Document:

EX-10.34

 Exhibit 10.34 

FORM OF CHANGE IN CONTROL SEVERANCE AGREEMENT 
 This Change in Control Severance Agreement (“Agreement”) is made effective as of
                     (“Effective Date”), by and between Allison Transmission, Inc. a Delaware corporation (the
“Company”), and                      (“Executive”). For purposes of this Agreement (other than
Section 1(e) below), the “Company” shall mean the Company and its subsidiaries. 
 WHEREAS,
Executive is a key employee of the Company and the Company and Executive desire to set forth herein the terms and conditions of Executive’s compensation in the event of a termination of Executive’s employment in connection with a Change in
Control (as defined below); and 
 WHEREAS, in the event of a Change in Control, Executive may be vulnerable to dismissal
without regard to the quality of Executive’s service, and the Company believes that it is in the best interest of Company to enter into this Agreement in order to ensure fair treatment of Executive and to reduce the distractions and other
adverse effects upon such Executive’s performance which are inherent in the event of such a Change in Control. 
 The
parties agree as follows: 
 1. Definitions. For purposes of this Agreement, the following terms shall have the following
meanings: 
 (a) “Base Amount” means the greater of the Executive’s annual base salary (a) at
the rate in effect on the day prior to the date of the Executive’s Qualifying Termination, or (b) at the highest rate in effect at any time during the ninety (90) day period prior to the Change in Control, and shall include all
amounts of such base salary that are deferred under any qualified and non-qualified employee benefit plans of the Company or under any other agreement or arrangement. 
 (b) “Board” shall mean the Board of Directors of the Parent. 
 (c) “Bonus Amount” means Executive’s target annual bonus amount as in effect at the time of Executive’s Qualifying Termination or, if higher, Executive’s target
annual bonus amount at the highest level in effect at any time during the ninety (90) day period prior to the Change in Control. 
 (d) “Cause” shall mean any of the following: (i) the Executive’s failure to substantially perform his duties as an employee of the Company (other than any such failure
resulting from the Executive’s physical or mental incapacity) that is reasonably expected to result in, or has resulted in, material economic damage to the Company or any of its affiliates (provided, that, to the extent such failure can be
fully cured, the Company shall have provided the Executive with at least 30 days’ notice of such failure and the Executive has not remedied the failure within the 30-day period); (ii) the Executive’s failure in any material respect to
carry out or comply with any lawful and reasonable directive of the Board or the Executive’s direct supervisor (provided, that, to the extent such failure can be fully cured, the Company shall have provided the Executive with at least 30
days’ notice of such failure and the Executive has not remedied the failure within the 30-day period); (iii) the Executive’s conviction, plea of no contest, plea of nolo contendere, or imposition of unadjudicated probation for any
felony or crime involving moral turpitude; (iv) the Executive’s unlawful use (including being under the influence) or possession of illegal drugs on the Company’s (or any of its affiliate’s) premises or while performing the
Executive’s duties and responsibilities under this Agreement; or (v) the Executive’s commission of an act of fraud, embezzlement, misappropriation, willful misconduct, or breach of fiduciary duty against the Company or any of its
affiliates. 

 (e) “Change in Control” shall mean and includes each of the
following: 
 (i) A transaction or series of transactions (other than an offering of the Parent’s common stock to the
general public through a registration statement filed with the Securities and Exchange Commission) occurring after the Effective Date whereby any “person” or related “group” of “persons” (as such terms are used in
Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (other than the Parent, any of its subsidiaries, an employee benefit plan maintained by the Parent or any of its
subsidiaries or a “person” that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, the Parent) directly or indirectly acquires beneficial ownership (within the meaning of Rule
13d-3 under the Exchange Act) of securities of the Parent possessing more than 50% of the total combined voting power of the Parent’s securities outstanding immediately after such transaction; or 

(ii) The consummation by the Parent (whether directly involving the Parent or indirectly involving the Parent through one or more
intermediaries) after the Effective Date of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or substantially all of the Parent’s assets in any single transaction or series
of related transactions or (z) the acquisition of assets or stock of another entity, in each case other than a transaction: 
 (A) Which results in the Parent’s voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting
securities of the Parent or the person that, as a result of the transaction, controls, directly or indirectly, the Parent or owns, directly or indirectly, all or substantially all of the Parent’s assets or otherwise succeeds to the business of
the Parent (the Parent or such person, the “Successor Entity”)) directly or indirectly, at least a majority of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the
transaction, and 
 (B) After which no person or group beneficially owns voting securities representing 50% or more of the
combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this Section 1(e)(ii)(B) as beneficially owning 50% or more of combined voting power of the Successor Entity
solely as a result of the voting power held in the Parent prior to the consummation of the transaction. 
 (f)
“Code” shall mean the Internal Revenue Code of 1986, as amended, and the Treasury Regulations and other interpretive guidance thereunder. 
 (g) “Good Reason” shall mean the occurrence of any of the following events or conditions without Executive’s written consent: 

(i) a material diminution in Executive’s authority, duties or responsibilities, other than as a result of a Change in Control where
the Executive remains in a position with the Company or its successor (or any other entity that owns substantially all of the Company’s business after such sale) that is substantially equivalent in duties, rank, reporting structure and
authority with the Executive’s position prior to such sale, solely as such duties, rank, reporting structure and authority relate to the Company’s business; 
 (ii) a material diminution in Executive’s base salary or target annual bonus level; 
 (iii) a material change in the geographic location at which Executive must perform his or her duties, which shall not include a relocation of the Executive’s principal place of employment to any
location within a fifty (50) mile radius of the location from which the Executive served the Company immediately prior to the relocation; 

  
 2 

 (iv) the failure of the Company to obtain an agreement from any successor to the Company or
the Parent to assume and agree to perform this Agreement, as contemplated in Section 7.1 of this Agreement. 
 Executive
must provide written notice to the Company of the occurrence of any of the foregoing events or conditions without Executive’s written consent within ninety (90) days of the occurrence of such event or the date upon which the Executive
reasonably became aware that such an event or condition had occurred. The Company or any successor or affiliate shall have a period of thirty (30) days to cure such event or condition after receipt of written notice of such event from
Executive. Any voluntary termination for “Good Reason” following such thirty (30) day cure period must occur no later than the date that is six (6) months following the date notice was provided by Executive. Executive’s
voluntary Separation from Service by reason of resignation from employment with the Company for Good Reason shall be treated as involuntary. 
 (h) “Parent” means Allison Transmission Holdings, Inc., a Delaware corporation, or its successor. 
 (i) “Permanent Disability” means at any time the Company or any of its affiliates sponsors a long-term disability plan for the Company’s employees, “disability” as
defined in such long-term disability plan for the purpose of determining a participant’s eligibility for benefits, provided, however, if the long-term disability plan contains multiple definitions of disability, “Disability” shall
refer to that definition of disability which, if the Executive qualified for such disability benefits, would provide coverage for the longest period of time. The determination of whether the Executive has a Disability shall be made by the person or
persons required to make disability determinations under the long-term disability plan. At any time the Company does not sponsor a long-term disability plan for its employees, Disability shall mean the Executive’s inability to perform, with or
without reasonable accommodation, the essential functions of his position hereunder for a total of three months during any six-month period as a result of incapacity due to mental or physical illness as determined by a physician selected by the
Company or its insurers and acceptable to the Executive or the Executive’s legal representative, with such agreement as to acceptability not to be unreasonably withheld or delayed. 

(j) “Qualifying Termination” means (i) a termination by Executive of Executive’s employment with
Company for Good Reason within two years after the occurrence of a Change in Control, or (ii) a termination of Executive’s employment without Cause by the Company within two years after the occurrence of a Change in Control. Neither a
termination of Executive’s employment due to Permanent Disability nor a termination of Executive’s employment due to death shall constitute a Qualifying Termination. 
 (k) “Separation from Service” means a “separation from service” with the Company as such term is defined in Treasury Regulation Section 1.409A-1(h) and any successor
provision thereto. 
 2. Term. The initial term of this Agreement (the “Initial
Term”) shall be for a period beginning on the Effective Date and ending on the three-year anniversary of the Effective Date. On the three-year anniversary of the Effective Date and each successive anniversary of the Effective
Date, the term of this Agreement shall automatically be extended for an additional one-year period (“Extension Terms” and, collectively with the Initial Term, the “Term”)
unless the Company gives the Executive a written notice of non-extension no later than ninety (90) days prior to the then-applicable anniversary of the Effective Date. Upon the occurrence of a Change in Control, the Term shall automatically be
extended until the two-year anniversary of the date on which the Change in Control occurs, provided that 

  
 3 

 
if the Executive incurs a Qualifying Termination during the Term of this Agreement, the Term shall be further automatically extended for such additional period as necessary to provide that each
party’s rights and obligations are fully satisfied hereunder. 
 3. Severance Upon Qualifying Termination.

 (a) If Executive has a Qualifying Termination, subject to the requirements of this Section 3, Executive shall be entitled
to receive, in lieu of and without duplicating any cash severance payments to which Executive may otherwise be entitled under any Company severance plan or program or other agreement with the Company (except as provided in Section 3(d)), the
benefits provided below, which, with respect to clause (ii) will be payable in cash in a lump sum within sixty (60) days following the effective date of such Qualifying Termination: 

(i) The Company shall pay to Executive his or her fully earned but unpaid base salary, when due, through the date of Executive’s
Qualifying Termination at the rate then in effect, plus all other benefits, if any, under any Company group retirement plan, nonqualified deferred compensation plan, equity award plan or agreement, health benefits plan or other Company group benefit
plan to which Executive may be entitled pursuant to the terms of such plans or agreements; 
 (ii) Subject to Section 3(c)
and Section 4, Executive shall be entitled to receive severance pay in an amount equal to two times the sum of the Base Amount and the Bonus Amount; 
 (iii) Subject to Section 3(c) and Section 4, all unvested equity or equity-based awards granted under any equity compensation plans of the Parent shall immediately become 100% vested and the
post-termination exercise period of any stock options granted under any equity compensation plans of the Parent that are outstanding on the date of such Qualifying Termination shall be extended until the second anniversary of the date of such
Qualifying Termination (subject to the terms of the applicable equity plan), provided that, unless a provision more favorable to the Executive is included in an applicable award agreement, any such awards that are subject to performance-based
vesting conditions shall only be payable subject to the attainment of the performance measures for the applicable performance period as provided under the terms of the applicable award agreement). 

(b) Other Terminations. Upon Executive’s termination of employment for any reason other than as set forth in
Section 3(a), the Company shall not have any other or further obligations to Executive under this Agreement (including any financial obligations) except that Executive shall be entitled to receive (i) Executive’s fully earned but
unpaid base salary, through the date of termination at the rate then in effect, and (ii) all other amounts or benefits to which Executive is entitled under any compensation, retirement or benefit plan or practice of the Company at the time of
termination in accordance with the terms of such plans or practices, including, without limitation, any continuation of benefits required by COBRA or applicable law. The foregoing shall be in addition to, and not in lieu of, any and all other rights
and remedies which may be available to the Company under the circumstances, whether at law or in equity. 
 (c) Release.
As a condition to Executive’s receipt of any amounts set forth in Section 3(a) above, Executive shall execute and not revoke a general release of all claims in favor of the Company (the “Release”) in the form
substantially similar to the form attached hereto as Exhibit A (and any statutorily prescribed revocation period applicable to such Release shall have expired) within the sixty (60) day period following the date of Executive’s
Qualifying Termination. 

