<SUBMISSION>
<ACCESSION-NUMBER>0001104659-06-064175
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>3
<PERIOD>20060926
<ITEMS>1.01
<ITEMS>9.01
<FILING-DATE>20061002
<DATE-OF-FILING-DATE-CHANGE>20060929
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>Meritage Homes CORP
<CIK>0000833079
<ASSIGNED-SIC>1531
<IRS-NUMBER>860611231
<STATE-OF-INCORPORATION>MD
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-09977
<FILM-NUMBER>061118453
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>8501 E. PRINCESS DRIVE
<STREET2>STE 290
<CITY>SCOTTSDALE
<STATE>AZ
<ZIP>85255
<PHONE>4802222444
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>8501 E. PRINCESS DRIVE
<STREET2>SUITE 290
<CITY>SCOTTSDALE
<STATE>AZ
<ZIP>85255
</MAIL-ADDRESS>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>MERITAGE CORP
<DATE-CHANGED>19981009
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>MONTEREY HOMES CORP
<DATE-CHANGED>19970113
</FORMER-COMPANY>
<FORMER-COMPANY>
<FORMER-CONFORMED-NAME>HOMEPLEX MORTGAGE INVESTMENTS CORP
<DATE-CHANGED>19920703
</FORMER-COMPANY>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a06-20414_18k.htm
<DESCRIPTION>CURRENT REPORT OF MATERIAL EVENTS OR CORPORATE CHANGES
<TEXT>
<html>

<head>






</head>

<body lang="EN-US">

<div style="font-family:Times New Roman;">
 <div style="border:none;border-top:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;margin:0pt 0pt .0001pt;padding:0pt;"><a name="scotch"></a></p> </div>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>

<p align="center" style="font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED
STATES<br>
SECURITIES AND EXCHANGE COMMISSION</font></b><b><br>
WASHINGTON, DC 20549</b></p>

<div style="line-height:9.0pt;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><hr size="1" width="160" noshade color="black" align="center" style="width:120.0pt;"></div>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM
8-K</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT
REPORT<br>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Date of report (Date of earliest event reported)
September 26, 2006</font></b></p>

<p align="center" style="font-size:10.0pt;margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">MERITAGE
HOMES CORPORATION</font></b><b><br>
</b>(Exact
Name of Registrant as Specified in Charter)</p>

<div align="center">

<table border="1" cellspacing="0" cellpadding="0" width="100%" style="border:none;border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="31%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:31.32%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><!-- SET mrlNoTableShading --><b>Maryland</b></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0pt .7pt 0pt .7pt;width:3.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:31.32%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1-9977</font></b></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0pt .7pt 0pt .7pt;width:3.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:31.32%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">86-0611231</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:31.32%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State or Other
  Jurisdiction</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0pt .7pt 0pt .7pt;width:3.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:31.32%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission File</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0pt .7pt 0pt .7pt;width:3.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:31.32%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(IRS Employer</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:31.32%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">of
  Incorporation)</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0pt .7pt 0pt .7pt;width:3.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:31.32%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Number)</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0pt .7pt 0pt .7pt;width:3.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:31.32%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Identification
  No.)</font></p>
  </td>
 </tr>
 <tr>
  <td width="31%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:31.32%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0pt .7pt 0pt .7pt;width:3.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:31.32%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0pt .7pt 0pt .7pt;width:3.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:31.32%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="65%" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:65.66%;">
  <p align="center" style="font-size:10.0pt;margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">17851 N. 85</font></b><b><font size="1" style="font-size:6.5pt;font-weight:bold;position:relative;top:-3.0pt;">th</font></b><b>&nbsp;Street, Suite 300, Scottsdale, Arizona</b></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0pt .7pt 0pt .7pt;width:3.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:31.32%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">85255</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="65%" colspan="3" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:65.66%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of Principal Executive Offices)</font></p>
  </td>
  <td width="3%" valign="bottom" style="border:none;padding:0pt .7pt 0pt .7pt;width:3.0%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="31%" valign="top" style="border:none;padding:0pt .7pt 0pt .7pt;width:31.32%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Zip Code)</font></p>
  </td>
 </tr>
</table>

</div>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(480) 609-3330</font></b></p>

<p align="center" style="font-size:10.0pt;margin:0pt 0pt 24.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s
telephone number, including a</font>rea code)</p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former
Name or Former Address, if Changed Since Last Report)</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;letter-spacing:-.15pt;">Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions (<i>see </i>General
Instruction A.2. below):</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;letter-spacing:-.15pt;">o</font><font size="1" style="font-size:3.0pt;letter-spacing:-.15pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="letter-spacing:-.15pt;">Written communications pursuant to Rule 425 under
the Securities Act (17 CFR 230.425)</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;letter-spacing:-.15pt;">o</font><font size="1" style="font-size:3.0pt;letter-spacing:-.15pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="letter-spacing:-.15pt;">Soliciting material pursuant to Rule 14a-12 under
the Exchange Act (17 CFR 240.14a-12)</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;letter-spacing:-.15pt;">o</font><font size="1" style="font-size:3.0pt;letter-spacing:-.15pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="letter-spacing:-.15pt;">Pre-commencement communications pursuant to Rule
14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:-18.0pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;letter-spacing:-.15pt;">o</font><font size="1" style="font-size:3.0pt;letter-spacing:-.15pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><font style="letter-spacing:-.15pt;">Pre-commencement communications pursuant to Rule
13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</font></p>


 <div style="border:none;border-bottom:double windowtext 6.0pt;padding:0pt 0pt 0pt 0pt;"> <p style="border:none;color:windowtext;font-size:10.0pt;margin:0pt 0pt .0001pt;padding:0pt;"><font color="black" face="Times New Roman">&nbsp;</font></p> </div>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

<!-- SEQ.=1,FOLIO='',FILE='C:\JMS\saaron\06-20414-1\task1388384\20414-1-be.htm',USER='ssaaron',CD='Sep 28 18:06 2006' -->



<br clear="all" style="page-break-before:always;">

<div style="font-family:Times New Roman;">
 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 1.01.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Entry
into a Material Definitive Agreement.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">On </font>September 26, 2006, the Company entered into an Employment
Agreement and an Amended and Restated Change of Control Agreement with Sandra
R.A. Karrmann, the Company&#146;s Executive Vice President and Chief Human Resources
Officer.&#160; The financial terms of Ms.
Karrmann&#146;s Employment Agreement, which are substantially similar to the terms
contained in her existing offer of employment letter, provide for an annual
base salary of $311,300. For 2006 fiscal year, Ms. Karrmann remains eligible
for the bonus as set forth in her existing offer of employment letter and
recited on Exhibit A of the Employment Agreement.&#160; Ms. Karrmann&#146;s annual base salary will
increase 5% on January 1, 2007 and annually thereafter.&#160; In addition, Ms. Karrmann will receive an
annual option grant to acquire 15,000 shares of the Company&#146;s common stock, all
of which will have an exercise price equal to the fair market value of the
Company&#146;s common stock on their respective dates of grant.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Employment
Agreement and Change of Control Agreement provide for a severance payment to Ms.
Karrmann in the event she terminates her employment for good reason, is
terminated by the Company without cause or upon certain events following a
change of control, as each of those terms are defined in the Change of Control
Agreement.&#160; This severance payment is
approximately equal to Ms. Karrmann&#146;s base salary on the date of her
termination plus the higher of Ms. Karrmann&#146;s average bonus for the two years
prior to termination of employment or Ms. Karrmann&#146;s bonus for the year
preceding the date of her termination.&#160;
In addition, if such an event were to occur, all options held by Ms.
Karrmann that were granted pursuant to the Employment Agreement will accelerate
and automatically vest.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Employment
Agreement and Amended and Restated Change of Control Agreement are filed at
Exhibits 10.1 and 10.2, respectively, of this Form 8-K and are incorporated by
reference herein.</font></p>

