Document:

Exhibit 4.5

 

MERITAGE
HOMES CORPORATION

STOCK APPRECIATION RIGHTS AGREEMENT

 

This Stock Appreciation Rights Agreement (“Agreement”)
is between Meritage Homes Corporation (“Company”) and                        
(“Grantee”), as of the          
day of                    ,
2006 (“Date of Grant”).

 

RECITALS

 

A.            The
Company has adopted the Meritage Homes Corporation 2006 Stock Incentive Plan (“Plan”)
to provide incentives to attract and retain those individuals whose services
are considered unusually valuable by providing them an opportunity to own stock
in the Company.

 

B.            The
Company believes that entering into this Agreement with the Grantee is
consistent with those purposes. Any capitalized term not defined in this
Agreement will have the meaning as set forth in the Plan.

 

NOW THEREFORE, the Company and Grantee agree as
follows:

 

AGREEMENT

 

1.             GRANT OF SAR.
Subject to the terms of this Agreement and Article 8 of the Plan, the Company
grants to Grantee the right to exercise the Stock Appreciation Right (the “SAR”)
measured by            
shares of the common stock of the Company (“Stock”). The delivery of any
document evidencing the SAR is subject to the provisions of Section 8.1(a) of
the Plan.

 

2.             GRANT PRICE.
The Grant Price under this Agreement is $            per
share of Stock, as determined by the Committee, which shall not be less than
the Fair Market Value of a share of Stock on the Date of Grant.

 

3.             VESTING OF SAR.
The SAR shall vest and be exercisable according to the following schedule:

 

[insert schedule]

 

4.             PAYMENT FOR
EXERCISE OF SAR. The SAR awarded under this Agreement and pursuant to
Article 8 of the Plan permits the Grantee to receive, after exercise, the
excess of a number of shares of Stock equal to (1) the Fair Market Value of a
share of Stock on the date of exercise, over (2) the Grant Price of the SAR.

 

5.             METHOD OF
EXERCISING SAR. Subject to the terms and conditions of this Agreement,
the SAR may be exercised by timely delivery to the Company of written notice,
which notice shall be effective on the date received by the Company. The notice
shall state the Grantee’s election to exercise the SAR and the number of
underlying shares in respect of which an election to exercise has been made. Such
notice shall be signed by the Grantee. In the event the SAR is exercised by a
person or persons other than Grantee because of the Grantee’s death, such
notice shall be signed by such other person or persons and shall be accompanied
by proof acceptable to the Company of the legal right of such person or persons
to exercise the SAR.

 

6.             TERM OF SAR.
The SAR granted under this Agreement expires, unless sooner surrendered, ten
(10) years from the Date of Grant, through and including the normal close of
business of the Company on the tenth (10th) anniversary of the Date
of Grant (“Expiration Date”).

 

7.             TERMINATION OF
SERVICE. The Grantee is deemed to have exercised the vested portion of
the SAR if his or her service with the Company is terminated for any reason
other than for Cause. The vested portion of the SAR is forfeited and
immediately cancelled if his or her service with the Company is terminated for
Cause. The unvested portion of the SAR is forfeited and immediately cancelled
on the date his or her service with the Company is terminated.

 

 

8.             NON-TRANSFERABILITY
OF RIGHTS. Grantee may not assign or transfer Grantee’s rights under
this Agreement, nor may Grantee subject such rights (or any of them) to
execution, attachment, garnishment, or similar process, except as permitted
under Section 12.4(b) of the Plan. Any such impermissible attempted assignment
or transfer by Grantee shall be null and void and shall not be recognized by
the Company.

 

9.             RIGHTS OF GRANTEE.
The Grantee will have no rights as a shareholder of the Company with respect to
the grant of the SAR under this Agreement until the SAR is exercised and the
Company issues shares of Stock to the Grantee.