  
 4 

 (d) Exclusive Remedy; Other Arrangements. Except as otherwise expressly required by
law (e.g., COBRA) or as specifically provided herein, all of Executive’s rights to salary, severance, benefits, bonuses and other amounts (if any) accruing after the termination of Executive’s employment shall cease upon such termination.
The severance payments provided for in Section 3(a)(ii) above are not intended to duplicate any severance payments the Executive may become entitled to receive under any other plan, program, policy or agreement with the Company or any of its
affiliates (collectively, “Other Arrangements”). Therefore, in the event the Executive becomes entitled to receive the severance payments provided under Section 3(a)(ii) of this Agreement, he or she shall receive the
amounts provided under Section 3(a)(ii) of this Agreement and shall not be entitled to receive any cash severance payments pursuant to any Other Arrangements unless the cash severance payments provided under the Other Arrangements exceed the
amounts provided under Section 3(a)(ii) of this Agreement (and in such event the Executive shall receive under the Other Arrangements only the excess over the amount provided under Section 3(a)(ii) of this Agreement). This Agreement shall
not impact or reduce the Executive’s rights, if any, to receive under any Other Arrangements reimbursement for, or direct payment to the carrier for, premium costs under COBRA (or any similar medical, dental or vision benefit continuation
rights or payments). 
 (e) No Mitigation. Executive shall not be required to mitigate the amount of any payment provided
for in this Section 3 by seeking other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Section 3 be reduced by any compensation earned by Executive as the result of employment by another
employer or self-employment or by retirement benefits; provided, however, that loans, advances or other amounts owed by Executive to the Company may be offset by the Company against amounts payable to Executive under this
Section 3. 
 (f) Return of the Company’s Property. If Executive’s employment is terminated for any
reason, the Company shall have the right, at its option, to require Executive to vacate his or her offices prior to or on the effective date of termination and to cease all activities on the Company’s behalf. Upon the termination of his or her
employment in any manner, as a condition to Executive’s receipt of any post-termination benefits described in this Agreement, Executive shall immediately surrender to the Company all lists, books and records of, or in connection with, the
Company’s business, and all other property belonging to the Company, it being distinctly understood that all such lists, books and records, and other documents, are the property of the Company. Executive shall deliver to the Company a signed
statement certifying compliance with this Section 3(f) prior to the receipt of any post-termination benefits described in this Agreement. 
 (g) Parachute Payments. 
 (i) It is the objective of this Agreement
to maximize Executive’s Net After-Tax Benefit (as defined herein) if payments or benefits provided under this Agreement are subject to excise tax under Section 4999 of the Code. Notwithstanding any other provisions of this Agreement, in
the event that any payment or benefit by the Company or otherwise to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (all such payments and benefits,
including the payments and benefits under Section 3(a) hereof, being hereinafter referred to as the “Total Payments”), would be subject (in whole or in part) to the excise tax imposed by Section 4999 of the Code
(the “Excise Tax”), then the cash severance payments shall first be reduced, and the non-cash severance payments shall thereafter be reduced, to the extent necessary so that no portion of the Total Payments shall be subject
to the Excise Tax, but only if (i) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income taxes on such reduced Total Payments and after taking into account the phase out of
itemized deductions and personal exemptions attributable to such reduced Total Payments), is greater than or equal to (ii) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and
local income taxes on such Total Payments and the amount of Excise Tax to which 

  
 5 

 
Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced
Total Payments). 
 (ii) The Total Payments shall be reduced by the Company in the following order: (i) reduction of
any cash severance payments otherwise payable to Executive that are exempt from Section 409A of the Code, (ii) reduction of any other cash payments or benefits otherwise payable to Executive that are exempt from Section 409A of the
Code, but excluding any payments attributable to the acceleration of vesting or payments with respect to any equity award with respect to the Parent’s common stock that is exempt from Section 409A of the Code, (iii) reduction of any
other payments or benefits otherwise payable to Executive on a pro-rata basis or such other manner that complies with Section 409A of the Code, but excluding any payments attributable to the acceleration of vesting and payments with respect to
any equity award with respect to the Parent’s common stock that are exempt from Section 409A of the Code, and (iv) reduction of any payments attributable to the acceleration of vesting or payments with respect to any other equity
award with respect to the Parent’s common stock that are exempt from Section 409A of the Code. 
 (iii) All
determinations regarding the application of this Section 3(g) shall be made by an accounting firm with experience in performing calculations regarding the applicability of Section 280G of the Code and the Excise Tax selected by the Company
(“Independent Advisors”). For purposes of determining whether and the extent to which the Total Payments will be subject to the Excise Tax, (i) no portion of the Total Payments the receipt or enjoyment of which Executive
shall have waived at such time and in such manner as not to constitute a “payment” within the meaning of Section 280G(b) of the Code shall be taken into account, (ii) no portion of the Total Payments shall be taken into account
which, in the opinion of the Independent Advisors, does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) and, in calculating the
Excise Tax, no portion of such Total Payments shall be taken into account which, in the opinion of Independent Advisors, constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the
Code, in excess of the “base amount” (as defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation, and (iii) the value of any non-cash benefit or any deferred payment or benefit included in the Total
Payments shall be determined by the Independent Advisors in accordance with the principles of Sections 280G(d)(3) and (4) of the Code. The costs of obtaining such determination and all related fees and expenses (including related fees and
expenses incurred in any later audit) shall be borne by the Company. 
 (iv) In the event it is later determined that a greater
reduction in the Total Payments should have been made to implement the objective and intent of this Section 3(g), the excess amount shall be returned immediately by the Executive to the Company, plus interest at a rate equal to 120% of the
semi-annual applicable federal rate as in effect at the time of the Change in Control. 
 (h) Withholding. All
compensation and benefits to Executive hereunder shall be reduced by all federal, state, local and other withholdings and similar taxes and payments required by applicable law. 

4. Confidentiality, Restrictive Covenants and Proprietary Rights. The Company shall be entitled to cease all severance payments
and benefits to Executive in the event of Executive’s breach of any non-competition, non-solicitation, non-disparagement, confidentiality, or assignment of inventions covenants contained in any agreement between the Executive and the Company,
which covenants are hereby incorporated by reference into this Agreement. 

  
 6 

 5. Agreement to Arbitrate. Any controversy, claim or dispute arising out of or
relating to this Agreement, shall be settled solely and exclusively by binding arbitration in Indianapolis, Indiana. Such arbitration shall be conducted in accordance with the then prevailing JAMS Streamlined Arbitration Rules & Procedures,
with the following exceptions if in conflict: (a) one arbitrator shall be chosen by JAMS; (b) each party to the arbitration will pay its pro rata share of the expenses and fees of the arbitrator, together with other expenses of the
arbitration incurred or approved by the arbitrator; and (c) arbitration may proceed in the absence of any party if written notice (pursuant to the JAMS’ rules and regulations) of the proceedings has been given to such party. Each party
shall bear its own attorneys’ fees and expenses. The parties agree to abide by all decisions and awards rendered in such proceedings. Such decisions and awards rendered by the arbitrator shall be final and conclusive. All such controversies,
claims or disputes shall be settled in this manner in lieu of any action at law or equity; provided, however, that nothing in this subsection shall be construed as precluding the bringing an action for injunctive relief pursuant to any applicable
Other Arrangement. 
 6. At-Will Employment Relationship. Except as may be expressly provided in an applicable Other
Arrangement, Executive’s employment with the Company is at-will and not for any specified period and may be terminated at any time, with or without Cause or advance notice, by either Executive or the Company. Any change to the at-will
employment relationship must be by specific, written agreement signed by Executive and an authorized representative of the Company. Nothing in this Agreement is intended to or should be construed to contradict, modify or alter this at-will
relationship. 
 7. General Provisions. 
 7.1 Successors and Assigns. The rights of the Company under this Agreement may, without the consent of Executive, be assigned by the Company, in its sole and unfettered discretion, to any person,
firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly, acquires all or substantially all of the assets or business of the Company. The Company will require any successor
(whether direct or indirect, by purchase, merger or otherwise) to all or substantially all of the business or assets of the Company expressly to assume and to agree to perform 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. The failure of any such successor to so assume this Agreement shall constitute a material breach of this Agreement by the Company. As used in this Agreement, the
“Company” shall mean the 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. Executive shall not be
entitled to assign any of Executive’s rights or obligations under this Agreement. This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. 
 7.2 Severability. In the event any provision of this Agreement is found to
be unenforceable by an arbitrator or court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the
benefit contemplated herein to the fullest extent permitted by law. If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of
the remaining provisions shall not be affected thereby. 
 7.3 Interpretation; Construction. The headings set forth in
this Agreement are for convenience only and shall not be used in interpreting this Agreement. This Agreement has been drafted by legal counsel representing the Company, but Executive has participated in the negotiation of its terms. Furthermore,
Executive acknowledges that Executive has had an opportunity to review and revise the Agreement and, therefore, the normal rule of construction to the effect that any ambiguities are to be 

  
 7 

 
resolved against the drafting party shall not be employed in the interpretation of this Agreement. Either party’s failure to enforce any provision of this Agreement shall not in any way be
construed as a waiver of any such provision, or prevent that party thereafter from enforcing each and every other provision of this Agreement. 
 7.4 Governing Law and Venue. This Agreement will be governed by and construed in accordance with the laws of the United States and the State of Indiana applicable to contracts made and to be
performed wholly within such State, and without regard to the conflicts of laws principles thereof. Any suit brought hereon shall be brought in the state or federal courts sitting in Indianapolis, Indiana, the parties hereby waiving any claim or
defense that such forum is not convenient or proper. Each party hereby agrees that any such court shall have in personam jurisdiction over it and consents to service of process in any manner authorized by Indiana law. 

7.5 Notices. Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice
deemed given as indicated: (a) by personal delivery when delivered personally; (b) by overnight courier upon written verification of receipt; (c) by telecopy or facsimile transmission upon acknowledgment of receipt of electronic
transmission; or (d) by certified or registered mail, return receipt requested, upon verification of receipt. Notice shall be sent to Executive at the address set forth below and to the Company at its principal place of business, or such other
address as either party may specify in writing. 
 7.6 Survival. Sections 1 (“Definitions”), 3
(“Severance”), 4 (“Confidentiality and Proprietary Rights”), 5 (“Agreement to Arbitrate”) and 7 (“General Provisions”) of this Agreement shall survive termination of Executive’s employment with the
Company. 
 7.7 Entire Agreement. This Agreement (including the Addendum hereto entered into as of the Effective Date
between the Company and the Executive) and any covenants and agreements incorporated herein by reference as set forth in Section 4 together constitute the entire agreement between the parties in respect of the subject matter contained herein
and therein and supersede all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral, provided, however, that for the avoidance of doubt, all Other Arrangements (as such Other Arrangements may be
amended, modified or terminated from time to time) shall remain in effect in accordance with their terms, subject to Section 3(d) hereof. This Agreement may be amended or modified only with the written consent of Executive and an authorized
representative of the Company. No oral waiver, amendment or modification will be effective under any circumstances whatsoever. 

7.8 Code Section 409A. 
 (a) This Agreement is not intended to provide for any deferral of compensation subject to Section 409A of the Code, and, accordingly, the severance payments payable under Section 3(a) shall be
paid no later than the later of: (i) the fifteenth
(15th) day of the third month following
Executive’s first taxable year in which such severance benefit is no longer subject to a substantial risk of forfeiture, and (ii) the fifteenth (15th) day of the third month following the first taxable year of the Company in which such severance benefit is no
longer subject to substantial risk of forfeiture, as determined in accordance with Code Section 409A and any Treasury Regulations and other guidance issued thereunder. To the extent applicable, this Agreement shall be interpreted in accordance
with Code Section 409A and Department of Treasury regulations and other interpretive guidance issued thereunder. 
 (b) If
the Executive is a “specified employee” (as defined in Section 409A of the Code), as determined by the Company in accordance with Section 409A of the Code, on the date of the Executive’s Separation from Service, to the extent that the
payments or benefits under this Agreement 

  
 8 

 
are subject to Section 409A of the Code and the delayed payment or distribution of all or any portion of such amounts to which Executive is entitled under this Agreement is required in order
to avoid a prohibited distribution under Section 409A(a)(2)(B)(i) of the Code, then such portion deferred pursuant to this Section 7.8(b) shall be paid or distributed to Executive in a lump sum on the earlier of (a) the date that is
six (6)-months following Executive’s Separation from Service, (b) the date of Executive’s death or (c) the earliest date as is permitted under Section 409A of the Code. Any remaining payments due under the Agreement shall be
paid as otherwise provided herein. 
 7.9 Administration. This Agreement shall be interpreted and administered by the
Board or a committee thereof to which the Board may delegate such function (the “Committee”). The Board or the Committee shall have the exclusive power, subject to and within the limitations of the express provisions of this
Agreement, to interpret this Agreement and to make factual findings and determinations and take such action in connection with the Agreement as it, in its sole discretion, deems appropriate. The Board’s or the Committee’s determination
shall be binding and conclusive on all parties, and the Board or the Committee shall not be liable for any action or determination made in good faith with respect to this Agreement. 