<p style="font-size:10.0pt;margin:0pt 0pt 12.0pt 72.0pt;text-indent:-72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 9.01.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Financial
Statements and Exhibits.</p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="8%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:8.6%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:4.5%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->(d)</p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:2.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="61%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:61.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibits</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:3.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:19.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="8%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:8.6%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:4.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:2.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="61%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:61.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:3.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:19.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="8%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:8.6%;">
  <p style="margin:0pt 0pt .0001pt -36.0pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:4.5%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --><!-- SET mrlHTMLTableLeft -->10.1</p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:2.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="61%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:61.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Employment Agreement, dated
  September 26, 2006, by and between the Company and Sandra R.A. Karrmann</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:3.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:19.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Filed herewith</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="8%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:8.6%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:4.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:2.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="61%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:61.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:3.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:19.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="8%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:8.6%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:4.5%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.2</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:2.78%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="61%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:61.54%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amended and Restated Change
  of Control Agreement, dated September 26, 2006, by and between the Company
  and Sandra R.A. Karrmann</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:3.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0pt .7pt 0pt 0pt 0pt .7pt 0pt 0pt;width:19.36%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Filed herewith</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


 <p style="line-height:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
</div><br><hr size="3" width="100%" noshade color="#010101" align="center">

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<div style="font-family:Times New Roman;">
 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SIGNATURES</font></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.7pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr style="page-break-inside:avoid;">
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  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->Dated: September 29, 2006</p>
  </td>
  <td width="43%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="56%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:56.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="56%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:56.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">MERITAGE HOMES CORPORATION</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="56%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:56.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="56%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:56.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="43%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:43.48%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="56%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:56.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:36.7%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vicki L. Biggs</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.82%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="56%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:56.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="36%" valign="top" style="border:none;padding:0pt .7pt 0pt 0pt;width:36.7%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vicki L. Biggs</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.82%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="56%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:56.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.7%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Vice President-Chief</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.82%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="56%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:56.52%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.96%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="36%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:36.7%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Accounting Officer</font></p>
  </td>
  <td width="2%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:2.82%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">3</font></p>
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<DESCRIPTION>EX-10
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<p align="right" style="margin:0pt 0pt 12.0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.1</font></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SANDRA KARRMANN EMPLOYMENT
AGREEMENT</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Employment Agreement
(the &#147;<b>Agreement</b>&#148;) is effective as of
September 26, 2006 by and between Meritage Homes Corporation, a Maryland
corporation (the &#147;<b>Company</b>&#148;) and Sandra
R.A. Karrmann, an individual (&#147;<b>Executive</b>&#148;).</font></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">RECITALS</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WHEREAS, the Company
desires to continue to employ Sandra Karrmann as its Executive Vice President
and Chief Human Resources Officer, and Executive desires to provide services to
the Company, in accordance with the terms, conditions and provisions of this
Agreement;</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW THEREFORE, in
consideration of the covenants and mutual agreements set forth herein and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, and in reliance upon the representations, covenants and
mutual agreements contained herein, the Company and Executive agree as follows:</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Employment</u></b>.&#160; Subject to the terms and conditions of this
Agreement, the Company agrees to employ Executive as Executive Vice President
and Chief Human Resources Officer of the Company, and Executive agrees to
diligently perform the duties associated with such positions.&#160; Executive will report directly to the Chief
Executive Officer.&#160; Executive will devote
substantially all of her business time, attention and energies to the business
of the Company and will comply with the charters, policies and guidelines
established by the Company from time to time applicable to its senior
management executives.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Term</u></b>.&#160; Executive will be employed under this Agreement
until September 26, 2008, unless Executive&#146;s employment is terminated earlier
pursuant to <u>Section 6</u>.&#160; The
Agreement will renew for additional one year periods (the &#147;<b>Renewal
Term(s)</b>&#148;), unless on or before June 15, 2008 (or June 15 of any
Renewal Term), either Executive or the Company notifies the other in writing
that it wishes to terminate employment under this Agreement at the end of the
term then in effect.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Salary</u></b>.&#160; The Company will pay Executive a base salary
(the &#147;<b>Base Salary</b>&#148;) at the annual rate of $311,300.&#160; The Base Salary will increase 5% on January
1, 2007 and on January 1 of each Renewal Term thereafter.&#160; The Base Salary will be payable in accordance
with the payroll practices of the Company in effect from time to time.&#160; The Base Salary may be raised, but not
lowered, without Executive&#146;s consent.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Incentive Compensation</u></b>.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Bonus</u>.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Executive will be
entitled to incentive compensation as specified in <u>Exhibit A</u> hereto (the
&#147;<b>Bonus</b>&#148;).&#160; The Bonus will be due and payable in
accordance with <u>Exhibit A</u>.</font></p>

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<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Stock
Options</u>.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During this
Agreement, commencing in 2007, the Company annually shall grant Executive
options to acquire 15,000 shares (or equivalent consideration at the discretion
of the Board of Directors).&#160; The options
will have an exercise price equal to the fair market value on the date of grant
as defined under the relevant plan.&#160;
Subject to the provisions hereof and Executive&#146;s Change of Control
Agreement (as defined in Section 6D of this Agreement), the options will be on
the same terms and conditions as other standard option grants to other
executives of the Company.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Executive Benefits</u></b>.&#160; During the term of this Agreement, Executive
will be entitled to reimbursement of reasonable and customary business
expenses. &#160;The Company will also provide
to Executive during the term of this Agreement a $1,500 per month auto
allowance, three weeks of annual paid vacation, $3,000,000 in term insurance
(or reimbursement for the premiums paid by Executive for such policy), a Company
paid annual physical at a first class facility such as the Cooper Clinic and
such other fringe benefits and other Executive benefits as are regularly
provided by the Company to its senior corporate management; provided, however,
that nothing herein shall preclude the Company from amending or terminating any
such other employee or general executive benefit plans or programs.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Termination</u></b>.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Voluntary
Resignation by Executive (With Good Reason) or Termination Without Cause by the
Company</u>.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If
Executive voluntarily terminates her employment with the Company with Good
Reason, or if the Company terminates Executive without Cause, the Company (i)
will be obligated to pay Executive&#146;s Base Salary through the Date of
Termination; (ii) will be obligated to pay any unpaid bonus for the previous
year; (iii) shall pay a severance payment to Executive in an amount equal to Executive&#146;s
base salary on the Date of Termination plus the higher of (x) Executive&#146;s
average Bonus for the two years prior to termination of employment or (y)
Executive&#146;s Bonus for the year preceding the Date of Termination (the &#147;<b>Severance Payment</b>&#148;); and (iv) shall pay Executive&#146;s COBRA premiums
for one year (including group health insurance and dental and vision).&#160; The amounts payable to Executive pursuant to this
Section 6A(1) shall be paid to Executive by check within 15 business days of
the Date of Termination.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Upon
termination of Executive&#146;s employment pursuant to this <u>Section 6A</u>, any
options previously granted to Executive shall accelerate and automatically vest
and Executive shall have a period of 90 days thereafter to exercise such
options.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Termination
upon Death or Disability</u>.&#160; If
Executive&#146;s employment is terminated as a result of Executive&#146;s death or
Disability, then the Company will be obligated to pay to Executive (or her
heirs or estate) (i) Executive&#146;s then current Base Salary through the Date of
Termination, (ii) any unpaid bonus for the previous year and a pro rated amount
of Executive&#146;s Bonus for the year in which the Date of Termination occurs, which
amount shall be payable at the time set forth in <u>Exhibit A</u>, and (iii)
Executive&#146;s COBRA premiums for one year.&#160;
</p>


