Document:

EX-10.1

 Exhibit 10.1 

Execution Copy 

REGISTRATION RIGHTS AGREEMENT 

BY AND AMONG 
 TEEKAY
OFFSHORE PARTNERS L.P. 
 AND 

THE INVESTORS NAMED ON SCHEDULE A HERETO 

 TABLE OF CONTENTS 

 

							
	ARTICLE I DEFINITIONS	  	 	1	  
			
	 Section 1.01
	 	 Definitions
	  	 	1	  
	 Section 1.02
	 	 Registrable Securities
	  	 	3	  
		
	ARTICLE II REGISTRATION RIGHTS	  	 	3	  
			
	 Section 2.01
	 	 Registration
	  	 	3	  
	 Section 2.02
	 	 Piggyback Rights
	  	 	4	  
	 Section 2.03
	 	 Delay Rights
	  	 	6	  
	 Section 2.04
	 	 Underwritten Offerings
	  	 	7	  
	 Section 2.05
	 	 Sale Procedures
	  	 	8	  
	 Section 2.06
	 	 Cooperation by Holders
	  	 	11	  
	 Section 2.07
	 	 Restrictions on Public Sale by Holders of Registrable Securities
	  	 	11	  
	 Section 2.08
	 	 Expenses
	  	 	12	  
	 Section 2.09
	 	 Indemnification
	  	 	12	  
	 Section 2.10
	 	 Rule 144 Reporting
	  	 	15	  
	 Section 2.11
	 	 Transfer or Assignment of Registration Rights
	  	 	15	  
	 Section 2.12
	 	 Limitation on Subsequent Registration Rights
	  	 	15	  
	 Section 2.13
	 	 Compliance
	  	 	15	  
	 Section 2.14
	 	 Information
	  	 	15	  
		
	ARTICLE III MISCELLANEOUS	  	 	16	  
			
	 Section 3.01
	 	 Communications
	  	 	16	  
	 Section 3.02
	 	 Successor and Assigns
	  	 	16	  
	 Section 3.03
	 	 Assignment of Rights
	  	 	16	  
	 Section 3.04
	 	 Recapitalization, Exchanges, Etc. Affecting the Units
	  	 	17	  
	 Section 3.05
	 	 Aggregation of Registrable Securities
	  	 	17	  
	 Section 3.06
	 	 Specific Performance
	  	 	17	  
	 Section 3.07
	 	 Counterparts
	  	 	17	  
	 Section 3.08
	 	 Headings
	  	 	17	  
	 Section 3.09
	 	 Governing Law
	  	 	17	  
	 Section 3.10
	 	 Severability of Provisions
	  	 	17	  
	 Section 3.11
	 	 Entire Agreement
	  	 	17	  
	 Section 3.12
	 	 Amendment
	  	 	18	  
	 Section 3.13
	 	 No Presumption
	  	 	18	  
	 Section 3.14
	 	 Obligations Limited to Parties to Agreement
	  	 	18	  
	 Section 3.15
	 	 Interpretation
	  	 	18	  

 Schedule A – Investor List; Notice and Contact
Information; Opt-Out 

 REGISTRATION RIGHTS AGREEMENT 

This REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made and entered into as of December 20, 2013, by and among
Teekay Offshore Partners L.P., a Marshall Islands limited partnership (the “Partnership”), and each of the Persons set forth on Schedule A to this Agreement (each, an “Investor” and collectively, the
“Investors”). 
 WHEREAS, this Agreement is made in connection with the entry into that certain Common Unit Purchase
Agreement, dated December 19, 2013, by and among the Partnership and the Investors (the “Common Unit Purchase Agreement”); and 

WHEREAS, the Partnership has agreed to provide the registration and other rights set forth in this Agreement for the benefit of the Investors
pursuant to the Common Unit Purchase Agreement. 
 NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein
and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by each party hereto, the parties hereby agree as follows: 

ARTICLE I 
 DEFINITIONS

 Section 1.01 Definitions. Capitalized terms used herein without definition shall have the meanings given to them in the
Common Unit Purchase Agreement. The terms set forth below are used herein as so defined: 
 “Affiliate” means, with respect
to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession,
direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 

“Agreement” has the meaning specified therefor in the introductory paragraph of this Agreement. 

“Commission” means the U.S. Securities and Exchange Commission. 

“Common Unit Purchase Agreement” has the meaning specified therefor in the recitals of this Agreement. 

“Effectiveness Period” has the meaning specified therefor in Section 2.01(a) of this Agreement. 

“General Partner” means Teekay Offshore GP L.L.C., a Marshall Islands limited liability company. 

“Holder” means the record holder of any Registrable Securities. 

  
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 “Included Registrable Securities” has the meaning specified therefor in
Section 2.02(a) of this Agreement. 
 “Investor” and “Investors” have the meanings specified
therefor in the introductory paragraph of this Agreement. 
 “Liquidated Damages” has the meaning specified therefor in
Section 2.01(b) of this Agreement. 
 “Liquidated Damages Multiplier” means the product of the Common Unit
Price times the number of Purchased Units purchased by such Investor and that may not be disposed of without restriction pursuant to any section of Rule 144 (or any similar provision then in effect) under the Securities Act. 

“Losses” has the meaning specified therefor in Section 2.09(a) of this Agreement. 

“Managing Underwriter” means, with respect to any Underwritten Offering, the book-running lead manager of such Underwritten
Offering. 
 “Opt-Out Notice” has the meaning specified therefor in Section 2.02(a) of this Agreement. 

“Parity Securities” has the meaning specified therefor in Section 2.02(b) of this Agreement. 

“Partnership” has the meaning specified therefor in the introductory paragraph of this Agreement. 

“Person” means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated
organization, association, government agency or political subdivision thereof or other entity. 
 “Registrable Securities”
means (i) the Common Units to be acquired by the Investors pursuant to the Common Unit Purchase Agreement and (ii) any Common Units issued as Liquidated Damages pursuant to Section 2.01(b) of this Agreement. 

“Registration Expenses” has the meaning specified therefor in Section 2.08(b) of this Agreement. 

“Registration Statement” has the meaning specified therefor in Section 2.01(a) of this Agreement. 

“Selling Expenses” has the meaning specified therefor in Section 2.08(b) of this Agreement. 

“Selling Holder” means a Holder who is selling Registrable Securities pursuant to a registration statement. 

  
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 “Selling Holder Indemnified Persons” has the meaning specified therefor in
Section 2.09(a) of this Agreement. 
 “Underwritten Offering” means an offering (including an offering pursuant
to a Registration Statement) in which Common Units are sold to an underwriter on a firm commitment basis for reoffering to the public or an offering that is a “bought deal” with one or more investment banks. 

Section 1.02 Registrable Securities. Any Registrable Security will cease to be a Registrable Security (a) when a registration
statement covering such Registrable Security becomes or has been declared effective by the Commission and such Registrable Security has been sold or disposed of pursuant to such effective registration statement; (b) when such Registrable
Security has been disposed of pursuant to any section of Rule 144 (or any similar provision then in effect) under the Securities Act; (c) when such Registrable Security is held by the Partnership or one of its subsidiaries or Affiliates;
(d) when such Registrable Security has been sold or disposed of in a private transaction in which the transferor’s rights under this Agreement are not assigned to the transferee of such securities pursuant to Section 2.11
hereof; or (e) when such Registrable Security becomes eligible for resale without restriction and without the need for current public information pursuant to any section of Rule 144 (or any similar provision then in effect) under the Securities
Act, assuming the Holder of such Registrable Security is not an affiliate (as defined in Rule 144(a)(1)) of the Partnership. 
 ARTICLE II

 REGISTRATION RIGHTS 

Section 2.01 Registration. 

(a) Effectiveness Deadline. Following the date hereof, but no later than 30 days following the Closing Date, the Partnership shall
prepare and file a registration statement (the “Registration Statement”) under the Securities Act with respect to all of the Registrable Securities. The Registration Statement filed pursuant to this Section 2.01(a) shall
be on such appropriate registration form of the Commission as shall be selected by the Partnership. The Partnership shall use its commercially reasonable efforts to cause the Registration Statement to become effective on or as soon as practicable
after the Closing Date. Any Registration Statement shall provide for the resale pursuant to any method or combination of methods legally available to, and reasonably requested by, the Holders of any and all Registrable Securities covered by such
Registration Statement. The Partnership shall use its commercially reasonable efforts to cause the Registration Statement filed pursuant to this Section 2.01(a) to be effective, supplemented and amended to the extent necessary to ensure
that it is available for the resale of all Registrable Securities by the Holders until all Registrable Securities covered by such Registration Statement have ceased to be Registrable Securities (the “Effectiveness Period”). The
Registration Statement when effective (including the documents incorporated therein by reference) will comply as to form in all material respects with all applicable requirements of the Securities Act and the Exchange Act and will, when it becomes
effective, not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any prospectus contained in such Registration
Statement, in the light of the circumstances under which a statement is 

  
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made). As soon as practicable following the date that the Registration Statement becomes effective, but in any event within two (2) Business Days of such date, the Partnership shall provide
the Holders with written notice of the effectiveness of the Registration Statement. 
 (b) Failure to Go Effective. If the
Registration Statement required by Section 2.01(a) is not declared effective within 90 days after the Closing Date, then each Holder shall be entitled to a payment (with respect to the Purchased Units of each such Holder), as liquidated
damages and not as a penalty, of 0.25% of the Liquidated Damages Multiplier per 30-day period, that shall accrue daily, for the first 60 days following the 90th day after the Closing Date, increasing by an additional 0.25% of the Liquidated Damages
Multiplier per 30-day period following the 60th date after such 90th day, that shall accrue daily, for each subsequent 30 days, up to a maximum of 1.00% of the Liquidated Damages Multiplier per
30-day period (the “Liquidated Damages”); provided, however, that the aggregate amount of Liquidated Damages payable by the Partnership per Purchased Unit may not exceed 5.0% of the Common Unit Price. The Liquidated
Damages payable pursuant to the immediately preceding sentence shall be payable within ten (10) Business Days after the end of each such 30-day period. Any Liquidated Damages shall be paid to each Holder in immediately available funds;
provided, however, if the Partnership certifies that it is unable to pay Liquidated Damages in cash because such payment would result in a breach under a credit facility or other debt instrument, then the Partnership shall pay such
Liquidated Damages using as much cash as permitted without breaching any such credit facility or other debt instrument and shall pay the balance of any such Liquidated Damages in kind in the form of the issuance of additional Common Units. Upon any
issuance of Common Units as Liquidated Damages, the Partnership shall promptly (i) prepare and file an amendment to the Registration Statement prior to its effectiveness adding such Common Units to such Registration Statement as additional
Registrable Securities and (ii) prepare and file a supplemental listing application with the NYSE to list such additional Common Units. The determination of the number of Common Units to be issued as Liquidated Damages shall be equal to the
amount of Liquidated Damages divided by the volume-weighted average closing price of the Common Units on the NYSE for the ten (10) trading days immediately preceding the date on which the Liquidated Damages payment is due, less a discount to
such average closing price of 2.00%. The payment of Liquidated Damages to a Holder shall cease at the earlier of (i) the Registration Statement becoming effective or (ii) the Purchased Units of such Holder becoming eligible for resale
without restriction under any section of Rule 144 (or any similar provision then in effect) under the Securities Act, assuming that each Holder is not an Affiliate of the Partnership, and any payment of Liquidated Damages shall be prorated for any
period of less than 30 days in which the payment of Liquidated Damages ceases. If the Partnership is unable to cause a Registration Statement to go effective within 180 days after the Closing Date as a result of an acquisition, merger,
reorganization, disposition or other similar transaction, then the Partnership may request a waiver of the Liquidated Damages, and each Holder may individually grant or withhold its consent to such request in its discretion. The foregoing Liquidated
Damages shall be the sole and exclusive remedy of the Holders for any failure of the Registration Statement to be declared effective. 

Section 2.02 Piggyback Rights 

(a) Participation. In the event the Registrable Securities may not be disposed of without restriction pursuant to any section of Rule
144 (or any similar provision then in effect) 

  
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under the Securities Act, if the Partnership proposes to file (i) a prospectus supplement to an existing or future effective shelf registration statement, other than the Registration
Statement contemplated by Section 2.01(a) of this Agreement and Holders may be included without the filing of a post-effective amendment thereto, or (iii) a registration statement, other than a shelf registration statement, in each
case, for the sale of Common Units in an Underwritten Offering for its own account and/or another Person, then as soon as practicable following the engagement of counsel by the Partnership to prepare the documents to be used in connection with an
Underwritten Offering, the Partnership shall give notice (which may include, without limitation, notification by electronic mail) of such proposed Underwritten Offering to each Holder that, together with its Affiliates, holds in the aggregate at
least $10.0 million of the then-outstanding Registrable Securities (based on the Common Unit Price) and such notice shall offer such Holders the opportunity to include in such Underwritten Offering such number of Registrable Securities (the
“Included Registrable Securities”) as each such Holder may request in writing; provided, however, that (i) the Partnership shall not be required to provide such opportunity to any such Holder that does not offer a
minimum of $10.0 million of Registrable Securities (based on the Common Unit Price), or (ii) if the Partnership has been advised by the Managing Underwriter that the inclusion of Registrable Securities for sale for the benefit of the Holders
will have an adverse effect on the price, timing or distribution of the Common Units in the Underwritten Offering, then (A) the Partnership shall not be required to offer such opportunity to the Holders or (B) if any Registrable Securities
can be included in the Underwritten Offering in the opinion of the Managing Underwriter, then the amount of Registrable Securities to be offered for the accounts of Holders shall be determined based on the provisions of Section 2.02(b).
Any notice required to be provided in this Section 2.02(a) to Holders shall be provided on a Business Day pursuant to Section 3.01 hereof. Each such Holder described in the proviso of the immediately preceding sentence shall
then have two (2) Business Days (or one (1) Business Day in connection with any overnight or bought Underwritten Offering) after notice has been delivered to request in writing the inclusion of Registrable Securities in the Underwritten
Offering. If no written request for inclusion from such a Holder is received within the specified time, each such Holder shall have no further right to participate in such Underwritten Offering. If, at any time after giving written notice of its
intention to undertake an Underwritten Offering and prior to the closing of such Underwritten Offering, the Partnership shall determine for any reason not to undertake or to delay such Underwritten Offering, the Partnership may, at its election,
give written notice of such determination to the Selling Holders and, (x) in the case of a determination not to undertake such Underwritten Offering, shall be relieved of its obligation to include any Included Registrable Securities in
connection with such terminated Underwritten Offering, and (y) in the case of a determination to delay such Underwritten Offering, shall be permitted to delay offering any Included Registrable Securities for the same period as the delay in the
Underwritten Offering. Any Selling Holder shall have the right to withdraw such Selling Holder’s request for inclusion of such Selling Holder’s Registrable Securities in such Underwritten Offering by giving written notice to the
Partnership of such withdrawal at or prior to the time of pricing of such Underwritten Offering. Any Holder may deliver written notice (an “Opt-Out Notice”) to the Partnership requesting that such Holder not receive notice from the
Partnership of any proposed Underwritten Offering; provided, however, that such Holder may later revoke any such Opt-Out Notice in writing. Following receipt of an Opt-Out Notice from a Holder (unless subsequently revoked), the Partnership
shall not be required to deliver any notice to such Holder pursuant to this Section 2.02(a) and such Holder shall no longer be entitled to 

  
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participate in Underwritten Offerings by the Partnership pursuant to this Section 2.02(a). Each of the Holders on Schedule A hereto who has indicated it is delivering an
Opt-Out Notice shall be deemed to have delivered an Opt-Out Notice as of the date hereof. 
 (b) Priority. If the Managing
Underwriter or Underwriters of any proposed Underwritten Offering advise the Partnership that the total amount of Registrable Securities that the Selling Holders and any other Persons intend to include in such offering exceeds the number that can be
sold in such offering without being likely to have an adverse effect on the price, timing or distribution of the Common Units offered or the market for the Common Units, then the Common Units to be included in such Underwritten Offering shall
include the number of Registrable Securities that such Managing Underwriter or Underwriters advise the Partnership can be sold without having such adverse effect, with such number to be allocated (i) first, to the Partnership, (ii) second,
to Teekay and its Affiliates pursuant to any registration rights existing as of the date of this Agreement and (iii) third, pro rata among the Selling Holders who have requested participation in such Underwritten Offering and any other holder
of securities of the Partnership (other than Teekay and its Affiliates) having rights of registration that are neither expressly senior nor subordinated to the Registrable Securities (the “Parity Securities”). The pro rata
allocations pursuant to clause (iii) above for each Selling Holder who has requested participation in such Underwritten Offering shall be the product of (a) the aggregate number of Registrable Securities proposed to be sold in such
Underwritten Offering multiplied by (b) the fraction derived by dividing (x) the number of Registrable Securities owned on the Closing Date by such Selling Holder by (y) the aggregate number of Registrable Securities owned on the
Closing Date by all Selling Holders who have requested participation in such Underwritten Offering plus the aggregate number of Parity Securities owned on the Closing Date by all holders of Parity Securities that are participating in the
Underwritten Offering. 
 (c) Termination of Piggyback Registration Rights. Each Holder’s rights under Section 2.02
shall terminate upon such Holder (together with its Affiliates) ceasing to hold at least $10.0 million of Registrable Securities (based on the Common Unit Price). 

Section 2.03 Delay Rights. 

Notwithstanding anything to the contrary contained herein, the Partnership may, upon written notice to any Selling Holder whose Registrable
Securities are included in the Registration Statement or other registration statement contemplated by this Agreement, suspend such Selling Holder’s use of any prospectus which is a part of the Registration Statement or other registration
statement (in which event the Selling Holder shall discontinue sales of the Registrable Securities pursuant to the Registration Statement or other registration statement contemplated by this Agreement but may settle any previously made sales of
Registrable Securities) if (i) the Partnership is pursuing an acquisition, merger, reorganization, disposition or other similar transaction and the Partnership determines in good faith that the Partnership’s ability to pursue or consummate
such a transaction would be materially adversely affected by any required disclosure of such transaction in the Registration Statement or other registration statement or (ii) the Partnership has experienced or is undertaking some other material
non-public event, the disclosure of which at such time, in the good faith judgment of the Partnership, would materially adversely affect the Partnership; provided, however, in no event shall the Selling Holders be suspended from selling
Registrable Securities pursuant to the Registration Statement or other 

  
 6 

 
registration statement for a period that exceeds an aggregate of 60 days in any 180-day period or 105 days in any 365-day period, in each case, exclusive of days covered by any lock-up agreement
executed by a Selling Holder in connection with any Underwritten Offering. Upon disclosure of such information or the termination of the condition described above, the Partnership shall provide prompt notice to the Selling Holders whose Registrable
Securities are included in the Registration Statement, and shall promptly terminate any suspension of sales it has put into effect and shall take such other reasonable actions to permit registered sales of Registrable Securities as contemplated in
this Agreement. 
 If (i) the Selling Holders shall be prohibited from selling their Registrable Securities under the Registration
Statement or other registration statement contemplated by this Agreement as a result of a suspension pursuant to the immediately preceding paragraph in excess of the periods permitted therein or (ii) the Registration Statement or other
registration statement contemplated by this Agreement is filed and declared effective but, during the Effectiveness Period, shall thereafter cease to be effective or fail to be usable for its intended purpose without being succeeded within 60
Business Days by a post-effective amendment thereto, a supplement to the prospectus or a report filed with the Commission pursuant to Section 13(a), 13(c), 14 or l5(d) of the Exchange Act, then, until the suspension is lifted or a
post-effective amendment, supplement or report is filed with the Commission, but not including any day on which a suspension is lifted or such amendment, supplement or report is filed and declared effective, if applicable, the Partnership shall pay
the Selling Holders an amount equal to the Liquidated Damages, following the earlier of, as applicable, (x) the date on which the suspension period exceeded the permitted period under the immediately preceding paragraph and (y) the
sixty-first (61st) Business Day after the Registration Statement or other registration statement contemplated by this Agreement ceased to be effective or failed to be useable for its intended purposes, as liquidated damages and not as a penalty
(for purposes of calculation Liquidated Damages, the date in (x) or (y) above shall be deemed the “90th day,” as used in the definition of Liquidated Damages). For purposes of this paragraph, a suspension shall be deemed lifted
on the date that notice that the suspension has been terminated is delivered to each Selling Holder. Liquidated Damages pursuant to this paragraph also shall cease upon the Purchased Units of such Holder becoming eligible for resale without
restriction under any section of Rule 144 (or any similar provision then in effect) under the Securities Act, assuming that each Holder is not an Affiliate of the Partnership, and any payment of Liquidated Damages shall be prorated for any period of
less than 30 days in which the payment of Liquidated Damages ceases. The foregoing Liquidated Damages shall be the sole and exclusive remedy of the Holders for any suspension period or of the registration statement ceasing to be effective or failing
to be useable for its intended purposes as described in this Section 2.03. 
 Section 2.04 Underwritten Offerings

 (a) General Procedures. In connection with any Underwritten Offering under this Agreement, the Partnership shall be entitled to
select the Managing Underwriter or Underwriters. In connection with an Underwritten Offering contemplated by this Agreement in which a Selling Holder participates, each Selling Holder and the Partnership shall be obligated to enter into an
underwriting agreement that contains such representations, covenants, indemnities and other rights and obligations as are customary in underwriting agreements for firm commitment offerings of securities. No Selling Holder may participate in such
Underwritten Offering unless 

  
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such Selling Holder agrees to sell its Registrable Securities on the basis provided in such underwriting agreement and completes and executes all questionnaires, powers of attorney, indemnities
and other documents reasonably required under the terms of such underwriting agreement. Each Selling Holder may, at its option, require that any or all of the representations and warranties by, and the other agreements on the part of, the
Partnership to and for the benefit of such underwriters also be made to and for such Selling Holder’s benefit and that any or all of the conditions precedent to the obligations of such underwriters under such underwriting agreement also be
conditions precedent to its obligations. No Selling Holder shall be required to make any representations or warranties to or agreements with the Partnership or the underwriters other than representations, warranties or agreements regarding such
Selling Holder, its authority to enter into such underwriting agreement and to sell, and its ownership of, the securities being registered on its behalf, its intended method of distribution and any other representation required by Law or customary
for such an Underwritten Offering. If any Selling Holder disapproves of the terms of an underwriting, such Selling Holder may elect to withdraw therefrom by notice to the Partnership and the Managing Underwriter; provided, however, that such
withdrawal must be made up to and including the time of pricing of such Underwritten Offering. No such withdrawal or abandonment shall affect the Partnership’s obligation to pay Registration Expenses. The Partnership’s management may but
shall not be required to participate in a roadshow or similar marketing effort in connection with any Underwritten Offering. 
 (b) No
Demand Rights. Notwithstanding any other provision of this Agreement, no Holder shall be entitled to any “demand” rights or similar rights that would require the Partnership to effect an Underwritten Offering solely on behalf of the
Holders. 
 Section 2.05 Sale Procedures. In connection with its obligations under this Article II, the Partnership will,
as expeditiously as possible: 
 (a) prepare and file with the Commission such amendments and supplements to the Registration Statement and
the prospectus used in connection therewith as may be necessary to keep the Registration Statement effective for the Effectiveness Period and as may be necessary to comply with the provisions of the Securities Act with respect to the disposition of
all Registrable Securities covered by the Registration Statement; 
 (b) if a prospectus supplement will be used in connection with the
marketing of an Underwritten Offering from the Registration Statement and the Managing Underwriter at any time shall notify the Partnership in writing that, in the reasonable judgment of such Managing Underwriter, inclusion of detailed information
to be used in such prospectus supplement is of material importance to the success of the Underwritten Offering of such Registrable Securities, the Partnership shall use its commercially reasonable efforts to include such information in such
prospectus supplement; 
 (c) furnish to each Selling Holder (i) as far in advance as reasonably practicable before filing the
Registration Statement or any other registration statement contemplated by this Agreement or any supplement or amendment thereto, upon request, copies of reasonably complete drafts of all such documents proposed to be filed (including exhibits and
each document incorporated by reference therein to the extent then required by the rules and regulations of the Commission), and provide each such Selling Holder the opportunity to object 

  
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to any information pertaining to such Selling Holder and its plan of distribution that is contained therein and make the corrections reasonably requested by such Selling Holder with respect to
such information prior to filing the Registration Statement or such other registration statement or supplement or amendment thereto, and (ii) such number of copies of the Registration Statement or such other registration statement and the
prospectus included therein and any supplements and amendments thereto as such Selling Holder may reasonably request in order to facilitate the public sale or other disposition of the Registrable Securities covered by such Registration Statement or
other registration statement; 
 (d) if applicable, use its commercially reasonable efforts to register or qualify the Registrable
Securities covered by the Registration Statement or any other registration statement contemplated by this Agreement under the securities or blue sky laws of such jurisdictions as the Selling Holders or, in the case of an Underwritten Offering, the
Managing Underwriter, shall reasonably request; provided, however, that the Partnership will not be required to qualify generally to transact business in any jurisdiction where it is not then required to so qualify or to take any action that
would subject it to general service of process in any such jurisdiction where it is not then so subject; 
 (e) promptly notify each Selling
Holder, at any time when a prospectus relating thereto is required to be delivered by any of them under the Securities Act, of (i) the filing of the Registration Statement or any other registration statement contemplated by this Agreement or
any prospectus or prospectus supplement to be used in connection therewith, or any amendment or supplement thereto, and, with respect to such Registration Statement or any other registration statement or any post-effective amendment thereto, when
the same has become effective; and (ii) the receipt of any written comments from the Commission with respect to any filing referred to in clause (i) of this Section 2.05(f) and any written request by the Commission for
amendments or supplements to the Registration Statement or any other registration statement or any prospectus or prospectus supplement thereto; 

(f) immediately notify each Selling Holder, at any time when a prospectus relating thereto is required to be delivered under the Securities
Act, of (i) the happening of any event as a result of which the prospectus or prospectus supplement contained in the Registration Statement or any other registration statement contemplated by this Agreement, as then in effect, includes an
untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any prospectus contained therein, in the light of the circumstances
under which such statement is made); (ii) the issuance or threat of issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or any other registration statement contemplated by this Agreement, or
the initiation of any proceedings for that purpose; or (iii) the receipt by the Partnership of any notification with respect to the suspension of the qualification of any Registrable Securities for sale under the applicable securities or blue
sky laws of any jurisdiction. Following the provision of such notice, the Partnership agrees to as promptly as practicable amend or supplement the prospectus or prospectus supplement or take other appropriate action so that the prospectus or
prospectus supplement does not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading in the light of the circumstances then existing
and to take such other commercially reasonable action as is necessary to remove a stop order, suspension, threat thereof or proceedings related thereto; 

  
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 (g) upon request and subject to appropriate confidentiality obligations, furnish to each Selling
Holder copies of any and all transmittal letters or other correspondence with the Commission or any other governmental agency or self-regulatory body or other body having jurisdiction (including any domestic or foreign securities exchange) relating
to such offering of Registrable Securities; 
 (h) in the case of an Underwritten Offering, furnish upon request, (i) an opinion of
counsel for the Partnership dated the date of the closing under the underwriting agreement and (ii) a “cold comfort” letter, dated the pricing date of such Underwritten Offering and a letter of like kind dated the date of the closing
under the underwriting agreement, in each case, signed by the independent public accountants who have certified the Partnership’s financial statements included or incorporated by reference into the applicable registration statement, and each of
the opinion and the “cold comfort” letter shall be in customary form and covering substantially the same matters with respect to such registration statement (and the prospectus and any prospectus supplement included therein) as have been
customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to the underwriters in Underwritten Offerings of securities by the Partnership and such other matters as such underwriters may reasonably request;

 (i) otherwise use its commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make
available to its security holders, as soon as reasonably practicable, an earnings statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities Act and Rule 158 promulgated thereunder; 

(j) make available to the appropriate representatives of the Managing Underwriter and Selling Holders access to such information and
Partnership personnel as is reasonable and customary to enable such parties to establish a due diligence defense under the Securities Act; provided, however, that the Partnership need not disclose any non-public information to any such
representative unless and until such representative has entered into a confidentiality agreement with the Partnership; 
 (k) cause all such
Registrable Securities registered pursuant to this Agreement to be listed on each securities exchange or nationally recognized quotation system on which similar securities issued by the Partnership are then listed; 

(l) use its commercially reasonable efforts to cause the Registrable Securities to be registered with or approved by such other governmental
agencies or authorities as may be necessary by virtue of the business and operations of the Partnership to enable the Selling Holders to consummate the disposition of such Registrable Securities; 

(m) provide a transfer agent and registrar for all Registrable Securities covered by such registration statement not later than the effective
date of such registration statement; 
 (n) enter into customary agreements and take such other actions as are reasonably requested by the
Selling Holders or the underwriters, if any, in order to expedite or facilitate the disposition of such Registrable Securities; and 

  
 10 

 (o) if requested by a Selling Holder, (i) incorporate in a prospectus supplement or
post-effective amendment such information as such Selling Holder reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including information with respect to the number of Registrable Securities
being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering and (ii) make all required filings of such prospectus supplement or post-effective
amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment. 
 Each Selling
Holder, upon receipt of notice from the Partnership of the happening of any event of the kind described in subsection (f) of this Section 2.05, shall forthwith discontinue offers and sales of the Registrable Securities by
means of a prospectus or prospectus supplement until such Selling Holder’s receipt of the copies of the supplemented or amended prospectus contemplated by subsection (f) of this Section 2.05 or until it is advised in
writing by the Partnership that the use of the prospectus may be resumed and has received copies of any additional or supplemental filings incorporated by reference in the prospectus, and, if so directed by the Partnership, such Selling Holder will,
or will request the Managing Underwriter or Underwriters, if any, to deliver to the Partnership (at the Partnership’s expense) all copies in their possession or control, other than permanent file copies then in such Selling Holder’s
possession, of the prospectus covering such Registrable Securities current at the time of receipt of such notice. 
 Section 2.06
Cooperation by Holders; No Conflict. Notwithstanding anything to the contrary, the Partnership shall have no obligation to include Registrable Securities of a Holder in the Registration Statement or in an Underwritten Offering pursuant to
Section 2.02(a) who has failed to timely furnish such information that the Partnership determines, after consultation with its counsel, is reasonably required in order for the registration statement or prospectus supplement, as
applicable, to comply with the Securities Act. The Partnership hereby represents and warrants to the Holders that the registration rights granted under this Agreement do not conflict with, and are not subordinate in any manner to, registration
rights that have been granted by the Partnership to any other Person that have not been waived. 
 Section 2.07 Restrictions on
Public Sale by Holders of Registrable Securities. Each Holder of Registrable Securities agrees to enter into a customary letter agreement with underwriters providing such Holder will not effect any public sale or distribution of Registrable
Securities during the 60 calendar day period beginning on the date of a prospectus or prospectus supplement filed with the Commission with respect to the pricing of any Underwritten Offering, provided, however, that (i) the duration of
the foregoing restrictions shall be no longer than the duration of the shortest restriction generally imposed by the underwriters on the Partnership or the officers, directors or any other Affiliate of the Partnership on whom a restriction is
imposed and (ii) the restrictions set forth in this Section 2.07 shall not apply to any Registrable Securities that are included in such Underwritten Offering by such Holder. In addition, this Section 2.07 shall not
apply to any Holder that is not entitled to participate in such Underwritten Offering, including, without limitation, whether because such Holder delivered an Opt-Out Notice prior to receiving notice of the Underwritten Offering, because such Holder
holds less than $10.0 million of the then-outstanding Registrable Securities or because the Registrable Securities held by such Holder may be disposed of without restriction pursuant to any section of Rule 144 (or any similar provision then in
effect) under the Securities Act. 

