ADDENDUM TO BUILDER’S LOT SALE AND HOME AGREEMENT

The provisions of this Addendum to Residential Sale and Construction Contract

(“Addendum”) supplement and modify the Texas Association of Realtors Commercial Contract -
Unimproved Property (“Contract”) to which this Addendum is attached. In the event of any
inconsistency between the provisions of the contract and the provisions of this Addendum, the
provisions of this Addendum shall supercede and control. References herein to the contract shall
mean the contract, as modified by this Addendum. All capitalized terms (or terms otherwise
defined in the contract) used in this Addendum shall have the same respective meaning as set
forth in the contract, except as otherwise defined herein.

1. Section 2.1 is hereby supplemented by the following provision:

Builder, through its architect, engineers and other consultants is responsible for providing
complete architectural, civil, structural and mechanical, electrical, and plumbing
engineering design through drawings and specifications for the architectural design and
civil, structural and mechanical, electrical and plumbing engineering design, systems and
equipment (collectively, the “Design Documents”) for the Home. Nothing contained in
the Design Documents shall create a contractual relationship between Owner and any
third party; however, it is understood and agreed that Owner is an intended third-party
beneficiary of the Design Documents. Builder shall be responsible to Owner for the acts
or omissions of the architect, engineers, and others acting by, through or under Builder.

Builder, by executing this Agreement, represents and warrants to Owner the following:

1. The Design Documents will upon completion be sufficiently complete and

detailed for Builder to perform the Work required to produce the results intended
by the Design Documents and to comply with all the requirements of the Design
Documents, including assuring that the intended functionality of all systems is
achieved and that all system equipment provided achieves the performance
required for such system to function permitting safe and reliable long-term
operation, as more particularly described in the applicable Design Documents.

2. The Work required by the Design Documents, including, without

limitation, all construction details, construction means, methods, procedures and
techniques necessary to perform the Work, use of materials, selection of
equipment and requirements of product manufacturers is or will upon completion
be consistent with: good and sound practices within the construction industry,
including prudent civil, structural, mechanical, electrical and plumbing practices;
generally prevailing and accepted industry standards applicable to the Work;
requirements of any warranties applicable to the Work; and requirements of all
applicable permits and applicable laws which bear upon Builder’s performance of
the Work.

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2. Section 2.2 is hereby supplemented by the following provision:

Builder shall provide to Purchaser at or before the Closing (as defined in § 4.1.3 below)
copies of any reports of inspections conducted in accordance with the section of the
Specifications titled “Energy Efficiency”.

3. Section 2.3 is hereby supplemented by the following provision:

If an applicable municipal authority requires changes to be made to the Plans or

Specifications for a permit to be issued, Purchaser shall not incur any additional costs as a
result of those changes, and Purchaser’s acceptance of those changes shall not be
unreasonably withheld or delayed.

4. Section 4.1.2 is hereby supplemented by the following provision:

The Commencement Fee, when paid, shall be non-refundable except as provided in §§

15.1 and 17.2 below.

5. Section 4.1.3 is hereby supplemented by the addition of the following:

Purchaser agrees to attend and participate in the Closing on the date specified by Builder
in conjunction with the Orientation (as defined in § 12.3 below), with at least five (5)
days’ Notice. Builder shall provide copies of invoices and receipts for expenditures
related to Allowances on reasonable Notice.

6. Section 5.3 is hereby added to the Contract:

Purchaser shall select Allowance items within five (5) days after Notice of the request
from Builder. If Purchaser fails to select Allowance items within that time, Builder shall
be authorized, at its sole option and without waiving any rights available to Builder under
this Contract, to: (a) suspend construction activities under § 8.3 below; (b) make the
selection within the Allowance budget and proceed with the construction of the Home;
and/or (c) continue those portions of the Work that are unaffected by the required
selections.