 <p style="font-size:10.0pt;line-height:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">2</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In addition, upon such a termination, any options previously
granted to Executive shall accelerate and become vested without further action and,
to the extent permitted under the plan&#146;s governing documents, Executive (or her
heirs or estate) shall have a period of one year from the Date of Termination
to exercise such options.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Voluntary
Termination by Executive (Without Good Reason) or Termination for Cause by the
Company</u>.&#160; If Executive resigns
without Good Reason, it being understood that Executive shall have the right to
do so at any time, or if the Company discharges Executive for Cause, then the
Company will be obligated to pay Executive&#146;s Base Salary through the Date of
Termination and any unpaid bonus for the previous year and no bonus will be
payable with respect to the year in which the Date of Termination occurs.&#160; Such amounts shall be payable to Executive
within 15 business days of the Date of Termination.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><u>Definitions</u>.&#160; For purposes of this Agreement:</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(1)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Cause</b>&#148; and &#147;<b>Good Reason</b>&#148;
shall have the meanings ascribed to them in the Executive&#146;s Amended and
Restated Change of Control Agreement (the &#147;<b>Change of Control
Agreement</b>&#148;), effective as of September 26, 2006.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(2)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Date of Termination</b>&#148; shall mean (i) if this Agreement is
terminated as a result of Executive&#146;s death, the date of Executive&#146;s death,
(ii) if this Agreement is terminated by Executive, the date on which she
notifies the Company in writing, (iii) if this Agreement is terminated by the
Company for Disability, the date a notice of termination is given, (iv) if this
Agreement is terminated by the Company for Cause, the date a notice of
termination is given to Executive by the Company, or (v) if this Agreement is
terminated by the Company without Cause, the date notice of termination is
given to Executive by the Company.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt 36.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(3)</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Disability</b>&#148; shall mean a disability that results in
Executive being medically unable to fulfill her duties under this Agreement for
six consecutive months.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Non-Solicitation Covenant</u></b>.&#160; Following the termination of Executive&#146;s
employment, Executive hereby covenants and agrees that for a period of one year
from the Date of Termination, Executive will not directly or indirectly solicit
for employment or hire (whether as an employee, consultant, independent
contractor, or otherwise) either any person who is an employee, independent
contractor or the like of the Company or any of its subsidiaries, or any person
who was an employee of the Company during Executive&#146;s final year of employment
with the Company, unless Company gives its advance written consent to such
employment or offer of employment. &#160;The
covenants set forth in this Section 7 shall begin as of the date hereof and
will survive the termination of employment under Section 6.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Non-Disclosure of Confidential Information</u></b>.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>It
is understood that in the course of Executive&#146;s employment with Company,
Executive will become acquainted with Company Confidential Information (as
defined below).&#160; Executive recognizes
that Company Confidential Information has been developed or acquired at great
expense, is proprietary to the Company, and is and shall remain the exclusive
property of the Company.&#160; Accordingly,
Executive agrees that she will not, </p>


 <p style="font-size:10.0pt;line-height:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">3</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">disclose to others, copy, make any use of, or remove
from Company&#146;s premises any Company Confidential Information, except as
Executive&#146;s duties may specifically require, without the express written
consent of the Company, during Executive&#146;s employment with the Company and
thereafter until such time as Company Confidential Information becomes
generally disclosed or known, or readily ascertainable by proper means by
persons unrelated to the Company.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Upon
any termination of employment, Executive shall promptly deliver to the Company
the originals and all copies of any and all materials, documents, notes,
manuals, or lists containing or embodying Company Confidential Information, or
relating directly or indirectly to the business of the Company, in the
possession or control of Executive.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Executive
hereby agrees that the period of time provided for in this Section 8 and other
provisions and restrictions set forth herein are reasonable and necessary to
protect the Company and its successors and assigns in the use and employment of
the goodwill of the business conducted by Executive.&#160; Executive further agrees that damages cannot
compensate the Company in the event of a violation of this Section 8 and that,
if such violation should occur, injunctive relief shall be essential for the
protection of the Company and its successors and assigns.&#160; Accordingly, Executive hereby covenants and
agrees that, in the event any of the provisions of this Section 8 shall be
violated or breached, the Company shall be entitled to obtain injunctive relief
against the party or parties violating such covenants, without bond but upon
due notice, in addition to such further or other relief as may be available at
equity or law.&#160; Obtainment of such an
injunction by the Company shall not be considered an election of remedies or a
waiver of any right to assert any other remedies which the Company has at law
or in equity.&#160; No waiver of any breach or
violation hereof shall be implied from forbearance or failure by the Company to
take action thereof.&#160; The prevailing
party in any litigation, arbitration or similar dispute resolution proceeding
to enforce this provision will recover any and all reasonable costs and
expenses, including attorneys&#146; fees.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">D.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>&#147;<b>Company Confidential Information</b>&#148; shall mean confidential,
proprietary information or trade secrets of Company and its subsidiaries and
affiliates including without limitation the following:&#160; (1) customer lists and customer information
as compiled by Company; (2) Company&#146;s internal practices and procedures; (3)
Company&#146;s financial condition and financial results of operation; (4) supply of
materials information, including sources and costs, designs, information on
land and lot inventories, and current and prospective projects; (5) strategic
planning, manufacturing, engineering, purchasing, finance, marketing,
promotion, distribution, and selling activities; (6) all other information
which Executive has a reasonable basis to consider confidential or which is
treated by Company as confidential; and (7) all information having independent
economic value to Company that is not generally disclosed or known to, and not
readily ascertainable by proper means by, persons who can obtain economic value
from its disclosure or use. &#160;Notwithstanding the foregoing provisions,
information which becomes available on a non-confidential basis from a source
other than Executive which source is not prohibited from disclosing such
confidential information by legal, contractual or other obligation shall not be
considered &#147;Company Confidential Information.&#148;</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Severability</u></b>.&#160; If any provision of this Agreement is held to
be illegal, invalid, or unenforceable under any applicable law, then such
provision will be deemed to be modified to the extent necessary to render it
legal, valid and enforceable, and if no such modification will </p>


