “intends,’’ “plans,’’ and similar words. Forward-looking statements
are not guarantees of future performance and are inherently subject to
uncertainties and other factors, which could cause actual results to differ
materially from the forward-looking statements. These factors and uncertainties
include: STI’s ability to expand its operations to meet anticipated product
demands; the ability of STI’s products to achieve anticipated benefits for its
customers; the anticipated growth of STI’s target markets; unanticipated delays
in shipments to customers; STI’s ability to achieve profitability; the
uncertainties of litigation and the outcome of the patent litigation with ISCO
International. STI refers interested persons to its most recent Annual Report
on Form 10-K and its other SEC filings for a description of additional
uncertainties and factors that may affect forward-looking statements.
Forward-looking statements are based on information presently available to
senior management, and STI has not assumed any duty to update any
forward-looking statements.

	 	 	 	 	 
	Contacts:	 	 	 	 
	STI	 	
Investor relations contact:
	 	 
	Martin McDermut	 	
Lillian Armstrong	 	 
	Chief Financial Officer	 	
Lippert/Heilshorn & Associates	 	 
	Mmcdermut@suptech.com	 	
lillian@lhai-sf.com	 	 
	(805) 690-4500	 	
(415) 433-3777	 	 

- Tables Follow –

 

 

SUPERCONDUCTOR TECHNOLOGIES INC.

CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	Three Months Ended	 	Twelve Months Ended
	 	 	 	 	 	
	 	

	 	 	 	 	 	December 31	 	December 31	 	December 31	 	December 31
	 	 	 	 	 	2001	 	2002	 	2001	 	2002
	 	 	 	 	 	
	 	
	 	
	 	

	Net revenues:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Net commercial product
revenues
	 	$	1,806,000	 	 	$	4,309,000	 	 	$	7,601,000	 	 	$	17,601,000	 
	 	Government contract
revenues
	 	 	1,421,000	 	 	 	2,662,000	 	 	 	4,782,000	 	 	 	4,785,000	 
	 	Sub license royalties
	 	 	—	 	 	 	—	 	 	 	10,000	 	 	 	10,000	 
	 
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	 	 	 	Total net revenues
	 	 	3,227,000	 	 	 	6,971,000	 	 	 	12,393,000	 	 	 	22,396,000	 
	Costs and expenses:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Cost of commercial
product revenues
	 	 	2,898,000	 	 	 	4,197,000	 	 	 	10,626,000	 	 	 	19,286,000	 
	 	Contract research and
development
	 	 	963,000	 	 	 	1,016,000	 	 	 	3,359,000	 	 	 	2,531,000	 
	 	Other research and
development
	 	 	1,031,000	 	 	 	538,000	 	 	 	4,606,000	 	 	 	4,489,000	 
	 	Selling, general and
administrative
	 	 	3,420,000	 	 	 	3,384,000	 	 	 	11,907,000	 	 	 	14,976,000	 
	 	Write off of
in-process research
and development
	 	 	—	 	 	 	700,000	 	 	 	—	 	 	 	700,000	 
	 
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	 	 	 	Total costs and
expenses
	 	 	8,312,000	 	 	 	9,835,000	 	 	 	30,498,000	 	 	 	41,982,000	 
	 
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	Loss from operations
	 	 	(5,085,000	)	 	 	(2,864,000	)	 	 	(18,105,000	)	 	 	(19,586,000	)
	 	Interest income
	 	 	106,000	 	 	 	20,000	 	 	 	1,050,000	 	 	 	218,000	 
	 	Interest expense
	 	 	(33,000	)	 	 	(81,000	)	 	 	(146,000	)	 	 	(145,000	)
	 
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	 	 	 	Net loss
	 	 	(5,012,000	)	 	 	(2,925,000	)	 	 	(17,201,000	)	 	 	(19,513,000	)
	Less:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Deemed distribution
attributable to the
preferred stock
beneficial
conversion feature
	 	 	(638,000	)	 	 	0	 	 	 	(2,603,000	)	 	 	(1,756,000	)
	 
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	Net loss available to
common stockholders
	 	 	($5,650,000	)	 	 	($2,925,000	)	 	 	($19,804,000	)	 	 	($21,269,000	)
	 
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	Basic and diluted loss per
common share
	 	 	($0.31	)	 	 	($0.09	)	 	 	($1.10	)	 	 	($0.89	)
	 
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 
	Weighted average number of
common
shares outstanding
	 	 	18,133,212	 	 	 	30,867,500	 	 	 	17,955,553	 	 	 	24,019,542	 
	 
	 	 	
	 	 	 	
	 	 	 	
	 	 	 	
	 

 

 

SUPERCONDUCTOR TECHNOLOGIES INC.

CONSOLIDATED SUMMARY BALANCE SHEET INFORMATION

	 	 	 	 	 	 	 	 	 
	 	 	December 31, 2001	 	December 31, 2002
	 	 	
	 	

	 	 	 	 	 	 	Unaudited
	Cash and cash equivalents
	 	$	15,205,000	 	 	$	18,191,000	 
	Total current assets
	 	 	22,982,000	 	 	 	28,498,000	 
	Total assets
	 	 	30,161,000	 	 	 	65,326,000	 
	Total current liabilities
	 	 	4,229,000	 	 	 	11,995,000	 
	Long term debt
	 	 	509,000	 	 	 	2,123,000	 
	Total liabilities
	 	 	6,498,000	 	 	 	15,802,000	 
	Total stockholders’ equity
	 	 	23,663,000	 	 	 	49,524,000	 

###

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