7. Section 6.2 is amended by substituting the following for the first grammatical sentence is
such section:

Purchaser is encouraged to secure and review a title report on the Property from the Title
Company. Purchaser may object to any recorded or unrecorded title exception (including
but not limited to the proposed Declaration of Covenants, Conditions, Restrictions and
Easements for Builder has provided to Purchaser contemporaneously with the execution
of this Contract) other than the “Permitted Exceptions” provided in § 16.1 below.

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8. Section 7.3 is hereby supplemented by the following provision:

Builder agrees to provide to Purchaser at or before Closing a copy of the final inspection
letter(s) and/or report(s) Builder has received from the Engineer who prepared the Plans
and Specifications and inspected the Work.

9. Section 8.1 is hereby supplemented by the following provision:

If Builder has not commenced construction before the expiration of ninety (90) days after
the execution of this Contract, Purchaser shall have the option to terminate this Contract
upon Notice and receive a refund of all sums paid to Builder up to and including the date
of termination. Purchaser’s Notice of termination must be delivered to Builder before
construction of the Home commences, at which time the Purchaser’s termination option
specified in the preceding sentence shall expire.

10. Section 8.3 is hereby supplemented by the following provision:

BUILDER THEREFORE DOES NOT GUARANTEE SUBSTANTIAL COMPLETION

OF THE HOME ON ANY SPECIFIC DATE, HOWEVER BUILDER AGREES THAT,
SUBJECT TO EXCUSED DELAYS, SUBSTANTIAL COMPLETION SHALL
OCCUR ON OR ABOUT TWENTY-FOUR (24) MONTHS AFTER THE
PLACEMENT OF THE SLAB FOR THE CONSTRUCTION OF THE HOME.
Additionally, if substantial completion does not occur within thirty (30) months after the
placement of the slab for the construction of the home, subject to Excused Delays,
Purchaser shall have the option to terminate this contract upon Notice and receive a
refund of all sums paid to Builder up to and including the date of termination.
Purchaser’s notice of termination must be delivered to Builder within thirty-six (36)
months after the placement of the slab for the construction of the Home, subject to
Excused Delays, at which time the Purchaser’s termination options specified in the
preceding sentence shall expire.

11. Section 9.6 or any other provision allocating the risk of concealed conditions and
changed circumstances to Purchaser shall be deleted.

12. Section 11.1 is hereby supplemented by the following provision:

The Purchaser’s indemnification of Builder shall not apply to Builder’s gross negligence
or wilful misconduct.

13. Section 12.4 is hereby supplemented by the following provision:

If, however, it will be unreasonably expensive and time consuming to correct a minor
cosmetic imperfection, and such imperfection does not satisfy the standards of
performance prescribed in the Limited Warranty, then Purchaser shall be entitled an
equitable reduction of the Purchase Price.

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14. Section 15.1 is hereby supplemented by the following provision:

If the Home which is substantially or wholly destroyed by casualty cannot be rebuilt or

repaired within ninety (90) days, Purchaser shall have the right to terminate this Contract
by Notice delivered within thirty (30) days following Notice to Purchaser of Seller’s
intent to rebuild or repair the damage, which event, this Contract shall terminate and
Purchaser shall receive a refund of all sums paid to Builder up and to including the date
of termination.

15. With respect to Section 17.2, $25,000 is substituted for $500. [Stipulated Damages for
Builder’s termination due to dispute]

16. Section 22.1 is hereby supplemented by the following provision:

NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS SECTION 22.1,

BUILDER MAY NOT RELY ON SUCH WRITTEN INFORMATION IF BUILDER
HAS ACTUAL KNOWLEDGE OF MATERIAL ERRORS OR OMISSIONS WITH
RESPECT TO SUCH INFORMATION THAT WOULD PREVENT SELLER FROM
CONSTRUCTING THE HOME IN ACCORDANCE WITH THE PLANS AND
SPECIFICATIONS OR TO SATISFY THE PERFORMANCE STANDARDS
DESCRIBED IN THE LIMITED WARRANTY.

Except as amended by this Addendum, the contract remains unchanged and continues in full
force and effect.

SIGNED FOR IDENTIFICATION:

BUILDER: PURCHASER:

By: By:
Name: Name:
Title: Title:

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