  
 11 

 Section 2.08 Expenses 

(a) Expenses. The Partnership will pay all reasonable Registration Expenses as determined by it in good faith, including, in the case
of an Underwritten Offering, whether or not any sale is made pursuant to such Underwritten Offering. Each Selling Holder shall pay its pro rata share of all Selling Expenses in connection with any sale of its Registrable Securities hereunder. In
addition, except as otherwise provided in Section 2.09 hereof, the Partnership shall not be responsible for legal fees incurred by Holders in connection with the exercise of such Holders’ rights hereunder. 

(b) Certain Definitions. “Registration Expenses” means all expenses incident to the Partnership’s performance
under or compliance with this Agreement to effect the registration of Registrable Securities on the Registration Statement pursuant to Section 2.01(a) or an Underwritten Offering covered under this Agreement, and the disposition of such
Registrable Securities, including, without limitation, all registration, filing, securities exchange listing and NYSE fees, all registration, filing, qualification and other fees and expenses of complying with securities or blue sky laws, fees of
the Financial Industry Regulatory Authority, fees of transfer agents and registrars, all word processing, duplicating and printing expenses, and the fees and disbursements of counsel and independent public accountants for the Partnership, including
the expenses of any special audits or “cold comfort” letters required by or incident to such performance and compliance. “Selling Expenses” means all underwriting fees, discounts and selling commissions or similar fees or
arrangements allocable to the sale of the Registrable Securities. 
 Section 2.09 Indemnification 

(a) By the Partnership. In the event of a registration of any Registrable Securities under the Securities Act pursuant to this
Agreement, the Partnership will indemnify and hold harmless each Selling Holder thereunder, its directors, officers, employees and agents and each Person, if any, who controls such Selling Holder within the meaning of the Securities Act and the
Exchange Act, and its directors, officers, employees or agents (collectively, the “Selling Holder Indemnified Persons”), against any losses, claims, damages, expenses or liabilities (including reasonable attorneys’ fees and
expenses) (collectively, “Losses”), joint or several, to which such Selling Holder Indemnified Person may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such Losses (or actions or proceedings,
whether commenced or threatened, in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact (in the case of any prospectus, in light of the circumstances under which such statement is
made) contained in the Registration Statement or any other registration statement contemplated by this Agreement, any preliminary prospectus, prospectus supplement, issuer free writing prospectus or final prospectus contained therein, or any
amendment or supplement thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein (in the case of a prospectus, in light of
the circumstances under which they were made) not misleading, and will reimburse each such Selling Holder Indemnified Person for 

  
 12 

 
any legal or other expenses reasonably incurred by them in connection with investigating or defending any such Loss or actions or proceedings; provided, however, that the Partnership will
not be liable in any such case if and to the extent that any such Loss arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by such Selling
Holder Indemnified Person in writing specifically for use in the Registration Statement or such other registration statement, or preliminary prospectus, prospectus supplement, free writing prospectus or final prospectus or any amendment or
supplement thereto, as applicable. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Selling Holder Indemnified Person, and shall survive the transfer of such securities by such Selling
Holder. 
 (b) By Each Selling Holder. Each Selling Holder agrees severally and not jointly to indemnify and hold harmless the
Partnership, the General Partner, its directors, officers, employees and agents and each Person, if any, who controls the Partnership within the meaning of the Securities Act or of the Exchange Act, and its directors, officers, employees and agents,
to the same extent as the foregoing indemnity from the Partnership to the Selling Holders, but only with respect to information regarding such Selling Holder furnished in writing by or on behalf of such Selling Holder expressly for inclusion in the
Registration Statement or any other registration statement contemplated by this Agreement, any preliminary prospectus, prospectus supplement, free writing prospectus or final prospectus contained therein, or any amendment or supplement thereof;
provided, however, that the liability of each Selling Holder shall not be greater in amount than the dollar amount of the proceeds (net of any Selling Expenses) received by such Selling Holder from the sale of the Registrable Securities
giving rise to such indemnification. 
 (c) Notice. Promptly after receipt by an indemnified party hereunder of notice of the
commencement of any action, such indemnified party shall, if a claim in respect thereof is to be made against the indemnifying party hereunder, notify the indemnifying party in writing thereof, but the omission so to notify the indemnifying party
shall not relieve the indemnifying party of its obligations hereunder except to the extent that the indemnifying party is materially prejudiced by such failure to notify. In any action brought against any indemnified party, it shall notify the
indemnifying party of the commencement thereof. The indemnifying party shall be entitled to participate in and, to the extent it shall wish, to assume and undertake the defense thereof with counsel reasonably satisfactory to such indemnified party
and, after notice from the indemnifying party to such indemnified party of its election so to assume and undertake the defense thereof, the indemnifying party shall not be liable to such indemnified party under this Section 2.09 for any
legal expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable out-of-pocket costs of investigation and of liaison with counsel so selected; provided, however, that, (i) if the
indemnifying party has failed to assume the defense or employ counsel reasonably acceptable to the indemnified party or (ii) if the defendants in any such action include both the indemnified party and the indemnifying party and counsel to the
indemnified party shall have concluded that there may be reasonable defenses available to the indemnified party that are different from or additional to those available to the indemnifying party, or if the interests of the indemnified party
reasonably may be deemed to conflict with the interests of the indemnifying party, then the indemnified party shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such
action, with the reasonable expenses and fees of such separate counsel and 

  
 13 

 
other reasonable expenses related to such participation to be reimbursed by the indemnifying party as incurred; provided, however, that the indemnifying party shall not, in connection with
any proceeding or related proceedings in the same jurisdiction, be responsible for the reasonable expenses and fees of more than one separate firm admitted to practice in such jurisdiction at any one time for all such indemnified parties.
Notwithstanding any other provision of this Agreement, no indemnifying party shall settle any action brought against any indemnified party with respect to which such indemnified party is entitled to indemnification hereunder without the consent of
the indemnified party, unless the settlement thereof imposes no liability or obligation on, does not include any admission of culpability or wrongdoing on the part of, and includes a complete and unconditional release from all liability of, the
indemnified party. 
 (d) Contribution. If the indemnification provided for in this Section 2.09 is held by a court or
government agency of competent jurisdiction to be unavailable to any indemnified party or is insufficient to hold them harmless in respect of any Losses (other than as a result of any limitations set forth in the express terms of such
indemnification provisions), then each such indemnifying party, in lieu of indemnifying such indemnified party, shall contribute to the amount paid or payable by such indemnified party as a result of such Loss in such proportion as is appropriate to
reflect the relative fault of the indemnifying party on the one hand and of such indemnified party on the other in connection with the statements or omissions that resulted in such Losses, as well as any other relevant equitable considerations;
provided, however, that in no event shall any Selling Holder be required to contribute an aggregate amount in excess of the dollar amount of proceeds (net of Selling Expenses) received by such Selling Holder from the sale of Registrable
Securities giving rise to such indemnification. The relative fault of the indemnifying party on the one hand and the indemnified party on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a material fact has been made by, or relates to, information supplied by such party, and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The parties hereto agree that it would not be just and equitable if contributions pursuant to this paragraph were to be determined by pro rata allocation or by any other method of allocation that does
not take account of the equitable considerations referred to herein. The amount paid by an indemnified party as a result of the Losses referred to in the first sentence of this paragraph shall be deemed to include any legal and other expenses
reasonably incurred by such indemnified party in connection with investigating or defending any Loss that is the subject of this paragraph. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities
Act) shall be entitled to contribution from any Person who is not guilty of such fraudulent misrepresentation. 
 (e) Other
Indemnification. The provisions of this Section 2.09 shall be in addition to any other rights to indemnification or contribution that an indemnified party may have pursuant to law, equity, contract or otherwise. 

  
 14 

 Section 2.10 Rule 144 Reporting. With a view to making available the benefits of
certain rules and regulations of the Commission that may permit the sale of the Registrable Securities to the public without registration, the Partnership agrees to use its commercially reasonable efforts to: 

(a) make and keep public information regarding the Partnership available, as those terms are understood and defined in Rule 144 under the
Securities Act, at all times from and after the date hereof; 
 (b) file with the Commission in a timely manner all reports and other
documents required of the Partnership under the Securities Act and the Exchange Act at all times from and after the date hereof; and 
 (c)
so long as a Holder owns any Registrable Securities, furnish, unless otherwise available via EDGAR, to such Holder forthwith upon request a copy of the most recent annual or quarterly report of the Partnership, and such other reports and documents
so filed as such Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing such Holder to sell any such securities without registration. 

Section 2.11 Transfer or Assignment of Registration Rights. The rights to cause the Partnership to register Registrable Securities
granted to the Investors by the Partnership under this Article II may be transferred or assigned by any Investor to one or more transferees or assignees of Registrable Securities; provided, however, that (a) unless the transferee
or assignee is an Affiliate of, and after such transfer or assignment continues to be an Affiliate of, such Investor, the amount of Registrable Securities transferred or assigned to such transferee or assignee shall represent at least $10.0 million
of Registrable Securities (based on the Common Unit Price), (b) the Partnership is given written notice prior to any said transfer or assignment, stating the name and address of each such transferee or assignee and identifying the securities
with respect to which such registration rights are being transferred or assigned, and (c) each such transferee or assignee assumes in writing responsibility for its portion of the obligations of such Investor under this Agreement. 

Section 2.12 Limitation on Subsequent Registration Rights. From and after the date hereof, the Partnership shall not, without the
prior written consent of the Holders of a majority of the Registrable Securities, enter into any agreement with any current or future holder of any securities of the Partnership that would allow such current or future holder to require the
Partnership to include securities in any registration statement filed by the Partnership on a basis other than pari passu with, or expressly subordinate to the rights of, the Holders of Registrable Securities hereunder. 

Section 2.13 Compliance. Each Holder covenants and agrees that it will comply with the prospectus delivery requirements of the
Securities Act as applicable to it in connection with the sale of the Registrable Securities and shall sell the Registrable Securities in accordance with a method of distribution described in the Registration Statement. 

Section 2.14 Information 

Each Holder shall supply such information with respect to itself, its directors, officers and shareholders and such other matters as may be
reasonably necessary as the Partnership may reasonably request for the purpose of preparation of any registration statement, notice, form or other documents required to be filed with any Governmental Authority. 

  
 15 

 ARTICLE III 

MISCELLANEOUS 

Section 3.01 Communications. All notices and other communications provided for or permitted hereunder shall be made in writing by
facsimile, electronic mail, courier service or personal delivery: 
 (a) if to an Investor: 

To the respective address listed on Schedule A hereof 

(b) if to a transferee of an Investor, to such Holder at the address provided pursuant to Section 2.11 above; and 

(c) if to the Partnership: 

Teekay Offshore Partners L.P. 

4th Floor, Belvedere Building 
 69
Pitts Bay Road 
 Hamilton HM 08, Bermuda 

Attention: Corporate Secretary 

Facsimile: (441) 292-3931 

with a copy to: 
 Perkins Coie LLP

 1120 N.W. Couch Street, 10th Floor 

Portland, OR 97209 
 Attention:
David Matheson 
 Facsimile: (503) 346-2008 

All such notices and communications shall be deemed to have been received at the time delivered by hand, if personally delivered; when receipt
acknowledged, if sent via facsimile or sent via Internet electronic mail; and when actually received, if sent by courier service or any other means. 

Section 3.02 Successor and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted
assigns of each of the parties, including subsequent Holders of Registrable Securities to the extent permitted herein. 
 Section 3.03
Assignment of Rights. All or any portion of the rights and obligations of any Investor under this Agreement may be transferred or assigned by such Investor only in accordance with Section 2.11 hereof. The Partnership may not
transfer any of its rights or obligations under this Agreement to any Person, except as expressly set forth herein or in connection with a sale of the Partnership (by merger or consolidation or otherwise) or of all or substantially all of the
Partnership’s assets. 

  
 16 

 Section 3.04 Recapitalization, Exchanges, Etc. Affecting the Units. The provisions of
this Agreement shall apply to the full extent set forth herein with respect to any and all units of the Partnership or any successor or assign of the Partnership (whether by merger, consolidation, sale of assets or otherwise) that may be issued in
respect of, in exchange for or in substitution of, the Registrable Securities, and shall be appropriately adjusted for combinations, unit splits, recapitalizations, pro rata distributions of units and the like occurring after the date of this
Agreement. 
 Section 3.05 Aggregation of Registrable Securities. All Registrable Securities held or acquired by Persons who are
Affiliates of one another shall be aggregated together for the purpose of determining the availability of any rights under this Agreement. 

Section 3.06 Specific Performance. Damages in the event of breach of this Agreement by a party hereto may be difficult, if not
impossible, to ascertain, and it is therefore agreed that each such Person, in addition to and without limiting any other remedy or right it may have, will have the right to an injunction or other equitable relief in any court of competent
jurisdiction, enjoining any such breach, and enforcing specifically the terms and provisions hereof, and each of the parties hereto hereby waives any and all defenses it may have on the ground of lack of jurisdiction or competence of the court to
grant such an injunction or other equitable relief. The existence of this right will not preclude any such Person from pursuing any other rights and remedies at law or in equity that such Person may have. 

Section 3.07 Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in
separate counterparts, including facsimile or .pdf counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same
Agreement. 
 Section 3.08 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or
otherwise affect the meaning hereof. 
 Section 3.09 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND
GOVERNED BY, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS THAT WOULD APPLY THE LAWS OF ANY OTHER JURISDICTION.  

Section 3.10 Severability of Provisions. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof or affecting or impairing the validity or enforceability of such provision in any other
jurisdiction. 
 Section 3.11 Entire Agreement. This Agreement is intended by the parties as a final expression of their
agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or undertakings, other than
those set forth or referred to herein with respect to the rights granted by the Partnership set forth herein. This Agreement and the Common Unit Purchase Agreement supersede all prior agreements and understandings between the parties with respect to
such subject matter. 

  
 17 

 Section 3.12 Amendment. This Agreement may be amended only by means of a written
amendment signed by the Partnership and the Holders of a majority of the then outstanding Registrable Securities; provided, however, that no such amendment shall materially and adversely affect the rights of any Holder hereunder without the
consent of such Holder. 
 Section 3.13 No Presumption. If any claim is made by a party relating to any conflict, omission or
ambiguity in this Agreement, no presumption or burden of proof or persuasion shall be implied by virtue of the fact that this Agreement was prepared by or at the request of a particular party or its counsel. 

Section 3.14 Obligations Limited to Parties to Agreement. Each of the Parties hereto covenants, agrees and acknowledges that no
Person other than the Investors (and their permitted transferees and assignees) and the Partnership shall have any obligation hereunder and that, notwithstanding that one or more of the Investors may be a corporation, partnership or limited
liability company, no recourse under this Agreement or under any documents or instruments delivered in connection herewith or therewith shall be had against any former, current or future director, officer, employee, agent, general or limited
partner, manager, member, stockholder or Affiliate of any of the Investors or any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the foregoing, whether by
the enforcement of any assessment or by any legal or equitable proceeding, or by virtue of any applicable Law, it being expressly agreed and acknowledged that no personal liability whatsoever shall attach to, be imposed on or otherwise be incurred
by any former, current or future director, officer, employee, agent, general or limited partner, manager, member, stockholder or Affiliate of any of the Investors or any former, current or future director, officer, employee, agent, general or
limited partner, manager, member, stockholder or Affiliate of any of the foregoing, as such, for any obligations of the Investors under this Agreement or any documents or instruments delivered in connection herewith or therewith or for any claim
based on, in respect of or by reason of such obligation or its creation, except in each case for any transferee or assignee of a Investor hereunder. 

Section 3.15 Interpretation. Article and Section references to this Agreement, unless otherwise specified. All references to
instruments, documents, contracts and agreements are references to such instruments, documents, contracts and agreements as the same may be amended, supplemented and otherwise modified from time to time, unless otherwise specified. The word
“including” shall mean “including but not limited to.” Whenever any determination, consent or approval is to be made or given by an Investor under this Agreement, such action shall be in such Investor’s sole discretion
unless otherwise specified. 
 [Signature pages to follow] 

  
 18 

 IN WITNESS WHEREOF, the Parties hereto execute this Agreement, effective as of the date first
above written. 
  

					
	TEEKAY OFFSHORE PARTNERS L.P.
		
	By:	 	TEEKAY OFFSHORE GP L.L.C.,
		 	(its General Partner)
		
	By:	 	 /s/ Mark Cave

		 	Name:	 	Mark Cave
		 	Title:	 	Secretary

  
 Signature Page to
Registration Rights Agreement 

 
					
	INVESTOR:
	
	GOLDMAN SACHS MLP INCOME OPPORTUNITIES FUND
		
	By:	 	Goldman Sachs Asset Management, L.P., its Investment Adviser
		
	By:	 	 /s/ Kyri Loupis

		 	Name:	 	Kyri Loupis
		 	Title:	 	Managing Director

  
 Signature Page to
Registration Rights Agreement 

 Schedule A – Investor Name; Notice and Contact Information; Opt Out 

 

					
	 Purchaser
	  	 Notice and Contact Information
	  	 Opt-Out at Date

Hereof

	GOLDMAN SACHS MLP	  	c/o Goldman Sachs Asset	  	
	INCOME OPPORTUNITIES	  	Management, L.P.	  	
	FUND	  	200 West Street	  	
		  	New York, NY 10282	  	
		  	Attn: Ganesh Jois	  	

  
 Schedule A to
Registration Rights AgreementEX-4.1

 Exhibit 4.1 
  

 
  

K. HOVNANIAN ENTERPRISES, INC., 

as Issuer 
 HOVNANIAN
ENTERPRISES, INC. 
 and 

the other Guarantors party hereto 

and 
 WILMINGTON TRUST,
NATIONAL ASSOCIATION, 
 as Trustee 
  

 
 Indenture

 Dated as of January 10, 2014 
  

 
 7.000% Senior
Notes due 2019 
  
  

 

 TABLE OF CONTENTS 

 
  

 

							
	 	 	 	  	PAGE	 
	 RECITALS
	  			
		
	 ARTICLE 1
	  			
	DEFINITIONS AND INCORPORATION BY REFERENCE	  			
			
	 Section 1.01.
	 	 Definitions
	  	 	1	  
	 Section 1.02.
	 	 Rules of Construction
	  	 	39	  
		
	 ARTICLE 2
	  			
	THE NOTES	  			
			
	 Section 2.01.
	 	 Form, Dating and Denominations; Legends
	  	 	40	  
	 Section 2.02.
	 	 Execution and Authentication; Additional Notes
	  	 	41	  
	 Section 2.03.
	 	 Registrar, Paying Agent and Authenticating Agent; Paying Agent to Hold Money in Trust
	  	 	42	  
	 Section 2.04.
	 	 Replacement Notes
	  	 	43	  
	 Section 2.05.
	 	 Outstanding Notes
	  	 	43	  
	 Section 2.06.
	 	 Temporary Notes
	  	 	44	  
	 Section 2.07.
	 	 Cancellation
	  	 	44	  
	 Section 2.08.
	 	 CUSIP and ISIN Numbers
	  	 	44	  
	 Section 2.09.
	 	 Registration, Transfer and Exchange
	  	 	44	  
	 Section 2.10.
	 	 Restrictions on Transfer and Exchange
	  	 	48	  
	 Section 2.11.
	 	 Regulation S Temporary Global Notes
	  	 	50	  
		
	 ARTICLE 3
	  			
	REDEMPTION; OFFER TO PURCHASE	  			
			
	 Section 3.01.
	 	 Optional Redemption
	  	 	51	  
	 Section 3.02.
	 	 Redemption with Proceeds of Equity Offering
	  	 	52	  
	 Section 3.03.
	 	 Sinking Fund; Mandatory Redemption
	  	 	52	  
	 Section 3.04.
	 	 Method and Effect of Redemption
	  	 	52	  
	 Section 3.05.
	 	 Offer to Purchase
	  	 	54	  
		
	 ARTICLE 4
	  			
	COVENANTS	  			
			
	 Section 4.01.
	 	 Payment of Notes
	  	 	56	  
	 Section 4.02.
	 	 Maintenance of Office or Agency
	  	 	57	  
	 Section 4.03.
	 	 Existence
	  	 	57	  
	 Section 4.04.
	 	 Payment of Taxes
	  	 	58	  
	 Section 4.05.
	 	 [Reserved]
	  	 	58	  
	 Section 4.06.
	 	 Limitations on Indebtedness
	  	 	58	  

  
 i 

							
	 Section 4.07.
	 	 Limitations on Restricted Payments
	  	 	60	  
	 Section 4.08.
	 	 Limitations on Liens
	  	 	65	  
	 Section 4.09.
	 	 Limitations on Restrictions Affecting Restricted Subsidiaries
	  	 	66	  
	 Section 4.10.
	 	 Limitations on Dispositions of Assets
	  	 	69	  
	 Section 4.11.
	 	 Guarantees by Restricted Subsidiaries
	  	 	71	  
	 Section 4.12.
	 	 Repurchase of Notes upon a Change of Control
	  	 	71	  
	 Section 4.13.
	 	 Limitations on Transactions with Affiliates
	  	 	73	  
	 Section 4.14.
	 	 Limitations on Mergers, Consolidations and Sales of Assets
	  	 	75	  
	 Section 4.15.
	 	 Reports to Holders of Notes
	  	 	76	  
	 Section 4.16.
	 	 [Reserved]
	  	 	77	  
	 Section 4.17.
	 	 Notice of Other Defaults
	  	 	77	  
	 Section 4.18.
	 	 Limitation of Applicability of Certain Covenants if Notes Rated Investment Grade
	  	 	77	  
		
	 ARTICLE 5
	  			
	REMEDIES	  			
			
	 Section 5.01.
	 	 Events of Default
	  	 	78	  
	 Section 5.02.
	 	 Other Remedies
	  	 	82	  
	 Section 5.03.
	 	 Waiver of Defaults by Majority of Holders
	  	 	82	  
	 Section 5.04.
	 	 Direction of Proceedings
	  	 	82	  
	 Section 5.05.
	 	 Application of Moneys Collected by Trustee
	  	 	83	  
	 Section 5.06.
	 	 Proceedings by Holders
	  	 	84	  
	 Section 5.07.
	 	 Proceedings by Trustee
	  	 	84	  
	 Section 5.08.
	 	 Remedies Cumulative and Continuing
	  	 	85	  
	 Section 5.09.
	 	 Undertaking to Pay Costs
	  	 	85	  
	 Section 5.10.
	 	 Notice of Defaults
	  	 	85	  
	 Section 5.11.
	 	 Waiver of Stay, Extension or Usury Laws
	  	 	86	  
	 Section 5.12.
	 	 Trustee May File Proof of Claim
	  	 	86	  
	 Section 5.13.
	 	 Payment of Notes on Default; Suit Therefor
	  	 	87	  
		
	 ARTICLE 6
	  			
	GUARANTEES; RELEASE OF GUARANTOR	  			
			
	 Section 6.01.
	 	 Guarantee
	  	 	88	  
	 Section 6.02.
	 	 Obligations of each Guarantor Unconditional
	  	 	89	  
	 Section 6.03.
	 	 Release of a Guarantor
	  	 	90	  
	 Section 6.04.
	 	 Execution and Delivery of Guarantee
	  	 	90	  
	 Section 6.05.
	 	 Limitation on Guarantor Liability
	  	 	90	  
	 Section 6.06.
	 	 Article 6 not to Prevent Events of Default
	  	 	91	  
	 Section 6.07.
	 	 Waiver by the Guarantors
	  	 	91	  
	 Section 6.08.
	 	 Subrogation and Contribution
	  	 	91	  
	 Section 6.09.
	 	 Stay of Acceleration
	  	 	91	  

  
 ii 

							
		
	 ARTICLE 7
	  			
	THE TRUSTEE	  			
			
	 Section 7.01.
	 	 General
	  	 	92	  
	 Section 7.02.
	 	 Certain Rights of the Trustee
	  	 	92	  
	 Section 7.03.
	 	 Individual Rights of the Trustee
	  	 	94	  
	 Section 7.04.
	 	 Trustee’s Disclaimer
	  	 	94	  
	 Section 7.05.
	 	 Reserved
	  	 	94	  
	 Section 7.06.
	 	 Reports by Trustee to Holders
	  	 	95	  
	 Section 7.07.
	 	 Compensation and Indemnity
	  	 	95	  
	 Section 7.08.
	 	 Replacement of Trustee
	  	 	95	  
	 Section 7.09.
	 	 Successor Trustee by Merger
	  	 	97	  
	 Section 7.10.
	 	 Eligibility
	  	 	97	  
	 Section 7.11.
	 	 Money Held in Trust
	  	 	97	  
		
	 ARTICLE 8
	  			
	DEFEASANCE AND DISCHARGE	  			
			
	 Section 8.01.
	 	 Legal Defeasance and Discharge
	  	 	97	  
	 Section 8.02.
	 	 Covenant Defeasance
	  	 	98	  
	 Section 8.03.
	 	 Conditions to Legal or Covenant Defeasance
	  	 	98	  
	 Section 8.04.
	 	 Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions
	  	 	100	  
	 Section 8.05.
	 	 Repayment to Issuer
	  	 	100	  
	 Section 8.06.
	 	 Reinstatement
	  	 	100	  
	 Section 8.07.
	 	 Survival
	  	 	101	  
	 Section 8.08.
	 	 Satisfaction and Discharge of Indenture
	  	 	101	  
		
	 ARTICLE 9
	  			
	AMENDMENTS, SUPPLEMENTS AND WAIVERS	  			
			
	 Section 9.01.
	 	 Amendments Without Consent of Holders
	  	 	102	  
	 Section 9.02.
	 	 Amendments with Consent of Holders
	  	 	103	  
	 Section 9.03.
	 	 Effect of Consent
	  	 	104	  
	 Section 9.04.
	 	 Trustee’s Rights and Obligations
	  	 	105	  
		
	 ARTICLE 10
	  			
	[RESERVED]	  			
		
	 ARTICLE 11
	  			
	RELEASE OF ISSUER AND GUARANTORS	  			
			
	 Section 11.01.
	 	 Release of Issuer
	  	 	105	  

  
 iii 

							
		
	 ARTICLE 12
	  			
	MISCELLANEOUS	  			
			
	 Section 12.01.
	 	 [Reserved]
	  	 	106	  
	 Section 12.02.
	 	 Holder Actions
	  	 	106	  
	 Section 12.03.
	 	 Notices
	  	 	106	  
	 Section 12.04.
	 	 Certificate and Opinion as to Conditions Precedent
	  	 	107	  
	 Section 12.05.
	 	 Statements Required in Certificate or Opinion
	  	 	108	  
	 Section 12.06.
	 	 Payment Date Other Than a Business Day
	  	 	109	  
	 Section 12.07.
	 	 Governing Law
	  	 	109	  
	 Section 12.08.
	 	 No Adverse Interpretation of Other Agreements
	  	 	109	  
	 Section 12.09.
	 	 Successors
	  	 	109	  
	 Section 12.10.
	 	 Duplicate Originals
	  	 	109	  
	 Section 12.11.
	 	 Separability
	  	 	109	  
	 Section 12.12.
	 	 Table of Contents and Headings
	  	 	109	  
	 Section 12.13.
	 	 No Liability of Directors, Officers, Employees, Partners, Incorporators and Stockholders
	  	 	110	  
	 Section 12.14.
	 	 Provisions of Indenture for the Sole Benefit of Parties and Holders of Notes
	  	 	110	  

  
 iv 

 EXHIBITS 
  

			
	EXHIBIT A	 	Form of Note and Guarantee
	EXHIBIT B	 	Form of Supplemental Indenture
	EXHIBIT C	 	Restricted Legend
	EXHIBIT D	 	DTC Legend
	EXHIBIT E	 	Regulation S Certificate
	EXHIBIT F	 	Rule 144A Certificate
	EXHIBIT G	 	Institutional Accredited Investor Certificate
	EXHIBIT H	 	Certificate of Beneficial Ownership
	EXHIBIT I	 	Regulation S Temporary Global Note Legend
	EXHIBIT J	 	Unrestricted Subsidiaries

  
 v 

 INDENTURE, dated as of January 10, 2014, among K. HOVNANIAN ENTERPRISES, INC., a
California corporation (the “Issuer”), HOVNANIAN ENTERPRISES, INC., a Delaware corporation (the “Company”), each of the other Guarantors (as defined hereafter) and WILMINGTON TRUST, NATIONAL ASSOCIATION, a national
banking association, as Trustee (the “Trustee”). 
 RECITALS 

The Issuer has duly authorized the execution and delivery of this Indenture to provide for the issuance on the Issue Date of
$150,000,000 aggregate principal amount of the Issuer’s 7.000% Senior Notes due 2019 and, if and when issued, any Additional Notes (together, the “Notes”). All things necessary to make this Indenture a valid agreement of the
Issuer, in accordance with its terms, have been done, and the Issuer has done all things necessary to make the Notes (in the case of any Additional Notes, when duly authorized), when duly issued and executed by the Issuer and authenticated and
delivered by the Trustee, the valid obligations of the Issuer as hereinafter provided. 
 In addition, the Guarantors party hereto
have duly authorized the execution and delivery of this Indenture as guarantors of the Notes. All things necessary to make this Indenture a valid agreement of each Guarantor, in accordance with its terms, have been done, and each Guarantor has done
all things necessary to make the Guarantees (in the case of the Guarantee of any Additional Notes, when duly authorized), when duly issued and executed by each Guarantor and when the Notes have been authenticated and delivered by the Trustee, the
valid obligation of such Guarantor as hereinafter provided. 
 THIS INDENTURE WITNESSETH 

For and in consideration of the premises and the purchase of the Notes by the Holders thereof, the parties hereto covenant and agree, for the
equal and proportionate benefit of all Holders, as follows: 
 ARTICLE 1 

DEFINITIONS AND INCORPORATION BY REFERENCE 

Section 1.01. Definitions.  