 <p style="font-size:10.0pt;line-height:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">4</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">make the provision legal, valid and enforceable, then
this Agreement will be construed as if not containing the provision held to be
invalid, and the rights and obligations of the parties will be construed and
enforced accordingly.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Assignment by Company</u></b>.&#160; Nothing in this Agreement shall preclude the
Company from consolidating or merging into or with, or transferring all or
substantially all of its assets to, another corporation or entity that assumes
this Agreement and all obligations and undertakings hereunder.&#160; Upon such consolidation, merger or transfer
of assets and assumption, the term &#147;Company&#148; as used herein shall mean such
other corporation or entity, as appropriate, and this Agreement shall continue
in full force and effect.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Entire Agreement</u></b>.&#160; This Agreement, the Change of Control
Agreement with Executive, and any agreements concerning stock options or other
benefits, embody the complete agreement of the parties hereto with respect to
the subject matter hereof and supersede any prior written, or prior or
contemporaneous oral, understandings or agreements between the parties that may
have related in any way to the subject matter hereof.&#160; This Agreement may be amended only in writing
executed by the Company and Executive.</p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company and Executive
agree that this Agreement is intended to supersede and replace that certain
Offer of Employment letter agreement dated as of October 20, 2005 (the &#147;<b>Employment Letter Agreement</b>&#148;), except that:&#160; Executive remains eligible to receive her
hiring bonus payments of $32,000 and $20,000 on January 15, 2007 and January
15, 2008, respectively and (ii) Executive remains obligated to repay to the
Company $100,000 of her signing bonus if she for any reason leaves the
employment of the Company prior to December 31, 2008.&#160; Notwithstanding any other provision in this
Section 11, if Executive is terminated pursuant to Section 6A of this
Agreement, the Company agrees to waive the hiring bonus repayment provisions set
forth in clause (ii) above.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Governing Law</u></b>.&#160; This Agreement and all questions relating to
its validity, interpretation, performance and enforcement, shall be governed by
and construed in accordance with the internal laws, and not the law of
conflicts, of the State of Texas.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Notice</u></b>.&#160; Any notice required or permitted under this
Agreement must be in writing and will be deemed to have been given when
delivered personally or by overnight courier service or three days after being
sent by mail, postage prepaid, at the address indicated below or to such
changed address as such person may subsequently give such notice of:</p>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;font-family:Times New Roman;margin-left:72.0pt;">
 <tr>
  <td width="171" valign="top" style="padding:0pt .7pt 0pt 0pt;width:128.0pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --><!-- SET mrlHTMLTableLeft -->if to Parent or Company:</p>
  </td>
  <td width="299" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Meritage Homes
  Corporation</font></p>
  </td>
 </tr>
 <tr>
  <td width="171" valign="top" style="padding:0pt .7pt 0pt 0pt;width:128.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="299" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.0pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17851 N. 85</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>&nbsp;Street, Suite 300</p>
  </td>
 </tr>
 <tr>
  <td width="171" valign="top" style="padding:0pt .7pt 0pt 0pt;width:128.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="299" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Scottsdale,
  Arizona 85255</font></p>
  </td>
 </tr>
 <tr>
  <td width="171" valign="top" style="padding:0pt .7pt 0pt 0pt;width:128.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="299" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention: Chief
  Executive Officer</font></p>
  </td>
 </tr>
 <tr>
  <td width="171" valign="top" style="padding:0pt .7pt 0pt 0pt;width:128.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="299" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="171" valign="top" style="padding:0pt .7pt 0pt 0pt;width:128.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With a copy to:</font></p>
  </td>
  <td width="299" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Meritage Homes Corporation</font></p>
  </td>
 </tr>
 <tr>
  <td width="171" valign="top" style="padding:0pt .7pt 0pt 0pt;width:128.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="299" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.0pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17851 N. 85</font><font size="1" style="font-size:6.5pt;position:relative;top:-3.0pt;">th</font>&nbsp;Street, Suite 300</p>
  </td>
 </tr>
 <tr>
  <td width="171" valign="top" style="padding:0pt .7pt 0pt 0pt;width:128.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="299" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Scottsdale,
  Arizona 85255</font></p>
  </td>
 </tr>
 <tr>
  <td width="171" valign="top" style="padding:0pt .7pt 0pt 0pt;width:128.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="299" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Attention:
  General Counsel</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>


 <p style="font-size:10.0pt;line-height:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">5</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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 <p style="margin:0pt 0pt .0001pt;text-align:center;"></p>


<p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;font-family:Times New Roman;margin-left:72.0pt;">
 <tr>
  <td width="171" valign="top" style="padding:0pt .7pt 0pt 0pt;width:128.0pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --><!-- SET mrlHTMLTableLeft -->if to Executive:</p>
  </td>
  <td width="299" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.0pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sandra R.A. Karrmann</font></p>
  </td>
 </tr>
 <tr>
  <td width="171" valign="top" style="padding:0pt .7pt 0pt 0pt;width:128.0pt;">
  <p style="margin:0pt 0pt .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="299" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.0pt;">
  <p style="margin:0pt 0pt .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2620 King Arthur
  Boulevard</font></p>
  </td>
 </tr>
 <tr>
  <td width="171" valign="top" style="padding:0pt .7pt 0pt 0pt;width:128.0pt;">
  <p style="margin:0pt 0pt .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="299" valign="top" style="padding:0pt .7pt 0pt 0pt;width:224.0pt;">
  <p style="margin:0pt 0pt .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lewisville, Texas 75056</font></p>
  </td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Arbitration</u></b>.&#160; Any dispute, controversy, or claim, whether
contractual or non-contractual, between the parties hereto arising directly or
indirectly out of or connected with this Agreement, relating to the breach or
alleged breach of any representation, warranty, agreement, or covenant under
this Agreement, unless mutually settled by the parties hereto, shall be
resolved by binding arbitration in accordance with the Employment Arbitration
Rules of the American Arbitration Association (the &#147;<b>AAA</b>&#148;).&#160; Any arbitration shall be conducted by
arbitrators approved by the AAA and mutually acceptable to Company and
Executive.&#160; All such disputes,
controversies, or claims shall be conducted by a single arbitrator, unless the
dispute involves more than $50,000 in the aggregate in which case the
arbitration shall be conducted by a panel of three arbitrators.&#160; If the parties hereto are unable to agree on
the arbitrator(s), then the AAA shall select the arbitrator(s).&#160; The resolution of the dispute by the
arbitrator(s) shall be final, binding, nonappealable, and fully enforceable by
a court of competent jurisdiction under the Federal Arbitration Act.&#160; The arbitrator(s) shall award damages,
reasonable attorneys&#146; fees and costs to the prevailing party.&#160; The arbitration award shall be in writing and
shall include a statement of the reasons for the award.&#160; The arbitration shall be held in the Dallas,
Texas metropolitan area.&#160; The only
exception is that the Company may proceed in any court of competent
jurisdiction to obtain equitable relief under Sections 7 and 8 of this
Agreement, but any claim for monetary damages thereunder is subject to binding
arbitration.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Withholding; Release; No Duplication of Benefits</u></b>.&#160; All of Executive&#146;s compensation under this
Agreement will be subject to deduction and withholding authorized or required
by applicable law.&#160; The Company&#146;s
obligation to make any post-termination payments hereunder (other than salary
and bonus payments and expense reimbursements through a date of termination),
shall be subject to receipt by the Company from Executive of a mutually
agreeable release, and compliance by Executive with the covenants set forth in
Sections 7 and 8 hereof.&#160; If there is any
conflict between the provisions of the Change of Control Agreement and this
Agreement, such conflict shall be resolved so as to provide the greater benefit
to Executive.&#160; However, in order to avoid
duplication of any monetary benefits, any payments or benefits due under
Executive&#146;s Change of Control Agreement, will be reduced by any payments or
benefits (not including salary and bonus payments) provided in Section 6 of
this Agreement.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Successors and Assigns</u></b>.&#160; This Agreement is solely for the benefit of
the parties and their respective successors, assigns, heirs and legatees. &#160;Nothing herein shall be construed to provide
any right to any other entity or individual.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><b><u style="font-weight:bold;">Related Party Transactions</u></b>.&#160; Executive may not engage in any related party
transactions with the Company unless approved in the specific instance by the
Audit Committee of the Board of Directors of Meritage Corporation.</p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">[Signature
page follows]</font></i></p>