 

10.          FEDERAL AND STATE
TAXES. Grantee may incur certain liabilities for Federal, state, or
local taxes in connection with the exercise of the SAR hereunder, and the
Company may be required by law to withhold such taxes. Upon determination of
the year in which such taxes are due and the determination by the Company of
the amount of taxes required to be withheld, Grantee shall pay an amount equal
to the amount of Federal, state, or local taxes required to be withheld to the
Company. If Grantee fails to make such payment in a timely manner, the Company
may withhold and set-off against compensation payable to Grantee the amount of
such required payment.

 

11.          ADJUSTMENT OF SHARES.
The number of shares of Stock issued to Grantee pursuant to this Agreement
shall be adjusted by the Committee pursuant to Article 13 of the Plan, in its
discretion, in the event of a change in the Company’s capital structure.

 

12.          AMENDMENT OF
AGREEMENT. This Agreement may only be amended with the written approval
of Grantee and the Company.

 

13.          GOVERNING LAW.
This Agreement shall be governed in all respects, whether as to validity,
construction, capacity, performance, or otherwise, by the laws of the state of
Maryland, without regard to conflicts-of-laws principles that would require the
application of any other law.

 

14.          SEVERABILITY.
If any provision of this Agreement, or the application of any such provision to
any person or circumstance, is held to be unenforceable or invalid by any court
of competent jurisdiction or under any applicable law, the parties hereto shall
negotiate an equitable adjustment to the provisions of this Agreement with the
view to effecting, to the greatest extent possible, the original purpose and
intent of this Agreement, and in any event, the validity and enforceability of
the remaining provisions of this Agreement shall not be affected thereby.

 

15.          ENTIRE AGREEMENT.
This Agreement constitutes the entire, final, and complete agreement between
the parties hereto with respect to the subject matter hereof and supersede all
prior agreements, promises, understandings, negotiations, representations, and
commitments, both written and oral, between the parties hereto with respect to
the subject matter hereof. Neither party hereto shall be bound by or liable for
any statement, representation, promise, inducement, commitment, or
understanding of any kind whatsoever not expressly set forth in this Agreement.

 

IN WITNESS WHEREOF, the Company has caused this
Agreement to be executed by its duly authorized representative and Grantee has
signed this Agreement, in each case as of the day and year first written above.

 

	
   

  	
  MERITAGE
  HOMES CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  GRANTEE:

  
	
   

  	
   

  
	
   

  	
   

  

 

2Exhibit 10.1

 

Loan No. RIE539S01C

 

STATUSED
REVOLVING CREDIT SUPPLEMENT

 

THIS
SUPPLEMENT to the
Master Loan Agreement dated May 23, 2005 (the “MLA”), is entered into as of May
26, 2006, and effective June 1, 2006 (“Effective Date”), between CoBANK, ACB (“CoBank”) and DAKOTA GROWERS PASTA COMPANY, INC., Carrington, North
Dakota (the “Company”), and amends and restates the Supplement dated
May 23, 2005 and numbered RIE539S01B.

 

SECTION 1.         The
Revolving Credit Facility.  On the terms
and conditions set forth in the MLA and this Supplement, CoBank agrees to make
loans to the Company during the period set forth below in an aggregate
principal amount not to exceed, at any one time outstanding, the lesser of
$25,000,000.00 (the “Commitment”), or the “Borrowing Base” (as calculated
pursuant to the Borrowing Base Report attached hereto as Exhibit A).  Within the limits of the Commitment, the
Company may borrow, repay and reborrow.  

 

SECTION
2.         Purpose. 
The purpose of the Commitment is to finance the inventory and receivables
referred to in the Borrowing Base Report.

 

SECTION
3.         Term. 
The term of the Commitment shall be from the Effective date hereof, up to and including May 30,
2007, or such later date as CoBank may, in its sole discretion, authorize in
writing.  