“Acquired Indebtedness” means (a) with respect to any Person that becomes a Restricted Subsidiary (or is merged into the
Company, the Issuer or any Restricted Subsidiary) after the Issue Date, Indebtedness of such Person or any of its Subsidiaries existing at the time such Person becomes a Restricted Subsidiary (or is merged into the Company, the Issuer or any
Restricted Subsidiary) that was not incurred in connection with, or in contemplation of, such 

  
 1 

 
Person becoming a Restricted Subsidiary (or being merged into the Company, the Issuer or any Restricted Subsidiary) and (b) with respect to the Company, the Issuer or any Restricted
Subsidiary, any Indebtedness expressly assumed by the Company, the Issuer or any Restricted Subsidiary in connection with the acquisition of any assets from another Person (other than the Company, the Issuer or any Restricted Subsidiary), which
Indebtedness was not incurred by such other Person in connection with or in contemplation of such acquisition. Indebtedness incurred in connection with or in contemplation of any transaction described in clause (a) or (b) of the preceding
sentence shall be deemed to have been incurred by the Company or a Restricted Subsidiary, as the case may be, at the time such Person becomes a Restricted Subsidiary (or is merged into the Company, the Issuer or any Restricted Subsidiary) in the
case of clause (a) or at the time of the acquisition of such assets in the case of clause (b), but shall not be deemed Acquired Indebtedness. 

“Additional Notes” means any notes of the Issuer issued under this Indenture in addition to the Initial Notes having
the same terms in all respects as the Initial Notes, except that interest may accrue on the Additional Notes from their date of issuance, and any notes issued in replacement therefor. 

“Affiliate” means, when used with reference to a specified Person, any Person directly or indirectly controlling, or
controlled by or under direct or indirect common control with, the Person specified. 
 “Affiliate Transaction” has
the meaning ascribed to it in Section 4.13 hereof. 
 “Agent” means any Registrar, Paying Agent or Authenticating
Agent. 
 “Agent Member” means a member of, or a participant in, the Depositary. 

“Applicable Debt” means all Indebtedness of the Company, the Issuer or any Guarantor (a) under Credit Facilities
or (b) that is publicly traded (including in the Rule 144A market), including, without limitation, the Issuer’s senior notes and senior subordinated notes outstanding on the Issue Date. 

“Asset Acquisition” means (a) an Investment by the Company, the Issuer or any Restricted Subsidiary in any other
Person if, as a result of such Investment, such Person shall become a Restricted Subsidiary or shall be consolidated or merged with or into the Company, the Issuer or any Restricted Subsidiary or (b) the acquisition by the Company, the Issuer
or any Restricted Subsidiary of the assets of any Person, which constitute all or substantially all of the assets or of an operating unit or line of business of such Person or which is otherwise outside the ordinary course of business. 

  
 2 

 “Asset Disposition” means any sale, transfer, conveyance, lease or other
disposition (including, without limitation, by way of merger, consolidation or sale and leaseback or sale of shares of Capital Stock in any Subsidiary) (each, a “transaction”) by the Company, the Issuer or any Restricted Subsidiary
to any Person of any Property having a Fair Market Value in any transaction or series of related transactions of at least $10.0 million. The term “Asset Disposition” shall not include: 

(a) a transaction between the Company, the Issuer and any Restricted Subsidiary or a transaction between Restricted Subsidiaries, 

(b) a transaction in the ordinary course of business, including, without limitation, sales (directly or indirectly), sales subject to
repurchase options, dedications and other donations to governmental authorities, leases and sales and leasebacks of (i) homes, improved land and unimproved land and (ii) real estate (including related amenities and improvements), 

(c) a transaction involving the sale of Capital Stock of, or the disposition of assets in, an Unrestricted Subsidiary, 

(d) any exchange or swap of assets of the Company, the Issuer or any Restricted Subsidiary for assets (including Capital Stock of any Person
that is or will be a Restricted Subsidiary following receipt thereof) that (i) are to be used by the Company, the Issuer or any Restricted Subsidiary in the ordinary course of its Real Estate Business and (ii) have a Fair Market Value not
less than the Fair Market Value of the assets exchanged or swapped, 
 (e) any sale, transfer, conveyance, lease or other disposition of
assets and properties that is governed by Section 4.14 hereof, 
 (f) dispositions of mortgage loans and related assets and
mortgage-backed securities in the ordinary course of a mortgage lending business, 
 (g) the creation of a Permitted Lien and dispositions in
connection with Permitted Liens, 
 (h) any Restricted Payment or Permitted Investment, 

(i) sales, transfers and other dispositions of Investments in joint ventures to the extent required by, or made pursuant to, customary buy/sell
arrangements between the joint venture parties set forth in joint venture arrangements and similar binding arrangements, 
 (j) the unwinding
of any Hedging Obligations, 

  
 3 

 (k) foreclosures, condemnation, eminent domain or any similar action on assets, 

(l) any financing transaction with respect to property built or acquired by the Company or any Restricted Subsidiary after the Issue Date, 

(m) any surrender or waiver of contractual rights or the settlement, release or surrender of contractual rights or other litigation claims in
the ordinary course of business, and 
 (n) the issuance of directors’ qualifying shares and shares issued to foreign nationals or other
third parties as required by applicable law. 
 “Attributable Debt” means, with respect to any Capitalized Lease
Obligations, the capitalized amount thereof determined in accordance with GAAP. 
 “Authenticating Agent”
refers to a Person engaged to authenticate the Notes in the stead of the Trustee. 
 “Bankruptcy Law” means
title 11 of the United States Code, as amended, or any similar federal or state law for the relief of debtors. 

“Board of Directors” means, when used with reference to the Issuer or the Company, as the case may be, the board of
directors or any duly authorized committee of that board or any director or directors and/or officer or officers to whom that board or committee shall have duly delegated its authority. 

“Business Day” means any day except a Saturday, Sunday or other day on which commercial banks in New York City or in
the city where the Corporate Trust Office of the Trustee is located are authorized or required by law or regulation to close. 

“Capital Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents
(however designated) of or in such Person’s capital stock or other equity interests, and options, rights or warrants to purchase such capital stock or other equity interests, whether now outstanding or issued after the Issue Date, including,
without limitation, all Disqualified Stock and Preferred Stock, but excluding any debt security that is convertible into, or exchangeable for, Capital Stock. 

“Capitalized Lease Obligations” of any Person means the obligations of such Person to pay rent or other amounts under
a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP, and the amount of such obligations will be the capitalized amount thereof determined in accordance with GAAP. 

  
 4 

 “Cash Equivalents” means 

(a) U.S. dollars, Canadian dollars, euros, pounds sterling, any national currency of any participating member state in the European Union or
local currencies held from time to time in the ordinary course of business; 
 (b) securities issued or directly and fully guaranteed or
insured by the U.S. government or any country that is a member state of the European Union or any agency or instrumentality thereof having maturities of one year or less from the date of acquisition; 

(c) certificates of deposit, time deposits, eurodollar time deposits, overnight bank deposits or bankers’ acceptances with maturities of
one year or less from the date of acquisition, in each case with any domestic commercial bank having capital and surplus in excess of $500.0 million; 

(d) marketable general obligations issued by any state of the United States of America or any political subdivision of any such state or any
public instrumentality thereof maturing within one year from the date of acquisition and, at the time of acquisition, having a credit rating of at least “A” or the equivalent thereof by S&P or Moody’s, or carrying an equivalent
rating by a nationally recognized Rating Agency, if both of the two named Rating Agencies cease publishing ratings of investments; 
 (e)
repurchase obligations for underlying securities of the types described in clauses (b), (c) and (d) of this definition entered into with any financial institution meeting the qualifications specified in clause (c) of this definition;

 (f) commercial paper rated P-1, A-1 or the equivalent thereof by Moody’s or S&P, respectively, and in each case maturing within
one year after the date of acquisition; 
 (g) Investments with average maturities of one year or less from the date of acquisition in money
market funds rated AAA- (or the equivalent thereof) or better by S&P or Aaa3 (or the equivalent thereof) or better by Moody’s; and 

(h) investments in investment companies or money market funds substantially all of the assets of which consist of securities described in the
foregoing clauses (a) through (g) of this definition. 
 Notwithstanding the foregoing, Cash Equivalents shall include amounts
denominated in currencies other than those set forth in clause (a) above; provided that such amounts are converted into any currency listed in clause (a) as promptly as practicable and in any event within ten business days following
the receipt of such amounts. 

  
 5 

 “Cash Management Services” means any of the following to the extent not
constituting a line of credit (other than an overnight overdraft facility that is not in default): ACH transactions, treasury and/or cash management services, including, without limitation, controlled disbursement services, overdraft facilities,
foreign exchange facilities, deposit and other accounts and merchant services. 
 “cash transaction” has the meaning
ascribed to it in Section 7.03 hereof. 
 “Certificate of Beneficial Ownership” means a certificate
substantially in the form of Exhibit H. 
 “Certificated Note” means a Note in registered individual form
without interest coupons. 
 “Change of Control” means 

(a) 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 Restricted Subsidiaries to any Person (other than a Restricted Subsidiary); provided, however, that a transaction where the holders of all classes of Common Equity of the Company immediately prior to such
transaction own, directly or indirectly, more than 50% of all classes of Common Equity of such Person immediately after such transaction shall not be a Change of Control; 

(b) a “person” or “group” (within the meaning of Section 13(d) of the Exchange Act (other than
(x) the Company or (y) the Permitted Hovnanian Holders)) becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act) of Common Equity of the Company representing more than 50% of the voting power of
the Common Equity of the Company; or 
 (c) 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 which is part of a transaction that does not constitute a Change of Control under the proviso contained in clause (a) of this
definition shall not constitute a Change of Control. 
 “Clearstream” means Clearstream Banking,
société anonyme, Luxembourg. 
 “Commission” means the Securities and Exchange Commission.

 “Common Equity” of any Person means Capital Stock of such Person that is generally entitled to (a) vote
in the election of directors of such Person or (b) if such Person is not a corporation, vote or otherwise participate in the selection of the governing body, partners, managers or others that will control the management or policies of
such Person. 

  
 6 

 “Company” has the meaning ascribed to it in the preamble hereof and shall
also refer to any successor obligor under this Indenture and its Guarantee(s). 
 “Consolidated Cash Flow Available
for Fixed Charges” means, for any period, Consolidated Net Income for such period plus (each to the extent deducted in calculating such Consolidated Net Income and determined in accordance with GAAP) the sum for such period, without
duplication, of: 
 (a) provision for taxes based on income or profits or capital gains, including, without limitation, U.S. federal,
state, non-U.S., franchise, excise, value added and similar taxes and foreign withholding taxes of such Person paid or accrued during such period, including any penalties and interest relating to such taxes or arising from any tax examinations, 

(b) Consolidated Interest Expense, 

(c) depreciation and amortization expenses and other non-cash charges to earnings, 

(d) any fees, expenses, charges or losses (other than depreciation or amortization expense) related to any Equity Offering, Permitted
Investment, acquisition, disposition, recapitalization or the incurrence of Indebtedness permitted to be incurred by the Indenture (including a refinancing thereof) (whether or not successful), including (i) such fees, expenses or charges
related to the offering of the Notes and (ii) any amendment or other modification of the Notes or other Indebtedness, 
 (e) any other
non-cash charges, including any write offs, write downs, expenses, losses or items, excluding any such charge that represents an accrual or reserve for a cash expenditure for a future period, 

(f) costs of surety bonds incurred in such period in connection with financing activities, 

(g) any costs or expense incurred by the Company or a Restricted Subsidiary pursuant to any management equity plan or stock option plan or any
other management or employee benefit plan or agreement or any stock subscription or shareholder agreement, to the extent that such cost or expenses are funded with cash proceeds contributed to the capital of the Company or net cash proceeds of an
issuance of Qualified Stock solely to the extent that such net cash proceeds are excluded from the calculation set forth in clause (iii) of Section 4.07(a), 

  
 7 

 (h) effects of adjustments (including the effects of such adjustments pushed down to the Company
and its Restricted Subsidiaries) in any line item in such Person’s consolidated financial statements in accordance with GAAP resulting from the application of purchase accounting, or the amortization or write-off of any amounts thereof, net of
taxes, 
 (i) any impairment charge, asset write-off or write-down pursuant to ASC 350 and ASC 360 (formerly Financial Accounting Standards
Board Statement Nos. 142 and 144, respectively) and the amortization of intangibles arising pursuant to ASC 805 (formerly Financial Accounting Standards Board Statement No. 141), and 

(j) cash receipts (or any netting arrangements resulting in reduced cash expenses) not included in Consolidated Cash Flow Available for
Fixed Charges in any period to the extent non-cash gains relating to such receipts were deducted in the calculation of Consolidated Cash Flow Available for Fixed Charges pursuant to clause (k) below for any previous period and not added back,
minus 
 (k) non-cash gains increasing Consolidated Net Income for such period, excluding any non-cash gains which represent
the reversal of any accrual of, or cash reserve for, anticipated cash charges that reduced Consolidated Cash Flow Available for Fixed Charges in any prior period; provided that, to the extent non-cash gains are deducted pursuant to this
clause (k) for any previous period and not otherwise added back to Consolidated Cash Flow Available for Fixed Charges, Consolidated Cash Flow Available for Fixed Charges shall be increased by the amount of any cash receipts (or any netting
arrangements resulting in reduced cash expenses) in respect of such non-cash gains received in subsequent periods to the extent not already included therein, and plus or minus (as applicable and without duplication) to eliminate the
following items to the extent reflected in Consolidated Net Income, 
 (l)(i) any net gain or loss resulting in such period from
currency gains or losses related to Indebtedness, intercompany balances and other balance sheet items, and (ii) any unrealized net gain or loss resulting in such period from Hedging Obligations, and the application of Financial Accounting
Standards Codification No. 815—Derivatives and Hedging (formerly Financing Accounting Standards Board Statement No. 133), and its related pronouncements and interpretations (or any successor provision). 

“Consolidated Fixed Charge Coverage Ratio” means, with respect to any determination date, the ratio of
(x) Consolidated Cash Flow Available for Fixed Charges for the prior four full fiscal quarters (the “Four Quarter Period”) for which financial results have been reported immediately preceding the determination date (the
“Transaction Date”), to (y) the aggregate Consolidated  

  
 8 

 
Interest Incurred for the Four Quarter Period. For purposes of this definition, “Consolidated Cash Flow Available for Fixed Charges” and “Consolidated Interest
Incurred” shall be calculated after giving effect on a pro forma basis for the period of such calculation to: 

(a) the incurrence or the repayment, repurchase, redemption, retirement, defeasance or other discharge or the assumption by another
Person that is not an Affiliate (collectively, “repayment”) of any Indebtedness of the Company, the Issuer or any Restricted Subsidiary (and the application of the proceeds thereof) giving rise to the need to make such calculation,
and any incurrence or repayment of other Indebtedness (and the application of the proceeds thereof), at any time on or after the first day of the Four Quarter Period and on or prior to the Transaction Date, as if such incurrence or repayment, as the
case may be (and the application of the proceeds thereof), occurred on the first day of the Four Quarter Period, except that Indebtedness under revolving credit facilities shall be deemed to be the average daily balance of such Indebtedness during
the Four Quarter Period (as reduced on such pro forma basis by the application of any proceeds of the incurrence of Indebtedness giving rise to the need to make such calculation); 

(b) any Asset Disposition, Asset Acquisition (including, without limitation, any Asset Acquisition giving rise to the need to make such
calculation as a result of the Company, the Issuer or any Restricted Subsidiary (including any Person that becomes a Restricted Subsidiary as a result of any such Asset Acquisition) incurring Acquired Indebtedness at any time on or after the first
day of the Four Quarter Period and on or prior to the Transaction Date), Investment, merger or consolidation as if such Asset Disposition, Asset Acquisition (including the incurrence or repayment of any such Indebtedness), Investment, merger or
consolidation and the inclusion, notwithstanding clause (2) of the definition of “Consolidated Net Income,” of any Consolidated Cash Flow Available for Fixed Charges associated with such Asset Acquisition or other transaction occurred
on the first day of the Four Quarter Period; provided, however, that the Consolidated Cash Flow Available for Fixed Charges associated with any Asset Acquisition or other transaction shall not be included to the extent the net income so
associated would be excluded pursuant to the definition of “Consolidated Net Income,” other than clause (b) thereof, as if it applied to the Person or assets involved before they were acquired; and 

(c) the Consolidated Cash Flow Available for Fixed Charges and the Consolidated Interest Incurred attributable to discontinued operations, as
determined in accordance with GAAP, shall be excluded. 
 Furthermore, in calculating “Consolidated Cash Flow Available for Fixed
Charges” for purposes of determining the denominator (but not the numerator) of this “Consolidated Fixed Charge Coverage Ratio,” 

  
 9 

 (a) interest on Indebtedness in respect of which a pro forma calculation is
required that is determined on a fluctuating basis as of the Transaction Date (including Indebtedness actually incurred on the Transaction Date) and which will continue to be so determined thereafter shall be deemed to have accrued at a fixed rate
per annum equal to the rate of interest on such Indebtedness in effect on the Transaction Date, and 
 (b)
notwithstanding the immediately preceding clause (a), interest on such Indebtedness determined on a fluctuating basis, to the extent such interest is covered by agreements relating to Interest Protection Agreements, shall be deemed to accrue at the
rate per annum resulting after giving effect to the operation of such agreements. 
 “Consolidated Interest
Expense” of the Company for any period means the Interest Expense of the Company, the Issuer and the Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP. 

“Consolidated Interest Incurred” for any period means the Interest Incurred of the Company, the Issuer and the
Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP. 
 “Consolidated
Net Income” for any period means the aggregate net income (or loss) of the Company and its Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP; provided, that there will be excluded
from such net income (loss) (to the extent otherwise included therein), without duplication: 
 (a) the net income (or loss) of
(x) any Unrestricted Subsidiary (other than a Mortgage Subsidiary) or (y) any Person (other than a Restricted Subsidiary or a Mortgage Subsidiary) that is accounted for by the equity method of accounting, except, in each case, to the
extent that any such income has actually been received by the Company, the Issuer or any Restricted Subsidiary in the form of cash dividends or similar cash distributions during such period, 

(b) except to the extent includable in Consolidated Net Income pursuant to clause (a) of this definition, the net income (or loss) of any
Person that accrued prior to the date that (i) such Person becomes a Restricted Subsidiary or is merged with or into or consolidated with the Company, the Issuer or any of its Restricted Subsidiaries (except, in the case of an Unrestricted
Subsidiary that is redesignated a Restricted Subsidiary during such period, to the extent of its retained earnings from the beginning of such period to the date of such redesignation) or (ii) the assets of such Person are acquired by the
Company or any Restricted Subsidiary, 

  
 10 

 (c) solely for the purpose of determining the amount available for Restricted Payments under
clause (iii) of Section 4.07(a), the net income of any Restricted Subsidiary that is not a Guarantor to the extent that (but only so long as) the declaration or payment of dividends or similar distributions by such Restricted Subsidiary of
that income is not permitted by operation of the terms of its charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to that Restricted Subsidiary during such period, except, the net income
of any such Restricted Subsidiary for such period will be included in such Consolidated Net Income up to the aggregate amount of cash that could have been distributed by such Restricted Subsidiary during such period to the Company or another
Restricted Subsidiary as a dividend, 
 (d) the gains or losses, together with any related provision for taxes, realized during such period
by the Company, the Issuer or any Restricted Subsidiary resulting from (i) the acquisition of securities, or extinguishment of Indebtedness or Hedging Obligations or other derivative instruments (including deferred financing costs written off
and premiums paid), of the Company or any Restricted Subsidiary, (ii) any Asset Disposition by the Company or any Restricted Subsidiary, (iii) any non-cash income (or loss) related to currency gains or losses related to Indebtedness,
intercompany balances and other balance sheet items and to Hedging Obligations pursuant to Financial Accounting Standards Codification No. 815—Derivatives and Hedging (formerly Financing Accounting Standards Board Statement No. 133)
and its related pronouncements and interpretations (or any successor provision) and (iv) any non-cash expense, income or loss attributable to the movement in mark-to-market valuation of foreign currencies, Indebtedness or derivative instruments
pursuant to GAAP, 
 (e) any extraordinary, unusual or non-recurring gain or loss (but excluding any impairment charges), in each case, less
all fees and expenses relating thereto and any expenses, severance, relocation costs, curtailments or modifications to pension and post-retirement employee benefits plans, integration and other restructuring and business optimization costs, charges,
reserves or expenses (including relating to acquisitions after the Issue Date), and one-time compensation charges together with any related provision for taxes, realized by the Company, the Issuer or any Restricted Subsidiary, 

(f) the cumulative effect of a change in accounting principles and changes as a result of adoption or modification of accounting policies
during such period, 
 (g) any net after-tax gains or losses on disposal of disposed, abandoned, transferred, closed or discontinued
operations, 
 (h) any after-tax effect of gains or losses (less all fees and expenses relating thereto) attributable to asset dispositions
or abandonments other than in the ordinary course of business, as determined in good faith by the Company, 

  
 11 

 (i) (i) any non-cash compensation expense recorded from grants of stock appreciation or
similar rights, phantom equity, stock options, restricted stock, units or other rights to officers, directors, managers or employees and (ii) non-cash income (loss) attributable to deferred compensation plans or trusts, 

(j) any fees and expenses incurred during such period, or any amortization thereof for such period, in connection with any acquisition,
Investment, recapitalization, Asset Disposition, issuance or repayment of Indebtedness, issuance of Capital Stock, refinancing transaction or amendment or modification of any debt instrument (in each case, including any such transaction consummated
prior to the Issue Date and any such transaction undertaken but not completed) and any charges or non-recurring merger costs incurred during such period as a result of any such transaction, and 

(k) to the extent covered by insurance or indemnification and actually reimbursed, or, so long as the Issuer has made a determination that
there exists reasonable evidence that such amount will in fact be reimbursed by the insurer or indemnifying party and only to the extent that such amount is (i) not denied by the applicable carrier or indemnifying party in writing within 180
days and (ii) in fact reimbursed within 365 days of the date of such evidence (with a deduction for any amount so added back to the extent not so reimbursed within 365 days), losses and expenses with respect to liability or casualty events or
business interruption shall be excluded; 
 provided, further, that for purposes of calculating Consolidated Net Income solely as it
relates to clause (iii) of Section 4.07(a), clauses (d)(ii) and (h) above shall not be applicable. 

“Consolidated Tangible Assets” of the Company as of any date means the total amount of assets of the Company and its
Restricted Subsidiaries (less applicable reserves and including any deferred tax assets (for which a valuation allowance has been recorded with respect thereto as if no such valuation allowance was required in making such calculation)) on a
consolidated basis at the end of the fiscal quarter for which financial results have been reported immediately preceding such date, as determined in accordance with GAAP, less: (a) Intangible Assets and (b) appropriate adjustments on
account of minority interests of other Persons holding equity investments in Restricted Subsidiaries, in the case of each of clauses (a) and (b) above, as reflected on the consolidated balance sheet of the Company and its Restricted
Subsidiaries as of the end of the fiscal quarter immediately preceding such date, with such pro forma adjustments to Consolidated Tangible Assets as are appropriate and consistent with the pro forma
adjustment provisions set forth in the definition of “Consolidated Fixed Charge Coverage Ratio.” 

  
 12 

 “Consolidated Tangible Net Worth” of the Company as of any date means the
stockholders’ equity (including any Preferred Stock that is classified as equity under GAAP, other than Disqualified Stock) of the Company and its Restricted Subsidiaries on a consolidated basis at the end of the fiscal quarter for which
financial results have been reported immediately preceding such date, as determined in accordance with GAAP (provided that any deferred tax assets for which a valuation allowance has been recorded with respect thereto shall be
included as if no such valuation allowance was required in making such calculation), less the amount of Intangible Assets reflected on the consolidated balance sheet of the Company and its Restricted Subsidiaries as of the end of the fiscal quarter
for which financial results have been reported immediately preceding such date. 
 “control” when used with
respect to any Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” have meanings correlative to the foregoing. 
 “Corporate Trust Office” means
the office of the Trustee at which the corporate trust business of the Trustee is principally administered, which at the date of this Indenture is located at Rodney Square North, 1100 North Market Street, Wilmington, DE 19890-1600. 

“Covenant Defeasance” has the meaning ascribed to it in Section 8.02 hereof. 

“Credit Facilities” means, with respect to the Company, the Issuer or any of its Restricted Subsidiaries, one or more
debt facilities or other financing arrangements (including, without limitation, commercial paper facilities or indentures) providing for revolving credit loans, term loans, letters of credit or other long-term indebtedness, including any notes,
mortgages, guarantees, collateral documents, instruments and agreements executed in connection therewith, and any amendments, supplements, modifications, extensions, renewals, restatements or refundings thereof and any indentures or credit
facilities or commercial paper facilities that exchange, replace, refund, refinance, extend, renew, restate, amend, supplement or modify any part of the loans, notes, other credit facilities or commitments thereunder, including any such exchanged,
replacement, refunding, refinancing, extended, renewed, restated, amended, supplemented or modified facility or indenture that increases the amount permitted to be borrowed thereunder or alters the maturity thereof (provided
that such increase in borrowings is permitted under Section 4.06(a) hereof) or adds the Company, the Issuer or Restricted Subsidiaries as additional borrowers or guarantors thereunder and whether by the same or any other agent, lender or group
of lenders.  

  
 13 

 “Currency Agreement” of any Person means any foreign exchange contract,
currency swap agreement or other similar agreement or arrangement designed to protect such Person or any of its Subsidiaries against fluctuations in currency values. For the avoidance of doubt, any Permitted Convertible Indebtedness Call Transaction
will not constitute a Currency Agreement. 
 “Custodian” means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law. 
 “Default” means any event, act or condition that is, or after
notice or the passage of time or both would be, an Event of Default. 
 “Depositary” means the depositary of
each Global Note, which will initially be DTC. 
 “Designation Amount” has the meaning ascribed to it in the
definition of “Unrestricted Subsidiary.” 
 “Disqualified Stock” means any Capital Stock that, by
its terms (or by the terms of any security into which it is convertible or for which it is exchangeable), or upon the happening of any event, (a) matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or is
redeemable at the option of the holder thereof, in whole or in part, on or prior to the final maturity date of the Notes or (b) is convertible into or exchangeable or exercisable for (whether at the option of the issuer or the holder thereof)
(i) debt securities or (ii) any Capital Stock referred to in (a) above, in each case, at any time prior to the final maturity date of the Notes; provided, however, that any Capital Stock that
would not constitute Disqualified Stock but for provisions thereof giving holders thereof (or the holders of any security into or for which such Capital Stock is convertible, exchangeable or exercisable) the right to require the Company to
repurchase or redeem such Capital Stock upon the occurrence of a change in control or asset disposition occurring prior to the final maturity date of the Notes shall not constitute Disqualified Stock if the change in control or asset disposition
provision applicable to such Capital Stock are no more favorable to such holders than the provisions of Section 4.10 or Section 4.12 hereof (as applicable) and such Capital Stock specifically provides that the Company will not repurchase
or redeem any such Capital Stock pursuant to such provisions prior to the Company’s repurchase of the Notes as are required pursuant to the provisions of Section 4.10 or Section 4.12 hereof (as applicable). 

“DTC” means The Depository Trust Company, a New York corporation. 

“DTC Legend” means the legend set forth in Exhibit D. 

  
 14 

 “Equity Offering” means any public or private sale, after the Issue Date,
of Qualified Stock of the Company, other than (i) an Excluded Contribution, (ii) public offerings registered on Form S-4 or S-8 or any successor form thereto or (iii) any issuance pursuant to employee benefit plans or otherwise in
compensation to officers, directors or employees. 
 “Euroclear” means Euroclear Bank S.A./N.V. and its
successors or assigns, as operator of the Euroclear System. 
 “Event of Default” has the meaning ascribed to
it in Section 5.01 hereof. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended.