7.10 Source of Funds. Amounts payable to Executive under this Agreement shall be from the general funds of the Company.
Executive’s rights to unpaid amounts under this Agreement shall be solely those of an unsecured creditor of the Company. 

7.11 Consultation with Legal and Financial Advisors. By executing this Agreement, Executive acknowledges that this Agreement
confers significant legal rights, and may also involve the waiver of rights under other agreements; that the Company has encouraged Executive to consult with Executive’s personal legal and financial advisors; and that Executive has had adequate
time to consult with Executive’s advisors before executing this Agreement. 
 7.12 Counterparts. This Agreement may
be executed in multiple counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
 (Signature Page Follows) 

  
 9 

 THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH
AND EVERY PROVISION CONTAINED HEREIN. WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW. 
  

											
		 		 		 	ALLISON TRANSMISSION, INC .
					
	Dated:	 	  
	 		 	By:	 	  

		 		 		 	Name:	 	  

		 		 		 	Title:	 	  

				
		 		 		 	EXECUTIVE
				
	Dated:	 	  
	 		 	  

		 		 		 		 	Address:	 	  

		 		 		 		 		 	  

  
 10 

 EXHIBIT A 
 GENERAL RELEASE OF CLAIMS 
 [The
language in this Release may change based on legal developments and evolving best practices; this form is provided as an example of what will be included in the final Release document.] 

This General Release of Claims (“Release”) is entered into as of this
         day of         ,         , between
             (“Executive”), and Allison Transmission, Inc., a Delaware corporation (the “Company”) (collectively referred to herein as
the “Parties”). 
 WHEREAS, Executive and the Company are parties to that certain Change in Control
Severance Agreement dated as of             , 2013 (the “Agreement”); 
 WHEREAS, the Parties agree that Executive is entitled to certain severance benefits under the Agreement, subject to Executive’s execution of this Release; and 

WHEREAS, the Company and Executive now wish to fully and finally to resolve all matters between them. 

NOW, THEREFORE, in consideration of, and subject to, the severance benefits payable to Executive pursuant to the Agreement, the adequacy
of which is hereby acknowledged by Executive, and which Executive acknowledges that he or she would not otherwise be entitled to receive, Executive and the Company hereby agree as follows: 

1. General Release of Claims by Executive. 
 (a) Executive, on behalf of himself or herself and his or her executors, heirs, administrators, representatives and assigns, hereby agrees to release and forever discharge the Company and all
predecessors, successors and their respective parent corporations, affiliates, related, and/or subsidiary entities, and all of their past and present investors, directors, shareholders, officers, general or limited partners, employees, attorneys,
agents and representatives, and the employee benefit plans in which Executive is or has been a participant by virtue of his or her employment with or service to the Company (collectively, the “Company Releasees”), from any
and all claims, debts, demands, accounts, judgments, rights, causes of action, equitable relief, damages, costs, charges, complaints, obligations, promises, agreements, controversies, suits, expenses, compensation, responsibility and liability of
every kind and character whatsoever (including attorneys’ fees and costs), whether in law or equity, known or unknown, asserted or unasserted, suspected or unsuspected (collectively, “Claims”), which Executive has or may
have had against such entities based on any events or circumstances arising or occurring on or prior to the date hereof, arising directly or indirectly out of, relating to, or in any other way involving in any manner whatsoever Executive’s
employment by or service to the Company or the termination thereof, including any and all claims arising under federal, state, or local laws relating to employment, including without limitation claims of wrongful discharge, breach of express or
implied contract, fraud, misrepresentation, defamation, or liability in tort, and claims of any kind that may be brought in any court or administrative agency including, without limitation, claims under Title VII of the Civil Rights Act of 1964, as
amended, 42 U.S.C. Section 2000, et seq.; the Americans with Disabilities Act, as amended, 42 U.S.C. § 12101 et seq.; the Rehabilitation Act of 1973, as amended, 29 U.S.C. § 701
et seq.; the Civil Rights Act of 1866, and the Civil Rights Act of 1991; 42 U.S.C. Section 1981, et seq.; the Age Discrimination in Employment Act, as amended, 29 U.S.C. Section 621, et seq. (the
“ADEA”); the Equal Pay Act, as amended, 29 U.S.C. Section 206(d); regulations of the Office of Federal Contract 

  
 11 

 
Compliance, 41 C.F.R. Section 60, et seq.; the Family and Medical Leave Act, as amended, 29 U.S.C. § 2601 et seq.; the Fair Labor
Standards Act of 1938, as amended, 29 U.S.C. § 201 et seq.; the Employee Retirement Income Security Act, as amended, 29 U.S.C. § 1001 et seq.; and any similar state or local law. 

Notwithstanding the generality of the foregoing, Executive does not release the following: 

(i) Claims for unemployment compensation or any state disability insurance benefits pursuant to the terms of applicable
state law; 
 (ii) Claims for workers’ compensation insurance benefits under the terms of any worker’s
compensation insurance policy or fund of the Company; 
 (iii) Claims pursuant to the terms and conditions of the
federal law known as COBRA; 
 (iv) Claims for indemnity under the bylaws of the Company, as provided for by
Delaware law or under any applicable insurance policy with respect to Executive’s liability as an employee, director or officer of the Company pursuant to which Executive is covered as of the effective date of Executive’s termination of
employment with the Company and its subsidiaries; 
 (v) Claims based on any right Executive may have to enforce
the Company’s executory obligations under the Agreement; 
 (vi) Claims Executive may have to vested or
earned compensation and benefits; and 
 (vii) Any rights that cannot be released as a matter of applicable law,
but only to the extent such rights may not be released under such applicable law. 
 (b) Executive acknowledges that this
Release was presented to him or her on the date indicated above and that Executive is entitled to have [twenty-one (21)/forty-five (45)] days’ time in which to consider it. Executive further acknowledges that the Company has advised him or her
that he or she is waiving his or her rights under the ADEA, and that Executive should consult with an attorney of his or her choice before signing this Release, and Executive has had sufficient time to consider the terms of this Release. Executive
represents and acknowledges that if Executive executes this Release before [twenty-one (21)/forty-five (45)] days have elapsed, Executive does so knowingly, voluntarily, and upon the advice and with the approval of Executive’s legal counsel (if
any), and that Executive voluntarily waives any remaining consideration period. 
 (c) Executive understands that after
executing this Release, Executive has the right to revoke it within seven (7) days after his or her execution of it. Executive understands that this Release will not become effective and enforceable unless the seven (7) day revocation
period passes and Executive does not revoke the Release in writing. Executive understands that this Release may not be revoked after the seven (7) day revocation period has passed. Executive also understands that any revocation of this Release
must be made in writing and delivered to the Company at its principal place of business within the seven (7) day period. 
 (d) Executive understands that this Release shall become effective, irrevocable, and binding upon Executive on the eighth (8th) day after his or her execution of it, so long as Executive has not revoked it within the time period and in the
manner specified in clause (c) above. Executive further understands that Executive will not be given any severance benefits under the Agreement unless this Release is effective on or before the date that is sixty (60) days following the
date of Executive’s termination of employment. 

  
 12 

 2. No Assignment. Executive represents and warrants to the Company Releasees that
there has been no assignment or other transfer of any interest in any Claim that Executive may have against the Company Releasees. Executive agrees to indemnify and hold harmless the Company Releasees from any liability, claims, demands, damages,
costs, expenses and attorneys’ fees incurred as a result of any such assignment or transfer from Executive. 
 3.
Severability. In the event any provision of this Release is found to be unenforceable by an arbitrator or court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the
provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by law. If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the
unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby. 
 4. Interpretation; Construction. The headings set forth in this Release are for convenience only and shall not be used in interpreting this Agreement. This Release has been drafted by legal counsel
representing the Company, but Executive has participated in the negotiation of its terms. Furthermore, Executive acknowledges that Executive has had an opportunity to review and revise the Release and have it reviewed by legal counsel, if desired,
and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Release. Either party’s failure to enforce any provision of
this Release shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from enforcing each and every other provision of this Release. 

5. Governing Law and Venue. This Release will be governed by and construed in accordance with the laws of the United States of
America and the State of Indiana applicable to contracts made and to be performed wholly within such State, and without regard to the conflicts of laws principles thereof. Any suit brought hereon shall be brought in the state or federal courts
sitting in Indianapolis, Indiana, the Parties hereby waiving any claim or defense that such forum is not convenient or proper. Each party hereby agrees that any such court shall have in personam jurisdiction over it and consents to service of
process in any manner authorized by Indiana law. 
 6. Entire Agreement. This Release and the Agreement constitute the
entire agreement of the Parties in respect of the subject matter contained herein and therein and supersede all prior or simultaneous representations, discussions, negotiations and agreements, whether written or oral. This Release may be amended or
modified only with the written consent of Executive and an authorized representative of the Company. No oral waiver, amendment or modification will be effective under any circumstances whatsoever. 

7. Counterparts. This Release may be executed in multiple counterparts, each of which shall be deemed to be an original but all of
which together shall constitute one and the same instrument. 
 (Signature Page Follows) 

  
 13 

 IN WITNESS WHEREOF, and intending to be legally bound, the Parties have executed the
foregoing Release as of the date first written above. 
  

									
	EXECUTIVE	 		 	ALLISON TRANSMISSION, INC.
				
	  
	 		 	By:	 	  

					
	Print Name:	 	  
	 		 	Print Name:	 	  

					
		 		 		 	Title:EX-4.1

 Exhibit 4.1 
  

 
 D.R. HORTON, INC. AND THE
GUARANTORS PARTY HERETO 
 3.750% Senior Notes due 2019 

 
  

Supplemental Indenture 

Dated as of February 24, 2014 
  

 
 AMERICAN
STOCK TRANSFER & TRUST COMPANY, LLC, 
 Trustee 
  

 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
	 ARTICLE ONE
	  			
		
	 SCOPE OF SUPPLEMENTAL INDENTURE
	  			
			
	 Section 1.01.
	 	General	  	 	1	  
	 Section 1.02.
	 	Specified Modifications in Respect of the Notes	  	 	2	  
		
	 ARTICLE TWO
	  			
		
	 CERTAIN DEFINITIONS
	  			
		
	 ARTICLE THREE
	  			
		
	 COVENANTS
	  			
			
	 Section 3.01.
	 	Limitations on Secured Debt	  	 	10	  
	 Section 3.02.
	 	Restrictions on Sale and Leaseback Transactions	  	 	11	  
	 Section 3.03.
	 	Offer to Purchase upon Change of Control Triggering Event	  	 	12	  
		
	 ARTICLE FOUR
	  			
		
	 MISCELLANEOUS
	  			
			
	 Section 4.01.
	 	Governing Law	  	 	13	  
	 Section 4.02.
	 	No Adverse Interpretation of Other Agreements	  	 	14	  
	 Section 4.03.
	 	No Recourse Against Others	  	 	14	  
	 Section 4.04.
	 	Successors and Assigns	  	 	14	  
	 Section 4.05.
	 	Duplicate Originals	  	 	14	  
	 Section 4.06.
	 	Severability	  	 	14	  