 

SECTION 4.         Interest. 
The Company agrees to pay interest on the unpaid balance of the loans in
accordance with one or more of the following interest rate options, as selected
by the Company:

 

(A)      Weekly Quoted Variable Rate. 
At a rate per annum equal at all times to the rate of interest
established by CoBank on the first Business Day of each week.  The rate established by CoBank shall be
effective until the first Business Day of the next week.  Each change in the rate shall be applicable
to all balances subject to this option and information about the then current
rate shall be made available upon telephonic request.

 

(B)      Quoted Rate. 
At a fixed rate per annum to be quoted by CoBank in its sole discretion
in each instance.  Under this option,
rates may be fixed on such balances and for such periods, as may be agreeable
to CoBank in its sole discretion in each instance, provided that:  (1) the minimum fixed period shall be 30
days; (2) amounts may be fixed in increments of $500,000.00 or multiples
thereof; and (3) the maximum number of fixes in place at any one time shall be
10.

 

(C)      LIBOR.  At a fixed
rate per annum equal to “LIBOR” (as hereinafter defined) plus 2 1/4%.  Under this option:  (1) rates may be fixed for “Interest Periods”
(as hereinafter defined) of 1, 2, 3 or 6 months as selected by the Company; (2)
amounts may be fixed in increments of $500,000.00 or multiples thereof; (3) the
maximum number of fixes in place at any one time shall be 10; and (4) rates may
only be fixed on a “Banking Day” (as hereinafter defined) on 3 Banking Days’
prior written notice.  For purposes
hereof:  (a) “LIBOR” shall mean the rate
(rounded upward to the nearest sixteenth and adjusted for reserves required on “Eurocurrency
Liabilities” (as hereinafter defined) for banks subject to “FRB Regulation D”
(as herein defined) or required by any other federal law or regulation) quoted
by the British Bankers Association (the “BBA”) at 11:00 a.m. London time 2
Banking Days before the commencement of the Interest Period for the offering of
U.S. dollar deposits in the London interbank market for the Interest Period
designated by the Company; as published by Bloomberg or another major
information vendor listed on BBA’s official website; (b) “Banking Day” shall
mean a day on which CoBank is open for business, dealings in U.S. dollar
deposits are being carried out in the London interbank market, and banks are
open for business in New York City and London, England; (c) “Interest

 

 

Period” shall mean a period
commencing on the date this option is to take effect and ending on the
numerically corresponding day in the next calendar month or the month that is
2, 3 or 6 months thereafter, as the case may be; provided, however, that:  (i) in the event such ending day is not a
Banking Day, such period shall be extended to the next Banking Day unless such
next Banking Day falls in the next calendar month, in which case it shall end
on the preceding Banking Day; and (ii) if there is no numerically corresponding
day in the month, then such period shall end on the last Banking Day in the
relevant month; (d) “Eurocurrency Liabilities” shall have meaning as set forth
in “FRB Regulation D”; and (e) “FRB Regulation D” shall mean Regulation D as
promulgated by the Board of Governors of the Federal Reserve System, 12 CFR
Part 204, as amended.

 

The Company shall select the applicable rate option at
the time it requests a loan hereunder and may, subject to the limitations set
forth above, elect to convert balances bearing interest at the variable rate
option to one of the fixed rate options. 
Upon the expiration of any fixed rate period, interest shall
automatically accrue at the variable rate option unless the amount fixed is
repaid or fixed for an additional period in accordance with the terms
hereof.  Notwithstanding the foregoing,
rates may not be fixed for periods expiring after the maturity date of the
loans.  All elections provided for herein
shall be made electronically (if applicable), telephonically or in writing and
must be received by CoBank not later than 12:00 Noon Company’s local time in
order to be considered to have been received on that day; provided, however,
that in the case of LIBOR rate loans, all such elections must be confirmed in
writing upon CoBank’s request.  Interest
shall be calculated on the actual number of days each loan is outstanding on
the basis of a year consisting of 360 days and shall be payable monthly in
arrears by the 20th day of the following month or on such other day in such
month as CoBank shall require in a written notice to the Company; provided,
however, in the event the Company elects to fix all or a portion of the
indebtedness outstanding under the LIBOR interest rate option above, at CoBank’s
option upon written notice to the Company, interest shall be payable at the
maturity of the Interest Period and if the LIBOR interest rate fix is for a
period longer than 3 months, interest on that portion of the indebtedness
outstanding shall be payable quarterly in arrears on each three-month
anniversary of the commencement date of such Interest Period, and at maturity.