 “Excluded Contribution” means cash or Cash Equivalents received by the Company as capital contributions to
its equity (other than through the issuance of Disqualified Stock) or from the issuance or sale (other than to a Subsidiary) of Qualified Stock of the Company, in each case, after January 31, 2008 and to the extent designated as an Excluded
Contribution pursuant to an Officer’s Certificate of the Company; provided that Excluded Contributions shall not include cash or Cash Equivalents received prior to the Issue Date to the extent they were used (or deemed
used) prior to the Issue Date to make Restricted Payments pursuant to the terms of the indenture governing the Issuer’s Existing Secured Notes; provided further that subsequent reductions in such usage (or deemed usage)
pursuant to the terms of such indenture shall be given effect as well. 
 “Excluded Subsidiary” means
(i) each non-wholly owned Subsidiary and (ii) each Subsidiary of the Company (other than the Issuer) that has a book value of less than $5.0 million, measured at the end of the most recently completed fiscal year for which financial
statements have been provided as set forth under “Reports” (or if acquired or created subsequent to such delivery, measured at the most recent practicable date (or estimated in the reasonable judgment of the Company)); provided
that in each case, such Subsidiary has not guaranteed any other Applicable Debt of the Company or the Issuer. 

“Existing Secured Notes” means the Issuer’s 7.25% Senior Secured First Lien Notes due 2020 and the Issuer’s
9.125% Senior Secured Second Lien Notes due 2020. 
 “Existing Subordinated Indebtedness” means the
Issuer’s Senior Subordinated Amortizing Notes due February 15, 2014. 
 “expiration date” has the
meaning ascribed to it in Section 3.05(b) hereof. 
 “Fair Market Value” means, with respect to any
asset, the price (after taking into account any liabilities relating to such assets) that would be negotiated in an arm’s-length transaction for cash between a willing seller and a willing and able buyer, neither of which is under any
compulsion to complete the transaction, as such price is determined in good faith by the Board of Directors of the Company or a duly authorized committee thereof, as evidenced by a resolution of such Board or committee. 

  
 15 

 “GAAP” means generally accepted accounting principles set forth in the
opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such 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. 

“Global Note” means a Note in registered, global form without interest coupons. 

“Guarantee” means the guarantee of the Notes by each Guarantor under this Indenture. 

“guarantee” means any obligation, contingent or otherwise, of any Person directly or indirectly guaranteeing any
Indebtedness of any other Person and, without limiting the generality of the foregoing, any obligation, direct or indirect, contingent or otherwise, of such Person: (a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness of such other Person (whether arising by virtue of partnership arrangements, or by agreement to keep-well, to purchase assets, goods, securities or services, to take-or-pay, or to maintain financial statement conditions or
otherwise) or (b) entered into for purposes of assuring in any other manner the obligee of such Indebtedness of the payment thereof or to protect such obligee against loss in respect thereof, in whole or in part; provided,
that the term “guarantee” does not include endorsements for collection or deposit in the ordinary course of business. The term “guarantee” used as a verb has a corresponding meaning. 

“Guarantors” means (a) initially, the Company and each of the other Guarantors signatory hereto as set forth on
Schedule A hereto, and (b) each of the Company’s Subsidiaries that becomes a Guarantor of the Notes pursuant to the provisions of this Indenture, and their successors, in each case until released from its respective Guarantee pursuant to
this Indenture. 
 “Hedging Obligations” means, with respect to any Person, the obligations of such Person under any
Interest Protection Agreement, commodity swap agreement, commodity cap agreement, commodity collar agreement, Currency Agreement or similar agreement providing for the transfer or mitigation of interest rate, commodity price or currency risks either
generally or under specific contingencies. 

  
 16 

 “Holder,” “Holders,” “Holder of Notes”
or “Holders of Notes” means the Person or each Person in whose name a Note is registered in the books of the Registrar for the Notes. 

“incurrence” has the meaning ascribed to it in Section 4.06(a) hereof. 

“Indebtedness” of any Person means, without duplication, 

(a) any liability of such Person (i) for borrowed money or under any reimbursement obligation relating to a letter of credit or other
similar instruments (other than standby letters of credit or similar instruments issued for the benefit of, or surety, performance, completion or payment bonds, earnest money notes or similar purpose undertakings or indemnifications issued by, such
Person in the ordinary course of business), (ii) evidenced by a bond, note, debenture or similar instrument (including a purchase money obligation) given in connection with the acquisition of any businesses, properties or assets of any kind or
with services incurred in connection with capital expenditures (other than any obligation to pay a contingent purchase price which, as of the date of incurrence thereof, is not required to be recorded as a liability in accordance with GAAP), or
(iii) in respect of Capitalized Lease Obligations (to the extent of the Attributable Debt in respect thereof), 
 (b) any
Indebtedness of others that such Person has guaranteed to the extent of the guarantee; provided, however, that Indebtedness of the Company and its Restricted Subsidiaries will not include the obligations of the Company or a Restricted
Subsidiary under warehouse lines of credit of Mortgage Subsidiaries to repurchase mortgages at prices no greater than 98% of the principal amount thereof, and upon any such purchase the excess, if any, of the purchase price thereof over the Fair
Market Value of the mortgages acquired, will constitute Restricted Payments subject to Section 4.07 hereof, 
 (c) to the extent
not otherwise included, the obligations of such Person under Hedging Obligations to the extent recorded as liabilities not constituting Interest Incurred, net of amounts recorded as assets in respect of such obligations, in accordance with GAAP, and

 (d) all Indebtedness of others secured by a Lien on any asset of such Person, whether or not such Indebtedness is assumed by such Person;

 provided, that Indebtedness shall not include accounts payable, liabilities to trade creditors of such Person or other accrued expenses arising in
the ordinary course of business or completion guarantees entered into in the ordinary course of business. The amount of Indebtedness of any Person at any date shall be (i) the outstanding balance at such date of all unconditional obligations as
described above, net of any unamortized discount to be accounted for as Interest Expense, in accordance with GAAP, (ii) the maximum liability of such Person for any 

  
 17 

 
contingent obligations under clause (a) of this definition at such date, net of an unamortized discount to be accounted for as Interest Expense in accordance with GAAP, (iii) in the
case of clause (c) above, zero if permitted under clause (f) of the definition of “Permitted Indebtedness” or, otherwise, the net termination amount payable in respect thereof, and (iv) in the case of clause (d) above,
the lesser of (x) the fair market value of any asset subject to a Lien securing the Indebtedness of others on the date that the Lien attaches and (y) the amount of the Indebtedness secured. 

For the avoidance of doubt, obligations of any Person under a Permitted Bond Hedge Transaction or a Permitted Warrant Transaction shall be
deemed not to constitute Indebtedness. 
 “Indenture” means this indenture, as amended or supplemented from time to
time. 
 “Initial Notes” means the Notes of the Issuer issued under this Indenture on the Issue Date and any
Notes issued in replacement therefor. 
 “Institutional Accredited Investor Certificate” means a certificate
substantially in the form of Exhibit G hereto. 
 “Intangible Assets” of the Company means all unamortized
debt discount and expense, unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names, copyrights and all other items (other than any deferred tax assets) which would be treated as intangibles on the consolidated balance
sheet of the Company and its Restricted Subsidiaries prepared in accordance with GAAP. 
 “Interest Expense”
of any Person for any period means, without duplication, the aggregate amount of (a) interest which, in conformity with GAAP, would be set opposite the caption “interest expense” or any like caption on an income statement for such
Person (including, without limitation, imputed interest included in Capitalized Lease Obligations, all commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing, the net costs
(but reduced by net gains) associated with Currency Agreements and Interest Protection Agreements, amortization of other financing fees and expenses, the interest portion of any deferred payment obligation, amortization of discount or premium, if
any, and all other noncash interest expense (other than interest and other charges amortized to cost of sales)), and (b) all interest actually paid by the Company or a Restricted Subsidiary under any guarantee of Indebtedness (including,
without limitation, a guarantee of principal, interest or any combination thereof) of any Person other than the Company, the Issuer or any Restricted Subsidiary during such period; provided, that Interest Expense shall exclude
any expense associated with the complete write-off of financing fees and expenses in connection with the repayment of any Indebtedness. 

  
 18 

 “Interest Incurred” of any Person for any period means, without
duplication, the aggregate amount of (a) Interest Expense and (b) all capitalized interest and amortized debt issuance costs. 

“Interest Payment Date” means each January 15 and July 15 of each year, commencing July 15, 2014.

 “Interest Protection Agreement” of any Person means any interest rate swap agreement, interest rate collar
agreement, option or futures contract or other similar agreement or arrangement designed to protect such Person or any of its Subsidiaries against fluctuations in interest rates with respect to Indebtedness permitted to be incurred under this
Indenture. For the avoidance of doubt, any Permitted Convertible Indebtedness Call Transaction will not constitute an Interest Protection Agreement.  

“Investment Grade” means, with respect to a debt rating of the Notes, a rating of Baa3 (or the equivalent) or higher
by Moody’s together with a rating of BBB- (or the equivalent) or higher by S&P or, in the event S&P or Moody’s or both shall cease rating the Notes (for reasons outside the control of the Company or the Issuer) and the Company
shall select any other Rating Agency, the equivalent of such ratings by such other Rating Agency. 

“Investments” of any Person means (a) all investments by such Person in any other Person in the form of loans,
advances or capital contributions, (b) all guarantees of Indebtedness of any other Person by such Person, (c) all purchases (or other acquisitions for consideration) by such Person of Indebtedness, Capital Stock or other securities of any
other Person and (d) all other items that would be classified as investments in any other Person (including, without limitation, purchases of assets outside the ordinary course of business) on a balance sheet of such Person prepared in
accordance with GAAP. 
 “Issue Date” means January 10, 2014. 

“Issuer” has the meaning ascribed to it in the preamble hereof and shall also refer to any successor obligor under
this Indenture. 
 “Legal Defeasance” has the meaning ascribed to it in Section 8.01 hereof. 

“Lien” means, with respect to any Property, any mortgage, lien, pledge, charge, security interest or encumbrance of
any kind in respect of such Property. For purposes of this definition, a Person shall be deemed to own, subject to a Lien, any Property which it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale
agreement, capital lease or other title retention agreement relating to such Property. 

  
 19 

 “Make-Whole Amount” has the meaning ascribed to it in Section 3.01
hereof. 
 “Marketable Securities” means (a) equity securities that are listed on a national securities
exchange and (b) debt securities that are rated by a nationally recognized rating agency, listed on a national securities exchange or covered by at least two reputable market makers. 

“Moody’s” means Moody’s Investors Service, Inc. or any successor to its debt rating business. 

“Mortgage Subsidiary” means any Subsidiary of the Company substantially all of whose operations consist of the
mortgage lending business. 
 “Net Cash Proceeds” means with respect to an Asset Disposition, payments
received in cash (including any such payments received by way of deferred payment of principal pursuant to a note or installment receivable or otherwise (including any cash received upon sale or disposition of such note or receivable), but only as
and when received), excluding any other consideration received in the form of assumption by the acquiring Person of Indebtedness or other obligations relating to the Property disposed of in such Asset Disposition or received in any other non-cash
form unless and until such non-cash consideration is converted into cash therefrom, in each case, net of all legal, title and recording tax expenses, commissions and other fees and expenses incurred, and all federal, state and local taxes required
to be accrued as a liability under GAAP as a consequence of such Asset Disposition, and in each case net of a reasonable reserve for the after-tax cost of any indemnification or other payments (fixed and contingent) attributable to the seller’s
indemnities or other obligations to the purchaser undertaken by the Company, the Issuer or any of its Restricted Subsidiaries in connection with such Asset Disposition, and net of all payments made on any Indebtedness which is secured by or relates
to such Property in accordance with the terms of any Lien or agreement upon or with respect to such Property or which such Indebtedness must by its terms or by applicable law be repaid out of the proceeds from such Asset Disposition, and net of all
contractually required distributions and payments made to minority interest holders in Restricted Subsidiaries or joint ventures as a result of such Asset Disposition. 

“Non-Recourse Indebtedness” with respect to any Person means Indebtedness of such Person for which (a) the sole legal
recourse for collection of principal and interest on such Indebtedness is against the specific property, including for the avoidance of doubt, assets directly related thereto or derived 

  
 20 

 
therefrom, identified in the instruments evidencing or securing such Indebtedness or other property of such Person financed pursuant to the Credit Facility of such Person under which such
Indebtedness was incurred (provided that the aggregate principal amount of the total Indebtedness shall not exceed the purchase price or cost (including financing costs) of the properties financed thereby), (b) such properties were
acquired (directly or indirectly, including through the purchase of Capital Stock of the Person owning such property), constructed or improved with the proceeds of such Indebtedness or such Indebtedness was incurred within 365 days after the
acquisition (directly or indirectly, including through the purchase of Capital Stock of the Person owning such property) or completion of such construction or improvement and (c) no other assets of such Person may be realized upon in collection
of principal or interest on such Indebtedness. Indebtedness which is otherwise Non-Recourse Indebtedness will not lose its character as Non-Recourse Indebtedness because there is recourse to the borrower, any guarantor or any other Person for
(i) environmental warranties, covenants and indemnities, (ii) indemnities for and liabilities arising from fraud, misrepresentation, misapplication or non-payment of rents, profits, deposits, insurance and condemnation proceeds and other
sums actually received by the borrower from secured assets to be paid to the lender, waste and mechanics’ liens, breach of separateness covenants, and other customary exceptions, (iii) in the case of the borrower thereof only, other
obligations in respect of such Indebtedness that are payable solely as a result of a voluntary or collusive non-voluntary bankruptcy filing (or similar filing or action) by such borrower or (iv) similar customary “bad-boy” guarantees.

 “Non-U.S. Person” means a Person that is not a “U.S. person,” as such term is defined in Regulation
S. 
 “Notes” has the meaning ascribed to it in the Recitals hereof. 

“Obligations” means with respect to any Indebtedness, all obligations (whether in existence on the Issue Date or
arising afterwards, absolute or contingent, direct or indirect) for or in respect of principal (when due, upon acceleration, upon redemption, upon mandatory repayment or repurchase pursuant to a mandatory offer to purchase, or otherwise), premium,
interest, penalties, fees, indemnification, reimbursement and other amounts payable and liabilities with respect to such Indebtedness, including all interest accrued or accruing after the commencement of any bankruptcy, insolvency or reorganization
or similar case or proceeding at the contract rate (including, without limitation, any contract rate applicable upon default) specified in the relevant documentation, whether or not the claim for such interest is allowed as a claim in such case or
proceeding. 
 “offer” has the meaning ascribed to it in Section 3.05(a) hereof. 

“Offer to Purchase” has the meaning ascribed to it in Section 3.05 hereof. 

  
 21 

 “Offering Circular” means the Issuer’s Confidential Offering
Circular dated January 7, 2014. 
 “Officer,” when used with respect to the Issuer or the Company, means the
chairman of the Board of Directors, the president or chief executive officer, any vice president, the chief financial officer, the treasurer, any assistant treasurer, the controller, any assistant controller, the secretary or any assistant secretary
of the Issuer or the Company, as the case may be. 
 “Officers’ Certificate,” when used with respect to the
Issuer or the Company, means a certificate signed by the chairman of the Board of Directors, the president or chief executive officer, or any vice president and by the chief financial officer, the treasurer, any assistant treasurer, the controller,
any assistant controller, the secretary or any assistant secretary of the Issuer or the Company, as the case may be. 
 “Opinion of
Counsel” means a written opinion signed by legal counsel of the Issuer or the Company, who may be an employee of, or counsel to, the Issuer or the Company, and who shall be reasonably satisfactory to the Trustee. 

“Paying Agent” refers to a Person engaged to perform the obligations of the Trustee in respect of payments made or
funds held hereunder in respect of the Notes. 
 “Permanent Regulation S Global Note” means a Regulation S Global
Note that does not bear the Regulation S Temporary Global Note Legend. 
 “Permitted Bond Hedge” means any call or
capped call option (or substantively equivalent derivative transaction) on the Company’s Capital Stock purchased by the Company, the Issuer or any Restricted Subsidiary in connection with the issuance of any Permitted Convertible Indebtedness;
provided that the purchase price for such Permitted Bond Hedge, less the proceeds received by the Company, the Issuer or the Restricted Subsidiaries from the sale of any related Permitted Warrant, does not exceed the net proceeds received by
the Company, the Issuer or the Restricted Subsidiaries from the sale of such Permitted Convertible Indebtedness issued in connection with the Permitted Bond Hedge. 

“Permitted Convertible Indebtedness” means Indebtedness of the Company, the Issuer or any Restricted Subsidiary
permitted to be incurred under the terms of this Indenture that is either (a) convertible or exchangeable into Capital Stock of the Company (and cash in lieu of fractional shares) and/or cash (in an amount determined by reference to the price
of such Capital Stock) or (b) sold as units with call options, warrants or rights to purchase (or substantially equivalent derivative transactions) that are exercisable for Capital Stock of the Company and/or cash (in an amount determined by
reference to the price of such Capital Stock). For the avoidance of doubt, the Units and the senior unsecured exchange notes which are a component of such Units, shall be Permitted Convertible Indebtedness. 

  
 22 

 “Permitted Convertible Indebtedness Call Transaction” means any Permitted
Bond Hedge and any Permitted Warrant. 
 “Permitted Hovnanian Holders” means, collectively, Ara K. Hovnanian, the members
of his immediate family and the members of the immediate family of the late Kevork S. Hovnanian, the respective estates, spouses, heirs, ancestors, lineal descendants, legatees and legal representatives of any of the foregoing and the trustee of any
bona fide trust of which one or more of the foregoing are the sole beneficiaries or the grantors thereof, or any entity of which any of the foregoing, individually or collectively, beneficially own more than 50% of the Common Equity. Any
Person or group whose acquisition of beneficial ownership constitutes a Change of Control in respect of which a Change of Control offer is made in accordance with the requirements of the Indenture (or would result in a Change of Control offer in the
absence of the waiver of such requirement by Holders in accordance with the Indenture) will thereafter constitute Permitted Hovnanian Holders. 

“Permitted Indebtedness” means: 

(a) Indebtedness under the Notes (and Guarantees thereof), other than Additional Notes; 

(b) Indebtedness under Credit Facilities in an aggregate principal amount outstanding at any one time (including for purposes of determining
amounts outstanding under this clause (b), any Refinancing Indebtedness in respect thereof, which Refinancing Indebtedness shall be deemed to have been incurred under this clause (b)) not to exceed the greater of (i) $250.0 million and
(ii) 10.0% of Consolidated Tangible Assets measured at the time of incurrence; 
 (c) Indebtedness outstanding on the Issue Date,
excluding Indebtedness constituting Permitted Indebtedness pursuant to clauses (b), (d) through (f), (h), (j), (l), and (n) through (s) of this definition, which shall instead be incurred under such clauses; 

(d) Indebtedness in respect of obligations of the Company and its Subsidiaries to the trustees under indentures for debt securities; 

(e) intercompany debt obligations of (i) the Company to the Issuer, (ii) the Issuer to the Company, (iii) the Company or the
Issuer to any Restricted Subsidiary and (iv) any Restricted Subsidiary to the Company or the Issuer or any other Restricted Subsidiary; provided, however, that any Indebtedness of any Restricted Subsidiary or the Issuer or the Company
owed to any Restricted Subsidiary or the Issuer that ceases to be a Restricted Subsidiary shall be deemed to be incurred and shall be treated as an incurrence for purposes of Section 4.06(a) at the time the Restricted Subsidiary in question
ceases to be a Restricted Subsidiary; 

  
 23 

 (f) Indebtedness of the Company or the Issuer or any Restricted Subsidiary under Hedging
Obligations, in the case of any Currency Agreements or Interest Protection Agreements in a notional amount no greater than the payments due (at the time the related Currency Agreement or Interest Protection Agreement is entered into) with respect to
the Indebtedness or currency being hedged; 
 (g) Purchase Money Indebtedness and Capitalized Lease Obligations in an aggregate principal
amount (including for purposes of determining amounts outstanding under this clause (g), any Refinancing Indebtedness in respect thereof, which Refinancing Indebtedness shall be deemed to have been incurred under this clause (g)) at any one time
outstanding not to exceed $50.0 million; 
 (h) obligations for, pledge of assets in respect of, and guaranties of, bond financings of
political subdivisions or enterprises thereof in the ordinary course of business; 
 (i) Indebtedness secured only by office buildings owned
or occupied by the Company or any Restricted Subsidiary, which Indebtedness does not exceed $25.0 million aggregate principal amount outstanding at any one time; 

(j) Indebtedness under warehouse lines of credit, repurchase agreements and Indebtedness secured by mortgage loans and related assets of
mortgage lending Subsidiaries in the ordinary course of a mortgage lending business; 
 (k) Indebtedness of the Company or any Restricted
Subsidiary which, together with all other Indebtedness under this clause (k), does not exceed $175.0 million aggregate principal amount outstanding at any one time, including for purposes of determining amounts outstanding under this clause (k), any
Refinancing Indebtedness in respect thereof, which Refinancing Indebtedness shall be deemed to have been incurred under this clause (k); 

(l) obligations in respect of self-insurance, performance, bid, appeal and surety bonds and completion guarantees and similar obligations
provided by the Company or any Restricted Subsidiary or obligations in respect of letters of credit, bank guarantees or similar instruments related thereto, in each case, in the ordinary course of business; 

(m) Indebtedness of (x) the Company, the Issuer or a Restricted Subsidiary incurred or issued to finance an acquisition or
(y) Persons that are acquired by the Company, the Issuer or any Restricted Subsidiary or merged into or consolidated with the Company, the Issuer or a Restricted Subsidiary in accordance with the

  
 24 

 
terms of the Indenture (including designating an Unrestricted Subsidiary a Restricted Subsidiary); provided that after giving effect to such acquisition, merger or consolidation, either:
(i) the Company could incur at least $1.00 of Indebtedness pursuant to Section 4.06(a), or (ii) the Consolidated Fixed Charge Coverage Ratio would be equal to or greater than the Consolidated Fixed Charge Coverage Ratio immediately
prior to such transaction or the ratio of Indebtedness of the Company and the Restricted Subsidiaries to Consolidated Tangible Net Worth of the Company would be equal to or less than the ratio immediately prior to such transaction; 

(n) Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against
insufficient funds in the ordinary course of business; 
 (o) Indebtedness of the Company or any Restricted Subsidiary supported by a letter
of credit (which letter of credit is incurred pursuant to another clause hereof (other than clause (l) of this definition), in a principal amount not in excess of the stated amount of such letter of credit; 

(p) Indebtedness of the Company or any Restricted Subsidiary consisting of (i) the financing of insurance premiums or (ii) take or
pay obligations contained in supply arrangements, in each case incurred in the ordinary course of business; 
 (q) Indebtedness of the
Company or any of its Restricted Subsidiaries in respect of Cash Management Services; 
 (r) obligations (other than Indebtedness for
borrowed money) of the Company or any of its Restricted Subsidiaries under an agreement with any governmental authority, quasi-governmental entity, utility, adjoining (or common master plan) landowner or seller of real property, in each case entered
into in the ordinary course of business in connection with the acquisition of real property, to entitle, develop or construct infrastructure thereupon; and 

(s) the incurrence by the Company or any Restricted Subsidiary of Indebtedness deemed to exist pursuant to the terms of a joint venture
agreement as a result of a failure of the Company or such Restricted Subsidiary to make a required capital contribution therein; provided that the only recourse on such Indebtedness is limited to the Company’s or such Restricted
Subsidiary’s equity interests in the related joint venture. 
 “Permitted Investment” means 

(a) Cash Equivalents; 

  
 25 

 (b) any Investment in the Company, the Issuer or any Restricted Subsidiary or any Person that
becomes a Restricted Subsidiary as a result of such Investment or that is consolidated or merged with or into, or transfers all or substantially all of the assets of it or an operating unit or line of business to, the Company or a Restricted
Subsidiary; 
 (c) any receivables, loans or other consideration taken by the Company, the Issuer or any Restricted Subsidiary in connection
with any asset sale otherwise permitted by this Indenture; 
 (d) Investments received in connection with any bankruptcy or reorganization
proceeding, or as a result of foreclosure, perfection or enforcement of any Lien or any judgment or settlement of any Person in exchange for or satisfaction of Indebtedness or other obligations or other property received from such Person, or for
other liabilities or obligations of such Person created, in accordance with the terms of this Indenture; 
 (e) Investments in Hedging
Obligations described in the definition of “Permitted Indebtedness”; 
 (f) any loan or advance to an executive officer, director
or employee of the Company or any Restricted Subsidiary made in the ordinary course of business or in accordance with past practice; provided, however, that any such loan or advance exceeding $1.0 million shall have been approved by
the Board of Directors of the Company or a committee thereof consisting of disinterested members; 
 (g) Investments in interests in
issuances of collateralized mortgage obligations, mortgages, mortgage loan servicing, or other mortgage related assets; 
 (h) obligations of
the Company or a Restricted Subsidiary under warehouse lines of credit of Mortgage Subsidiaries to repurchase mortgages; 
 (i) Investments
in an aggregate amount at any time outstanding not to exceed the greater of (i) $125.0 million and (ii) 5.0% of Consolidated Tangible Assets (measured at the time made and without giving effect to subsequent changes in value); 

(j) Guarantees issued in accordance with Section 4.06 hereof; 

(k) Investments in existence on the Issue Date not otherwise constituting Permitted Investments pursuant to clause (b) above; 

(l) Permitted Bond Hedges which constitute Investments; 

  
 26 

 (m) extensions of trade credit and credit in connection with the sale of land owned by the
Company or a Restricted Subsidiary which is zoned by the applicable governmental authority having jurisdiction for construction and use as a detached or attached (including town homes or condominium) single-family house (but excluding mobile homes),
or the sale of a detached or attached (including town homes or condominium) single-family house (but excluding mobile homes) owned by the Company or a Restricted Subsidiary which is completed or for which there has been a start of construction and
which has been or is being constructed on any such land; 
 (n) obligations (but not payments thereon) with respect to homeowners association
obligations, community facility district bonds, metro district bonds, mello-roos bonds and subdivision improvement bonds and similar bonding requirements arising in the ordinary course of business of a homebuilder; 

(o) guarantee obligations, including completion guarantee or indemnification obligations (other than for the payment of borrowed money) entered
into in the ordinary course of business and incurred for the benefit of any adjoining landowner, lender, seller of real property or municipal government authority (or enterprises thereof) in connection with the acquisition, construction,
subdivision, entitlement and development of real property; 
 (p) Investments the payment for which consists of Qualified Stock of the
Company; provided that such Qualified Stock will not increase the amount available for Restricted Payments under clause (iii) of Section 4.07(a); 

(q) advances, loans or extensions of trade credit in the ordinary course of business by the Company or any of the Restricted Subsidiaries; 

(r) intercompany current liabilities owed to Unrestricted Subsidiaries or joint ventures incurred in the ordinary course of business in
connection with the cash management operations of the Company and its Subsidiaries; and 
 (s) insurance, lease, utility and workers’
compensation, performance and other similar deposits made in the ordinary course of business. 
 “Permitted Liens” means

 (a) Liens for taxes, assessments or governmental or quasi-government charges or claims that (i) are not yet delinquent for a period
of more than 30 days, (ii) are being contested in good faith by appropriate proceedings and as to which appropriate reserves have been established or other provisions have been made in accordance with GAAP, if required, or (iii) encumber
solely property abandoned or in the process of being abandoned; 

  
 27 

 (b) 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 and with respect to amounts that, to the extent applicable, either (i) are not yet delinquent for a period of
more than 30 days or (ii) are being contested in good faith by appropriate proceedings and as to which appropriate reserves have been established or other provisions have been made in accordance with GAAP, if required; 

(c) Liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance
and other types of social security or similar legislation or other insurance related obligations (including, but not limited to, in respect of deductibles, self insured retention amounts and premiums and adjustments thereto) or indemnification
obligations of (including obligations in respect of letters of credit or bank guarantees for the benefit of) insurance carriers providing property, casualty or liability insurance, or good faith deposits in connection with bids, tenders, contracts
(other than for the payment of Indebtedness) or leases to which such Person is a party, or deposits to secure public or statutory obligations of such Person or deposits of cash or U.S. government bonds to secure surety, stay, customs or appeal bonds
to which such Person is a party, or deposits as security for contested taxes or import duties or for the payment of rent, performance and return-of-money bonds and other similar obligations (including letters of credit issued in lieu of any such
bonds or to support the issuance thereof and including those to secure health, safety and environmental obligations); 
 (d) Liens incurred
or deposits made to secure the performance of tenders, bids, leases, statutory obligations, surety and appeal bonds, development obligations, progress payments, government contacts, 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 (a)(i) of the definition of
“Indebtedness”), in each case incurred in the ordinary course of business of the Company, the Issuer and the Restricted Subsidiaries; 

(e) attachment or judgment Liens not giving rise to a Default or an Event of Default; 

(f) easements, dedications, assessment district or similar Liens in connection with municipal or special district financing, rights-of-way,
restrictions, reservations and other similar charges, burdens, and other similar charges or encumbrances not materially interfering with the ordinary course of business of the Company, the Issuer and the Restricted Subsidiaries; 

(g) zoning restrictions, licenses, restrictions on the use of real property or minor irregularities in title thereto, which do not materially
impair the use of such real property in the ordinary course of business of the Company, the Issuer and the Restricted Subsidiaries; 