 Exhibit A     Form of Security 

Exhibit B     Form of Notification Security of Guarantee 

  
 -i- 

 Seventh Supplemental Indenture dated as of February 24, 2014 (“Supplemental
Indenture”), to the Indenture dated as of May 1, 2012 (as amended, modified or supplemented from time to time in accordance therewith, the “Base Indenture”), by and among D.R. Horton, Inc., a Delaware corporation (the
“Company”), each of the subsidiaries of the Company that are signatories hereto as the initial guarantors (the “Initial Guarantors”) and American Stock Transfer & Trust Company, LLC, as trustee (the
“Trustee”). 
 Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the
Holders of Notes (each as defined herein): 
 WHEREAS, the Company and the Trustee have duly authorized the execution and delivery of the
Base Indenture to provide for the issuance from time to time of senior debt securities (the “Securities”) to be issued in one or more Series as in the Base Indenture provided; 

WHEREAS, the Company and the Initial Guarantors desire and have requested the Trustee to join them in the execution and delivery of this
Supplemental Indenture in order to establish and provide for the issuance by the Company of a Series of Securities designated as its 3.750% Senior Notes due 2019, substantially in the form attached hereto as Exhibit A (including any
Additional Notes, as defined below, the “Notes”), initially guaranteed by the Initial Guarantors, on the terms set forth herein; 

WHEREAS, Section 2.01 of the Base Indenture provides that a supplemental indenture may be entered into by the Company, the Initial
Guarantors and the Trustee for such purpose provided certain conditions are met; 
 WHEREAS, the conditions set forth in the Base Indenture
for the execution and delivery of this Supplemental Indenture have been complied with; and 
 WHEREAS, all things necessary to make this
Supplemental Indenture a valid agreement of the Company, the Initial Guarantors and the Trustee, in accordance with its terms, and a valid amendment of, and supplement to, the Base Indenture have been done; 

NOW, THEREFORE: 
 In
consideration of the premises and the purchase and acceptance of the Notes by the Holders thereof the Company and the Initial Guarantors mutually covenant and agree with the Trustee, for the equal and ratable benefit of the Holders, that the Base
Indenture is supplemented and amended, to the extent expressed herein, as follows: 
 ARTICLE ONE 

Scope of Supplemental Indenture 

Section 1.01. General. 
 The changes,
modifications and supplements to the Base Indenture effected by this Supplemental Indenture shall be applicable only with respect to, and govern the terms of, the Notes and shall not apply to any other Securities that may have been or may hereafter
be issued under the Base Indenture unless a supplemental indenture with respect to such other Securities specifically incorporates such changes, modifications and supplements. 

 Pursuant to this Supplemental Indenture, there is hereby created and designated the Notes as a
Series of Securities under the Base Indenture entitled “3.750% Senior Notes due 2019.” The Notes shall be substantially in the form of Exhibit A hereto and will mature and bear interest as provided in such form and have the other
terms and conditions set forth therein, this Supplemental Indenture and the Base Indenture (to the extent not superseded hereby). The Company shall pay interest on overdue principal at 3.750%; it shall pay interest on overdue installments of
interest at 3.750%. The Notes shall be guaranteed by the Guarantors as provided in the form of Exhibit B hereto. The Trustee will initially be the Registrar and Paying Agent for the Notes, and DTC will initially be the Depositary for the
Notes. The covenants provided in Article Three of this Supplemental Indenture are applicable (unless waived or amended as provided in the Base Indenture) so long as the Notes are outstanding or until defeasance or other discharge pursuant to
the Base Indenture. An aggregate principal amount of $500.0 million of Notes will be issued on the Issue Date. Additional Notes (the “Additional Notes”) in an unlimited amount may be issued in one or more issuances from time to time
on the same terms and conditions, except for issue date, and if applicable, the issue price and the first interest payment, either of which may differ from the respective terms of the previously issued Notes of same Series, and with the same CUSIP
numbers as the Notes offered hereby without the consent of Holders of the Notes. The Notes initially issued hereunder and any such Additional Notes shall vote on all matters, and otherwise be treated as, a single Series for all purposes under the
Indenture. 
 Section 1.02. Specified Modifications in Respect of the Notes. 

(1) Article Six of the Base Indenture shall apply in respect of the Notes; provided that with respect to clause (3) under the first
paragraph and the second paragraph of Section 6.01 of the Base Indenture, Section 3.03 hereof shall be deemed such specified provision which breach thereof shall constitute, together with Article Five of the Base Indenture, an Event of
Default with notice but without passage of time. 
 (2) Section 7.05 of the Base Indenture shall apply in respect of the Notes;
provided that the Trustee shall not have any discretion to withhold any notice of the Default with respect to any breach of Section 3.03 hereof, irrespective of any determination that withholding of such notice is in the interest of the
Holders of the Notes. 
 (3) Article Ten of the Base Indenture shall apply in respect of the Notes; provided that, notwithstanding
anything to the contrary in the Base Indenture and this Supplemental Indenture, any amendment or waiver of Section 3.03 hereof (prior to the occurrence of a Change of Control Triggering Event) will require consent of Holders of a majority of
the outstanding principal amount of Notes. 
 ARTICLE TWO 

Certain Definitions 
 The
following terms have the meanings set forth below in this Supplemental Indenture. Capitalized terms used but not defined herein have the meanings ascribed to such terms in the Base Indenture. To the extent terms defined herein differ from the Base
Indenture the terms defined herein will govern. 
 “Attributable Debt” means, in respect of a Sale and Leaseback
Transaction, the present value (discounted at the weighted average effective interest cost per annum of the outstanding debt of the Company, compounded semiannually) of the obligation of the lessee for rental payments during the remaining term of
the lease included in such transaction, including any period for which such lease has been extended or may, at the option of the lessor, be extended or, if earlier, until the earliest date on which the

  
 -2- 

 
lessee may terminate such lease upon payment of a penalty (in which case the obligation of the lessee for rental payments shall include such penalty), after excluding all amounts required to be
paid on account of maintenance and repairs, insurance, taxes, assessments, water and utility rates and similar charges. 
 “Change
of Control” means: 
 (1) any sale, lease or other transfer (in one transaction or a series of transactions) of all
or substantially all of the consolidated assets of the Company and its Subsidiaries to any Person (other than a Subsidiary of the Company); provided, however, that a transaction where the holders of all classes of Voting Stock of the
Company immediately prior to such transaction own, directly or indirectly, Voting Stock representing more than 50% of the voting power of all Voting Stock of such Person immediately after such transaction shall not be a Change of Control; 

(2) a “person” or “group” (within the meaning of Section 13(d) of the Exchange Act (other than
(x) the Company or (y) Donald R. Horton, Terrill J. Horton, or their respective wives, children, grandchildren and other descendants, or any trust or other entity formed or controlled by any of such individuals (each an “Excluded
Person”))) publicly discloses, including, without limitation, by filing a Schedule 13D or Schedule TO, or the Company or any of its Subsidiaries publicly discloses, including without limitation, by filing any other schedule, form or report
under the Exchange Act (including, without limitation, a Current Report on Form 8-K), facts indicating that such person or group has become the ultimate “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of Voting Stock
of the Company representing more than 50% of the voting power of the Voting Stock of the Company; or 
 (3) the stockholders
of the Company approve any plan or proposal for the liquidation or dissolution of the Company; provided, however, that a liquidation or dissolution of the Company that is part of a transaction that does not constitute a Change of
Control under the proviso contained in clause (1) above shall not constitute a Change of Control. 
 Any person or group whose
acquisition of beneficial ownership constitutes a Change of Control under clause (2) of the foregoing definition in respect of which a Change of Control Offer is made in accordance with the requirements of the Base Indenture will thereafter,
together with its Affiliates, constitute an additional Excluded Person. 
 “Change of Control Triggering Event” means the
occurrence of both a Change of Control and a Ratings Downgrade Event. 
 “Comparable Treasury Issue” means the United
States Treasury security selected by at least two Reference Treasury Dealers as having a maturity comparable to the remaining term of the Notes to be redeemed that would be utilized at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable maturity to the remaining term of such Notes. 

“Comparable Treasury Price” means, with respect to any redemption date, (a) the average of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount, on the third business day preceding such redemption date, as set forth in the daily statistical release (or any successor release) published by the
Federal Reserve Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (b) if such release (or any successor release) is not published or does not contain such price on such business day,
(i) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer than four such Reference Treasury
Dealer Quotations, the average of all such quotations. 

  
 -3- 

 “Consolidated Adjusted Tangible Assets” of the Company as of any date means the
Consolidated Tangible Assets of the Company and the Guarantors at the end of the fiscal quarter immediately preceding such date less (a) the book value of any assets securing any Non-Recourse Indebtedness, and (b) all short term
liabilities of the Company and the Guarantors, except for liabilities payable by their terms more than one year from the date of determination (or renewable or extendible at the option of the obligor to a maturity date more than one year after such
date) and liabilities in respect of retiree benefits other than persons for which the Company or the Guarantors are required to accrue pursuant to Accounting Standards Codification 715-60 (or any successor provision), in each case as determined in
accordance with GAAP. 
 “Consolidated Tangible Assets” of the Company as of any date means the book value of the total
assets of the Company and the Guarantors (less applicable reserves) on a consolidated basis at the end of the fiscal quarter immediately preceding such date, less: (i) Intangible Assets and (ii) appropriate adjustments on account of
minority interests of other Persons holding equity investments in Guarantors, in each case as determined in accordance with GAAP. 

“Fitch” means Fitch Ratings. 

“GAAP” means generally accepted accounting principles set forth in the accounting standards codification of the Financial
Accounting Standards Board or in such other statements by such or any other entity as may be approved by a significant segment of the accounting profession of the United States, as in effect on the Issue Date. 

“Guarantors” means (i) initially, each of: 

C. Richard Dobson Builders, Inc., a Virginia corporation; 

CH Investments of Texas, Inc., a Delaware corporation; 

CHI Construction Company, an Arizona corporation; 

CHTEX of Texas, Inc., a Delaware corporation; 

Continental Homes, Inc., a Delaware corporation; 

Continental Homes of Texas, L.P., a Texas limited partnership; 

Continental Residential, Inc., a California corporation; 

D.R. Horton — Emerald, Ltd., a Texas limited partnership; 

D.R. Horton — Regent, LLC (f/k/a DRH Regrem XXVI, LLC), a Delaware limited liability company; 

D.R. Horton — Schuler Homes, LLC, a Delaware limited liability company; 

D.R. Horton — Texas, Ltd., a Texas limited partnership; 

D.R. Horton, Inc. — Birmingham, an Alabama corporation; 

D.R. Horton, Inc. — Chicago, a Delaware corporation; 

D.R. Horton, Inc. — Dietz-Crane, a Delaware corporation; 

D.R. Horton, Inc. — Fresno, a Delaware corporation; 

D.R. Horton, Inc. — Greensboro, a Delaware corporation; 

D.R. Horton, Inc. — Gulf Coast (f/k/a DRH Regrem V, Inc.), a Delaware corporation; 

D.R. Horton, Inc. — Huntsville (f/k/a DRH Regrem XIII, Inc.), a Delaware corporation; 

D.R. Horton, Inc. — Jacksonville, a Delaware corporation; 

D.R. Horton, Inc. — Louisville, a Delaware corporation; 

D.R. Horton, Inc. — Minnesota, a Delaware corporation; 

D.R. Horton, Inc. — New Jersey, a Delaware corporation; 

  
 -4- 

 D.R. Horton, Inc. — Portland, a Delaware corporation; 

D.R. Horton, Inc. — Sacramento, a California corporation; 

D.R. Horton, Inc. — Torrey, a Delaware corporation; 

D.R. Horton LA North, Inc. (f/k/a DRH Regrem X, Inc.), a Delaware corporation; 

D.R. Horton BAY, Inc. (f/k/a D.R. Horton OCI, Inc., D.R. Horton Orange County Inc. and DRH Regrem IX, Inc.), a Delaware corporation; 

D.R. Horton Cruces Construction, Inc. (f/k/a DRH Regrem XI, Inc.), a Delaware corporation; 

D.R. Horton Los Angeles Holding Company, Inc., a California corporation; 

D.R. Horton Management Company, Ltd., a Texas limited partnership; 

D.R. Horton Materials, Inc., a Delaware corporation; 