 <p style="font-size:10.0pt;line-height:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">6</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt .0001pt;"><font size="1" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AGREED</font></b>
to this 28th day of September, 2006 by:</p>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;font-family:Times New Roman;">
 <tr style="page-break-inside:avoid;">
  <td width="277" valign="top" style="padding:0pt .7pt 0pt 0pt;width:207.6pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --><!-- SET mrlHTMLTableLeft --></p>
  </td>
  <td width="395" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:296.45pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --><b>MERITAGE HOMES CORPORATION, </b>a<b><br>
  </b>Maryland corporation</p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="277" valign="top" style="padding:0pt .7pt 0pt 0pt;width:207.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="395" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:296.45pt;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="277" valign="top" style="padding:0pt .7pt 0pt 0pt;width:207.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="395" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:296.45pt;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="277" valign="top" style="padding:0pt .7pt 0pt 0pt;width:207.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="26" valign="top" style="padding:0pt .7pt 0pt 0pt;width:19.8pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="117" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:87.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Steven J. Hilton</font></p>
  </td>
  <td width="252" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:189.05pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="277" valign="top" style="padding:0pt .7pt 0pt 0pt;width:207.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:34.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="98" valign="top" style="border-bottom:solid windowtext 1.0pt;border-left:none;border-right:none;border-top:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:73.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Steven J. Hilton</font></p>
  </td>
  <td width="252" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:189.05pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="277" valign="top" style="padding:0pt .7pt 0pt 0pt;width:207.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="46" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:34.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="110" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:82.2pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chairman and CEO</font></p>
  </td>
  <td width="240" valign="top" style="padding:0pt .7pt 0pt 0pt;width:180.05pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="277" style="border:none;"></td>
  <td width="26" style="border:none;"></td>
  <td width="19" style="border:none;"></td>
  <td width="98" style="border:none;"></td>
  <td width="12" style="border:none;"></td>
  <td width="240" style="border:none;"></td>
 </tr>
</table>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="line-height:1.0pt;margin:0pt 0pt 12.0pt;"><font size="1" face="Times New Roman">&nbsp;</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:12.0pt 0pt;text-indent:0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">AGREED </font></b>to this 28th day of
September, 2006 by:</p>

<table border="0" cellspacing="0" cellpadding="0" style="border-collapse:collapse;font-family:Times New Roman;">
 <tr style="page-break-inside:avoid;">
  <td width="277" valign="top" style="padding:0pt .7pt 0pt 0pt;width:207.6pt;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --><!-- SET mrlHTMLTableLeft --></p>
  </td>
  <td width="395" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:296.45pt;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXECUTIVE:
  Sandra R.A. Karrmann</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="277" valign="top" style="padding:0pt .7pt 0pt 0pt;width:207.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="395" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:296.45pt;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="277" valign="top" style="padding:0pt .7pt 0pt 0pt;width:207.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="395" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:296.45pt;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="277" valign="top" style="padding:0pt .7pt 0pt 0pt;width:207.6pt;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="143" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:107.4pt;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Sandra R.A.
  Karrmann</font></p>
  </td>
  <td width="252" valign="top" style="padding:0pt .7pt 0pt 0pt;width:189.05pt;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
</table>


 <p style="font-size:10.0pt;line-height:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">7</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">EXHIBIT A </font></u></b></p>

<p align="center" style="margin:0pt 0pt .0001pt;text-align:center;text-autospace:none;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">BONUS COMPENSATION SCHEDULE </font></u></b></p>

<p align="center" style="margin:0pt 0pt 12.0pt;text-align:center;text-autospace:none;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SANDRA KARRMANN EMPLOYMENT AGREEMENT</font></u></b></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THE BONUS DESCRIPTION BELOW
REPRESENTS THE TERMS CONTAINED IN THE EXECUTIVE&#146;S EXISTING OFFER OF EMPLOYMENT
LETTER FOR HER 2006 BONUS; NEW BONUS TERMS FOR 2007 FORWARD TO BE MUTUALLY
AGREED UPON BETWEEN EXECUTIVE AND STEVE HILTON</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-autospace:none;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">During the Term of
the Agreement, Executive is eligible for a potential annual bonus in the
$150,000 to $200,000 range, payable in February following the previous calendar
year.</font></p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">A.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>One-third
of the bonus will be based on Meritage Homes achieving its business plan
performance objectives as established by the Board of Directors.&#160; If Meritage meets a minimum of 90% of those
objectives, then Executive will be eligible for a $50,000 bonus, and if 100% of
those objectives are achieved, then Executive will be eligible for a $66,667
bonus.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">B.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Another
one-third, $50,000 to $66,667 of Executive&#146;s potential bonus, will be based on Executive&#146;s
successful implementation of systems and organization of the Human Resources
Department, which are pre-approved and evaluated by the Company&#146;s CEO.</p>

<p style="font-family:Times New Roman;font-size:10.0pt;margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">C.</font><font size="1" style="font-size:8.5pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
final one-third, $50,000 to $66,667 of Executive&#146;s potential bonus, will be based
upon Executive&#146;s meeting objective and subjective criteria in recruiting,
training and employee retention.&#160; All
criteria will be determined mutually by Executive and the Company&#146;s CEO.</p>


 <p style="font-size:10.0pt;line-height:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">8</font></p>
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<p align="right" style="margin:0pt 0pt 12.0pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.2</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:256.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">September
26, 2006</font></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Ms. Sandra R.A. Karrmann<br>
2620 King Arthur Blvd.<br>
Lewisville, TX &#160;75056</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Amended
and Restated Change of Control Agreement</font></b></p>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dear Sandi:</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Board of Directors
continues to believe that it is in the best interests of Meritage Homes
Corporation (&#147;Meritage&#148;) to take appropriate steps to allay any concerns you
may have about your future employment opportunities with Meritage and its
subsidiaries (Meritage and its subsidiaries are collectively referred to as the
&#147;Company&#148;).&#160; As a result, the Board has
decided to offer to you the benefits described below.&#160; This Amended and Restated Change of Control
Agreement supersedes and replaces the Change of Control Agreement dated
December 5, 2005.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Please note that the
benefits described below will only be effective if you sign the extra copy of
this Change of Control Agreement (the &#147;Agreement&#148;) which is enclosed and return
it to me.&#160; This Agreement was drafted to
comply with the requirements of Section 409A of the Internal Revenue Code of
1986, as amended (&#147;Code&#148;) and the proposed regulations issued thereunder.&#160; If the final regulations issued under Code
Section 409A provide for more liberalized rules than those under this Agreement,
and if the Company decides to amend the change of control agreements for other
Company executives to reflect any such change, this Agreement will be amended
in a manner consistent with the amendments made to those other change of
control agreements.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>TERM OF AGREEMENT.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement is
effective immediately and will continue in effect as long as you are actively
employed by the Company, unless you and the Company agree in writing to its
termination.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SEVERANCE PAYMENT AND STOCK OPTION ACCELERATION.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If your employment with
the Company is terminated without &#147;Cause&#148; (as defined in Section&nbsp;6) at any
time within two years following a &#147;Change of Control&#148; (as defined in Section
4), you will receive the &#147;Severance Payment&#148; described below.&#160; You will also receive the Severance Payment
if you terminate your employment for &#147;Good Reason&#148; (as defined in Section 5) at
any time within two years following a Change of Control.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The &#147;Severance Payment&#148;
equals the sum of (i) the higher of (x) your annual base salary on the date of
termination of your employment, or (y) your annual base salary on the date </font></p>