  
 28 

 (h) Liens securing Indebtedness incurred pursuant to clause (a), (i) or (j) of the
definition of “Permitted Indebtedness”; 
 (i) Liens securing Indebtedness of the Company, the Issuer or any Restricted Subsidiary
permitted to be incurred under this Indenture; provided, that the aggregate amount of all consolidated Indebtedness of the Company, the Issuer and the Restricted Subsidiaries (including, with respect to Capitalized Lease Obligations, the
Attributable Debt in respect thereof) secured by Liens under this clause (i) (together with the principal amounts outstanding under the Existing Secured Notes and any refinancing, replacement or renewal thereof that constitutes Secured
Indebtedness which is not permitted by and incurred under another clause of this definition of “Permitted Liens” (other than clauses (s) and (w))) shall not exceed the greater of (i) $800.0 million and (ii) 30% of
Consolidated Tangible Assets at any one time outstanding (after giving effect to the incurrence of such Indebtedness and the use of the proceeds thereof) measured at the time of incurrence; 

(j) Liens securing Non-Recourse Indebtedness of the Company, the Issuer or any Restricted Subsidiary; provided, that such Liens apply
only to (i) the property financed, constructed or improved out of the net proceeds of such Non-Recourse Indebtedness within 365 days after the incurrence of such Non-Recourse Indebtedness, and, including for the avoidance of doubt, assets
directly related thereto or derived therefrom or other property of the Company, the Issuer or any Restricted Subsidiary financed pursuant to the Credit Facility of such person under which the Non-Recourse Indebtedness was incurred, or
(ii) licenses, permits, authorizations, consent forms or contracts related to the acquisition, development, use or improvement of such property; 

(k) Liens securing Purchase Money Indebtedness; provided, that such Liens apply only to (i) the property financed, designed,
installed, constructed or improved with the proceeds of such Purchase Money Indebtedness within 365 days after the incurrence of such Purchase Money Indebtedness, and, including for the avoidance of doubt, assets directly related thereto or derived
therefrom or other property of the Company, the Issuer or any Restricted Subsidiary financed pursuant to the Credit Facility of such person under which the Purchase Money Indebtedness was incurred, or (ii) licenses, permits, authorizations,
consent forms or contracts related to the acquisition, development, use or improvement of such property; 
 (l) Liens on property or assets
of the Company, the Issuer or any Restricted Subsidiary securing Indebtedness of the Company, the Issuer or any Restricted Subsidiary owing to the Company, the Issuer or one or more Restricted Subsidiaries; 

  
 29 

 (m) leases, subleases, licenses or sublicenses (including of intellectual property) granted to
others not materially interfering with the ordinary course of business of the Company and the Restricted Subsidiaries; 
 (n) purchase money
security interests (including, without limitation, Capitalized Lease Obligations); provided, that such Liens apply only to the Property acquired and the related Indebtedness is incurred within 365 days after the acquisition of such Property;

 (o) any right of first refusal, right of first offer, option, contract or other agreement to sell an asset; provided that such sale
is not otherwise prohibited under this Indenture; 
 (p) any right of a lender or lenders to which the Company, the Issuer or a Restricted
Subsidiary may be indebted to offset against, or appropriate and apply to the payment of such, or a Restricted Subsidiary with or held by such lender or lenders or its Affiliates; 

(q) any pledge or deposit of cash or 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, the Issuer and the Restricted Subsidiaries; 

(r) Liens for homeowner, condominium, property owner association developments and similar fees, assessments and other payments; 

(s) Liens securing Refinancing Indebtedness (except Liens securing Refinancing Indebtedness in respect of Indebtedness secured pursuant to
clause (qq) below); provided, that such Liens extend only to the assets securing the Indebtedness being refinanced; 
 (t) Liens
incurred in the ordinary course of business as security for the obligations of the Company, the Issuer and the Restricted Subsidiaries with respect to indemnification in respect of title insurance providers; 

(u) Liens on property of a Person existing at the time such Person is merged with or into or consolidated with the Company or any Subsidiary of
the Company or becomes a Subsidiary of the Company; provided, that such Liens were in existence prior to the contemplation of such merger or consolidation or acquisition and do not extend to any assets other than those of the Person merged
into or consolidated with the Company or the Subsidiary or acquired by the Company or its Subsidiaries; 

  
 30 

 (v) Liens on property existing at the time of acquisition thereof by the Company or any
Subsidiary of the Company, provided, that such Liens were in existence prior to the contemplation of such acquisition; 
 (w) Liens
existing on the Issue Date and any extensions, renewals, refinancings or replacements thereof; 
 (x) Liens on specific items of inventory or
other goods and proceeds of any Person securing such Person’s obligations in respect of bankers’ acceptances issued or created for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods;

 (y) pledges, deposits and other Liens existing under, or required to be made in connection with, (i) earnest money obligations,
escrows or similar purpose undertakings or indemnifications in connection with any purchase and sale agreement, (ii) development agreements or other contracts entered into with governmental authorities (or an entity sponsored by a governmental
authority) in connection with the entitlement of real property or (iii) agreements for the funding of infrastructure, including in respect of the issuance of community facility district bonds, metro district bonds, subdivision improvement bonds
and similar bonding requirements arising in the ordinary course of business of a homebuilder; 
 (z) Liens securing obligations of the
Company or any Restricted Subsidiary to any third party in connection with any option, repurchase right or right of first refusal to purchase real property granted to the master developer or the seller of real property that arises as a result of the
non-use or non-development of such real property by the Company or any Restricted Subsidiary and joint development agreements with third parties to perform and/or pay for or reimburse the costs of construction and/or development related to or
benefiting property (and additions, accessions, improvements and replacements and customary deposits in connection therewith and proceeds and products therefrom) of the Company or any Restricted Subsidiary and property belonging to such third
parties, in each case entered into in the ordinary course of business; provided that such Liens do not at any time encumber any property, other than the property (and additions, accessions, improvements and replacements and customary deposits
in connection therewith and proceeds and products therefrom) financed by such Indebtedness and the proceeds and products thereof; 
 (aa)
Liens securing Hedging Obligations and Cash Management Services so long as the related Indebtedness is, and is permitted under this Indenture to be, secured by a Lien on the same property securing such Hedging Obligations or Cash Management
Services; 
 (bb) Liens arising from Uniform Commercial Code (or equivalent statute) financing statement filings regarding operating leases
or consignments entered into by the Company or any Restricted Subsidiary in the ordinary course of business; 

  
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 (cc) Liens in favor of the Issuer or any Guarantor; 

(dd) deposits made or other security provided to secure liabilities to insurance carriers under insurance or self-insurance arrangements in the
ordinary course of business; 
 (ee) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of
customs duties in connection with the importation of goods in the ordinary course of business; 
 (ff) Liens (i) of a collection bank
arising under Section 4-210 of the Uniform Commercial Code or any comparable or successor provision on items in the course of collection, (ii) attaching to pooling, commodity trading accounts or other commodity brokerage accounts incurred
in the ordinary course of business and (iii) in favor of banking or other financial institutions or electronic payment service providers arising as a matter of law encumbering deposits (including the right of set-off) and which are within the
general parameters customary in the banking or finance industry; 
 (gg) the rights reserved or vested in any Person by the terms of any
lease, license, grant or permit held by the Company or any of its Restricted Subsidiaries or by a statutory provision, to terminate any such lease, license, grant or permit, or to require annual or periodic payments as a condition to the continuance
thereof; 
 (hh) restrictive covenants affecting the use to which real property may be put; provided that the covenants are complied with;

 (ii) security given to a public utility or any municipality or governmental authority when required by such utility or authority in
connection with the operations of that Person in the ordinary course of business; 
 (jj) zoning by-laws and other land use restrictions,
including, without limitation, site plan agreements, development agreements and contract zoning agreements; 
 (kk) Liens arising out of
conditional sale, title retention, consignment or similar arrangements for sale of goods entered into by the Company or any Restricted Subsidiary in the ordinary course of business; 

(ll) any Lien granted pursuant to a security agreement between the Company or any Restricted Subsidiary and a licensee of their intellectual
property to secure the damages, if any, of such licensee resulting from the rejection by the Company or such Restricted Subsidiary of such licensee in a bankruptcy, reorganization or similar proceeding with respect to the Company or such Restricted
Subsidiary; provided that such Liens do not cover any assets other than the intellectual property subject to such license; 

  
 32 

 (mm) Liens on the Equity Interests of Unrestricted Subsidiaries; 

(nn) any encumbrance or restriction (including put and call arrangements) with respect to capital stock of any joint venture or similar
arrangement pursuant to any joint venture or similar agreement; 
 (oo) Liens on property or assets used to defease or to irrevocably satisfy
and discharge Indebtedness; provided that such defeasance or satisfaction and discharge is not prohibited by the Indenture; 
 (pp)
easements, rights-of-way, dedications, covenants, conditions, restrictions, reservations and assessment district or similar Liens in connection with municipal or special district financing, agreements with adjoining landowners or state or local
government authorities, quasi-governmental entities or utilities and other similar charges or encumbrances incurred in the ordinary course of business and which do not, in the aggregate, materially interfere with the ordinary course of business of
the Company and its Subsidiaries; 
 (qq) Liens securing Indebtedness of the Issuer or any Guarantor incurred under Credit Facilities that
constitute revolving credit loans, term loans, letters of credit or similar lines of credit in an aggregate amount at any time outstanding not to exceed the greater of (i) $125.0 million and (ii) 4.0% of Consolidated Tangible Assets
measured at the time of the incurrence, and 
 (rr) Liens securing obligations not to exceed $25.0 million at any one time outstanding. 

For purposes of determining compliance with this definition, (x) a Lien need not be incurred solely by reference to one category of
Permitted Liens described in this definition but may be incurred under any combination of such categories (including in part under one such category and in part under any other such category) and (y) in the event that a Lien (or any portion
thereof) meets the criteria of one or more of such categories of Permitted Liens, the Issuer shall, in its sole discretion, classify or reclassify such Lien (or any portion thereof) in any manner that complies with this definition. 

“Permitted Warrant” means any call option on, warrant or right to purchase (or substantively equivalent derivative
transaction) the Company’s Capital Stock sold by the Company, the Issuer or any Restricted Subsidiary substantially concurrently with any purchase by the Company, the Issuer or any Restricted Subsidiary of a related Permitted Bond Hedge. 

  
 33 

 “Person” means any individual, corporation, partnership, limited liability
company, joint venture, incorporated or unincorporated association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 

“Preferred Stock” of any Person means all Capital Stock of such Person which has a preference in liquidation or with
respect to the payment of dividends. 
 “Property” of any Person means all types of real, personal, tangible,
intangible or mixed property owned by such Person, whether or not included in the most recent consolidated balance sheet of such Person and its Subsidiaries under GAAP. 

“purchase amount” has the meaning ascribed to it in Section 3.05(b) hereof. 

“purchase date” has the meaning ascribed to it in Section 3.05(b) hereof. 

“Purchase Money Indebtedness” means Indebtedness of the Company, the Issuer or any Restricted Subsidiary incurred for
the purpose of financing all or any part of the purchase price, or the cost of design, installation, construction, lease or improvement, of any property to be used in the business of the Company, the Issuer and the Restricted Subsidiaries;
provided, however, that (a) the aggregate principal amount of such Indebtedness shall not exceed such purchase price or cost (including financing costs) and (b) such Indebtedness shall be incurred no later than 365 days after the
acquisition of such property or completion of such design, installation, construction, lease or improvement. 
 “Qualified
Stock” means Capital Stock of the Company other than Disqualified Stock. 
 “Rating Agency” means a
statistical rating agency or agencies, as the case may be, nationally recognized in the United States and selected by the Company (as certified by a resolution of the Board of Directors of the Company) which shall be substituted for S&P or
Moody’s, or both, as the case may be. 
 “Real Estate Business” means homebuilding, housing construction, real
estate development or construction and the sale of homes and related real estate activities, including the provision of mortgage financing or title insurance. 

“Record Date” for the interest payable on any Interest Payment Date means the January 1 or July 1 (whether or not a
Business Day) immediately preceding such Interest Payment Date. 

  
 34 

 “Refinancing Indebtedness” means Indebtedness (to the extent not
Permitted Indebtedness) that refunds, refinances or extends any Indebtedness of the Company, the Issuer or any Restricted Subsidiary (other than Non-Recourse Indebtedness and Permitted Indebtedness described under clauses (d) through (f),
(h) through (j), (l), (n) through (s) of the definition thereof), but only to the extent that: 
 (a) the Refinancing
Indebtedness is subordinated, if at all, to the Notes or the Guarantees, as the case may be, to the same extent as the Indebtedness being refunded, refinanced or extended (provided that Refinancing Indebtedness issued to refund, refinance or
extend Existing Subordinated Indebtedness need not be subordinated to the Notes or the Guarantees, as the case may be), 
 (b) the
Refinancing Indebtedness is scheduled to mature either (a) no earlier than the Indebtedness being refunded, refinanced or extended or (b) after the maturity date of the Notes, 

(c) the portion, if any, of the Refinancing Indebtedness that is scheduled to mature on or prior to the maturity date of the Notes has a
Weighted Average Life to Maturity at the time such Refinancing Indebtedness is incurred that is equal to or greater than the Weighted Average Life to Maturity of the portion of the Indebtedness being refunded, refinanced or extended that is
scheduled to mature on or prior to the maturity date of the Notes, and 
 (d) such Refinancing Indebtedness is in an aggregate principal
amount that is equal to or less than the aggregate principal amount then outstanding under the Indebtedness being refunded, refinanced or extended (plus all accrued interest thereon and the amount of any premiums (including tender premiums) and
fees, costs and expenses incurred in connection with the refinancing thereof); 
 provided, that for purposes of determining the
principal amount outstanding under clauses (b), (g) and (k) of “Permitted Indebtedness,” and clauses (i), (qq) and (rr) of “Permitted Liens,” the principal amount referred to in such clauses shall be calculated
excluding any principal amount that was incurred in respect of amounts set forth in the parenthetical in clause (d) of this definition and such principal amount shall nonetheless be permitted under such clauses. 

“Register” has the meaning ascribed to it in Section 2.09 hereof. 

“Registrar” means a Person engaged to maintain the Register. 

“Regulation S” means Regulation S under the Securities Act. 

“Regulation S Certificate” means a certificate substantially in the form of Exhibit E hereto. 

“Regulation S Global Note” means a Global Note representing Notes issued and sold pursuant to Regulation S. 

  
 35 

 “Regulation S Temporary Global Note” means a Regulation S Global Note
that bears the Regulation S Temporary Global Note Legend. 
 “Regulation S Temporary Global Note Legend” means the legend
set forth in Exhibit I. 
 “Repurchase Date” has the meaning ascribed to it in Section 4.12(a) hereof. 

“Responsible Officer,” when used with respect to the Trustee, means any officer of the Trustee with direct
responsibility for the administration of the trust created by this Indenture. 
 “Restricted Investment” means any
Investment other than a Permitted Investment. 
 “Restricted Legend” means the legend set forth in Exhibit C. 

“Restricted Payment” means any of the following: 

(a) the declaration or payment of any dividend or any other distribution on Capital Stock of the Company, the Issuer or any Restricted
Subsidiary or any payment made to the direct or indirect holders (in their capacities as such) of Capital Stock of the Company, the Issuer or any Restricted Subsidiary (other than (i) dividends or distributions payable solely in Qualified Stock
and (ii) in the case of the Issuer or Restricted Subsidiaries, dividends or distributions payable to the Company, the Issuer or a Restricted Subsidiary); 

(b) the purchase, redemption or other acquisition or retirement for value of any Capital Stock of the Company, the Issuer or any Restricted
Subsidiary (other than a payment made to the Company, the Issuer or any Restricted Subsidiary); and 
 (c) any Investment (other than any
Permitted Investment), including any Investment in an Unrestricted Subsidiary (including by the designation of a Subsidiary of the Company as an Unrestricted Subsidiary); and 

(d) the purchase, repurchase, redemption, acquisition or retirement for value, prior to the date for any scheduled maturity, sinking fund or
amortization or other principal installment payment, of any Subordinated Indebtedness (other than (a) Indebtedness permitted under clause (d) of the definition of “Permitted Indebtedness” or (b) the purchase, repurchase,
redemption, defeasance, or other acquisition or retirement of Subordinated Indebtedness purchased in anticipation of satisfying a sinking fund obligation, amortization or principal installment or final maturity, in each case due within one year of
the date of purchase, repurchase, redemption, defeasance or other acquisition or retirement). 

  
 36 

 “Restricted Period” means the relevant 40-day “distribution
compliance period” as such term is defined in Regulation S, which, for each relevant Note, commences on the date such Note is issued. 

“Restricted Subsidiary” means any Subsidiary of the Company which is not an Unrestricted Subsidiary. 

“Rule 144A” means Rule 144A under the Securities Act. 

“Rule 144A Certificate” means a certificate substantially in the form of Exhibit F hereto. 

“Rule 144A Global Note” means a Global Note that bears the Restricted Legend representing Notes issued, transferred or
exchanged pursuant to Rule 144A. 
 “S&P” means Standard & Poor’s Ratings Services, a division of
The McGraw Hill Companies, Inc., a New York corporation, or any successor to its debt rating business. 
 “Secured
Indebtedness” means any Indebtedness of the Company or any of its Restricted Subsidiaries secured by a Lien. 

“Securities Act” means the Securities Act of 1933, as amended. 

“self-liquidating paper” has the meaning ascribed to it in Section 7.03 hereof. 

“Significant Subsidiary” means any Subsidiary of the Company which would constitute a “significant
subsidiary” as defined in Rule 1-02(w)(1) or (2) of Regulation S-X under the Securities Act and the Exchange Act as in effect on the Issue Date. 

“Subordinated Indebtedness” means Indebtedness subordinated in right of payment to the Notes pursuant to a written
agreement. 
 “Subsidiary” of any Person means any corporation or other entity of which a majority of the Capital Stock
having ordinary voting power to elect a majority of the Board of Directors or other persons performing similar functions is at the time directly or indirectly owned or controlled by such Person. 

“Successor” has the meaning ascribed to it in Section 4.14 hereof. 

“Treasury Rate” has the meaning ascribed to it in Section 3.01 hereof. 

  
 37 

 “Trustee” means the party named as such in the preamble of this Indenture until
such time, if any, a successor replaces such party in accordance with the applicable provisions of this Indenture and thereafter means the successor serving hereunder. 

“Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as amended. 

“Unrestricted Subsidiary” means any Subsidiary of the Company so designated by a resolution adopted by the Board of Directors
of the Company or a duly authorized committee thereof as provided below; provided that the holders of Indebtedness thereof do not have direct or indirect recourse against the Company, the Issuer or any Restricted Subsidiary, and neither the
Company, the Issuer nor any Restricted Subsidiary otherwise has liability for, any payment obligations in respect of such Indebtedness (including any undertaking, agreement or instrument evidencing such Indebtedness), except, in each case, to the
extent that the amount thereof constitutes a Restricted Payment or Permitted Investment permitted by the Indenture, in the case of Non-Recourse Indebtedness, to the extent such recourse or liability is for the matters discussed in the last sentence
of the definition of “Non-Recourse Indebtedness,” or to the extent such Indebtedness is a guarantee by such Subsidiary of Indebtedness of the Company, the Issuer or a Restricted Subsidiary. As of the Issue Date, the Unrestricted
Subsidiaries will be the Subsidiaries of the Company named in Exhibit J hereto. 
 Subject to the foregoing, the Board of Directors of the
Company or a duly authorized committee thereof may designate any Subsidiary in addition to those named above to be an Unrestricted Subsidiary; provided, however, that (a) the net amount (the “Designation
Amount”) then outstanding of all previous Investments by the Company and the Restricted Subsidiaries in such Subsidiary will be deemed to be a Restricted Payment at the time of such designation and will reduce the amount available for
Restricted Payments under Section 4.07 hereof to the extent provided therein, (b) the Company must be permitted under Section 4.07 hereof or pursuant to the definition of “Permitted Investment” to make the Restricted Payment
deemed to have been made pursuant to clause (a) of this paragraph, and (c) after giving effect to such designation, no Default or Event of Default shall have occurred or be continuing. In accordance with the foregoing, and not in
limitation thereof, Investments made by any Person in any Subsidiary of such Person prior to such Person’s merger with the Company or any Restricted Subsidiary (but not in contemplation or anticipation of such merger) shall not be counted as an
Investment by the Company or such Restricted Subsidiary if such Subsidiary of such Person is designated as an Unrestricted Subsidiary. 

  
 38 

 The Board of Directors of the Company or a duly authorized committee thereof may also redesignate
an Unrestricted Subsidiary to be a Restricted Subsidiary; provided, however, that (a) the Indebtedness of such Unrestricted Subsidiary as of the date of such redesignation could then be incurred under Section 4.06 hereof and
(b) immediately after giving effect to such redesignation and the incurrence of any such additional Indebtedness, (A) the Company and the Restricted Subsidiaries could incur $1.00 of additional Indebtedness under Section 4.06(a)
hereof or (B) the Consolidated Fixed Charge Coverage Ratio would be equal to or greater than the Consolidated Fixed Charge Coverage Ratio immediately prior to such redesignation or the ratio of Indebtedness of the Company and the Restricted
Subsidiaries to Consolidated Tangible Net Worth of the Company would be equal to or less than the ratio immediately prior to such redesignation. Any such designation or redesignation by the Board of Directors of the Company or a committee thereof
will be evidenced to the Trustee by the filing with the Trustee of a certified copy of the resolution of the Board of Directors of the Company or a committee thereof giving effect to such designation or redesignation and an Officers’
Certificate certifying that such designation or redesignation complied with the foregoing conditions and setting forth the underlying calculations of such Officers’ Certificate. The designation of any Person as an Unrestricted Subsidiary shall
be deemed to include a designation of all Subsidiaries of such Person as Unrestricted Subsidiaries; provided, however, that the ownership of the general partnership interest (or a similar member’s interest in a limited liability
company) by an Unrestricted Subsidiary shall not cause a Subsidiary of the Company of which more than 95% of the equity interest is held by the Company or one or more Restricted Subsidiaries to be deemed an Unrestricted Subsidiary. 

“U.S. Government Obligations” means non-callable, non-payable bonds, notes, bills or other similar obligations issued or
guaranteed by the United States government or any agency thereof the full and timely payment of which are backed by the full faith and credit of the United States. 

“Weighted Average Life to Maturity” means, when applied to any Indebtedness or portion thereof at any date, the number
of years obtained by dividing (a) the sum of the products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or other required payment of principal, including, without limitation,
payment at final maturity, in respect thereof, by (ii) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment by (b) the sum of all such payments described in clause
(a)(i) of this definition. 
 “$” means U.S. dollars. 

Section 1.02. Rules of Construction. Unless the context otherwise requires or except as otherwise expressly provided, 

(a) an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP; 

  
 39 

 (b) “herein,” “hereof” and other words of similar import refer to this
Indenture as a whole and not to any particular Section, Article other subdivision; 
 (c) all references to Sections or Articles or Exhibits
refer to Sections or Articles or Exhibits of or to this Indenture unless otherwise indicated; 
 (d) references to agreements or instruments,
or to statutes or regulations, are to such agreements or instruments, or statutes or regulations, as amended from time to time (or to successor statutes and regulations); and 

(e) in the event that a transaction meets the criteria of more than one category of permitted transactions or listed exceptions, the Issuer may
classify such transaction as it, in its sole discretion, determines. 
 ARTICLE 2 

THE NOTES 

Section 2.01. Form, Dating and Denominations; Legends. (a) The Notes and the Trustee’s certificate of authentication
shall be substantially in the form attached as Exhibit A. The terms and provisions contained in the form of the Note annexed as Exhibit A constitute and are hereby expressly made a part of this Indenture. The Notes may have notations, legends or
endorsements required by this Indenture, law, rules of or agreements with national securities exchanges to which the Issuer is subject, or usage. Each Note shall be dated the date of its authentication. The Notes shall be issuable in denominations
of $2,000 in principal amount and any multiple of $1,000 in excess thereof. 
 (b) (i) Except as otherwise provided in clause
(c) of this Section 2.01, Section 2.09(b)(iv), Section 2.10(b)(iii), Section 2.10(b)(v), or Section 2.10(c), each Initial Note or Additional Note shall bear the Restricted Legend. 

(ii) Each Global Note, whether or not an Initial Note or Additional Note, shall bear the DTC Legend. 

(iii) Initial Notes and Additional Notes offered and sold in reliance on any exception under the Securities Act other than
Regulation S and Rule 144A shall be issued, and upon the request of the Issuer to the Trustee, Initial Notes and Additional Notes offered and sold in reliance on Rule 144A may be issued, in the form of Certificated Notes. 

(iv) Each Regulation S Temporary Global Note shall bear the Regulation S Temporary Global Note Legend. 

  
 40 

 (v) Initial Notes and Additional Notes offered and sold in reliance on Regulation
S shall be issued as provided in Section 2.11(a). 
 (c) If the Issuer determines (upon the advice of counsel and after consideration of
other certifications and evidence as the Issuer may reasonably require) that a Note is eligible for resale pursuant to Rule 144 under the Securities Act (or a successor provision) without being subject to any conditions as provided in such Rule and
that the Restricted Legend is no longer necessary or appropriate in order to ensure that subsequent transfers of the Note (or a beneficial interest therein) are effected in compliance with the Securities Act, then, the Issuer may instruct the
Trustee to cancel the Note and issue to the Holder thereof (or to its transferee) a new Note of like tenor and amount, registered in the name of the Holder thereof (or its transferee), that does not bear the Restricted Legend, and the Trustee shall
comply with such instruction. 
 (d) By its acceptance of any Note bearing the Restricted Legend (or any beneficial interest in such a Note),
each Holder thereof and each owner of a beneficial interest therein acknowledges the restrictions on transfer of such Note (and any such beneficial interest) set forth in this Indenture and in the Restricted Legend and agrees that it will transfer
such Note (and any such beneficial interest) only in accordance with this Indenture and such legend. 
 Section 2.02. Execution and
Authentication; Additional Notes. (a) An Officer shall execute the Notes for the Issuer by facsimile or manual signature in the name and on behalf of the Issuer. If an Officer whose signature is on a Note no longer holds that office at the
time the Note is authenticated, the Note will still be valid. 
 (b) A Note shall not be valid until the Trustee manually signs the
certificate of authentication on the Note, with the signature conclusive evidence that the Note has been authenticated under this Indenture. 

(c) At any time and from time to time after the execution and delivery of this Indenture, the Issuer may deliver Notes executed by the Issuer
to the Trustee for authentication. The Trustee shall authenticate and deliver: 
 (i) Initial Notes for original issue in the
aggregate principal amount not to exceed $150,000,000, and 
 (ii) Additional Notes from time to time for original issue in
the aggregate principal amounts specified by the Issuer after the following conditions have been met: 
 (A) Receipt by the
Trustee of a certificate, executed by an Officer specifying 

  
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 (1) the amount of Notes to be authenticated and the date on which the Notes are
to be authenticated, 
 (2) whether the Notes are to be Initial Notes or Additional Notes, 

(3) in the case of Additional Notes, that the issuance of such Notes does not contravene any provision of Article 4, 

(4) whether the Notes are to be issued as one or more Global Notes or Certificated Notes, and 

(5) other information the Issuer may determine to include or the Trustee may reasonably request. 

(B) In the case of Additional Notes, receipt by the Trustee of an Opinion of Counsel confirming that the beneficial owners of
the outstanding Notes will be subject to United States federal income tax in the same amounts, in the same manner and at the same times as would have been the case if such Additional Notes were not issued. 

Section 2.03. Registrar, Paying Agent and Authenticating Agent; Paying Agent to Hold Money in Trust. (a) The Issuer may
appoint one or more Registrars and one or more Paying Agents, and the Trustee may appoint an Authenticating Agent, in which case each reference in this Indenture to the Trustee in respect of the obligations of the Trustee to be performed by that
Agent shall be deemed to be references to the Agent. The Issuer may act as Registrar or (except for purposes of Article 8) Paying Agent. In each case, the Issuer and the Trustee shall enter into an appropriate agreement with the Agent implementing
the provisions of this Indenture relating to the obligations of the Trustee to be performed by the Agent and the related rights. 
 (b) The
Issuer shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent shall hold in trust for the benefit of the Holders or the Trustee all money held by the Paying Agent for the payment of principal of, premium, if
any, and interest, if any, on, the Notes and shall promptly notify the Trustee of any default by the Issuer in making any such payment. The Issuer at any time may require a Paying Agent to pay all money held by it to the Trustee and account for any
funds disbursed, and the Trustee may at any time during the continuance of any payment default, upon written request to a Paying Agent, require the Paying Agent to pay all money held by it to the Trustee and to account for any funds disbursed. Upon
doing so, the Paying Agent shall have no further liability for the money so paid over to the Trustee. 

  
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 (c) The Company initially appoints the Trustee as Registrar and Paying Agent with respect to the
Notes. 
 Section 2.04. Replacement Notes. If a mutilated Note is surrendered to the Trustee or if a Holder claims that its Note
has been lost, destroyed or wrongfully taken, the Issuer shall issue and the Trustee shall authenticate a replacement Note of like tenor and principal amount and bearing a number not contemporaneously outstanding. Every replacement Note is an
additional obligation of the Issuer and entitled to the benefits of this Indenture. If required by the Trustee or the Issuer, an indemnity must be furnished that is sufficient in the judgment of both the Trustee and the Issuer to protect the Issuer
and the Trustee from any loss they may suffer if a Note is replaced. The Issuer and the Trustee may charge the Holder for the expenses of the Issuer and the Trustee in replacing a Note. In case the mutilated, lost, destroyed or wrongfully taken Note
has become or is about to become due and payable, the Issuer in its discretion may pay the Note instead of issuing a replacement Note. 