D.R. Horton Serenity Construction, LLC (f/k/a DRH Regrem VIII, LLC), a Delaware limited liability company; 

D.R. Horton VEN Inc. (f/k/a D.R. LAV Inc. and D.R. Horton San Diego Holding Company, Inc.), a California corporation; 

DRH Cambridge Homes, Inc., a California corporation; 

DRH Cambridge Homes, LLC, a Delaware limited liability company; 

DRH Construction, Inc., a Delaware corporation; 

DRH Regrem VII, LP, a Texas limited partnership; 

DRH Regrem XII, LP, a Texas limited partnership; 

DRH Regrem XIV, Inc., a Delaware corporation; 

DRH Regrem XV, Inc., a Delaware corporation; 

DRH Regrem XVI, Inc., a Delaware corporation; 

DRH Regrem XVII, Inc., a Delaware corporation; 

DRH Regrem XVIII, Inc., a Delaware corporation; 

DRH Regrem XIX, Inc., a Delaware corporation; 

DRH Regrem XX, Inc., a Delaware corporation; 

DRH Regrem XXI, Inc., a Delaware corporation; 

DRH Regrem XXII, Inc., a Delaware corporation; 

DRH Regrem XXIII, Inc., a Delaware corporation; 

DRH Regrem XXIV, Inc., a Delaware corporation; 

DRH Regrem XXV, Inc. (f/k/a D.R. Horton VEN, Inc. and D.R. Horton Inc. – Los Angeles), a Delaware corporation; 

DRH Regrem XXVII, LLC, a Delaware limited liability company; 

DRH Regrem XXVIII, LLC, a Delaware limited liability company; 

DRH Regrem XXIX, LLC, a Delaware limited liability company; 

DRH Regrem XXX, LLC, a Delaware limited liability company; 

DRH Southwest Construction, Inc., a California corporation; 

DRH Tucson Construction, Inc., a Delaware corporation; 

HPH Homebuilders 2000 L.P., a California limited partnership; 

KDB Homes, Inc., a Delaware corporation; 

Meadows I, Ltd., a Delaware corporation; 

Meadows II, Ltd., a Delaware corporation; 

Meadows VIII, Ltd., a Delaware corporation; 

Meadows IX, Inc., a New Jersey corporation; 

Meadows X, Inc., a New Jersey corporation; 

Melmort Co., a Colorado corporation; 

Melody Homes, Inc., a Delaware corporation; 

Schuler Homes of Arizona, LLC, a Delaware limited liability company; 

Schuler Homes of California, Inc., a California corporation; 

Schuler Homes of Oregon, Inc., an Oregon corporation; 

  
 -5- 

 Schuler Homes of Washington, Inc., a Washington corporation; 

Schuler Mortgage, Inc., a Delaware corporation; 

Schuler Realty Hawaii, Inc., a Hawaii corporation; 

SGS Communities at Grande Quay, L.L.C., a New Jersey limited liability company; 

SHA Construction LLC, a Delaware limited liability company; 

SHLR of California, Inc., a California corporation; 

SHLR of Colorado, Inc., a Colorado corporation; 

SHLR of Nevada, Inc., a Nevada corporation; 

SHLR of Utah, Inc., a Utah corporation; 

SHLR of Washington, Inc., a Washington corporation; 

SRHI LLC, a Delaware limited liability company; 

SSHI LLC, a Delaware limited liability company; 

Vertical Construction Corporation, a Delaware corporation; 

Western Pacific Funding, Inc., a California corporation; 

Western Pacific Housing — Antigua, LLC, a Delaware limited liability company; 

Western Pacific Housing — Aviara, L.P., a California limited partnership; 

Western Pacific Housing — Boardwalk, LLC, a Delaware limited liability company; 

Western Pacific Housing — Broadway, LLC, a Delaware limited liability company; 

Western Pacific Housing — Canyon Park, LLC, a Delaware limited liability company; 

Western Pacific Housing — Carmel, LLC, a Delaware limited liability company; 

Western Pacific Housing — Carrillo, LLC, a Delaware limited liability company; 

Western Pacific Housing — Communications Hill, LLC, a Delaware limited liability company; 

Western Pacific Housing — Copper Canyon, LLC, a Delaware limited liability company; 

Western Pacific Housing — Creekside, LLC, a Delaware limited liability company; 

Western Pacific Housing — Culver City, L.P., a California limited partnership; 

Western Pacific Housing — Del Valle, LLC, a Delaware limited liability company; 

Western Pacific Housing — Lomas Verdes, LLC, a Delaware limited liability company; 

Western Pacific Housing — Lost Hills Park, LLC, a Delaware limited liability company; 

Western Pacific Housing — McGonigle Canyon, LLC, a Delaware limited liability company; 

Western Pacific Housing — Mountaingate, L.P., a California limited partnership; 

Western Pacific Housing — Norco Estates, LLC, a Delaware limited liability company; 

Western Pacific Housing — Oso, L.P., a California limited partnership; 

Western Pacific Housing — Pacific Park II, LLC, a Delaware limited liability company; 

Western Pacific Housing — Park Avenue East, LLC, a Delaware limited liability company; 

Western Pacific Housing — Park Avenue West, LLC, a Delaware limited liability company; 

Western Pacific Housing — Playa Vista, LLC, a Delaware limited liability company; 

Western Pacific Housing — Poinsettia, L.P., a California limited partnership; 

Western Pacific Housing — River Ridge, LLC, a Delaware limited liability company; 

Western Pacific Housing — Robinhood Ridge, LLC, a Delaware limited liability company; 

Western Pacific Housing — Santa Fe, LLC, a Delaware limited liability company; 

Western Pacific Housing — Scripps II, LLC, a Delaware limited liability company; 

Western Pacific Housing — Scripps, L.P., a California limited partnership; 

Western Pacific Housing — Seacove, L.P., a California limited partnership; 

Western Pacific Housing — Studio 528, LLC, a Delaware limited liability company; 

Western Pacific Housing — Terra Bay Duets, LLC, a Delaware limited liability company; 

  
 -6- 

 Western Pacific Housing — Torrance, LLC, a Delaware limited liability company; 

Western Pacific Housing — Torrey Commercial, LLC, a Delaware limited liability company; 

Western Pacific Housing — Torrey Meadows, LLC, a Delaware limited liability company; 

Western Pacific Housing — Torrey Multi-Family, LLC, a Delaware limited liability company; 

Western Pacific Housing — Torrey Village Center, LLC, a Delaware limited liability company; 

Western Pacific Housing — Vineyard Terrace, LLC, a Delaware limited liability company; 

Western Pacific Housing — Windemere, LLC, a Delaware limited liability company; 

Western Pacific Housing — Windflower, L.P., a California limited partnership; 

Western Pacific Housing, Inc., a Delaware corporation; 

Western Pacific Housing, L.P. (f/k/a Western Pacific Housing Co.), a California limited partnership; 

Western Pacific Housing Management, Inc., a California corporation; and 

WPH — Camino Ruiz, LLC, a Delaware limited liability company; 

and (ii) each of the Company’s Subsidiaries that becomes a guarantor of the Notes pursuant to the provisions of the Indenture, in each case until
released from its Guarantee pursuant to the provisions of the Indenture. 
 “Intangible Assets” means with respect to the
Notes, all unamortized debt discount and expense, unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names, copyrights, write-ups of assets over their prior carrying value (other than write-ups which occurred prior to
the Issue Date and other than, in connection with the acquisition of an asset, the write-up of the value of such asset (within one year of its acquisition) to its fair market value in accordance with GAAP) and all other items which would be treated
as intangibles on the consolidated balance sheet of the Company and the Guarantors prepared in accordance with GAAP. 
 “Investment
Grade” means a rating of Baa3 or better by Moody’s (or its equivalent under any successor rating categories of Moody’s); a rating of BBB- or better by Fitch (or its equivalent under any successor rating categories of Fitch); a
rating of BBB- or better by S&P (or its equivalent under any successor rating categories of S&P); and the equivalent investment grade credit rating from any replacement Rating Agency or Rating Agencies selected by the Company. 

“Issue Date” means February 24, 2014, the date on which the Notes are originally issued under this Supplemental
Indenture. 
 “Moody’s” means Moody’s Investors Service, Inc. 

“Non-Guarantor Subsidiary” means any Subsidiary of the Company that is not a Guarantor. 

“Permitted Liens” means any Lien: 

(1) incurred or deposits made to secure the performance of tenders, bids, leases, statutory obligations, surety and appeal
bonds, development obligations, progress payments, government contracts, utility services, developer’s or other obligations to make on-site or off-site improvements and other obligations of like nature (exclusive of obligations for the payment
of borrowed money but including the items referred to in the parenthetical in clause (i)(a) of the definition of “Indebtedness”), in each case incurred in the ordinary course of business of the Company and the Guarantors, 

  
 -7- 

 (2) constituting attachment or judgment liens, 

(3) securing Non-Recourse Indebtedness of the Company or any Guarantor; provided, that it applies only to the Property
financed out of the net proceeds of such Non-Recourse Indebtedness (and any accessions thereto and proceeds thereof), 
 (4)
securing Purchase Money Indebtedness; provided, that it applies only to the Property acquired, constructed or improved with the proceeds of such Purchase Money Indebtedness (and any accessions thereto and proceeds thereof), 

(5) constituting purchase money Liens (including Capitalized Lease Obligations); provided, that it applies only to the
Property acquired (and any accessions thereto and proceeds thereof) and the related Indebtedness is incurred within 180 days after the acquisition of such Property, 

(6) constituting the right of a lender or lenders to which the Company or a Guarantor may be indebted to offset against, or
appropriate and apply to the payment of such, Indebtedness any and all balances, credits, deposits, accounts or money of the Company or a Guarantor with or held by such lender or lenders or its affiliates, 

(7) constituting the pledge or deposit of cash or other Property in conjunction with obtaining surety, performance, completion
or payment bonds and letters of credit or other similar instruments or providing earnest money obligations, escrows or similar purpose undertakings or indemnifications in the ordinary course of business of the Company and the Guarantors, 

(8) incurred in connection with pollution control, industrial revenue, water, sewage or other public improvement bonds or any
similar bonds, 
 (9) statutory Liens of landlords and carriers’, warehousemen’s, mechanics’, suppliers’,
materialmen’s, repairmen’s or other Liens imposed by law and arising in the ordinary course of business, 
 (10)
leases or subleases granted to others not materially interfering with the ordinary course of business of the Company and the Guarantors taken as a whole, 

(11) Liens securing community development district bonds or similar bonds issued by any governmental authority to accomplish
similar purposes, 
 (12) Liens on assets and properties of joint ventures or limited partnerships that are not wholly-owned
Subsidiaries of the Company or any of the Guarantors, and 
 (13) Liens securing the Company’s or the Guarantors’
obligations to third parties, in connection with joint development agreements with such third parties, to perform and/or pay for or reimburse the costs of construction and/or development related to or benefiting Company’s or the
Guarantors’ Property and Property belonging to such third parties. 