 

SECTION
5.         Promissory Note. 
The Company promises to repay the unpaid principal balance of the loans
on the last day of the term of the Commitment. 
In addition to the above, the Company promises to pay interest on the
unpaid principal balance of the loans at the times and in accordance with the
provisions set forth in Section 4 hereof. 
This note replaces and supersedes, but does not constitute payment of
the indebtedness evidenced by, the promissory note set forth in the Supplement
being amended and restated hereby.

 

SECTION
6.         Borrowing Base Reports,
Etc.  The Company agrees to furnish a Borrowing Base Report
to CoBank at such times or intervals as CoBank may from time to time
request.  Until receipt of such a
request, the Company agrees to furnish a Borrowing Base Report to CoBank within
50 days after each month end calculating the Borrowing Base as of the last day
of the month for which the Report is being furnished.  However, if no balance is outstanding hereunder
on the last day of such month, then no Report need be furnished.  Regardless of the frequency of the reporting,
if at any time the amount outstanding under the Commitment exceeds the
Borrowing Base, the Company shall immediately notify CoBank and repay so much
of the loans as is necessary to reduce the amount outstanding under the
Commitment to the limits of the Borrowing Base. 

 

SECTION
7.         Letters of Credit.  If agreeable to CoBank in its sole discretion in each
instance, in addition to loans, the Company may utilize the Commitment to open
irrevocable letters of credit for its account. 
Each letter of credit will be issued within a reasonable period of time
after receipt of a duly completed and executed copy of CoBank’s then current
form of application or, if applicable, in accordance with the terms of any
CoTrade Agreement between the parties, and shall reduce the amount available
under the Commitment by the maximum amount capable of being drawn
thereunder.  Any draw under any letter of
credit issued hereunder shall be deemed an advance under the Commitment.  Each letter of credit must be in form and
content acceptable to CoBank and must expire no later than the

 

 

maturity date of the
loans.  Notwithstanding the foregoing or
any other provision hereof, the maximum amount capable of being drawn under
each letter of credit must be statused against the Borrowing Base in the same
manner as if it were a loan, and in the event that (after repaying all loans)
the maximum amount capable of being drawn under the letters of credit exceeds
the Borrowing Base, then the Company shall immediately notify CoBank and pay to
CoBank (to be held as cash collateral) an amount equal to such excess.

 

SECTION 8.         Commitment Fee.  In consideration of the
Commitment, the Company agrees to pay to CoBank a commitment fee on the average
daily unused portion of the Commitment at the rate of 1/4 of 1% per annum
(calculated on a 360 day basis), payable quarterly in arrears by the 20th day
following each calendar quarter.  Such
fee shall be payable for each quarter (or portion thereof) occurring during the
original or any extended term of the Commitment.  For purposes of calculating the commitment
fee only, the “Commitment” shall mean the dollar amount specified in Section 1
hereof, irrespective of the Borrowing Base.

 

SECTION 9.         Amendment Fee.  In consideration of the
amendment, the Company agrees to pay to CoBank on the execution hereof a fee in
the amount of $5,000.00.

 

IN
WITNESS WHEREOF,
the parties have caused this Supplement to be executed by their duly authorized
officers as of the date shown above.

 

	
  CoBANK,
  ACB

  	
  DAKOTA
  GROWERS PASTA COMPANY, 

  INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Gary J. Sloan

  	
   

  	
  By:

  	
  /s/ Tim Dodd

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
  Vice President

  	
   

  	
  Title:

  	
  President / CEO

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