<br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">preceding the Change of
Control, and (ii) the highest of the following (a) your average incentive
compensation for the two years prior to termination of your employment, or (b)
your incentive compensation for the year preceding the year in which the Change
of Control occurred.&#160; In addition, you
will not be required to repay any portion of the hiring bonus upon such
termination of employment.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Severance Payment
will be paid in one lump sum within 15 business days of your termination of employment.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You are not entitled to
receive the Severance Payment if your employment is terminated for Cause, if
you terminate your employment without Good Reason, or if your employment is
terminated by reason of your &#147;Disability&#148; (as defined in Section 8(d)) or your
death.&#160; In addition, you are not entitled
to receive the Severance Payment if your employment is terminated by you or the
Company for any or no reason before a Change of Control occurs or more than two
years after a Change of Control has occurred.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In order to receive the
Severance Payment, you must execute any release reasonably requested by the
Company.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Severance Payment
will be paid to you without regard to whether you look for or obtain
alternative employment following your termination of employment with the
Company.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Notwithstanding anything
in this Agreement or in any option agreement to the contrary, upon a Change of
Control, any stock option granted to you shall accelerate and become vested
without further action.&#160; You will have a
period of one year from the date of termination to exercise such options.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>BENEFITS CONTINUATION.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If you are entitled to
severance under Section 2, you will continue to receive life, disability,
accident and group health insurance benefits substantially similar to those
which you were receiving immediately prior to your termination of employment
for a period of 18 months following your termination of employment.&#160; Such benefits shall be provided on
substantially the same terms and conditions as they were provided prior to the
Change of Control.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Company does not
intend to provide duplicative benefits.&#160;
As a result, benefits otherwise receivable pursuant to this Section 3
shall be reduced or eliminated if and to the extent that you receive such
benefits pursuant to any employment agreement you may have with the Company.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Benefits otherwise
receivable pursuant to this Section 3 also shall be reduced or eliminated if
and to the extent that you receive comparable benefits from any other source
(for example, another employer); provided, however, you shall have no
obligation to seek, solicit or accept employment from another employer in order
to receive the benefits provided by this Agreement.</font></p>


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<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CHANGE OF CONTROL DEFINED.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purposes of this
Agreement, the term Change of Control shall mean and include the following
transactions or situations:</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:auto;text-indent:72.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>A sale,
transfer, or other disposition by Meritage through a single transaction or a
series of transactions of securities of Meritage representing 33% or more of
the combined voting power of Meritage&#146;s then outstanding securities to any &#147;Unrelated
Person&#148; or &#147;Unrelated Persons&#148; acting in concert with one another.&#160; For purposes of this Section 4, the term &#147;Person&#148;
shall mean and include any individual, partnership, joint venture, association,
trust, corporation, or other entity (including a &#147;group&#148; as referred to in
Section 13(d)(3) of the Securities Exchange Act of 1934 (the &#147;Act&#148;)).&#160; For purposes of this Section 4, the term &#147;Unrelated
Person&#148; shall mean and include any Person other than the Company, or an
employee benefit plan of the Company.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>A sale,
transfer, or other disposition through a single transaction or a series of
related transactions of all or substantially all of the assets of Meritage to
an Unrelated Person or Unrelated Persons acting in concert with one another.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any
consolidation or merger of Meritage with or into an Unrelated Person, unless
immediately after the consolidation or merger the holders of the common stock
of Meritage immediately prior to the consolidation or merger are the beneficial
owners of securities of the surviving corporation representing at least 50% of
the combined voting power of the surviving corporation&#146;s then outstanding
securities.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>GOOD REASON DEFINED.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purposes of this Agreement,
the term &#147;Good Reason&#148; shall mean if following a Change of Control you are
either (i) not offered the senior most Human Resources position in the
surviving corporation or (ii) required to relocate to any employment location
that is more than thirty (30) miles from the Company&#146;s Plano, Texas
headquarters.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CAUSE DEFINED.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purposes of this
Agreement, the term &#147;Cause&#148; will exist in the following circumstances:&#160; (i) you are convicted of a felony, (ii) you
engage in any fraudulent or other dishonest act to the detriment of the
Company, (iii) you fail to report for work on a regular basis, except for
periods of authorized absence or bona fide illness, (iv) you misappropriate
trade secrets, customer lists, or other proprietary information belonging to
the Company for your own benefit or for the benefit of a competitor, (v) you
engage in any willful misconduct designed to harm the Company or its
stockholders, or (vi) you fail to perform properly your assigned duties.</font></p>