Section 2.05. Outstanding Notes. (a) Notes outstanding at any time are all Notes that have been authenticated by the Trustee
except for: 
 (i) Notes cancelled by the Trustee or delivered to it for cancellation; 

(ii) any Note which has been replaced pursuant to Section 2.04 unless and until the Trustee and the Issuer receive proof
satisfactory to them that the replaced Note is held by a protected purchaser; and 
 (iii) on or after the maturity date or
any redemption date or date for purchase of the Notes pursuant to an Offer to Purchase, those Notes payable or to be redeemed or purchased on that date for which the Trustee (or Paying Agent, other than the Issuer or an Affiliate of the Issuer)
holds money sufficient to pay all amounts then due. 
 (b) A Note does not cease to be outstanding because the Issuer or one of its
Affiliates holds the Note; provided, that in determining whether the Holders of the requisite principal amount of the outstanding Notes have given or taken any request, demand, authorization, direction, notice, consent, waiver or other action
hereunder, Notes owned by the Issuer or any Affiliate of the Issuer shall be disregarded and deemed not to be outstanding (it being understood that in determining whether the Trustee is protected in relying upon any such request, demand,
authorization, direction, notice, consent, waiver or other action, only Notes which a Responsible Officer of the Trustee knows to be so owned shall be so disregarded). Notes so owned which have been pledged in good faith may be regarded as
outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Notes and that the pledgee is not the Issuer or any Affiliate of the Issuer. 

  
 43 

 Section 2.06. Temporary Notes. Until definitive Notes are ready for delivery, the
Issuer may prepare and the Trustee shall authenticate temporary Notes. Temporary Notes shall be substantially in the form of definitive Notes but may have insertions, substitutions, omissions and other variations determined to be appropriate by the
Officer executing the temporary Notes, as evidenced by the execution of the temporary Notes. If temporary Notes are issued, the Issuer shall cause definitive Notes to be prepared without unreasonable delay. After the preparation of definitive Notes,
the temporary Notes shall be exchangeable for definitive Notes upon surrender of the temporary Notes at the office or agency of the Issuer designated for the purpose pursuant to Section 4.02 without charge to the Holder. Upon surrender for
cancellation of any temporary Notes, the Issuer shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive Notes of authorized denominations. Until so exchanged, the temporary Notes shall
be entitled to the same benefits under this Indenture as definitive Notes. 
 Section 2.07. Cancellation. The Issuer at any time
may deliver to the Trustee for cancellation any Notes previously authenticated and delivered hereunder which the Issuer may have acquired in any manner whatsoever, and may deliver to the Trustee for cancellation any Notes previously authenticated
hereunder which the Issuer has not issued and sold. Any Registrar or the Paying Agent shall forward to the Trustee any Notes surrendered to it for transfer, exchange or payment. The Trustee shall cancel all Notes surrendered for transfer, exchange,
payment or cancellation and dispose of them in accordance with its normal procedures or the written instructions of the Issuer. The Issuer may not issue new Notes to replace Notes that it has paid in full or delivered to the Trustee for
cancellation. 
 Section 2.08. CUSIP and ISIN Numbers. The Issuer in issuing the Notes may use “CUSIP” and
“ISIN” numbers, and the Trustee shall use CUSIP numbers or ISIN numbers in notices of redemption or exchange or in Offers to Purchase as a convenience to Holders, the notice to state that no representation is made as to the correctness of
such numbers either as printed on the Notes or as contained in any notice of redemption or exchange or Offer to Purchase. The Issuer shall promptly notify the Trustee in writing of any change in the CUSIP or ISIN numbers. Any Additional Notes that
are not fungible with the Initial Notes for United States federal income tax purposes shall be issued with CUSIP and ISIN numbers different from the CUSIP and ISIN numbers assigned to the Initial Notes. 

Section 2.09. Registration, Transfer and Exchange. (a) The Notes shall be issued in registered form only, without coupons,
and the Issuer shall cause the Trustee to maintain a register (the “Register”) of the Notes, for registering the record ownership of the Notes by the Holders and transfers and exchanges of the Notes. 

  
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 (b) (i) Each Global Note shall be registered in the name of the Depositary or its nominee and, so
long as DTC is serving as the Depositary thereof, shall bear the DTC Legend. 
 (ii) Each Global Note shall be delivered to
the Trustee as custodian for the Depositary. Transfers of a Global Note (but not a beneficial interest therein) shall be limited to transfers thereof in whole, but not in part, to the Depositary, its successors or their respective nominees, except
(A) as set forth in Section 2.09(b)(iv) and (B) transfers of portions thereof in the form of Certificated Notes may be made upon request of an Agent Member (for itself or on behalf of a beneficial owner) by 20 days’ prior written
notice given to the Trustee by or on behalf of the Depositary in accordance with customary procedures of the Depositary and in compliance with this Section and Section 2.10. 

(iii) Agent Members shall have no rights under this Indenture with respect to any Global Note held on their behalf by the
Depositary, and the Depositary may be treated by the Issuer, the Trustee and any agent of the Issuer or the Trustee as the absolute owner and Holder of such Global Note for all purposes whatsoever. Notwithstanding the foregoing, the Depositary or
its nominee may grant proxies and otherwise authorize any Person (including any Agent Member and any Person that holds a beneficial interest in a Global Note through an Agent Member) to take any action which a Holder is entitled to take under this
Indenture or the Notes, and nothing herein shall impair, as between the Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights of a holder of any security. None of the Issuer, the Trustee, any
Paying Agent or the Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Note in global form or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests. The Trustee may rely and shall be fully protected in relying upon information furnished by the Depositary with respect to its members, participants and any beneficial owners. 

(iv) If (x) the Depositary (i) notifies the Issuer that it is unwilling or unable to continue as Depositary for a
Global Note and a successor depositary is not appointed by the Issuer within 90 days of the notice or (ii) has ceased to be a clearing agency registered under the Exchange Act, (y) the Issuer, at its option, notifies the Trustee in writing
that it elects to cause the issuance of Certificated Notes or (z) a Default or 

  
 45 

 
an Event of Default with respect to the Notes has occurred and is continuing, the Trustee shall promptly exchange each beneficial interest in the Global Note for one or more Certificated Notes in
authorized denominations having an equal aggregate principal amount registered in the name of the owner of such beneficial interest, as identified to the Trustee by the Depositary, and thereupon the Global Note shall be deemed canceled. If such Note
does not bear the Restricted Legend, then the Certificated Notes issued in exchange therefor shall not bear the Restricted Legend. If such Note bears the Restricted Legend, then the Certificated Notes issued in exchange therefor shall bear the
Restricted Legend; provided, that any Holder of any such Certificated Note issued in exchange for a beneficial interest in a Regulation S Temporary Global Note will have the right upon presentation to the Trustee of a duly completed
Certificate of Beneficial Ownership after the Restricted Period to exchange such Certificated Note for a Certificated Note of like tenor and amount that does not bear the Restricted Legend, registered in the name of such Holder. 

(c) Each Certificated Note shall be registered in the name of the holder thereof or its nominee. 

(d) A Holder may transfer a Note (or a beneficial interest therein) to another Person or exchange a Note (or a beneficial interest therein)
for another Note or Notes of any authorized denomination by presenting to the Trustee a written request therefor stating the name of the proposed transferee or requesting such an exchange, accompanied by any certification, opinion or other document
required by Section 2.10. The Trustee shall promptly register any transfer or exchange that meets the requirements of this Section and Section 2.10 noting the same in the register maintained by the Trustee for the purpose; provided,
that 
 (i) no transfer or exchange shall be effective until it is registered in such register, and 

(ii) the Trustee shall not be required (x) to issue or register the transfer of or exchange any Note for a period of 15
days before a selection of Notes to be redeemed or purchased pursuant to an Offer to Purchase, (y) to register the transfer of or exchange any Note so selected for redemption or purchase in whole or in part, except, in the case of a partial
redemption or purchase, that portion of any Note not being redeemed or purchased, or (z) if a redemption or a purchase pursuant to an Offer to Purchase is to occur after a Record Date but on or before the corresponding Interest Payment Date, to
register the transfer of or exchange any Note on or after the Record Date and before the date of redemption or purchase. Prior to the registration of any transfer, the Issuer, the Trustee and their agents shall treat the Person in whose name the
Note is registered as the owner and Holder thereof for all purposes (whether or not the Note is overdue), and shall not be affected by notice to the contrary. 

  
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 From time to time the Issuer shall execute and the Trustee shall authenticate additional Notes as
necessary in order to permit the registration of a transfer or exchange in accordance with this Section. 
 No service charge shall be
imposed in connection with any transfer or exchange of any Note, but the Issuer or the Trustee may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than a transfer
tax or other similar governmental charge payable upon exchange pursuant to subsection (b)(iv)). 
 (e) (i) Global Note to
Global Note. If a beneficial interest in a Global Note is transferred or exchanged for a beneficial interest in another Global Note, the Trustee shall (x) record a decrease in the principal amount of the Global Note being transferred or
exchanged equal to the principal amount of such transfer or exchange and (y) record a like increase in the principal amount of the other Global Note. Any beneficial interest in one Global Note that is transferred to a Person who takes delivery
in the form of an interest in another Global Note, or exchanged for an interest in another Global Note, shall, upon transfer or exchange, cease to be an interest in such Global Note and become an interest in the other Global Note and, accordingly,
shall thereafter be subject to all transfer and exchange restrictions, if any, and other procedures applicable to beneficial interests in such other Global Note for as long as it remains such an interest. 

(ii) Global Note to Certificated Note. If a beneficial interest in a Global Note is transferred or exchanged for a
Certificated Note, the Trustee shall (x) record a decrease in the principal amount of such Global Note equal to the principal amount of such transfer or exchange and (y) deliver one or more new Certificated Notes in authorized
denominations having an equal aggregate principal amount to the transferee (in the case of a transfer) or the owner of such beneficial interest (in the case of an exchange), registered in the name of such transferee or owner, as applicable. 

(iii) Certificated Note to Global Note. If a Certificated Note is transferred or exchanged for a beneficial interest in
a Global Note, the Trustee shall (x) cancel such Certificated Note, (y) record an increase in the principal amount of such Global Note equal to the principal amount of such transfer or exchange and (z) in the event that such transfer
or exchange involves less than the entire principal amount of the canceled 

  
 47 

 
Certificated Note, deliver to the Holder thereof one or more new Certificated Notes in authorized denominations having an aggregate principal amount equal to the untransferred or unexchanged
portion of the canceled Certificated Note, registered in the name of the Holder thereof. 
 (iv) Certificated Note to
Certificated Note. If a Certificated Note is transferred or exchanged for another Certificated Note, the Trustee shall (x) cancel the Certificated Note being transferred or exchanged, (y) deliver one or more new Certificated Notes in
authorized denominations having an aggregate principal amount equal to the principal amount of such transfer or exchange to the transferee (in the case of a transfer) or the Holder of the canceled Certificated Note (in the case of an exchange),
registered in the name of such transferee or Holder, as applicable, and (z) if such transfer or exchange involves less than the entire principal amount of the canceled Certificated Note, deliver to the Holder thereof one or more Certificated
Notes in authorized denominations having an aggregate principal amount equal to the untransferred or unexchanged portion of the canceled Certificated Note, registered in the name of the Holder thereof. 

Section 2.10. Restrictions on Transfer and Exchange. (a) The transfer or exchange of any Note (or a beneficial interest
therein) may only be made in accordance with this Section and Section 2.09 and, in the case of a Global Note (or a beneficial interest therein), the applicable rules and procedures of the Depositary. The Trustee shall refuse to register any
requested transfer or exchange that does not comply with the preceding sentence. 
 (b) Subject to paragraph (c) of this Section, the
transfer or exchange of any Note (or a beneficial interest therein) of the type set forth in column A below for a Note (or a beneficial interest therein) of the type set forth opposite in column B below may only be made in compliance with the
certification requirements (if any) described in the clause of this paragraph set forth opposite in column C below. 
  

					
	A	  	B	  	C
	 Rule 144A Global Note
	  	Rule 144A Global Note	  	(i)
	 Rule 144A Global Note
	  	Regulation S Global Note	  	(ii)
	 Rule 144A Global Note
	  	Certificated Note	  	(iii)
	 Regulation S Global Note
	  	Rule 144A Global Note	  	(iv)
	 Regulation S Global Note
	  	Regulation S Global Note	  	(i)
	 Regulation S Global Note
	  	Certificated Note	  	(v)
	 Certificated Note
	  	Rule 144A Global Note	  	(iv)
	 Certificated Note
	  	Regulation S Global Note	  	(ii)
	 Certificated Note
	  	Certificated Note	  	(iii)

  
 48 

 (i) No certification is required. 

(ii) The Person requesting the transfer or exchange must deliver or cause to be delivered to the Trustee a duly completed
Regulation S Certificate; provided, that if the requested transfer or exchange is made by the Holder of a Certificated Note that does not bear the Restricted Legend, then no certification is required. 

(iii) The Person requesting the transfer or exchange must deliver or cause to be delivered to the Trustee (x) a duly
completed Rule 144A Certificate, (y) a duly completed Regulation S Certificate or (z) a duly completed Institutional Accredited Investor Certificate, and/or an opinion of counsel and such other certifications and evidence as the Issuer or
the Trustee may reasonably require in order to determine that the proposed transfer or exchange is being made in compliance with the Securities Act and any applicable securities laws of any state of the United States; provided, that if the
requested transfer or exchange is made by the Holder of a Certificated Note that does not bear the Restricted Legend, then no certification is required. In the event that a Rule 144A Global Note or a Certificated Note that does not bear the
Restricted Legend is surrendered for transfer or exchange, upon transfer or exchange the Trustee shall deliver a Certificated Note that does not bear the Restricted Legend. 

(iv) The Person requesting the transfer or exchange must deliver or cause to be delivered to the Trustee a duly completed Rule
144A Certificate and must comply with all applicable securities laws of any state of the United States or any other jurisdiction. 

(v) If the requested transfer involves a beneficial interest in a Regulation S Temporary Global Note, the Person requesting the
registration of transfer must deliver or cause to be delivered to the Trustee (x) a duly completed Rule 144A Certificate or (y) a duly completed Institutional Accredited Investor Certificate and/or an opinion of counsel and such other
certifications and evidence as the Issuer or the Trustee may reasonably require in order to determine that the proposed transfer is being made in compliance with the Securities Act and any applicable securities laws of any state of the United
States. If the requested transfer or exchange involves a beneficial interest in a Permanent Regulation S Global Note, no certification is required and the Trustee will deliver a Certificated Note that does not bear the Restricted Legend.
Notwithstanding anything to the contrary contained herein, no such exchange is permitted if the requested exchange involves a beneficial interest in a Regulation S Temporary Global Note. 

  
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 (c) No certification is required in connection with any transfer or exchange of any Note (or a
beneficial interest therein) after such Note is eligible for resale pursuant to Rule 144 under the Securities Act (or a successor provision) without being subject to any conditions as provided in such Rule; provided, that the Issuer has
provided the Trustee with a certificate to that effect, and the Issuer or the Trustee may require from any Person requesting a transfer or exchange in reliance upon this clause an opinion of counsel and any other reasonable certifications and
evidence in order to support such certificate. 
 Any Certificated Note delivered in reliance upon this paragraph shall not bear the
Restricted Legend. 
 (d) The Trustee shall retain copies of all certificates, opinions and other documents received in connection with the
registration of transfer or exchange of a Note (or a beneficial interest therein), and the Issuer shall have the right to inspect and make copies thereof at any reasonable time upon written notice to the Trustee. Neither the Company nor the Trustee
shall have an obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of any interest in any Note (including any
transfers between or among Depositary participants, members or beneficial owners in any Global Note) other than to require delivery of such certificates and other documentation or evidence as are expressly required by the terms of this Indenture and
to examine the same to determine compliance as to form with the express requirements hereof. 
 Section 2.11. Regulation S Temporary
Global Notes. (a) Each Initial Note and Additional Note originally sold in reliance upon Regulation S will be evidenced by one or more Regulation S Global Notes that bear the Regulation S Temporary Global Note Legend. 

(b) An owner of a beneficial interest in a Regulation S Temporary Global Note (or a Person acting on behalf of such an owner) may provide to
the Trustee (and the Trustee will accept) a duly completed Certificate of Beneficial Ownership at any time after the Restricted Period (it being understood that the Trustee will not accept any such certificate during the Restricted Period). Promptly
after acceptance of a Certificate of Beneficial Ownership with respect to such a beneficial interest, the Trustee will cause such beneficial interest to be exchanged for an equivalent beneficial interest in a Permanent Regulation S Global Note, and
will (x) permanently reduce the principal amount of such Regulation S Temporary Global Note by the amount of such beneficial interest and (y) increase the principal amount of such Permanent Regulation S Global Note by the amount of such
beneficial interest. 
 (c) Notwithstanding anything to the contrary contained herein, beneficial interests in a Regulation S Temporary
Global Note may be held through the Depositary only through Euroclear or Clearstream and their respective direct and indirect participants. 

  
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 (d) Notwithstanding paragraph (b), if after the Restricted Period any Initial Purchaser owns a
beneficial interest in a Regulation S Temporary Global Note, such Initial Purchaser may, upon written request to the Trustee accompanied by a certification as to its status as an Initial Purchaser, exchange such beneficial interest for an equivalent
beneficial interest in a Permanent Regulation S Global Note, and the Trustee will comply with such request and will (x) permanently reduce the principal amount of such Regulation S Temporary Global Note by the amount of such beneficial interest
and (y) increase the principal amount of such Permanent Regulation S Global Note by the amount of such beneficial interest. 
 ARTICLE 3

 REDEMPTION; OFFER TO PURCHASE 

Section 3.01. Optional Redemption. (a) The Issuer may, at its option, redeem the Notes, in whole, at any time, or in part,
from time to time, prior to July 15, 2016, at a redemption price equal to the sum of: 
 (i) 100% of the principal amount thereof, plus
accrued and unpaid interest thereon to, but excluding, the redemption date, if any; plus 
 (ii) the Make-Whole Amount. 

The term “Make-Whole Amount” shall mean, in connection with any optional redemption of any Note, the excess, if any, of: 

(i) the present value at such redemption date of (i) the redemption price of the Note, at July 15, 2016 (such redemption price being
set forth in the table appearing in Section 3.01(b) hereof) plus (ii) all required interest payments due on the Note through July 15, 2016 (excluding accrued but unpaid interest), computed using a discount rate equal to the Treasury
Rate as of such redemption date plus 50 basis points; over 
 (ii) the principal amount of the Note being redeemed. 

“Treasury Rate” means, in connection with the calculation of any Make-Whole Amount with respect to any Note, as
calculated by the Company, the yield to maturity at the time of computation of United States Treasury securities with a constant maturity, as compiled by and published in the most recent Federal Reserve Statistical Release H.15 (519) that has
become publicly available at least two business days prior to the redemption date (or, if such Statistical Release is no longer published, any publicly available source or similar market data), most 

  
 51 

 
nearly equal to the period from the redemption date to July 15, 2016; provided, however, that if the period from the redemption date to July 15, 2016 is not equal to the
constant maturity of a United States Treasury security for which a weekly average yield is given, the Treasury Rate shall be obtained by linear interpolation (calculated to the nearest one-twelfth of a year) from the weekly average yields of United
States Treasury securities for which such yields are given, except that if the period from the redemption date to July 15, 2016 is less than one year, the weekly average yield on actually traded United States Treasury securities adjusted to a
constant maturity of one year will be used. 
 (b) At any time and from time to time on or after July 15, 2016, the Issuer may redeem
the Notes, in whole or in part, at a redemption price equal to the percentage of principal amount set forth below plus accrued and unpaid interest thereon, if any, to, but excluding, the applicable redemption date. 

 

					
	 Period Commencing
	  	Percentage	 
	 July 15, 2016
	  	 	103.500	% 
	 January 15, 2017
	  	 	101.750	% 
	 January 15, 2018 and thereafter
	  	 	100.000	% 

 Section 3.02. Redemption with Proceeds of Equity Offering. At any time and from time to time prior
to July 15, 2016, the Issuer may redeem Notes with the net cash proceeds received by the Issuer from any Equity Offering at a redemption price equal to 107.000% of the principal amount plus accrued and unpaid interest to, but excluding, the
redemption date, in an aggregate principal amount for all such redemptions not to exceed 35% of the original aggregate principal amount of the Notes (including Additional Notes), provided that: 

(i) in each case the redemption takes place not later than 60 days after the closing of the related Equity Offering, and 

(ii) not less than 65% of the original aggregate principal amount of the Notes (including Additional Notes) remains outstanding
immediately thereafter. 
 Section 3.03. Sinking Fund; Mandatory Redemption. There is no sinking fund for, or mandatory
redemption of, the Notes. The Company and its Affiliates may at any time and from time to time purchase Notes in the open market or otherwise. 

Section 3.04. Method and Effect of Redemption. (a) If the Issuer elects to redeem Notes, it must notify the Trustee of the
redemption date and the principal amount of Notes to be redeemed by delivering an Officers’ Certificate at least 15 days before the redemption date (unless a shorter period is satisfactory to the Trustee). If fewer than all of the Notes are
being redeemed, the Notes to be 

  
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redeemed shall be selected in accordance with applicable DTC procedures (subject to compliance with the rules of any securities exchange on which the Notes may be listed). Notes shall be redeemed
in denominations of $2,000 principal amount or any multiple of $1,000 in excess thereof. The Trustee will notify the Issuer promptly of the Notes or portions of Notes to be called for redemption. Notice of redemption must be delivered electronically
or mailed by first-class mail, postage prepaid, by the Issuer or, at the Issuer’s request, by the Trustee in the name and at the expense of the Issuer to Holders whose Notes are to be redeemed at least 10
days but not more than 60 days before the redemption date at such Holder’s registered address or otherwise in accordance with the procedures of DTC, except that redemption notices may be mailed more than 60 days prior to a redemption date
if the notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of the Indenture. Notices of any redemption may be given prior to the completion thereof, and may, at the Issuer’s discretion, be subject to
one or more conditions precedent, including, but not limited to, completion of an Equity Offering, another offering or another transaction or event. 

(b) The notice of redemption shall identify the Notes to be redeemed and shall include or state the following: 

(i) the redemption date; 

(ii) the redemption price, including the portion thereof representing any accrued interest, if any; 

(iii) the place or places where Notes are to be surrendered for redemption (Notes called for redemption must be so surrendered
in order to collect the redemption price); 
 (iv) that on the redemption date, the redemption price shall become due and
payable on Notes called for redemption, and interest on Notes called for redemption shall cease to accrue on and after the redemption date; 

(v) that if any Note is redeemed in part, the portion of the principal amount thereof to be redeemed, and that on and after the
redemption date, upon surrender of such Note, new Notes equal in principal amount to the unredeemed portion shall be issued; 

(vi) if any Note contains a CUSIP or ISIN number, no representation is being made as to the correctness of the CUSIP or ISIN
number either as printed on the Notes or as contained in the notice of redemption and that the Holder should rely only on the other identification numbers printed on the Notes; and 

  
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 (vii) if such redemption is subject to satisfaction of one or more conditions
precedent, such notice shall describe each such condition, and if applicable, shall state that, in the Issuer’s discretion, the redemption date may be delayed until such time as any or all such conditions shall be satisfied, or such redemption
may not occur and such notice may be rescinded in the event that any or all such conditions shall not have been satisfied by the redemption date, or by the redemption date as so delayed. 

(c) Once notice of redemption is sent to the Holders, Notes called for redemption become due and payable at the redemption price on the
redemption date (subject to any conditions specified in such notice), and upon surrender of the Notes called for redemption, the Issuer shall redeem such Notes at the redemption price. Commencing on the redemption date, Notes redeemed shall cease to
accrue interest. Upon surrender of any Note redeemed in part, the Holder shall receive a new Note equal in principal amount to the unredeemed portion of the surrendered Note. 

(d) The Company and its Affiliates may acquire Notes by means other than a redemption, whether by tender offer, open market purchases,
negotiated transactions or otherwise, in accordance with applicable securities laws, so long as such acquisition does not otherwise violate the terms of this Indenture. 

Section 3.05. Offer to Purchase. (a) An “Offer to Purchase” means an offer by the
Issuer to purchase Notes as required by this Indenture. An Offer to Purchase must be made by written offer (the “offer”) sent to the Holders. The Issuer shall notify the Trustee at least 15 days (or such shorter period
as is acceptable to the Trustee) prior to sending the offer to Holders of its obligation to make an Offer to Purchase, and the offer shall be sent by the Issuer or, at the Issuer’s request, by the Trustee in the name and at the expense of the
Issuer.  
 (b) The offer must include or state the following as to the terms of the Offer to Purchase: 

(i) the provision of this Indenture pursuant to which the Offer to Purchase is being made; 

(ii) the aggregate principal amount of the outstanding Notes offered to be purchased by the Issuer pursuant to the Offer to
Purchase (including, if less than 100%, the manner by which such amount has been determined pursuant to this Indenture) (the “purchase amount”); 

(iii) the purchase price, including the portion thereof representing accrued interest, if any; 

  
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 (iv) an expiration date (the “expiration date”) not less than 30
days or more than 60 days after the date of the offer, and a settlement date for purchase (the “purchase date”) not more than five Business Days after the expiration date; 

(v) information concerning the business of the Company, the Issuer and its Subsidiaries which the Issuer in good faith believes
will enable the Holders to make an informed decision with respect to the Offer to Purchase. 
 (vi) a Holder may tender all
or any portion of its Notes, subject to the requirement that any portion of a Note tendered must be in denominations of $2,000 principal amount and any multiple of $1,000 in excess thereof; 

(vii) the place or places where Notes are to be surrendered for tender pursuant to the Offer to Purchase; 

(viii) each Holder electing to tender a Note pursuant to the offer shall be required to surrender such Note at the place or
places specified in the offer prior to the close of business on the expiration date (such Note being, if the Issuer or the Trustee so requires, duly endorsed or accompanied by a duly executed written instrument of transfer); 

(ix) interest on any Note not tendered, or tendered but not purchased by the Issuer pursuant to the Offer to Purchase, shall
continue to accrue; 
 (x) on the purchase date the purchase price shall become due and payable on each Note accepted for
purchase, and interest on Notes purchased shall cease to accrue on and after the purchase date; 
 (xi) Holders are entitled
to withdraw Notes tendered by giving notice, which must be received by the Issuer or the Trustee not later than the close of business on the expiration date, setting forth the name of the Holder, the principal amount of the tendered Notes, the
certificate number of the tendered Notes and a statement that the Holder is withdrawing all or a portion of the tender; 

(xii) (A) if Notes in an aggregate principal amount less than or equal to the purchase amount are duly tendered and not
withdrawn pursuant to the Offer to Purchase, the Issuer shall purchase all such Notes, and (B) if the Offer to Purchase is for less than all of the outstanding Notes and Notes in an aggregate principal amount in excess of the purchase amount
are tendered and not withdrawn pursuant to the offer, the Issuer shall purchase Notes having an aggregate principal amount equal to the purchase amount on a pro rata basis, with adjustments so that only Notes in denominations of $2,000
principal amount and any multiples of $1,000 in excess thereof; 

  
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 (xiii) if any Note is purchased in part, new Notes equal in principal amount to
the unpurchased portion of the Note shall be issued; and 
 (xiv) if any Note contains a CUSIP or ISIN number, no
representation is being made as to the correctness of the CUSIP or ISIN number either as printed on the Notes or as contained in the offer and that the Holder should rely only on the other identification numbers printed on the Notes. 

(c) Prior to the purchase date, the Issuer shall accept tendered Notes for purchase as required by the Offer to Purchase and deliver to the
Trustee all Notes so accepted together with an Officers’ Certificate specifying which Notes have been accepted for purchase. On the purchase date, the purchase price shall become due and payable on each Note accepted for purchase, and interest
on Notes purchased shall cease to accrue on and after the purchase date. The Trustee shall promptly return to Holders any Notes not accepted for purchase and send to Holders new Notes equal in principal amount to any unpurchased portion of any Notes
accepted for purchase in part. 
 (d) The Issuer shall comply with Rule 14e-1 under the Exchange Act and all other applicable laws in making
any Offer to Purchase, and the above procedures shall be deemed modified as necessary to permit such compliance. 
 ARTICLE 4 

COVENANTS 

Section 4.01. Payment of Notes. (a) The Issuer agrees to pay the principal of, premium, if any, and interest on the
Notes on the dates and in the manner provided in the Notes and this Indenture. Not later than 9:00 A.M. (New York City time) on the due date of any principal of, premium, if any, or interest on, any Notes, or any redemption or purchase price of the
Notes, the Issuer shall deposit with the Trustee (or Paying Agent) money in immediately available funds sufficient to pay such amounts; provided, that if the Issuer or any Affiliate of the Issuer is acting as Paying Agent, it shall, on or
before each due date, segregate and hold in a separate trust fund for the benefit of the Holders a sum of money sufficient to pay such amounts until paid to such Holders or otherwise disposed of as provided in this Indenture. In each case, the
Issuer shall promptly notify the Trustee of its compliance with this paragraph. 

  
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 (b) An installment of principal, premium, if any, or interest shall be considered paid on the
date due if the Trustee (or Paying Agent, other than the Issuer or any Affiliate of the Issuer) holds on that date money designated for and sufficient to pay the installment. If the Issuer or any Affiliate of the Issuer acts as Paying Agent, an
installment of principal, premium, if any, or interest shall be considered paid on the due date only if paid to the Holders. 
 (c) The
Issuer agrees to pay interest on overdue principal, and, to the extent lawful, overdue installments of interest, if any, at the rate per annum specified in the Notes. 