  
 -8- 

 “Purchase Money Indebtedness” means Indebtedness of the Company or any Guarantor
incurred for the purpose of financing all or any part of the purchase price, or the cost of construction or improvement, of any Property to be used in the ordinary course of business by the Company and the Guarantors; provided,
however, that (i) the aggregate principal amount of such Indebtedness shall not exceed such purchase price or cost and (ii) such Indebtedness shall be incurred no later than 180 days after the acquisition of such Property or
completion of such construction or improvement. 
 “Rating Agency” means (1) each of Moody’s, Fitch and S&P;
or (2) if any of Moody’s, Fitch or S&P ceases to rate the Notes or fails to make a rating of the Notes publicly available (for reasons outside of the Company’s control), a “nationally recognized statistical rating
organization” as defined under Section 3(a)(62) of the Exchange Act selected by the Company (as certified by a resolution of the Company’s Board of Directors) as a replacement Rating Agency for Moody’s, Fitch or S&P, or all
three, as the case may be. 
 “Ratings Downgrade Event” means the rating on the Notes is lowered independently by each of
the Rating Agencies and the Notes are rated below Investment Grade by all three Rating Agencies on any date from the date of the public notice of an arrangement that could result in a Change of Control until the end of the 60-day period following
public notice of the occurrence of a Change of Control (which period shall be extended so long as the rating of the Notes is under publicly announced consideration for possible downgrade by any of the Rating Agencies); provided that a Ratings
Downgrade Event otherwise arising by virtue of a particular reduction in rating shall not be deemed to have occurred in respect of a particular Change of Control (and thus shall not be deemed a Ratings Downgrade Event for purposes of the definition
of Change of Control Triggering Event) if the Rating Agencies making the reduction in rating to which this definition would otherwise apply do not announce or publicly confirm or inform the trustee in writing at the Company’s request that the
reduction was the result, in whole or in part, of any event or circumstance comprised of or arising as a result of, or in respect of, the applicable Change of Control (whether or not the applicable Change of Control shall have occurred at the time
of the Ratings Downgrade Event). 
 “Reference Treasury Dealers” means (a) Wells Fargo Securities, LLC, Citigroup
Global Markets Inc., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and RBS Securities Inc. (or any of their respective affiliates which are Primary Treasury Dealers), and their respective successors; provided,
however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in the United States of America (a “Primary Treasury Dealer”), the Company will substitute therefor another Primary Treasury
Dealer, and (b) any other Primary Treasury Dealer(s) selected by the Company. 
 “Reference Treasury Dealer
Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of
its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m. on the third business day preceding such redemption date. 

“Remaining Scheduled Payments” means, with respect to any Note, the remaining scheduled payments of the principal thereof to
be redeemed and interest thereon that would be due after the related redemption date but for such redemption; provided however that if such redemption date is not an interest payment date with respect to such Note, the amount of the next
succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to the date of such redemption. 

“Revolving Credit Facility” means the revolving credit facility entered into by the Company pursuant to that certain Credit
Agreement dated as of September 7, 2012, as amended prior to the Issue Date and as may be further amended or modified from time to time, by and among the Company, The Royal Bank of Scotland plc as administrative agent and the lenders and other
parties thereto. 

  
 -9- 

 “S&P” means Standard & Poor’s Ratings Services, a division of
The McGraw-Hill Companies, Inc. 
 “Sale and Leaseback Transaction” means a sale or transfer made by the Company or a
Guarantor of any Property which is either (a) a manufacturing facility, project club house, amenity center and common area, office building, warehouse or distribution facility whose book value equals or exceeds 1% of Consolidated Adjusted
Tangible Assets as of the date of determination or (b) another Property which exceeds 5% of Consolidated Adjusted Tangible Assets as of the date of determination, if such sale or transfer is made with the agreement, commitment or intention of
leasing such Property to the Company or a Guarantor, provided that “Sale and Leaseback Transaction” shall not include (1) a sale-leaseback transaction relating to a Property entered into within 180 days after the later of
(i) the date of acquisition of such Property by the Company or a Guarantor and (ii) the date of the completion of construction or commencement of full operations on such Property, whichever is later, (2) a sale-leaseback transaction
which has a lease of no more than three years in length or (3) a sale or transfer made to the Company or another Guarantor. 

“Secured Debt” means any Indebtedness of the Company or any Guarantor which is secured by (a) a Lien in any Property of
the Company or a Guarantor (other than property excluded in clause (b)) or (b) a Lien on Capital Stock owned directly or indirectly by the Company or a Guarantor in a corporation or other entity (other than a Non-Guarantor Subsidiary) or
in the rights of the Company or a Guarantor in respect of Indebtedness of a corporation or other entity (other than a Non-Guarantor Subsidiary) in which the Company or a Guarantor owns Capital Stock. The securing in the foregoing manner of any such
Indebtedness which immediately prior thereto was not Secured Debt shall be deemed to be the creation of Secured Debt at the time security is given. For the avoidance of doubt, cash collateralized letters of credit issued under the Revolving Credit
Facility shall not constitute Secured Debt. 
 “Treasury Rate” means, with respect to any redemption date, the rate per
annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such
redemption date. 
 “Voting Stock” of any specified “person” (as that term is used in Section 13(d)(3) of
the Exchange Act) as of any date means the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person. 

ARTICLE THREE 

Covenants 
 Section 3.01.
Limitations on Secured Debt. 
 The Company will not, and will not cause or permit any Guarantor to, create, incur, assume or
guarantee any Secured Debt unless the Notes are secured equally and ratably with (or prior to) such Secured Debt, provided that the foregoing does not prohibit the creation, incurrence, assumption or guarantee of: 

  
 -10- 

 (1) Secured Debt which is secured by Liens on model homes, homes held for sale,
homes that are under construction or under contract for sale, contracts for the sale of homes, land (improved or unimproved), contracts for the sale of land, project club houses, amenity centers and common areas, manufacturing plants, warehouses,
distribution facilities or office buildings, and fixtures and equipment located at or on any of the foregoing or leasehold or other interests in any of the foregoing; 

(2) Secured Debt which is secured by a Lien on Property at the time of its acquisition by the Company or a Guarantor, which
Lien secures obligations assumed by the Company or a Guarantor, or on the Property of a corporation or other entity at the time it is merged into or consolidated with the Company or a Guarantor or becomes a Guarantor as a result of the acquisition
of its Capital Stock by the Company or a Guarantor (other than Secured Debt created in contemplation of the acquisition of such Property or the consummation of such a merger or consolidation or acquisition where the Lien attaches to or affects the
Property of the Company or a Guarantor prior to such transaction); 
 (3) Secured Debt which is secured by Liens arising from
conditional sales agreements or title retention agreements with respect to Property acquired by the Company or a Guarantor; 

(4) Secured Debt which is secured by Liens securing Indebtedness of a Guarantor owing to the Company or to another Guarantor;

 (5) Indebtedness secured by a Permitted Lien; and 

(6) any amendment, restatement, supplement, renewal, replacement, extension, refinancing or refunding, in whole or in part
(“Refinanced Debt”), of Secured Debt that was permitted to be created, incurred, assumed or guaranteed pursuant to clauses (1) through (5) above at the time of the original creation, incurrence, assumption or guarantee
thereof, or by this clause (6), provided in each case that the principal amount of the Refinanced Debt does not exceed the principal amount of the Secured Debt being refinanced, extended, renewed or replaced (plus accrued interest thereon and
expenses of refinancing, extension, renewal or replacement) and such Refinanced Debt is not secured by any additional Properties of the Company or any Guarantor (other than accessions and proceeds). 

In addition, the Company and the Guarantors may create, incur, assume or guarantee Secured Debt, without equally or ratably (or on a senior
basis) securing the Notes, if immediately thereafter the sum of (1) the aggregate principal amount (or the accreted value thereof, in the case of any Secured Debt issued with original issue discount) of all Secured Debt outstanding (excluding
Secured Debt permitted under clauses (1) through (6) above and any Secured Debt in relation to which the Notes have been secured equally and ratably (or on a senior basis)) and (2) all Attributable Debt in respect of Sale and
Leaseback Transactions (excluding Attributable Debt in respect of Sale and Leaseback Transactions satisfying the conditions set forth in clauses (1) and (2) and if the 365 day period referenced therein shall have expired, also clause
(3) under Section 3.02) as of the date of determination would not exceed 20% of Consolidated Adjusted Tangible Assets. 
 Section 3.02.
Restrictions on Sale and Leaseback Transactions. 
 The Company will not, and will not cause or permit any Guarantor to, enter into
any Sale and Leaseback Transaction, unless: 
 (1) notice is promptly given to the Trustee of the Sale and Leaseback
Transaction; 

  
 -11- 

 (2) fair value is received by the Company or a Guarantor for the Property sold
(as determined in good faith pursuant to a resolution of the Board of Directors delivered to the Trustee); and 
 (3) the
Company or a Guarantor, within 365 days after the completion of the Sale and Leaseback Transaction, applies an amount equal to the net proceeds therefrom either: 

(A) to the redemption, repayment or retirement of the Notes and the Securities of all other Series under the Base Indenture
(other than a Series that, pursuant to the applicable supplemental indenture or Authorizing Resolution, does not have the benefit of this Section or its equivalent), including the cancellation by the Trustee of any Securities of any such Series
delivered by the Company to the Trustee, or any other Indebtedness of the Company or any Guarantor (other than Indebtedness which by its terms or the terms of the instrument by which it was issued is subordinate in right of payment to the Notes or
any such other Series), or 
 (B) to the purchase by the Company or a Guarantor of Property substantially similar to the
Property sold or transferred. 
 Without regard to the foregoing, the Company and the Guarantors may enter into a Sale and Leaseback
Transaction if immediately thereafter the sum of (1) the aggregate principal amount of all Secured Debt outstanding (excluding Secured Debt permitted under clauses (1) through (6) of the first paragraph of Section 3.01 above or
Secured Debt in relation to which the Notes have been secured equally and ratably (or on a senior basis)) and (2) all Attributable Debt in respect of Sale and Leaseback Transactions (excluding Attributable Debt in respect of Sale and Leaseback
Transactions satisfying the conditions set forth in clauses (1) and (2) and if the 365 day period referenced therein shall have expired, also clause (3) above) as of the date of determination would not exceed 20% of Consolidated
Adjusted Tangible Assets. 
 Section 3.03. Offer to Purchase upon Change of Control Triggering Event. 

(1) In the event that there shall occur a Change of Control Triggering Event, except as otherwise provided in Section 3.03(6) hereof, the
Company shall make an offer to each Holder of the Notes (the “Change of Control Offer”) to purchase all or any part of such Holder’s Notes at 101% of the principal amount thereof plus accrued and unpaid interest to the date of
purchase (the “Change of Control Purchase Price”) in accordance with the procedures set forth in this Section 3.03. 

(2) On or before the thirtieth day after any Change of Control Triggering Event, or, at the Company’s option, prior to any Change of
Control, but after the public announcement of the Change of Control, the Company shall be obligated to make the Change of Control Offer by mailing, or causing to be mailed, to all Holders of Notes, with a copy to the Trustee, a notice regarding the
Change of Control Triggering Event and the Change of Control Offer. The notice shall state the payment date for the repurchase of the Notes, which date shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed.
The notice may, if mailed prior to the date of consummation of the Change of Control, also state that the offer to purchase is conditioned on a Change of Control Triggering Event occurring on or prior to the payment date specified in the notice.

  
 -12- 

 (3) On the payment date of the Change of Control Purchase Price as specified in the notice, the
Company shall, to the extent lawful: 
 (A) accept for payment all Notes or portions of Notes properly tendered and not
withdrawn pursuant to the Change of Control Offer; 
 (B) deposit with the Paying Agent an amount equal to the Change of
Control Purchase Price in respect of all Notes or portions of Notes properly tendered and not withdrawn pursuant to the Change of Control Offer; and 

(C) deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officers’ Certificate
stating the aggregate principal amount of Notes or portions of Notes being purchased by the Company. 
 (4) The Paying Agent shall promptly
mail to each Holder of Notes properly tendered pursuant to the Change of Control Offer, the Change of Control Purchase Price for such Notes, and the Trustee shall promptly authenticate and mail, or cause to be transferred by book entry, to each such
Holder a new Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any; provided that the new Note shall be in a principal amount of $2,000 or an integral multiple of $1,000 in excess thereof. The Company
shall publicly announce the results of the Change of Control Offer on or as soon as reasonably practicable after the payment date of the Change of Control Purchase Price. 

(5) The Company will comply with applicable law, including Section 14(e) of the Exchange Act and Rule 14e-1 thereunder, and any other
securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the purchase of the Notes as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities
laws or regulations conflict with this Section 3.03, the Company will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Section 3.03 by virtue of such conflict.