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<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CEILING ON BENEFITS.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Code places
significant tax burdens on you and the Company if the total payments made to
you due to a Change of Control exceed prescribed limits.&#160; For example, if your limit is $749,999
(because your &#147;Base Period Income&#148; (as defined below) is $250,000) and the &#147;Total
Payments&#148; (as defined below) exceed the limit by even $1.00, you are subject to
an excise tax under Section 4999 of the Code of 20% of all amounts paid to you
in excess of $250,000.&#160; If your limit is
$749,999, you will not be subject to an excise tax if you receive exactly
$749,999.&#160; If you receive $750,000, you
will be subject to an excise tax of $100,000 (20% of $500,000).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In order to avoid this
excise tax and the related adverse tax consequences for the Company, by signing
this Agreement, you agree that the present value of your Total Payments will
not exceed an amount equal to 2.99 times your Base Period Income.&#160; This is the maximum amount which you may
receive without becoming subject to the excise tax imposed by Section 4999 of
the Code or which the Company may pay without loss of deduction under Section
280G of the Code.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;Base Period Income&#148; is
an amount equal to your &#147;annualized includible compensation&#148; for the &#147;base
period&#148; as defined in Sections 280G(d)(1) and (2) of the Code and the regulations
adopted thereunder.&#160; Generally, your &#147;annualized
includible compensation&#148; is the average of your annual taxable income from the
Company for the &#147;base period,&#148; which is the five calendar years prior to the
year in which the Change of Control occurs (or the number of years worked if
less than five). &#160;For example, if a
Change of Control occurs in 2009, your base period compensation would be the
average of the compensation includible in your income for years 2006, 2007, 2008
and because you were first employed in 2005, your annualized compensation for
that partial year.&#160; Any compensation
includible in your income for 2009 is disregarded for these purposes.&#160; These concepts are complicated and technical
and all of the rules set forth in the applicable regulations apply for purposes
of this Agreement.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Your &#147;Total Payments&#148;
include the sum of the Severance Payment and any other &#147;payments in the nature
of compensation&#148; (as defined in Section 280G of the Code and the regulations
adopted thereunder).</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If Meritage believes that
these rules will result in a reduction of the payments to which you are
entitled under this Agreement, it will so notify you within 60 days following
delivery of the &#147;Notice of Termination&#148; described in Section 8.&#160; You and Meritage will then, at Meritage&#146;s
expense, retain legal counsel, certified public accountants, and/or a firm of
recognized executive compensation consultants to provide an opinion or opinions
concerning whether your Total Payments exceed the limit discussed above.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Meritage will select the
legal counsel, certified public accountants and executive compensation
consultants.&#160; If you do not accept one or
more of the parties selected by Meritage you may provide Meritage with the
names of legal counsel, certified public accountants and/or executive
compensation consultants acceptable to you.&#160;
If Meritage does not accept the party or parties selected by you, the
legal counsel, certified public accountants and/or executive </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">compensation consultants
selected by you and Meritage, respectively, will select the legal counsel,
certified public accountants and/or executive compensation consultants to
provide the opinions required.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">At a minimum, the
opinions required by this Section 7 must set forth (a) the amount of your Base
Period Income, (b) the present value of the Total Payments and (c) the amount
and present value of any excess parachute payments.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the opinions state
that there would be an excess parachute payment, your payments under this
Agreement will be reduced to the extent necessary to eliminate the excess.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">You will be allowed to
choose which payment should be reduced or eliminated, but the payment you
choose to reduce or eliminate must be a payment determined by such legal
counsel, certified public accountants, and/or executive compensation
consultants to be includible in Total Payments.&#160;
You will make your decision in writing and deliver it to Meritage within
30 days of your receipt of such opinions.&#160;
If you fail to so notify Meritage, it will decide which payments to
reduce or eliminate.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the legal counsel,
certified public accountants, and/or executive compensation consultants
selected to provide the opinions referred to above so requests in connection
with the opinion required by this Section 7, a firm of recognized executive
compensation consultants, selected by you and Meritage pursuant to the
procedures set forth above, shall provide an opinion, upon which such legal
counsel, certified public accountants, and/or executive compensation
consultants may rely, as to the reasonableness of any item of compensation as
reasonable compensation for services rendered before or after the Change of
Control.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If Meritage believes that
your Total Payments will exceed the limitations of this Section 7, it will
nonetheless make payments to you, at the times stated above, in the maximum
amount that it believes may be paid without exceeding such limitations.&#160; The balance, if any, will then be paid after
the opinions called for above have been received.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If the amount paid to you
by Meritage is ultimately determined, pursuant to the opinion referred to above
or by the Internal Revenue Service, to have exceeded the limitation of this
Section 7, the excess will be treated as a loan to you by Meritage and shall be
repayable on the 90th day following demand by Meritage, together with interest
at the &#147;applicable federal rate&#148; provided in Section 1274(d) of the Code.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">In the event that the
provisions of Sections 280G and 4999 of the Code are repealed without
succession, this Section 7 shall be of no further force or effect.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>TERMINATION NOTICE AND PROCEDURE.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any termination by the
Company or you of your employment within two (2) years following a Change of
Control shall be communicated by written Notice of Termination to you if </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">such Notice of Termination
is delivered by the Company and to the Company if such Notice of Termination is
delivered by you, all in accordance with the following procedures:</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The Notice
of Termination shall set forth in reasonable detail the facts and circumstances
alleged to provide a basis for termination.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Any Notice
of Termination by the Company shall be in writing signed by a senior executive
officer of the Company or member of the Executive Compensation Committee of the
Board of Directors of Meritage specifying the basis for such termination.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If during
the two (2) year period following a Change of Control the Company furnishes a
Notice of Termination for Cause and you in good faith notify the Company that a
dispute exists concerning such termination within the 15-day period following
your receipt of such notice, you may elect to continue your employment during
such dispute.&#160; If it is thereafter
determined that (i) Cause did exist, your &#147;Termination Date&#148; shall be the
earlier of (A) the date on which the dispute is finally determined, either by
mutual written agreement of the parties or pursuant to the alternative dispute
resolution provisions of Section 15 or (B) the date of your death; or (ii)
Cause did not exist, your employment shall continue as if the Company had not
delivered its Notice of Termination and there shall be no Termination Date
arising out of such notice.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If during
the two (2) year period following a Change of Control the Company furnishes a
Notice of Termination by reason of Disability and you in good faith notify the
Company that a dispute exists concerning such termination within the 15-day
period following your receipt of such notice, you may elect to continue your
employment during such dispute.&#160; Any
dispute relating to the existence of a Disability shall be resolved by the
opinion of the licensed physician selected by Meritage, provided, however, that
if you do not accept the opinion of the licensed physician selected by
Meritage, the dispute shall be resolved by the opinion of a licensed physician
who shall be selected by you; provided further, however, that if Meritage does
not accept the opinion of the licensed physician selected by you, the dispute
shall be finally resolved by the opinion of a licensed physician selected by
the licensed physicians selected by Meritage and you, respectively.&#160; If it is thereafter determined that (i) a
Disability did exist, your Termination Date shall be the earlier of (A) the
date on which the dispute is resolved or (B) the date of your death; or (ii) a
Disability did not exist, your employment shall continue as if the Company had
not delivered its Notice of Termination and there shall be no Termination Date
arising out of such notice.&#160; For purposes
of this Agreement, &#147;Disability&#148; shall mean a disability that results in you
being medically unable to fulfill your duties of employment for six (6)
consecutive months.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If during
the two (2) year period following a Change of Control and as a result of such
Change of Control you in good faith furnish a Notice of Termination for Good
Reason and the Company notifies you that a dispute exists concerning the
termination within the 15-day period following the Company&#146;s receipt of
such notice, you may elect to continue your employment during such
dispute.&#160; If it is thereafter determined
that (i) Good Reason did exist, your Termination Date shall be the earlier of
(A) the date on which the dispute is finally </font></p>


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<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">determined, either by mutual written agreement of the parties or
pursuant to the alternative dispute resolution provisions of Section 15, (B)
the date of your death or (C) one day prior to the second anniversary of a
Change of Control; or (ii) Good Reason did not exist, your employment shall
continue after such determination as if you had not delivered the Notice of Termination
asserting Good Reason.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(f)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>If during
the two (2) year period following a Change of Control you do not elect to
continue employment pending resolution of a dispute regarding a Notice of
Termination, and it is finally determined that the reason for termination set
forth in such Notice of Termination did not exist, if such notice was delivered
by you, you shall be deemed to have voluntarily terminated your employment
other than for Good Reason and if delivered by the Company, the Company will be
deemed to have terminated you other than by reason of Disability or Cause.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:72.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(g)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>For purposes
of this Agreement, a transfer of your employment from Meritage to one of its
subsidiaries or a transfer of your employment from a subsidiary to Meritage or
another subsidiary shall not be treated as a termination of employment.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SUCCESSORS.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Meritage will require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of
Meritage to assume, whether expressly or by operation of law, this Agreement in
the same manner and to the same extent that the Company would be required to
perform it if no such succession had taken place.&#160; Failure of Meritage to obtain such assumption
shall be a breach of this Agreement and shall entitle you to compensation in
the same amount and on the same terms to which you would be entitled hereunder
if you terminate your employment for Good Reason following a Change of Control,
except that for purposes of implementing the foregoing, the date on which any
such succession becomes effective shall be deemed the Termination Date.&#160; As used in this agreement &#147;Company&#148; shall
mean Company, as hereinbefore defined and any successor to its business and/or
assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law or otherwise.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>BINDING AGREEMENT.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement shall
inure to the benefit of and be enforceable by you and your personal or legal
representatives, executors, administrators, successors, heirs, distributees,
devisees and legatees.&#160; If you should die
while any amount would still be payable to you hereunder had you continued to
live, all such amounts, unless otherwise provided herein, shall be paid in
accordance with the terms of this Agreement to your devisee, legatee or other
designee or, if there is no such designee, to your estate.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>NOTICE.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">For purposes of this
Agreement, notices and all other communications provided for in this Agreement
shall be in writing and shall be deemed to have been duly given when delivered </font></p>