(d) Payments in respect of the Notes represented by the Global Notes are to be made by wire transfer of immediately available funds to the
accounts specified by the Holders of the Global Notes. With respect to Certificated Notes, the Issuer shall make all payments by wire transfer of immediately available funds to the accounts specified by the Holders thereof or, if no such account is
specified, by mailing a check to each Holder’s registered address. 
 Section 4.02. Maintenance of Office or Agency.
The Company and the Issuer shall maintain an office or agency where Notes may be surrendered for registration of transfer or exchange or for presentation for payment and where notices and demands to or upon the Company and the Issuer in respect
of the Notes and this Indenture may be served. The Issuer and the Company hereby initially designate the Corporate Trust Office of the Trustee as such office of the Issuer and the Company. The Issuer shall give prompt written notice to the Trustee
of the location, and any change in the location, of such office or agency. If at any time the Issuer and the Company fail to maintain any such required office or agency or fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served to the Trustee. 
 The Issuer may also from time to time designate one or more
other offices or agencies where the Notes may be surrendered or presented for any of such purposes and may from time to time rescind such designations. The Issuer shall give prompt written notice to the Trustee of any such designation or rescission
and of any change in the location of any such other office or agency. 
 Section 4.03. Existence. The Company and the
Issuer shall each do or cause to be done all things necessary to preserve and keep in full force and effect their existence and the existence of each of the Restricted Subsidiaries in accordance with their respective organizational documents, and
the material rights, licenses and franchises of the Company, the Issuer and each Restricted Subsidiary; provided, that the Company and the Issuer are not required to preserve any such right, license or franchise, or the existence of any
Restricted Subsidiary, if the maintenance or preservation thereof is no longer desirable in the conduct of the business of the Company and its Restricted Subsidiaries taken as a whole; and provided, further, that this Section not
prohibit any transaction otherwise permitted by Section 4.10 or Section 4.14. 

  
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 Section 4.04. Payment of Taxes. The Company shall pay or discharge, and cause
each of its Subsidiaries to pay or discharge before the same become delinquent all material taxes, assessments and governmental charges levied or imposed upon the Company or any Subsidiary or its income or profits or property, other than any such
tax, assessment or charge the amount, applicability or validity of which is being contested in good faith by appropriate proceedings. 

Section 4.05. [Reserved] 

Section 4.06. Limitations on Indebtedness. (a) The Company and the Issuer will not, and will not cause or permit any
Restricted Subsidiary to, directly or indirectly, create, incur, assume, become liable for or guarantee the payment of (collectively, an “incurrence”) any Indebtedness (including Acquired Indebtedness) provided
that the Company, the Issuer and any Guarantor may incur any Indebtedness (including Acquired Indebtedness) if, after giving effect thereto and the application of the proceeds therefrom, either (i) the Consolidated Fixed Charge Coverage
Ratio on the date thereof would be at least 2.0 to 1.0 or (ii) the ratio of Indebtedness of the Company and the Restricted Subsidiaries to Consolidated Tangible Net Worth of the Company is less than 3.0 to 1.0. 

(b) Notwithstanding the foregoing, the provisions of this Indenture will not prevent the incurrence of: 

(i) Permitted Indebtedness, 

(ii) Refinancing Indebtedness, 

(iii) Non-Recourse Indebtedness, 

(iv) any Guarantee of Indebtedness represented by the Notes, 

(v) any guarantee of Indebtedness incurred under Credit Facilities in compliance with this Indenture, and 

(vi) any guarantee by the Issuer, the Company or any Guarantor of Indebtedness that is permitted to be incurred in compliance
with this Indenture; provided that in the event such Indebtedness that is being guaranteed is subordinated in right of payment to the Notes or a Guarantee, as the case may be, then the related guarantee shall be subordinated in right of
payment to the Notes or such Guarantee, as the case may be. 

  
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 (c) For purposes of determining compliance with this covenant, in the event that an item of
Indebtedness may be incurred through the first paragraph of this covenant or by meeting the criteria of one or more of the types of Indebtedness described in the second paragraph of this covenant (or the definitions of the terms used therein), the
Company, in its sole discretion, 
 (i) may divide, classify or later reclassify the amount and type of such item of
Indebtedness (or any portion thereof) under and comply with any of such paragraphs (or any of such definitions), as applicable, 

(ii) may divide, classify or later reclassify the amount and type of such item of Indebtedness (or any portion thereof) into
more than one of such paragraphs (or definitions), as applicable, and 
 (iii) may elect to comply with such paragraphs (or
definitions), as applicable, in any order. 
 (d) The Company and the Issuer will not, and will not cause or permit any Guarantor to,
directly or indirectly, in any event incur any Indebtedness that purports to be by its terms (or by the terms of any agreement governing such Indebtedness) subordinated to any other Indebtedness of the Company or of such Guarantor, as the case may
be, unless such Indebtedness is also by its terms (or by the terms of any agreement governing such Indebtedness) made expressly subordinated to the Notes or the Guarantee of such Guarantor, as the case may be, to the same extent and in the same
manner as such Indebtedness is subordinated to such other Indebtedness of the Company or such Guarantor, as the case may be. 
 (e) Accrual
of interest or dividends, the accretion of accreted value, the accretion or amortization of original issue discount and the payment of interest or dividends in the form of additional Indebtedness will not be deemed to be an incurrence of
Indebtedness for purposes of this Section. 
 (f) For purposes of determining compliance with any U.S. dollar-denominated restriction on the
incurrence of Indebtedness, the U.S. dollar-equivalent principal amount of Indebtedness denominated in another currency shall be calculated based on the relevant currency exchange rate in effect on the date such Indebtedness was incurred, in the
case of term debt, or first committed, in the case of revolving credit debt; provided that if such Indebtedness is incurred to refinance other Indebtedness denominated in another currency, and such refinancing would cause the applicable U.S.
dollar-denominated restriction to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such U.S. dollar-denominated restriction shall be deemed not to have been exceeded so long as the principal
amount of such Refinancing Indebtedness does not exceed (i) the principal amount of such Indebtedness being refinanced plus all accrued interest thereon plus (ii) the aggregate amount of fees,

  
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underwriting discounts, premiums and other costs and expenses incurred in connection with such refinancing. Notwithstanding any other provision of this Section 4.06, the maximum amount of
Indebtedness the Company, the Issuer or a Restricted Subsidiary may incur pursuant to this covenant shall not be deemed to be exceeded solely as a result of fluctuations in the exchange rate of currencies. 

(g) The principal amount of any Indebtedness incurred to refinance other Indebtedness, if incurred in a different currency from the
Indebtedness being refinanced, shall be calculated based on the currency exchange rate applicable to the currencies in which such respective Indebtedness is denominated that is in effect on the date of such refinancing. 

(h) For purposes of this Section 4.06 and the other provisions of this Indenture, (i) unsecured Indebtedness shall not be treated as
subordinated or junior to secured Indebtedness merely because it is unsecured, and (ii) senior Indebtedness shall not be treated as subordinated or junior to any other senior Indebtedness merely because it has a junior priority with respect to
the same collateral. 
 Section 4.07. Limitations on Restricted Payments. (a) The Company and the Issuer will not,
and will not cause or permit any Restricted Subsidiary to, directly or indirectly, make any Restricted Payment unless: 

(i) no Default or Event of Default shall have occurred and be continuing at the time of or immediately after giving effect to
such Restricted Payment; 
 (ii) immediately after giving effect to such Restricted Payment, the Company could incur at least
$1.00 of Indebtedness pursuant to Section 4.06(a) hereof; and 
 (iii) immediately after giving effect to such
Restricted Payment, the aggregate amount of all Restricted Payments (including the Fair Market Value of any non-cash Restricted Payment) declared or made on or after the Issue Date does not exceed the sum of: 

(A) $16.0 million, plus 

(B) 50% of the Consolidated Net Income of the Company on a cumulative basis during the period (taken as one accounting period)
from and including February 1, 2014 and ending on the last day of the Company’s fiscal quarter immediately preceding the date of such Restricted Payment (or in the event such Consolidated Net Income shall be a deficit, minus 100% of such
deficit), plus 

  
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 (C) 100% of the aggregate net cash proceeds of and the Fair Market Value of
Property received by the Company from (1) any capital contribution to the Company after the Issue Date or any issue or sale after the Issue Date of Qualified Stock (other than (x) to any Subsidiary of the Company or (y) any Excluded
Contribution) and (2) the issue or sale on or after the Issue Date of any Indebtedness or other securities of the Company or the Issuer convertible into or exchangeable or exercisable for Qualified Stock of the Company that have been so
converted, exchanged or exercised, as the case may be, plus 
 (D) in the case of the disposition or repayment of any
Investment constituting a Restricted Payment (or if the Investment was made prior to the Issue Date, that would have constituted a Restricted Payment if made after the Issue Date, if such disposition or repayment results in cash received by the
Company, the Issuer or any Restricted Subsidiary), an amount (to the extent not included in the calculation of Consolidated Net Income referred to in (B)) equal to the return of capital with respect to such Investment, including by dividend,
distribution or sale of Capital Stock (to the extent not included in the calculation of Consolidated Net Income referred to in (B)), plus 

(E) with respect to any Unrestricted Subsidiary that is redesignated as a Restricted Subsidiary after the Issue Date, in
accordance with the definition of “Unrestricted Subsidiary” (so long as the designation of such Subsidiary as an Unrestricted Subsidiary was treated as a Restricted Payment made after the Issue Date, and only to the extent not included in
the calculation of Consolidated Net Income referred to in (B)), an amount equal to the lesser of (x) the proportionate interest of the Company or a Restricted Subsidiary in an amount equal to the excess of (I) the total assets of such
Subsidiary, valued on an aggregate basis at the lesser of book value and Fair Market Value thereof, over (II) the total liabilities of such Subsidiary, determined in accordance with GAAP, and (y) the Designation Amount at the time of such
Subsidiary’s designation as an Unrestricted Subsidiary. 
 (b) Clause (a) of this Section 4.07 (provided that in
the case of clauses (iv) and (v) below, no Default or Event of Default has occurred and is continuing at the time of such payment) will not prohibit: 

(i) the payment of any dividend or distribution or the consummation of any irrevocable redemption within 60 days of its
declaration or the giving of such irrevocable redemption, as applicable, if such dividend or the giving of such notice of such payment could have been made on the date of its declaration or provision of notice, as applicable, without violation of
the provisions of the Indenture; 

  
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 (ii) the purchase, repayment, repurchase, redemption, defeasance or other
acquisition, cancellation or retirement for value of any Subordinated Indebtedness of the Issuer, the Company or any Restricted Subsidiary or shares of Capital Stock of the Company in exchange for, or out of the net proceeds of the substantially
concurrent sale (other than to a Subsidiary of the Company or constituting an Excluded Contribution) of, shares of Qualified Stock; 

(iii) (A) the purchase, repayment, redemption, repurchase, defeasance or other acquisition, cancellation or retirement for
value of Subordinated Indebtedness of the Issuer, the Company or any Restricted Subsidiary in exchange for, or out of proceeds of, Refinancing Indebtedness; 

(B) the purchase, repayment, redemption, repurchase, defeasance or other acquisition, cancellation or retirement for value of
Existing Subordinated Indebtedness of the Issuer, the Company, or any Restricted Subsidiary; or 
 (C) the making of any
Restricted Payments in an aggregate amount made under this clause (iii)(C) not to exceed Excluded Contributions (after giving effect to all subsequent reductions in the amount of any Restricted Investment outstanding pursuant to this clause (iii)(C)
as a result of the repayment or disposition thereof for cash); 
 (iv) the payment of dividends on Preferred Stock and
Disqualified Stock up to an aggregate amount of $10.0 million in any fiscal year; provided that immediately after giving effect to any declaration of such dividend, the Company could incur at least $1.00 of Indebtedness pursuant to clause
(i) of Section 4.06(a); 
 (v) the purchase, redemption or other acquisition, cancellation or retirement for value of
Capital Stock, or options, warrants, equity appreciation rights or other rights to purchase or acquire Capital Stock, of the Company or any Subsidiary held by any present, future or former officers, directors, managers, employees or consultants of
the Company or any Subsidiary (or their estates or beneficiaries under their estates) not to exceed $5.0 million in any calendar year (with unused amounts in any calendar year being carried over to succeeding calendar years subject to a maximum
(without giving effect to the following proviso) of $10.0 million in any calendar year); provided that such amount in any calendar year may be increased by an amount not to exceed: 

  
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 (A) the cash proceeds from the sale of Qualified Stock of the Company to any
future, present or former officers, directors, managers, employees or consultants of the Company, any of its Subsidiaries that occurs after the Issue Date, to the extent the cash proceeds from the sale of such Qualified Stock have not otherwise been
applied to the payment of Restricted Payments by virtue of clause (iii)(C) of the preceding paragraph, plus 
 (B) the cash
proceeds of key man life insurance policies received by the Company and the Restricted Subsidiaries after the Issue Date, less 

(C) the amount of any Restricted Payments previously made pursuant to clauses (A), and (B) of this clause (v);
provided that the Company may elect to apply all or any portion of the aggregate increase contemplated by clauses (A) and (B) of this clause (v) in any calendar year); 

(vi) the making of cash payments in connection with any conversion or exchange of Permitted Convertible Indebtedness in an
aggregate amount since the date of the indenture therefor not to exceed the sum of (a) the principal amount of such Permitted Convertible Indebtedness plus (b) any payments received by the Company, the Issuer or any Restricted
Subsidiaries pursuant to the exercise, settlement or termination of any related Permitted Bond Hedge; 
 (vii) any payments
in connection with (including, without limitation, the purchase of) a Permitted Bond Hedge and the settlement of any related Permitted Warrant (A) by delivery of shares of the Company’s Capital Stock upon net share settlement of such
Permitted Warrant or (B) by (x) set-off of such Permitted Warrant against the related Permitted Bond Hedge and (y) payment of an amount due upon termination of such Permitted Warrant in Capital Stock or using cash received upon the
exercise, settlement or termination of a Permitted Bond Hedge upon any early termination thereof; 
 (viii) the purchase,
repayment, repurchase, redemption, defeasance or other acquisition, cancellation or retirement for value of any Subordinated Indebtedness (A) at a purchase price not greater than 101% of the principal amount of such Subordinated Indebtedness in
the event of a Change of Control in accordance with provisions similar to Section 4.12 

  
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hereof or (B) at a purchase price not greater than 100% of the principal amount thereof in accordance with provisions similar to Section 4.10 hereof; provided that, prior to or
simultaneously with such purchase, repayment, repurchase, redemption, defeasance or other acquisition, cancellation, or retirement, the Company, the Issuer or any Restricted Subsidiary has made the Change of Control offer pursuant to
Section 4.12 hereof or Offer to Purchase pursuant to Section 4.10 hereof, as applicable, with respect to the Notes and has completed such repurchase or redemption of all Notes validly tendered for payment in connection with such Change of
Control offer or Offer to Purchase; 
 (ix)(i) any payment of cash by the Company, the Issuer or any of the Restricted
Subsidiaries in respect of fractional shares of the Company’s Capital Stock upon the exercise, conversion or exchange of any stock options, warrants or other rights to purchase Capital Stock or other convertible or exchangeable securities and
(ii) payments made or expected to be made by the Company, the Issuer or any of the Restricted Subsidiaries in respect of withholding or similar taxes payable in connection with the exercise or vesting of Capital Stock by any future, present or
former officer, employee, director, manager or consultant and repurchases of Capital Stock deemed to occur upon exercise, conversion or exchange of stock options, warrants or other rights to purchase Capital Stock or other convertible or
exchangeable securities if such Capital Stock represents all or a portion of the exercise price thereof; 
 (x) other
Restricted Payments in an aggregate amount, when taken together with all other Restricted Payments made pursuant to this clause (x) not to exceed $50.0 million (after giving effect to all subsequent reductions in the amount of Restricted
Investments outstanding pursuant to this clause (x) in the form of cash); 
 (xi) payments or distributions to satisfy
dissenters’ rights, pursuant to or in connection with a consolidation, merger or transfer of assets that complies with Section 4.14 and 

(xii) any purchase or redemption of Subordinated Indebtedness from Net Cash Proceeds of an Asset Disposition to the extent
permitted under Section 4.10; 
 provided, however, that each Restricted Payment described in clauses (i) and (ii) of this
Section 4.07(b) shall be taken into account for purposes of computing the aggregate amount of all Restricted Payments pursuant to clause (iii) of Section 4.07(a). 

  
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 (c) For purposes of determining the aggregate and permitted amounts of Restricted Payments made,
the amount of any guarantee of any Investment in any Person that was initially treated as a Restricted Payment and which was subsequently terminated or expired, net of any amounts paid by the Company or any Restricted Subsidiary in respect of such
guarantee, shall be deducted. 
 (d) In determining the “Fair Market Value of Property” for purposes of clause (iii) of
Section 4.07(a), Property other than cash, Cash Equivalents and Marketable Securities shall be deemed to be equal in value to the “equity value” of the Capital Stock or other securities issued in exchange therefor. The equity value of
such Capital Stock or other securities shall be equal to (i) the number of shares of Common Equity issued in the transaction (or issuable upon conversion or exercise of the Capital Stock or other securities issued in the transaction) multiplied
by the closing sale price of the Common Equity on its principal market on the date of the transaction (less, in the case of Capital Stock or other securities which require the payment of consideration at the time of conversion or exercise, the
aggregate consideration payable thereupon) or (ii) if the Common Equity is not then traded on a national securities exchange, or if the Capital Stock or other securities issued in the transaction do not consist of Common Equity (or Capital
Stock or other securities convertible into or exercisable for Common Equity), the value (if more than $10.0 million) of such Capital Stock or other securities as determined in good faith by the Board of Directors of the Company. 

(e) For purposes of determining compliance with this Section 4.07, in the event that a proposed Restricted Payment or Investment (or a
portion thereof) meets the criteria of clauses (i) through (xii) above or is entitled to be made pursuant to Section 4.07(a) and/or one or more of the exceptions contained in the definition of “Permitted Investments,” the
Issuer will be entitled to divide, classify or later reclassify (based on circumstances existing on the date of such reclassification) such Restricted Payment or Investment (or portion thereof) among such clauses (i) through (xii) and
Section 4.07(a) and/or one or more of the exceptions contained in the definition of “Permitted Investments,” in a manner that otherwise complies with this covenant. 

Section 4.08. Limitations on Liens. (a) The Company and the Issuer will not, and will not cause or permit any other
Guarantor to, create, incur, assume or suffer to exist any Liens that secure obligations under any Indebtedness, other than Permitted Liens, on any of its Property, including any shares of Capital Stock or Indebtedness of another Person owned by the
Issuer or such Guarantor, unless contemporaneously therewith or prior thereto all payments due under this Indenture and the Notes are secured on an equal and ratable basis with the Indebtedness so secured until such time as such Indebtedness is no
longer secured by a Lien or such Indebtedness can be secured by a Permitted Lien.  

  
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 (b) Any Lien created for the benefit of the Holders of the Notes pursuant to clause (a) of
this Section 4.08 shall provide by its terms that such Lien shall be automatically and unconditionally released and discharged upon the release and discharge of the Lien that gave rise to the obligation to secure the Notes or upon notice to the
Trustee that the Lien that gave rise to the obligation to secure the Notes is a Permitted Lien. 
 Section 4.09. Limitations
on Restrictions Affecting Restricted Subsidiaries. The Company and the Issuer will not cause or permit any Restricted Subsidiary that is not a Guarantor to, create, assume or otherwise cause or suffer to exist or become effective any consensual
encumbrance or restriction (other than encumbrances or restrictions imposed by law or by judicial or regulatory action or by provisions of agreements that restrict the assignability thereof) on the ability of such Restricted Subsidiary to:

 (a) pay dividends or make any other distributions on its Capital Stock or any other interest or participation in, or measured by, its
profits, owned by the Company or any other Restricted Subsidiary, or pay interest on or principal of any Indebtedness owed to the Company or any other Restricted Subsidiary, 

(b) make loans or advances to the Company or any other Restricted Subsidiary, or 

(c) transfer any of its property or assets to the Company or any other Restricted Subsidiary, 

except for: 
 (i)
encumbrances or restrictions existing under or by reason of applicable law, 
 (ii) contractual encumbrances or restrictions
in effect at or entered into on the Issue Date and any amendments, modifications, restatements, renewals, supplements, refundings, replacements or refinancings thereof; provided, that such amendments, modifications, restatements, renewals,
supplements, refundings, replacements or refinancings are not materially more restrictive, taken as a whole, with respect to such dividend and other payment restrictions than those contained in such contractual encumbrances or restrictions, as in
effect at or entered into on the Issue Date, 
 (iii) encumbrances or restrictions under any agreement or other instrument of
a Person acquired by or merged or consolidated with or into the Company or any Restricted Subsidiary, or of an Unrestricted Subsidiary that is designated a Restricted Subsidiary, or that is assumed in connection with the acquisition of assets from
such Person, in each case that is in existence at the time of such transaction (but not created in contemplation thereof), which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the
Person and its Subsidiaries, or the property or assets of the Person and its Subsidiaries, so acquired or designated, 

  
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 (iv) any restrictions or encumbrances arising in connection with Refinancing
Indebtedness; provided, however, that any restrictions and encumbrances of the type described in this clause (iv) that arise under such Refinancing Indebtedness shall not be materially more restrictive or apply to additional assets than
those under the agreement creating or evidencing the Indebtedness being refunded, refinanced, replaced or extended, 
 (v)
any Permitted Lien, or any other agreement restricting the sale or other disposition of property, securing Indebtedness permitted by this Indenture if such Permitted Lien or agreement does not expressly restrict the ability of a Subsidiary of the
Company to pay dividends or make or repay loans or advances prior to default thereunder, 
 (vi) reasonable and customary
borrowing base covenants set forth in agreements evidencing Indebtedness otherwise permitted by this Indenture, 
 (vii)
customary non-assignment provisions in leases, licenses, encumbrances, contracts or similar assets entered into or acquired in the ordinary course of business, 

(viii) any restriction with respect to a Restricted Subsidiary imposed pursuant to an agreement entered into for the sale or
disposition of all or substantially all of the Capital Stock or assets of such Restricted Subsidiary pending the closing of such sale or disposition, 

(ix) encumbrances or restrictions existing under or by reason of this Indenture, the Notes or the Guarantees, 

(x) purchase money obligations that impose restrictions on the property so acquired of the nature described in clause
(c) of this Section 4.09, 
 (xi) Liens permitted under this Indenture securing Indebtedness that limit the right
of the debtor to dispose of the assets subject to such Lien, 
 (xii) provisions with respect to the disposition or
distribution of assets or property in joint venture agreements, assets sale agreements, stock sale agreements and other similar agreements, 

  
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 (xiii) customary provisions of any franchise, distribution or similar agreements,

 (xiv) restrictions on cash or other deposits or net worth imposed by contracts entered into in the ordinary course of
business, 
 (xv) any encumbrances or restrictions existing under (A) development agreements or other contracts entered
into with municipal entities, agencies or sponsors in connection with the entitlement or development of real property or (B) agreements for funding of infrastructure, including in respect of the issuance of community facility district bonds,
metro district bonds, mello-roos bonds and subdivision improvement bonds, and similar bonding requirements arising in the ordinary course of business of a homebuilder, 

(xvi) any encumbrances or restrictions that require “lockbox” or similar obligations with respect to Non-Recourse
Indebtedness, 
 (xvii) any encumbrances or restrictions of the type referred to in clauses (a), (b) or (c) of this
Section 4.09 imposed by any amendments, modifications, restatements, renewals, supplements, refundings, replacements or refinancings of the contracts, instruments or obligations referred to in clauses (i) and (iii) through
(xvi) of this Section 4.09; provided, that such amendments, modifications, restatements, renewals, supplements, refundings, replacements or refinancings are, in the good faith judgment of the Company’s Board of Directors or its
chief executive officer or chief financial officer, not materially more restrictive with respect to such encumbrances or restrictions than those contained in the encumbrance or restrictions prior to such amendment, modification, restatement,
renewal, supplement, refunding, replacement or refinancing, and 
 (xviii) any encumbrance or restriction under other
Indebtedness of Restricted Subsidiaries permitted to be incurred subsequent to the Issue Date pursuant to Section 4.06; provided, that such encumbrances or restrictions will not materially affect the Issuer’s ability to make
anticipated principal and interest payments on the Notes, as determined in the good faith judgment of the Company’s Board of Directors or its chief executive officer or chief financial officer. 

(d) For purposes of determining compliance with this Section 4.09: (i) the priority of any preferred stock in receiving dividends or
liquidating distributions prior to dividends or liquidating distributions being paid on common stock shall not be deemed a restriction on the ability to make distributions on Capital Stock and (ii) the subordination of loans or advances made to
the Company or a Restricted Subsidiary to other Indebtedness incurred by the Company or any such Restricted Subsidiary shall not be deemed a restriction on the ability to make loans or advances. 

  
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 Section 4.10. Limitations on Dispositions of Assets. (a) The Company and
the Issuer will not, and will not cause or permit any Restricted Subsidiary to, make any Asset Disposition unless: (x) the Company (or the Issuer or such Restricted Subsidiary, as the case may be) receives consideration at the time of such
Asset Disposition at least equal to the Fair Market Value thereof, and (y) not less than 70% of the consideration received by the Company (or the Issuer or such Restricted Subsidiary, as the case may be) from such Asset Disposition and all
other Asset Dispositions since the Issue Date, on a cumulative basis, is in the form of cash, Cash Equivalents and Marketable Securities.  

(b) The amount of (i) any Indebtedness (as reflected on the Company’s most recent consolidated balance sheet or in the footnotes
thereto, or if incurred or accrued subsequent to the date of such balance sheet, such Indebtedness that would have been reflected on the Company’s consolidated balance sheet or in the footnotes thereto if such incurrence or accrual had taken
place on or prior to the date of such balance sheet, as determined in good faith by the Company) of the Company or the Issuer or any Restricted Subsidiary (other than any Subordinated Indebtedness) that is actually assumed by the transferee in such
Asset Disposition (or are otherwise extinguished in connection with the transactions relating to such Asset Disposition), (ii) the fair market value (as determined in good faith by the Board of Directors of the Company) of any property or
assets (including Capital Stock of any Person that will be a Restricted Subsidiary) received that are used or useful in a Real Estate Business, and (iii) any securities, notes or other obligations or assets received by the Company or such
Restricted Subsidiary from such transferee that are converted by the Company or such Restricted Subsidiary into cash or Cash Equivalents, or by their terms are required to be satisfied for cash or Cash Equivalents (to the extent of the cash or Cash
Equivalents received), in each case, within 180 days following the closing of such Asset Disposition, shall in each case be deemed to be consideration required by clause (y) of Section 4.10(a) for purposes of determining the percentage of
such consideration received by the Company or the Restricted Subsidiaries. 
 (c) The Net Cash Proceeds of an Asset Disposition shall, within
one year, at the Company’s election: (i) be used by the Company, the Issuer or a Restricted Subsidiary to (A) invest in assets (including Capital Stock of any Person that is or will be a Restricted Subsidiary following investment
therein) used or useful in a Real Estate Business or (B) permanently prepay or repay (1) secured Indebtedness of the Company or any Guarantor (and, if the Indebtedness is revolving credit Indebtedness, to correspondingly reduce commitments
with respect thereto), (2) Obligations under the Notes or any other senior Indebtedness of the Company or any Restricted Subsidiary (and, if the Indebtedness is 

  
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revolving credit Indebtedness, to correspondingly reduce commitments with respect thereto); provided that if the Company or any Restricted Subsidiary shall so repay any senior Indebtedness
other than the Notes, the Issuer will either reduce Obligations under the Notes on a pro rata basis by, at its option, (I) redeeming Notes pursuant to Section 3.01 or (II) purchasing Notes through open-market purchases, at a price equal to
or higher than 100% of the principal amount thereof, in a manner that complies with the Indenture and applicable securities law or make an offer (in accordance with the procedures set forth in clause (ii) of this Section 4.10(c) to all
Holders to purchase their Notes on a ratable basis with such other senior Indebtedness for no less than 100% of the principal amount thereof, plus the amount of accrued but unpaid interest, if any, thereon up to the principal amount of Notes to be
repurchased, or (3) Indebtedness of a Restricted Subsidiary that is not a Guarantor, other than Indebtedness owed to the Company or another Restricted Subsidiary; or (ii) to the extent not so used in accordance with clause (i) of this
Section 4.10(c), be applied to make an Offer to Purchase the Notes and, if the Company or a Restricted Subsidiary elects or is required to do so, to repay, purchase or redeem any other Indebtedness (other than Subordinated Indebtedness) (on a
pro rata basis if the amount available for such repayment, purchase or redemption is less than the aggregate amount of (x) the principal amount of the Notes tendered in such Offer to Purchase and (y) the lesser of the principal amount, or
accreted value, of such other Indebtedness (other than Subordinated Indebtedness) tendered or to be repaid, repurchased or redeemed, plus, in each case, accrued interest to the date of repayment, purchase or redemption) at 100% of the principal
amount or accreted value thereof, as the case may be, plus accrued and unpaid interest, if any, to the date of repurchase, repayment or redemption; provided that pending any such application under this Section 4.10(c), Net Cash Proceeds
may be used to temporarily reduce Indebtedness or otherwise be invested in any manner not prohibited by this Indenture; provided further that in the case of clause (i), a binding commitment to invest in assets shall be treated as a permitted
application of the Net Cash Proceeds from the date of such commitment so long as the Company, the Issuer or a Restricted Subsidiary enters into such commitment with the good faith expectation that such Net Cash Proceeds will be applied to satisfy
such commitment within 180 days of such commitment (an “Acceptable Commitment”) and such Net Cash Proceeds are actually applied in such manner within the later of one year from the consummation of the Asset Disposition and 180 days
from the date of the Acceptable Commitment, and in the event any Acceptable Commitment is later cancelled or terminated for any reason before the Net Cash Proceeds is applied in connection therewith, the Company, the Issuer or such Restricted
Subsidiary enters into another Acceptable Commitment (a “Second Commitment”) within 180 days of such cancellation or termination and such Net Cash Proceeds are actually applied in such manner within 180 days from the date of the
Second Commitment, it being understood that if a Second Commitment is later cancelled or terminated for any reason before such Net Cash Proceeds is applied, then such Net Cash Proceeds shall be applied in accordance with clauses (i)(B) or
(ii) above. Upon completion of an Offer to Purchase, the amount of Net Cash Proceeds will be reset at zero. 