 (6) The Company will not be required to make a Change of Control Offer after a Change of Control Triggering Event if (a) a third
party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and such third party purchases all Notes properly tendered and not withdrawn under its offer, (b) the
Company has given notice to redeem all Notes in accordance with paragraph 4 of the Notes and Article Three of the Base Indenture, unless and until there is a default in payment of the applicable redemption price or (c) in connection with or in
contemplation of any Change of Control for which a definitive agreement is in place, the Company or a third party has made an offer to purchase (an “Alternate Offer”) any and all Notes properly tendered at a cash price equal to or
higher than the Change of Control Purchase Price and has purchased all Notes properly tendered and not withdrawn in accordance with the terms of such Alternate Offer. 

(7) None of the provisions relating to a repurchase upon a Change of Control Triggering Event shall be waivable by the Board of Directors of
the Company. 
 ARTICLE FOUR 

Miscellaneous 
 Section 4.01.
Governing Law. 
 THE LAWS OF THE STATE OF NEW YORK SHALL GOVERN THIS SUPPLEMENTAL INDENTURE, THE NOTES AND THE GUARANTEES. 

  
 -13- 

 Section 4.02. No Adverse Interpretation of Other Agreements. 

This Supplemental Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary. Any such
indenture, loan or debt agreement may not be used to interpret this Supplemental Indenture. 
 Section 4.03. No Recourse Against Others. 

All liability (i) described in Paragraph 11 of the Notes, of any director, officer, employee or stockholder, as such, of the Company and
(ii) described in the second paragraph of the guarantees of each Guarantor, of any stockholder, officer, director, employee, incorporator, partner, member or manager, as such, of any Guarantor, is waived and released. 

Section 4.04. Successors and Assigns. 

All covenants and agreements of the Company and the Guarantors in this Supplemental Indenture and the Notes shall bind its successors and
assigns. All agreements of the Trustee in this Supplemental Indenture shall bind its successors and assigns. 
 Section 4.05. Duplicate
Originals. 
 The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of
them together represent the same agreement. 
 Section 4.06. Severability. 

In case any one or more of the provisions contained in this Supplemental Indenture or in the Notes shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Supplemental Indenture or of the Notes. 

  
 -14- 

 SIGNATURES 

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

 

			
	 D.R. HORTON, INC.

		
	 By:
	 	 
		 	 Bill W. Wheat

		 	 Executive Vice President and

		 	 Chief Financial Officer

  
 S-1 

 
			
	 GUARANTORS:
  

C. RICHARD DOBSON BUILDERS, INC.
 CH INVESTMENTS OF
TEXAS, INC.
 CHI CONSTRUCTION COMPANY
 CHTEX OF
TEXAS, INC.
 CONTINENTAL HOMES, INC.
 CONTINENTAL
RESIDENTIAL, INC.
 D.R. HORTON BAY, INC.
 D.R.
HORTON CRUCES CONSTRUCTION, INC.
 D.R. HORTON, INC. – BIRMINGHAM

D.R. HORTON, INC. – CHICAGO
 D.R. HORTON, INC.
– DIETZ-CRANE
 D.R. HORTON, INC. – FRESNO

D.R. HORTON, INC. – GREENSBORO
 D.R. HORTON, INC.
– GULF COAST
 D.R. HORTON, INC. – HUNTSVILLE

D.R. HORTON, INC. – JACKSONVILLE
 D.R. HORTON, INC.
– LOUISVILLE
 D.R. HORTON, INC. – MINNESOTA

D.R. HORTON, INC. – NEW JERSEY
 D.R. HORTON, INC.
– PORTLAND
 D.R. HORTON, INC. – SACRAMENTO

D.R. HORTON, INC. – TORREY
 D.R. HORTON LA NORTH,
INC.
 D.R. HORTON LOS ANGELES HOLDING COMPANY, INC.

D.R. HORTON MATERIALS, INC.
 D.R. HORTON VEN,
INC.
 DRH CAMBRIDGE HOMES, INC.
 DRH
CONSTRUCTION, INC.
 DRH REGREM XIV, INC.
 DRH
REGREM XV, INC.
 DRH REGREM XVI, INC.
 DRH REGREM
XVII, INC.
 DRH REGREM XVIII, INC.
 DRH REGREM
XIX, INC.
 DRH REGREM XX, INC.
 DRH REGREM XXI,
INC.
 DRH REGREM XXII, INC.
 DRH REGREM XXIII,
INC.
 DRH REGREM XXIV, INC.
 DRH REGREM XXV,
INC.
 DRH SOUTHWEST CONSTRUCTION, INC.
 DRH
TUCSON CONSTRUCTION, INC.
 KDB HOMES, INC.

MEADOWS I, LTD.
 MEADOWS II, LTD.

MEADOWS VIII, LTD.
 MEADOWS IX, INC.

MEADOWS X, INC.

		 	

  
 S-2 

 
			
	MELMORT CO.
	MELODY HOMES, INC.
	SCHULER HOMES OF CALIFORNIA, INC.
	SCHULER HOMES OF OREGON, INC.
	SCHULER HOMES OF WASHINGTON, INC.
	SCHULER MORTGAGE, INC.
	SCHULER REALTY HAWAII, INC.
	SHLR OF CALIFORNIA, INC.
	SHLR OF COLORADO, INC.
	SHLR OF NEVADA, INC.
	SHLR OF UTAH, INC.
	SHLR OF WASHINGTON, INC.
	VERTICAL CONSTRUCTION CORPORATION
	WESTERN PACIFIC FUNDING, INC.
	WESTERN PACIFIC HOUSING, INC.
	WESTERN PACIFIC HOUSING MANAGEMENT, INC.
		
	By:	 	 
		 	Bill W. Wheat
		 	Executive Vice President and
		 	Chief Financial Officer

  
 S-3 

 
			
	CONTINENTAL HOMES OF TEXAS, L.P.
		
	By:	 	CHTEX of Texas, Inc., its General Partner
		
	By:	 	 
		 	Bill W. Wheat
		 	Executive Vice President and
		 	Chief Financial Officer
	
	D.R. HORTON MANAGEMENT COMPANY, LTD.
	D.R. HORTON – EMERALD, LTD.
	D.R. HORTON – TEXAS, LTD.
	DRH REGREM VII, LP
	DRH REGREM XII, LP
		
	By:	 	Meadows I, Ltd., its General Partner
		
	By:	 	 
		 	Bill W. Wheat
		 	Executive Vice President and
		 	Chief Financial Officer
	
	SGS COMMUNITIES AT GRANDE QUAY, L.L.C.
		
	By:	 	Meadows IX, Inc., a Member
		
	By:	 	 
		 	Bill W. Wheat
		 	Executive Vice President and
		 	Chief Financial Officer
	
	and
		
	By:	 	Meadows X, Inc., a Member
		
	By:	 	 
		 	Bill W. Wheat
		 	Executive Vice President and
		 	Chief Financial Officer

  
 S-4 

 
			
	 DRH CAMBRIDGE HOMES, LLC

D.R. HORTON SERENITY CONSTRUCTION,
LLC

		
	By:	 	D.R. Horton, Inc. – Chicago, its Member
		
	By:	 	  

		 	Bill W. Wheat
		 	Executive Vice President and
		 	Chief Financial Officer

  
 S-5 

 
			
	HPH HOMEBUILDERS 2000 L.P.
	WESTERN PACIFIC HOUSING, L.P.
	WESTERN PACIFIC HOUSING – ANTIGUA, LLC
	WESTERN PACIFIC HOUSING – AVIARA, L.P.
	WESTERN PACIFIC HOUSING –BOARDWALK, LLC
	WESTERN PACIFIC HOUSING – BROADWAY, LLC
	WESTERN PACIFIC HOUSING – CANYON PARK, LLC
	WESTERN PACIFIC HOUSING – CARMEL, LLC
	WESTERN PACIFIC HOUSING – CARRILLO, LLC
	WESTERN PACIFIC HOUSING – COMMUNICATIONS HILL, LLC
	WESTERN PACIFIC HOUSING – COPPER CANYON, LLC
	WESTERN PACIFIC HOUSING – CREEKSIDE, LLC
	WESTERN PACIFIC HOUSING – CULVER CITY, L.P.
	WESTERN PACIFIC HOUSING – DEL VALLE, LLC
	WESTERN PACIFIC HOUSING – LOMAS VERDES, LLC
	WESTERN PACIFIC HOUSING – LOST HILLS PARK, LLC
	WESTERN PACIFIC HOUSING – MCGONIGLE CANYON, LLC
	WESTERN PACIFIC HOUSING – MOUNTAINGATE, L.P.
	WESTERN PACIFIC HOUSING – NORCO ESTATES, LLC
	WESTERN PACIFIC HOUSING – OSO, L.P.
	WESTERN PACIFIC HOUSING – PACIFIC PARK II, LLC
	WESTERN PACIFIC HOUSING – PARK AVENUE EAST, LLC
	WESTERN PACIFIC HOUSING – PARK AVENUE WEST, LLC
	WESTERN PACIFIC HOUSING – PLAYA VISTA, LLC
	WESTERN PACIFIC HOUSING – POINSETTIA, L.P.
	WESTERN PACIFIC HOUSING – RIVER RIDGE, LLC
	WESTERN PACIFIC HOUSING – ROBINHOOD RIDGE, LLC
	WESTERN PACIFIC HOUSING – SANTA FE, LLC
	WESTERN PACIFIC HOUSING – SCRIPPS II, LLC

  
 S-6 

 
			
	WESTERN PACIFIC HOUSING – SCRIPPS, L.P.
	WESTERN PACIFIC HOUSING – SEACOVE, L.P.
	WESTERN PACIFIC HOUSING – STUDIO 528, LLC
	WESTERN PACIFIC HOUSING – TERRA BAY DUETS, LLC
	WESTERN PACIFIC HOUSING – TORRANCE, LLC
	WESTERN PACIFIC HOUSING – TORREY COMMERCIAL, LLC
	WESTERN PACIFIC HOUSING – TORREY MEADOWS, LLC
	WESTERN PACIFIC HOUSING – TORREY MULTI-FAMILY, LLC
	WESTERN PACIFIC HOUSING – TORREY VILLAGE CENTER, LLC
	WESTERN PACIFIC HOUSING – VINEYARD TERRACE, LLC
	WESTERN PACIFIC HOUSING – WINDEMERE, LLC
	WESTERN PACIFIC HOUSING – WINDFLOWER, L.P.
	WPH-CAMINO RUIZ, LLC
		
	By:	 	Western Pacific Housing Management, Inc.,
		 	its Manager, Member or General Partner
		
	By:	 	  

		 	Bill W. Wheat
		 	Executive Vice President and
		 	Chief Financial Officer
	
	SCHULER HOMES OF ARIZONA LLC
	SHA CONSTRUCTION LLC
		
	By:	 	SRHI LLC,
		 	its Member
		
	By:	 	 SHLR of Nevada, Inc.
 its Member

		
	By:	 	  

		 	Bill W. Wheat
		 	Executive Vice President and
		 	Chief Financial Officer

  
 S-7 

 
			
	D.R. HORTON-SCHULER HOMES, LLC
		
	By:	 	Vertical Construction Corporation,
		 	its Manager
		
	By:	 	  

		 	Bill W. Wheat
		 	Executive Vice President and
		 	Chief Financial Officer
	
	SRHI LLC
		
	By:	 	SHLR of Nevada, Inc.,
		 	its Member
		
	By:	 	  

		 	Bill W. Wheat
		 	Executive Vice President and
		 	Chief Financial Officer
	
	SSHI LLC
		
	By:	 	SHLR of Washington, Inc.,
		 	its Member
		
	By:	 	  

		 	Bill W. Wheat
		 	Executive Vice President and
		 	Chief Financial Officer
	
	D.R. HORTON – REGENT, LLC
	DRH REGREM XXVII, LLC
	DRH REGREM XXVIII, LLC
	DRH REGREM XXIX, LLC
	DRH REGREM XXX, LLC
		
	By:	 	D.R. Horton, Inc., its Member
		
	By:	 	  

		 	Bill W. Wheat
		 	Executive Vice President and
		 	Chief Financial Officer

  
 S-8 

			
	AMERICAN STOCK TRANSFER & TRUST
	COMPANY, LLC, as Trustee
		
	By:	 	  

		 	Name:
		 	Title:

  
 S-9 

 EXHIBIT A 

[FORM OF FACE OF SECURITY] 

[Global Security Legend] 

THIS GLOBAL SECURITY IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS SECURITY) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT
OF THE HOLDERS OF BENEFICIAL INTERESTS HEREIN, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE ANY SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO THE INDENTURE, (II) THIS GLOBAL SECURITY
MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06 OF THE BASE INDENTURE, (III) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO THE INDENTURE AND (IV) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. 
 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES
IN DEFINITIVE FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR TO ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH
NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF ANY ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY (AND ANY PAYMENT IS MADE TO SUCH ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITARY), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF HAS AN INTEREST HEREIN. 