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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or mailed by United
States certified or registered mail, return receipt requested, postage prepaid,
addressed to the respective addresses set forth on the first page of this
Agreement, provided that all notices to Meritage shall be directed to the
attention of the Chief Executive Officer of Meritage with a copy to the General
Counsel of Meritage, or to such other address as either party may have
furnished to the other in writing in accordance herewith, except that notice of
change of address shall be effective only upon receipt.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>MISCELLANEOUS.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">No provision of this
Agreement may be modified, waived or discharged unless such waiver,
modification or discharge is agreed to in writing and signed by you and a senior
executive officer of the Company or a member of the Executive Compensation
Committee of the Board of Directors of Meritage.&#160; No waiver by either party hereto at any time
of any breach by the other party hereto of, or compliance with, any condition
or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time.&#160; No
agreement or representations, oral or otherwise, express or implied, with
respect to the subject matter hereof have been made by either party which are
not expressly set forth in this Agreement.&#160;
The validity, interpretation, construction and performance of this
Agreement shall be governed by the laws of the State of Texas without regard to
its conflicts of law principles.&#160; All
references to sections of the Act or the Code shall be deemed also to refer to
any successor provisions to such sections.&#160;
Any payments provided for hereunder shall be paid net of any applicable
withholding required under federal, state or local law.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>VALIDITY.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The invalidity or
unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which
shall remain in full force and effect.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>COUNTERPARTS.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement may be
executed in several counterparts, each of which shall he deemed to be an
original but all of which together will constitute one and the same instrument.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>ALTERNATIVE DISPUTE RESOLUTION.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">All claims, disputes and
other matters in question between the parties arising under this Agreement
shall, unless otherwise provided herein (such as in Sections 7 and 8(d)), be
resolved by the arbitration provisions set forth below.</font></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Any dispute, controversy,
or claim, whether contractual or non-contractual, between Meritage and you
arising directly or indirectly out of or connected with this Agreement,
relating to the breach or alleged breach of any representation, warranty,
agreement, or covenant under this Agreement, unless mutually settled by the
parties hereto, shall be resolved by binding </font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">8</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="margin:0pt 0pt 12.0pt;text-indent:0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">arbitration in accordance
with the Employment Arbitration Rules of the American Arbitration Association
(the &#147;AAA&#148;).&#160; Any arbitration shall be
conducted by arbitrators approved by the AAA and mutually acceptable to
Meritage and you.&#160; All such disputes,
controversies, or claims shall be conducted by a single arbitrator, unless the
dispute involves more than $100,000 in the aggregate in which case the
arbitration shall be conducted by a panel of three arbitrators.&#160; If the parties hereto are unable to agree on
the arbitrator(s), then the AAA shall select the arbitrator(s).&#160; The resolution of the dispute by the
arbitrator(s) shall be final, binding, nonappealable, and fully enforceable by
a court of competent jurisdiction under the Federal Arbitration Act.&#160; The arbitrator(s) shall award damages to the
prevailing party.&#160; The arbitration award
shall be in writing and shall include a statement of the reasons for the
award.&#160; The arbitration shall be held in
the Dallas/Fort Worth metropolitan area.&#160;
The arbitrator(s) shall award reasonable attorneys&#146; fees and costs to
the prevailing party.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>EXPENSES AND INTEREST.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If a good faith dispute
shall arise with respect to the enforcement of your rights under this Agreement
or if any arbitration or legal proceeding shall be brought in good faith to
enforce or interpret any provision contained herein, or to recover damages for
breach hereof, and you are the prevailing party, you shall recover from the
Company any reasonable attorneys&#146; fees and necessary costs and disbursements
incurred as a result of such dispute or legal proceeding, and prejudgment
interest on any money judgment obtained by you calculated at the rate of
interest announced by Guaranty Bank from time to time as its prime rate from
the date that payments to you should have been made under this Agreement.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>PAYMENT OBLIGATIONS ABSOLUTE.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Meritage&#146;s obligation to
pay you the compensation and to make the arrangements in accordance with the
provisions herein shall be absolute and unconditional and shall not be affected
by any circumstances; provided, however, that the Company may apply amounts
payable under this Agreement to any debts owed to the Company by you on your
Termination Date.&#160; All amounts payable by
Meritage in accordance with this Agreement shall be paid without notice or
demand.&#160; If Meritage has paid you more
than the amount to which you are entitled under this Agreement, the Company
shall have the right to recover all or any part of such overpayment from you or
from whomsoever has received such amount.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>ENTIRE AGREEMENT.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement sets forth
the entire agreement between you and Meritage concerning the subject matter
discussed in this Agreement and supersedes all prior agreements, promises,
covenants, arrangements, communications, representations, or&#160; warranties, whether written or oral, by any
officer, employee or representative of the Company.&#160; Any prior agreements or understandings with
respect to the subject matter set forth in this Agreement are hereby terminated
and canceled.</font></p>


 <p style="font-size:10.0pt;margin:24.0pt 0pt .0001pt;text-align:center;"><font face="Times New Roman">9</font></p> <br><hr size="3" width="100%" noshade color="#010101" align="center">

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<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">19.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>PARTIES.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">This Agreement is an
agreement between you and Meritage.&#160; In
certain cases, though, obligations imposed upon Meritage may be satisfied by a
subsidiary of Meritage.&#160; Any payment made
or action taken by a subsidiary of Meritage shall be considered to be a payment
made or action taken by Meritage for purposes of determining whether Meritage
has satisfied its obligations under this Agreement.</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">20.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>SECTION 409A.</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If any payments under
this Agreement are subject to the provisions of Code Section 409A, it is
intended that the Agreement will comply fully with and meet all the
requirements of Code Section 409A.</font></p>

<p style="margin:0pt 0pt 12.0pt;page-break-after:avoid;text-indent:36.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If you would like
to participate in this special benefits program, please sign and return the
extra copy of this letter which is enclosed.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="58%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:58.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.76%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading -->Sincerely,</p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="58%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:58.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" colspan="4" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.46%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="20%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:20.3%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="58%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:58.24%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="41%" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.76%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MERITAGE HOMES CORPORATION</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="58%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:58.24%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="41%" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.76%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="58%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:58.24%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="41%" colspan="5" valign="top" style="padding:0pt .7pt 0pt 0pt;width:41.76%;">
  <p style="margin:0pt 0pt .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="58%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:58.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:3.56%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By.</font></p>
  </td>
  <td width="16%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:16.16%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Steven J. Hilton</font></p>
  </td>
  <td width="22%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:22.04%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="58%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:58.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="35%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Steven J. Hilton</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="58%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:58.24%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="6%" colspan="2" valign="top" style="padding:0pt .7pt 0pt 0pt;width:6.42%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="35%" colspan="3" valign="top" style="padding:0pt .7pt 0pt 0pt;width:35.34%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Chief Executive Officer</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="436" style="border:none;"></td>
  <td width="27" style="border:none;"></td>
  <td width="21" style="border:none;"></td>
  <td width="99" style="border:none;"></td>
  <td width="13" style="border:none;"></td>
  <td width="152" style="border:none;"></td>
 </tr>
</table>

<p style="margin:0pt 0pt 12.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-weight:bold;margin:0pt 0pt 12.0pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">ACCEPTANCE</font></b></p>

<p style="margin:0pt 0pt 12.0pt;text-indent:72.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">I hereby accept the offer to participate in this
special benefits program and I agree to be bound by all of the provisions noted
above.</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;font-family:Times New Roman;width:100.0%;">
 <tr style="page-break-inside:avoid;">
  <td width="59%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:59.58%;">
  <p style="font-size:10.0pt;margin:0pt 0pt .0001pt;"><!-- SET mrlNoTableShading --></p>
  </td>
  <td width="21%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0pt .7pt 0pt 0pt;width:21.2%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Sandra R.A. Karrmann</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:19.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr style="page-break-inside:avoid;">
  <td width="59%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:59.58%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="21%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:21.2%;">
  <p align="center" style="margin:0pt 0pt .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Sandra R.A. Karrmann</font></p>
  </td>
  <td width="19%" valign="top" style="padding:0pt .7pt 0pt 0pt;width:19.22%;">
  <p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0pt 0pt .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>


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