  
 A-1 

							
	No.	 		 		    	CUSIP No.:
		 		 		    	    ISIN No.:

 3.750% SENIOR NOTES DUE 2019 

D.R. HORTON, INC. 
 a
Delaware corporation 
 promises to pay to Cede & Co. or registered assigns 

the principal sum of $[            ]
(            ) Dollars on March 1, 2019. 
 Interest Payment Dates: March 1 and
September 1 
 Record Dates: February 15 and August 15 

Dated: 
  

			
	D.R. HORTON, INC.
		
	By:	 	  

		 	Title:
		
	By:	 	  

		 	Title:

  

			
	Authenticated:
	
	American Stock Transfer & Trust Company, LLC, as Trustee, certifies that this is one of the Securities referred to in the within mentioned Indenture.
		
	By:	 	  

		 	Authorized Signatory
		 	

  
 A-2 

 [FORM OF REVERSE SIDE OF SECURITY] 

D.R. HORTON, INC. 

3.750% SENIOR NOTES DUE 2019 

D.R. HORTON, INC., a Delaware corporation (together with its successors and assigns, the “Company”), issued this Security
under an Indenture dated as of May 1, 2012 (as amended, modified or supplemented from time to time in accordance therewith, the “Base Indenture”), as supplemented by the Supplemental Indenture dated as of February 24, 2014
(the “Supplemental Indenture” and together with the Base Indenture, the “Indenture”), by and among the Company, the Guarantors party thereto and American Stock Transfer & Trust Company, LLC, as trustee (in
such capacity, the “Trustee”), to which reference is hereby made for a statement of the respective rights, obligations, duties and immunities thereunder of the Company, the Trustee and the Holders and of the terms upon which the
Securities are, and are to be, authorized and delivered. All terms used in this Security that are defined in the Indenture shall have the meanings assigned to them therein. 
  

	1.	Interest. 

 The Company promises to pay interest on the principal amount of this Security
at the rate per annum shown above. The Company will pay interest semiannually on March 1 and September 1 of each year, commencing September 1, 2014, until the principal is paid or made available for payment. Interest on the Securities
will accrue from the most recent date to which interest has been paid or duly provided for or, if no interest has been paid, from February 24, 2014, provided that, if there is no existing default in the payment of interest, and if this
Security is authenticated between a record date referred to on the face hereof and the next succeeding interest payment date, interest shall accrue from such interest payment date. Interest will be computed on the basis of a 360-day year of twelve
30-day months. 
  

	2.	Method of Payment. 

 The Company will pay interest on the Securities (except defaulted
interest, if any, which will be paid on such special payment date to Holders of record on such special record date as may be fixed by the Company) to the persons who are registered Holders of Securities at the close of business on February 15
or August 15, as the case may be, immediately preceding the applicable interest payment date. Holders must surrender Securities to a Paying Agent to collect principal payments. The Company will pay principal and interest in money of the United
States that at the time of payment is legal tender for payment of public and private debts. 
  

	3.	Paying Agent and Registrar. 

 Initially, the Trustee will act as Paying Agent and
Registrar. The Company may change or appoint any Paying Agent, Registrar or co-Registrar without notice. The Company or any of its Subsidiaries or any of their Affiliates may act as Paying Agent, Registrar or co-Registrar. 

 

	4.	Optional Redemption. 

 The Company may redeem the Securities at any time or from time to
time, in whole or in part. If the Company redeems the Securities at any time prior to December 1, 2018, the redemption price will be equal to the greater of the following amounts: (i) 100% of their principal amount of the Securities being
redeemed; and (ii) the present value of the Remaining Scheduled Payments on the Securities being 

  
 A-3 

 
redeemed on the redemption date, discounted to the redemption date, on a semiannual basis, at the Treasury Rate plus 50 basis points (0.50%), plus, in each case, accrued and unpaid interest on
such Securities to the redemption date. If the Company redeems the Securities on or after December 1, 2018, the redemption price will be equal to 100% of the principal amount of the Securities being redeemed plus accrued and unpaid interest on
such Securities to the redemption date. In determining the redemption price and accrued interest, interest shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. 

Notice of redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each Holder of Securities to be
redeemed at its registered address. Securities in denominations larger than $2,000 may be redeemed in part. On and after the redemption date interest ceases to accrue on Securities or portions of them called for redemption, provided that if
the Company shall default in the payment of such Securities at the redemption price together with accrued interest, interest shall continue to accrue at the rate borne by the Securities. 

 

	5.	Denominations, Transfer, Exchange. 

 The Securities are in registered form only without
coupons in denominations of $2,000 and integral multiples of $1,000 in excess thereof. A Holder may transfer or exchange Securities by presentation of such Securities to the Registrar or a co-Registrar with a request to register the transfer or to
exchange them for an equal principal amount of Securities of other denominations. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or
permitted by the Indenture. The Registrar need not transfer or exchange any Security selected for redemption or purchase, except the unredeemed or unpurchased part thereof if the Security is redeemed or purchased in part, or transfer or exchange any
Securities for a period of 15 days before a selection of Securities to be redeemed or purchased. 
  

	6.	Persons Deemed Owners. 

 The registered Holder of this Security shall be treated as the
owner of it for all purposes. 
  

	7.	Unclaimed Money. 

 Subject to any applicable abandoned property law, the Trustee and the
Paying Agent shall pay to the Company upon written request any money held by them for the payment of principal or interest that remains unclaimed for two years, and thereafter, Holders entitled to the money must look to the Company for payment as
general creditors. 
  

	8.	Amendment, Supplement, Waiver. 

 Subject to certain exceptions, the Indenture or the
Securities may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the outstanding Securities of each Series affected by the amendment and any past default or compliance with any provision
relating to any Series of the Securities may be waived in a particular instance with the consent of the Holders of a majority in principal amount of the outstanding Securities of such Series. Without the consent of any Securityholder, the Company
and the Trustee may amend or supplement the Indenture or the Securities in certain respects as specified in the Indenture. 

  
 A-4 

	9.	Successor. 

 When a successor assumes all the obligations of its predecessor under the
Securities and the Indenture, the predecessor will be released from those obligations. 
  

	10.	Trustee Dealings With Company. 

 Subject to certain limitations imposed by the TIA, the
Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its affiliates, and may otherwise deal with the Company or its affiliates, as if it were not
Trustee, including owning or pledging the Securities. 
  

	11.	No Recourse Against Others. 

 A director, officer, employee or stockholder, as such, of
the Company shall not have any liability for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of, such obligations or their creation. Each Holder by accepting a Security
waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Securities. The waiver may not be effective to waive liabilities under the federal securities laws. 

 

	12.	Discharge of Indenture. 

 The Indenture contains certain provisions pertaining to
defeasance and discharge, which provisions shall for all purposes have the same effect as if set forth herein. 
  

	13.	Authentication. 

 This Security shall not be valid until an authorized signatory of the
Trustee signs the certificate of authentication on the other side of this Security. 
  

	14.	Abbreviations. 

 Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= custodian), and U/G/M/A (= Uniform Gift to Minors Act). 

 

	15.	GOVERNING LAW. 

 THIS SECURITY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK. 
  

	16.	CUSIP and ISIN Numbers. 

 Pursuant to a recommendation promulgated by the Committee on
Uniform Security Identification Procedures, the Company has caused CUSIP and ISIN numbers to be printed on the Securities and has directed the Trustee to use CUSIP and ISIN numbers in notices of repurchase as a convenience to Holders. No
representation is made as to the accuracy of such numbers either as printed on the Securities or as contained in any notice of repurchase and reliance may be placed only on the other identification numbers placed thereon. 

  
 A-5 

	17.	Copies. 

 The Company will furnish to any Holder upon written request and without charge
a copy of the Indenture and the applicable Authorizing Resolution or supplemental indenture. Requests may be made to: D.R. Horton, Inc., 301 Commerce St., Suite 500, Fort Worth, Texas 76102, Attention: Chief Financial Officer. 

 

	18.	Change of Control Triggering Event. 

 In the event that there shall occur a Change of
Control Triggering Event, except as otherwise provided in the Indenture, the Company shall make an offer to each Holder of the Securities to purchase all or any part of such Holder’s Securities at 101% of the principal amount thereof plus
accrued and unpaid interest to the date of purchase in accordance with the procedures set forth in the Indenture. 
  

	19.	Defaults and Remedies. 

 The Events of Default relating to the Securities are defined in
Article Six of the Base Indenture as modified by the Supplemental Indenture. Upon the occurrence of an Event of Default, the rights and obligations of the Company and the Holders shall be as set forth in the Indenture. 

  
 A-6 

 ASSIGNMENT FORM 

If you the Holder want to assign this Security, fill in the form below: 
  

					
		  	I or we assign and transfer this Security to	  	
			
		  	  
	  	
		  	(Insert assignee’s social security or tax ID number)	  	
			
		  	  
	  	
			
		  	  
	  	
			
		  	  
	  	
			
		  	  
	  	
		  	(Print or type assignee’s name, address, and zip code)	  	

 and irrevocably appoint 
 agent
to transfer this Security on the books of the Company. The agent may substitute another to act for him. 
  

			
	Date:                                   
      

  

			
	Your
signature:                                       
                            
	
	(Sign exactly as your name appears on the other side of this Security)
	
	Signature Guarantee:                                
                         

 Signatures must be guaranteed by an “eligible guarantor institution” meeting the requirements of the
Security Registrar, which requirements include membership or participation in the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Security Registrar in
addition to, or in substitution for, STAMP, all in accordance with the United States Securities Exchange Act of 1934, as amended. 

  
 A-7 

 EXHIBIT B 

[FORM OF NOTATION ON SECURITY OF GUARANTEE] 

GUARANTEE 
 The
undersigned (the “Guarantors”) have unconditionally guaranteed, jointly and severally (such guarantee by each Guarantor being referred to herein as the “Guarantee”) (i) the due and punctual payment of the
principal of and interest on this Security, whether at maturity, by acceleration or otherwise, the due and punctual payment of interest on the overdue principal and interest, if any, on this Security, to the extent lawful, and the due and punctual
performance of all other obligations of the Company to the Holders or the Trustee all in accordance with the terms set forth in Article Nine of the Base Indenture and (ii) in case of any extension of time of payment or renewal of this
Security or any of such other obligations, that the same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. 

No past, present or future stockholder, officer, director, employee, incorporator, partner, member or manager, as such, of any of the
Guarantors shall have any liability under the Guarantee by reason of such person’s status as stockholder, officer, director, employee, incorporator, partner, member or manager. Each Holder of a Security by accepting a Security waives and
releases all such liability. This waiver and release are part of the consideration for the issuance of the Guarantees. 
 Each Holder of
this Security by accepting this Security agrees that any Guarantor named below shall have no further liability with respect to its Guarantee if such Guarantor otherwise ceases to be liable in respect of its Guarantee in accordance with the terms of
the Indenture. 
 THE GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

The Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication on the Securities upon which the
Guarantee is noted shall have been executed by the Trustee under the Indenture by the manual signature of one of its authorized officers. 
  

			
	[Signature of Guarantor(s)]
		
	By:	 	  

		 	Name:
		 	Title
		
	By:	 	  

		 	Name:
		 	Title

  
 B-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00226-of-00352.parquet"}]]