  
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 (d) Notwithstanding the foregoing, (i) the Company will not be required to apply such
Net Cash Proceeds to repurchase the Notes in accordance with clause (ii) of Section 4.10(c) except to the extent that such Net Cash Proceeds, together with the aggregate Net Cash Proceeds of prior Asset Dispositions (other than those so
used) which have not been applied in accordance with this provision and as to which no prior prepayments or repayments shall have been made and no Offer to Purchase shall have been made, exceed $25.0 million (“Excess
Proceeds”) and (ii) in connection with an Asset Disposition, the Company and the Restricted Subsidiaries will not be required to comply with the requirements of clause (y) of Section 4.10(a) to the extent that the
non-cash consideration received in connection with such Asset Disposition, together with the sum of all non-cash consideration received in connection with all prior Asset Dispositions that has not yet been converted into cash, Cash Equivalents or
Marketable Securities, does not exceed $25.0 million; provided, however, that when any non-cash consideration is converted into cash, Cash Equivalents or Marketable Securities, such cash shall constitute Net Cash Proceeds and be subject to
Section 4.10(c). 
 (e) To the extent that the aggregate amount of Indebtedness validly tendered and not properly withdrawn pursuant
to an Offer to Purchase is less than the Net Cash Proceeds, the Company, the Issuer and the Restricted Subsidiaries may use any remaining Net Cash Proceeds for general corporate purposes, subject to the other covenants hereunder. 

Section 4.11. Guarantees by Restricted Subsidiaries. Each existing Restricted Subsidiary (other than the Issuer (for so
long as it remains the Issuer) and any Excluded Subsidiary) will be a Guarantor. The Company is permitted to cause any Unrestricted Subsidiary to be a Guarantor. If the Issuer, the Company or any of its Restricted Subsidiaries acquires or creates a
Restricted Subsidiary after the Issue Date, such Restricted Subsidiary shall execute a guarantee substantially in the form included in Exhibit A, execute a supplemental indenture in the form of Exhibit B, and deliver an Opinion of Counsel to the
Trustee to the effect that the supplemental indenture has been duly authorized, executed and delivered by the new Restricted Subsidiary and constitutes a valid and binding obligation of the new Restricted Subsidiary, enforceable against the new
Restricted Subsidiary in accordance with its terms (subject to customary exceptions). 
 Section 4.12. Repurchase of
Notes upon a Change of Control. (a) In the event that there shall occur a Change of Control, each Holder of Notes shall have the right, at such Holder’s option, to require the Issuer to purchase all or any part of such Holder’s
Notes on a date (the “Repurchase Date”) that is no later than 90 days after notice of the Change of Control, at 101% of the principal amount thereof plus accrued and unpaid interest, if any, to the Repurchase Date.

  
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 (b) On or before the thirtieth day after any Change of Control, the Issuer is obligated to
mail, or cause to be mailed, to all Holders of record of Notes and the Trustee, a notice regarding the Change of Control and the repurchase right. The notice shall state the Repurchase Date, the date by which the repurchase right must be exercised,
the price for the Notes and the procedure which the Holder must follow to exercise such right. To exercise such right, the Holder of such Note must deliver, at least ten days prior to the Repurchase Date, written notice to the Issuer (or an agent
designated by the Issuer for such purpose) of the Holder’s exercise of such right, together with the Note with respect to which the right is being exercised, duly endorsed for transfer; provided, however, that if mandated by
applicable law, a Holder may be permitted to deliver such written notice nearer to the Repurchase Date than may be specified by the Issuer. 

(c) Notices may be delivered prior to the occurrence of a Change of Control stating that the Change of Control offer is conditional on the
occurrence of such Change of Control, and, if applicable, shall state that, in the Issuer’s discretion, the Repurchase Date may be delayed until such time as the Change of Control shall occur, or that such repurchase may not occur and such
notice may be rescinded in the event that the Issuer shall determine that such condition will not be satisfied by the Repurchase Date, or by the Repurchase Date as so delayed. 

(d) The Issuer will comply with applicable law, including Section 14(e) of the Exchange Act and Rule 14e-1 thereunder, if applicable, if
the Issuer is required to give a notice of a right of repurchase as a result of a Change of Control. 
 (e) The Issuer will not be required
to make a Change of Control offer following a Change of Control if a third party makes the Change of Control offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Section 4.12 and purchases all
such Notes validly tendered and not withdrawn under such Change of Control offer. 
 (f) If Holders of not less than 90% in aggregate
principal amount of the outstanding Notes validly tender and do not validly withdraw such Notes in an Offer to Purchase in connection with a Change of Control and the Company, or any third party making an Offer to Purchase in lieu of the Company as
permitted by Section 3.02, purchases of all of the Notes validly tendered and not withdrawn by such Holders, the Company or such third party shall have the right, upon not less than 10 nor more than 60 days’ prior notice, given not more
than 30 days following such purchase pursuant to the Change of Control offer described in this Section 4.12, to redeem all Notes that remain outstanding following such purchase at a redemption price in cash equal to 101% of the principal amount
thereof plus accrued and unpaid interest, if any, to, but not including, the date of redemption. 

  
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 Section 4.13. Limitations on Transactions with Affiliates. (a) The
Company and the Issuer will not, and will not cause or permit any Restricted Subsidiary to, make any loan, advance, guarantee or capital contribution to, or for the benefit of, or sell, lease, transfer or otherwise dispose of any property or assets
to or for the benefit of, or purchase or lease any property or assets from, or enter into or amend any contract, agreement or understanding with, or for the benefit of, any Affiliate of the Company or any Affiliate of any of the Company’s
Subsidiaries involving aggregate payments or consideration in excess of $7.5 million in a single transaction or series of related transactions (each, an “Affiliate Transaction”), except for any Affiliate Transaction
the terms of which are at least as favorable as the terms which could be obtained by the Company, the Issuer or such Restricted Subsidiary, as the case may be, in a comparable transaction made on an arm’s-length basis with Persons who are not
such a holder, an Affiliate of such a holder or an Affiliate of the Company or any of the Company’s Subsidiaries. 
 (b) In
addition, the Company and the Issuer will not, and will not cause or permit any Restricted Subsidiary to, enter into an Affiliate Transaction unless: 

(i) with respect to any such Affiliate Transaction involving or having a value of more than $15.0 million, the Company shall
have (x) obtained the approval of a majority of the Board of Directors of the Company and (y) either obtained the approval of a majority of the Company’s disinterested directors or obtained an opinion of a qualified independent
financial advisor to the effect that such Affiliate Transaction is fair to the Company, the Issuer or such Restricted Subsidiary, as the case may be, from a financial point of view, and 

(ii) with respect to any such Affiliate Transaction involving or having a value of more than $30.0 million, the Company shall
have (x) obtained the approval of a majority of the Board of Directors of the Company and (y) delivered to the Trustee an opinion of a qualified independent financial advisor to the effect that such Affiliate Transaction is fair to the
Company, the Issuer or such Restricted Subsidiary, as the case may be, from a financial point of view. 
 (c) Notwithstanding the foregoing,
an Affiliate Transaction will not include: 
 (i) any contract, agreement or understanding with, or for the benefit of, or
plan for the benefit of, employees of the Company or its Subsidiaries generally (in their capacities as such) that has been approved by the Board of Directors of the Company; 

  
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 (ii) Capital Stock issuances to directors, officers and employees of the Company
or its Subsidiaries pursuant to plans approved by the stockholders of the Company; 
 (iii) any Restricted Payment otherwise
permitted under Section 4.07 hereof or any Permitted Investment (other than a Permitted Investment referred to in clause (b) of the definition thereof, except as permitted by clause (iv) below); 

(iv) any transaction between or among the Company and/or one or more Restricted Subsidiaries or between or among Restricted
Subsidiaries (provided, however, no such transaction shall involve any other Affiliate of the Company (other than an Unrestricted Subsidiary to the extent permitted by this Indenture)) and any Guarantees issued by the Company or a Restricted
Subsidiary for the benefit of the Company or a Restricted Subsidiary, as the case may be, in accordance with Section 4.06; 

(v) any transaction between the Company or one or more Restricted Subsidiaries and one or more Unrestricted Subsidiaries
(1) where all of the payments to, or other benefits conferred upon, such Unrestricted Subsidiaries are substantially contemporaneously dividended, or otherwise distributed or transferred without charge, to the Company or a Restricted Subsidiary
or (2) in the ordinary course of business, including, without limitation, sales (directly or indirectly), sales subject to repurchase options, leases and sales and leasebacks of (A) homes, improved land and unimproved land and
(B) real estate (including related amenities and improvements); 
 (vi) issuances, sales or other transfers or
dispositions of mortgages and collateralized mortgage obligations in the ordinary course of business between Restricted Subsidiaries and Unrestricted Subsidiaries of the Company; 

(vii) the payment of reasonable and customary fees to, and indemnity provided on behalf of, officers, directors, employees or
consultants of the Company, the Issuer or any Restricted Subsidiary; 
 (viii) transactions in which the Company or any
Restricted Subsidiary, as the case may be, delivers to the Trustee an opinion of a qualified independent financial advisor stating that such transaction is fair to the Company or such Restricted Subsidiary from a financial point of view or stating
that the terms are not materially less favorable to the Company or its relevant Restricted Subsidiary than those that would have been obtained in a comparable transaction by the Company or such Restricted Subsidiary with an unrelated Person on an
arm’s length basis; 

  
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 (ix) any agreement or arrangement as in effect as of the Issue Date, or any
amendment thereto (so long as any such amendment is not disadvantageous in any material respect to the Holders when taken as a whole as compared to the applicable agreement or arrangement as in effect on the Issue Date); 

(x) transactions with joint ventures entered into in the ordinary course of business, including, without limitation, sales
(directly or indirectly), sales subject to repurchase options, leases and sales and leasebacks of (A) homes, improved land and unimproved land and (B) real estate (including related amenities and improvements); 

(xi) any transaction with a Person (other than an Unrestricted Subsidiary) which would constitute an Affiliate Transaction
solely because the Company or a Restricted Subsidiary owns Capital Stock in or otherwise controls such Person; 
 (xii) the
issuance and transfer of Capital Stock of the Company and the granting and performance of customary registration rights; 

(xiii) any lease entered into between the Company or any Restricted Subsidiary, as lessee, and any Affiliate of the Company, as
lessor, in the ordinary course of business; 
 (xiv) intellectual property licenses in the ordinary course of business; 

(xv) transactions between the Company or any of its Restricted Subsidiaries and any Person that would constitute an Affiliate
Transaction solely because a director of which is also a director of the Company; provided, however, that such director abstains from voting as a director of the Company on any matter involving such other Person; and 

(xvi) pledges of Capital Stock of Unrestricted Subsidiaries. 

Section 4.14. Limitations on Mergers, Consolidations and Sales of Assets. Neither the Issuer nor any Guarantor will
consolidate or merge with or into, or sell, lease, convey or otherwise dispose of all or substantially all of its assets (including, without limitation, by way of liquidation or dissolution), or assign any of its obligations under the Notes, the
Guarantees or this Indenture (as an entirety or substantially as an entirety in one transaction or in a series of related transactions), to any Person (in each case other than in a transaction in which the Company, the Issuer or a Restricted
Subsidiary is the survivor of a consolidation or merger, or the transferee in a sale, lease, conveyance or other disposition) unless: 

  
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 (i) the Person formed by or surviving such consolidation or merger (if other than
the Company, the Issuer or the Guarantor, as the case may be), or to which such sale, lease, conveyance or other disposition or assignment will be made (collectively, the “Successor”), is a corporation or other legal entity
organized and existing under the laws of the United States or any state thereof or the District of Columbia, and the Successor assumes by supplemental indenture in a form reasonably satisfactory to the Trustee all of the obligations of the Company,
the Issuer or the Guarantor, as the case may be, under the Notes or a Guarantee, as the case may be, and this Indenture, 

(ii) immediately after giving effect to such transaction, no Default or Event of Default has occurred and is continuing, and

 (iii) immediately after giving effect to such transaction, 

(A) the Company (or its Successor) could incur at least $1.00 of Indebtedness pursuant to Section 4.06(a) hereof, or 

(B) the Consolidated Fixed Charge Coverage Ratio would be equal to or greater than the Consolidated Fixed Charge Coverage Ratio
immediately prior to such transaction or the ratio of Indebtedness of the Company and the Restricted Subsidiaries to Consolidated Tangible Net Worth of the Company would be equal to or less than the ratio immediately prior to such transaction. 

The foregoing provisions shall not apply to: (i) a transaction involving the sale or disposition of Capital Stock of a Guarantor, or the
consolidation or merger of a Guarantor, or the sale, lease, conveyance or other disposition of all or substantially all of the assets of a Guarantor, that in any such case results in such Guarantor being released from its Guarantee pursuant to
Section 6.03, or (ii) a transaction the purpose of which is to change the state of incorporation or formation of the Company, the Issuer or any Guarantor. 

Section 4.15. Reports to Holders of Notes. (a) The Company shall file with the Commission the annual reports and the
information, documents and other reports required to be filed pursuant to Section 13 or 15(d) of the Exchange Act. The Company shall file with the Trustee and deliver to each Holder of record of Notes such reports, information and documents
within 15 days after it files them with the Commission. In the event that the Company is no longer subject to these periodic reporting requirements of the Exchange Act, it will nonetheless continue to file reports with the Commission and the Trustee
and deliver such reports to 

  
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each Holder of Notes as if it were subject to such reporting requirements. Regardless of whether the Company is required to furnish such reports to its stockholders pursuant to the Exchange Act,
the Company will cause its consolidated financial statements and a “Management’s Discussion and Analysis of Results of Operations and Financial Condition” written report, similar to those that would have been required to appear in
annual or quarterly reports, to be delivered to Holders of Notes. 
 (b) The posting of the reports, information and documents referred to
above on the Company’s website or one maintained on its behalf for such purpose shall be deemed to satisfy the Company’s delivery obligations to the Trustee and the Holders. In addition, availability of the foregoing materials on the
Commission’s EDGAR service shall be deemed to satisfy the Company’s delivery obligations to the Trustee and the Holders. The Trustee shall have no obligation to monitor whether the Company posts such reports, information and documents on
its website or the Commission’s EDGAR service. 
 (c) For so long as any of the Notes remain outstanding and constitute “restricted
securities” under Rule 144, the Company will furnish to the Holders of Notes and prospective investors, upon their request, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act. 

(d) Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee’s receipt of
them will not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Issuer’s and/or the Company’s compliance with any of its covenants in this Indenture (as to
which the Trustee is entitled to rely exclusively on Officers’ Certificates). 
 Section 4.16. [Reserved] 

Section 4.17. [Reserved] 

Section 4.18. Limitation of Applicability of Certain Covenants if Notes Rated Investment Grade. 

(a) The Issuer’s, the Company’s and its Restricted Subsidiaries’ obligations to comply with the provisions of this
Indenture described under this Article 4 (except for Section 4.01, Section 4.02, Section 4.03, Section 4.08, Section 4.12, Section 4.14 (other than clause (iii) of the first paragraph thereof), and
Section 4.15) will be suspended (such suspended covenants, the “Suspended Covenants”) and cease to have any further effect from and after the first date when the Notes are rated Investment Grade (the “Suspension
Date”); provided, that if the Notes subsequently cease to be rated Investment Grade, then, from and after the time the Notes cease to be rated Investment Grade (the “Reversion Date”), the Issuer’s,
the Company’s and its Restricted Subsidiaries’ obligation to comply with the Suspended Covenants shall be reinstated. The period of time between the Suspension Date and the Reversion Date is referred to in this description as the
“Suspension Period.” 

  
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 (b) Following the achievement of such Investment Grade ratings, no Restricted Subsidiary
thereafter acquired or created will be required to be a Guarantor unless it thereafter guarantees any Applicable Debt or (other than with respect to an Excluded Subsidiary) the Notes cease to be rated Investment Grade. 

(c) Notwithstanding clauses (a) and (b) of this Section 4.18, in the event of any reinstatement of the obligation to comply with
the Suspended Covenants referred to in Section 4.18(a), no action taken or omitted to be taken by the Company or any of its Subsidiaries prior to such reinstatement, or action taken by the Company or any of its Subsidiaries at any time pursuant
to a contractual obligation arising prior to such reinstatement (not entered into in contemplation of such reinstatement) shall give rise to a Default or Event of Default under this Indenture upon reinstatement. 

(d) On the Reversion Date, all Indebtedness incurred during the Suspension Period will be classified to have been incurred or issued pursuant
to clause (c) of the definition of “Permitted Indebtedness.” Calculations made after the Reversion Date of the amount available to be made as Restricted Payments under Section 4.07 will be made as though Section 4.07 had
been in effect prior to, but not during, the Suspension Period. Any Affiliate Transaction entered into after the Reversion Date pursuant to an agreement entered into during any Suspension Period shall be deemed to be permitted pursuant to clause
(ix) of Section 4.13(b). Any encumbrance or restriction on the ability of any Restricted Subsidiary that is not a Guarantor to take any action described in clauses (a) through (c) of Section 4.09 that becomes effective
during any Suspension Period shall be deemed to be permitted pursuant to clause (b) of Section 4.09. 
 (e) The Issuer shall
promptly notify the Trustee of any suspension or reinstatement of the Suspended Covenants and in the absence of such notice, the Trustee shall be entitled to presume that no such suspension or reinstatement has occurred. 

ARTICLE 5 
 REMEDIES

 Section 5.01. Events of Default. “Event of Default” means any one or more of the following events: 

(i) the failure by the Company, the Issuer and the Guarantors to pay interest on any Note when the same becomes due and payable
and the continuance of any such failure for a period of 30 days; 

  
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 (ii) the failure by the Company, the Issuer and the Guarantors to pay the
principal or premium of any Note when the same becomes due and payable at maturity, upon acceleration or otherwise; 
 (iii)
the failure by the Company, the Issuer or any Restricted Subsidiary to comply with any of its agreements or covenants in, or provisions of, the Notes, the Guarantees or this Indenture and such failure continues for the period and after the notice
specified below (except in the case of a default under Section 4.12 and 4.14, which will constitute Events of Default with notice but without passage of time); 

(iv) the acceleration of any Indebtedness (other than Non-Recourse Indebtedness) of the Company, the Issuer or any Restricted
Subsidiary that has an outstanding principal amount of $40.0 million or more, individually or in the aggregate, and such acceleration does not cease to exist, or such Indebtedness is not satisfied, in either case within 30 days after such
acceleration; 
 (v) the failure by the Company, the Issuer or any Restricted Subsidiary to make any principal or interest
payment in an amount of $40.0 million or more, individually or in the aggregate, in respect of Indebtedness (other than Non-Recourse Indebtedness) of the Company or any Restricted Subsidiary within 30 days of such principal or interest becoming due
and payable (after giving effect to any applicable grace period set forth in the documents governing such Indebtedness); 

(vi) a final judgment or judgments that exceed $40.0 million or more, individually or in the aggregate, for the payment of
money having been entered by a court or courts of competent jurisdiction against the Company, the Issuer or any of its Restricted Subsidiaries and such judgment or judgments is not satisfied, stayed, annulled or rescinded within 60 days of being
entered; 
 (vii) the Company, the Issuer or any Restricted Subsidiary that is a Significant Subsidiary pursuant to or within
the meaning of any Bankruptcy Law: 
 (A) commences a voluntary case, 

(B) consents to the entry of an order for relief against it in an involuntary case, 

(C) consents to the appointment of a Custodian of it or for all or substantially all of its property, or 

  
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 (D) makes a general assignment for the benefit of its creditors; 

(viii) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 

(A) is for relief against the Company, the Issuer or any Restricted Subsidiary that is a Significant Subsidiary as debtor in an
involuntary case, 
 (B) appoints a Custodian of the Company, the Issuer or any Restricted Subsidiary that is a Significant
Subsidiary or a Custodian for all or substantially all of the property of the Company or any Restricted Subsidiary that is a Significant Subsidiary, or 

(C) orders the liquidation of the Company, the Issuer or any Restricted Subsidiary that is a Significant Subsidiary, and the
order or decree remains unstayed and in effect for 60 days; or 
 (ix) any Guarantee of a Guarantor that is a Significant
Subsidiary ceases to be in full force and effect (other than in accordance with the terms of such Guarantee and this Indenture) or is declared null and void and unenforceable or found to be invalid or any Guarantor denies its liability under its
Guarantee (other than by reason of release of a Guarantor from its Guarantee in accordance with the terms of this Indenture and the Guarantee). 

A Default as described in subclause (iii) of this Section 5.01 will not be deemed an Event of Default until the Trustee notifies the
Company, or the Holders of at least 25 percent in principal amount of the then outstanding Notes notify the Company and the Trustee, of the Default and (except in the case of a Default with respect to Section 4.12 and 4.14 hereof) the Company
does not cure the Default within 60 days after receipt of the notice. The notice must specify the Default, demand that it be remedied and state that the notice is a “Notice of Default.” If such a Default is cured within such time period,
it ceases to be a Default. 
 If an Event of Default (other than an Event of Default with respect to the Company or the Issuer resulting
from subclauses (vii) or (viii) of this Section 5.01), shall have occurred and be continuing under this Indenture, the Trustee by notice to the Company, or the Holders of at least 25 percent in principal amount of the Notes then
outstanding by notice to the Company and the Trustee, may declare all Notes to be due and payable immediately. Upon such declaration of acceleration, the amounts due and payable on the Notes will be due and payable immediately. If an Event of
Default specified in subclauses (iv) or (v) above 

  
 80 

 
occurs, the declaration of acceleration of the Notes shall be automatically annulled if the default triggering such Event of Default pursuant to subclauses (iv) or (v) shall be remedied
or cured by the Company or a Restricted Subsidiary or waived by the holders of the relevant Indebtedness within 20 days after the declaration of acceleration with respect thereto and if (1) the annulment of the acceleration of the Notes would
not conflict with any judgment or decree of a court of competent jurisdiction and (2) all existing Events of Default, except nonpayment of principal, premium, if any, or interest on the Notes that became due solely because of the acceleration
of the Notes, have been cured or waived. The Issuer shall provide the Trustee with notice of any such annulment of a declaration of acceleration of the Notes. If an Event of Default with respect to the Company or the Issuer specified in subclauses
(vii) or (viii) of this Section 5.01 occurs, such an amount will ipso facto become and be immediately due and payable without any declaration, notice or other act on the part of the Trustee and the Company or any Holder. This
provision, however, is subject to the condition that, if at any time after the unpaid principal amount (or such specified amount) of the Notes shall have been so declared due and payable and before any judgment or decree for the payment of the
moneys due shall have been obtained or entered as hereinafter provided, the Issuer shall pay or shall deposit with the Trustee a sum sufficient to pay all matured installments of interest, if any, upon all of the Notes and the principal of all the
Notes which shall have become due otherwise than by acceleration (with interest on overdue installments of interest, if any, to the extent that payment of such interest is enforceable under applicable law and on such principal at the rate borne by
the Notes to the date of such payment or deposit) and the reasonable compensation, disbursements, expenses and advances of the Trustee and all other amounts due the Trustee under Section 7.07, and any and all defaults under this Indenture,
other than the nonpayment of such portion of the principal amount of and accrued interest, if any, on Notes which shall have become due by acceleration, shall have been cured or shall have been waived in accordance with Section 5.03 or
provision deemed by the Trustee to be adequate shall have been made therefor, then and in every such case the Holders of a majority in aggregate principal amount of the Notes then outstanding, by written notice to the Issuer and to the Trustee, may
rescind and annul such declaration and its consequences; but no such rescission and annulment shall extend to or shall affect any subsequent default, or shall impair any right consequent thereon. Notwithstanding the previous sentence, no waiver
shall be effective against any Holder for any Event of Default or event which with notice or lapse of time or both would be an Event of Default with respect to any covenant or provision which cannot be modified or amended without the consent of the
Holder of each outstanding Note affected thereby, unless all such affected Holders agree, in writing, to waive such Event of Default or other event. 

  
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 If the Trustee shall have proceeded to enforce any right under this Indenture and such
proceedings shall have been discontinued or abandoned because of such rescission or annulment or for any reason or shall have been determined to be adverse to the Trustee, then and in every such case the Issuer, the Trustee and the Holders of Notes
shall be restored respectively to their several positions and rights hereunder, and all rights, remedies and powers of the Issuer, the Trustee and the Holders of Notes shall continue as though no such proceeding had been taken. 

Except with respect to an Event of Default pursuant to clauses (i) or (ii) of this Section 5.01, the Trustee shall not be
charged with knowledge of any Event of Default unless written notice thereof shall have been given to a Responsible Officer of the Trustee by the Issuer, a Paying Agent or any Holder and such notice references the Notes and this Indenture. 

Section 5.02. Other Remedies. If an Event of Default occurs and is continuing, the Trustee may pursue, in its own name or
as trustee of an express trust, any available remedy by proceeding at law or in equity to collect the payment of principal of, premium, if any, and interest, if any, on the Notes or to enforce the performance of any provision of the Notes or this
Indenture. The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding. 

Section 5.03. Waiver of Defaults by Majority of Holders. By written notice to the Trustee and the Company, the Holders of a
majority in aggregate principal amount of the Notes then outstanding may on behalf of the Holders of all of the Notes waive any past Default or Event of Default hereunder and its consequences, except a Default in the payment of interest, if any, on,
or the principal of, the Notes. Upon any such waiver, the Issuer, the Trustee and the Holders of Notes shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default
or Event of Default or impair any right consequent thereon. Whenever any Default or Event of Default hereunder shall have been waived as permitted by this Section 5.03, said Default or Event of Default shall for all purposes of the Notes and
this Indenture be deemed to have been cured and to be not continuing.  
 Section 5.04. Direction of Proceedings.
The Holders of a majority in aggregate principal amount of the Notes then outstanding shall have the right to direct the time, method, and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power
conferred on the Trustee with respect to the Notes; provided, however, that (subject to the provisions of Section 7.01) the Trustee shall have the right to decline to follow any such direction if the Trustee shall determine upon
advice of counsel that the action or proceeding so directed may not lawfully be taken or if the Trustee in good faith by its board of directors, its executive committee, or a trust committee of directors or Responsible Officers or both shall
determine that the action or proceeding so directed would involve the Trustee in personal liability. 

  
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 Section 5.05. Application of Moneys Collected by Trustee. Any moneys collected by the
Trustee pursuant to this Article with respect to outstanding Notes shall be applied in the order following, at the date or dates fixed by the Trustee for the distribution of such moneys, upon presentation of the Notes and stamping thereon the
payment, if only partially paid, and upon surrender thereof, if fully paid: 
 FIRST: To the payment of costs and expenses of
collection and reasonable compensation to the Trustee, its agents, attorneys and counsel, and all other expenses and liabilities incurred, and all advances made, by the Trustee pursuant to Section 7.07 except as a result of its negligence or
bad faith; 
 SECOND: If the principal of the Notes shall not have become due and be unpaid, to the payment of interest, if
any, on the Notes, in the order of the maturity of the installments of such interest, if any, with interest (to the extent that such interest has been collected by the Trustee) upon the overdue installments of interest, if any, at the rate borne by
the Notes, such payment to be made ratably to the Persons entitled thereto; 
 THIRD: If the principal of the Notes shall
have become due, by declaration or otherwise, to the payment of the whole amount then owing and unpaid upon the Notes for principal or interest, if any, with interest on the overdue principal and (to the extent that such interest has been collected
by the Trustee) upon overdue installments of interest, if any, at the rate borne by the Notes, and in case such moneys shall be insufficient to pay in full the whole amounts so due and unpaid upon the Notes, then to the payment of such principal and
interest, if any, without preference or priority of principal over interest, if any, or of interest, if any, over principal, or of any installment of interest, if any, over any other installment of interest, if any, ratably to the aggregate of such
principal and accrued and unpaid interest, if any; and 
 FOURTH: To the payment of any surplus then remaining to the Issuer,
its successors or assigns, or to whomsoever may be lawfully entitled to receive the same. 
 No claim for interest which in any manner at or
after maturity shall have been transferred or pledged separate or apart from the Notes to which it relates, or which in any manner shall have been kept alive after maturity by an extension (otherwise than pursuant to an extension made pursuant to a
plan proposed by the Issuer to the Holders of all Notes), purchase, funding or otherwise by or on behalf or with the consent or approval of the Issuer shall be entitled, in case of a default hereunder, to any benefit of this Indenture, except after
prior payment in full of the principal of all Notes and of all claims for interest not so transferred, pledged, kept alive, extended, purchased or funded. 

  
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 Section 5.06. Proceedings by Holders. No holder of any Notes shall have any right by
virtue of or by availing of any provision of this Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture for the appointment of a receiver or trustee or similar official, or for any
other remedy hereunder, unless such Holder previously shall have given to the Trustee written notice of default and of the continuance thereof, as hereinbefore provided, and unless the Holders of not less than 25% in aggregate principal amount of
the Notes then outstanding shall have made written request to the Trustee to institute such action, suit or proceeding in its own name as Trustee hereunder and shall have offered to the Trustee such reasonable indemnity as the Trustee may require
against the costs, expenses and liabilities to be incurred therein or thereby, and the Trustee for 60 days after its receipt of such notice, request and offer of indemnity shall have neglected or refused to institute any such action, suit or
proceeding, it being understood and intended, and being expressly covenanted by the Holder of every Note with every other Holder and the Trustee, that no one or more Holders of Notes shall have any right in any manner whatever by virtue of or by
availing of any provision of this Indenture or of the Notes to affect, disturb or prejudice the rights of any other Holder of Notes, or to obtain or seek to obtain priority over or preference as to any other such Holder, or to enforce any right
under this Indenture or the Notes, except in the manner herein provided and for the equal, ratable and common benefit of all Holders of Notes. 

Notwithstanding any other provisions in this Indenture, however, the right of any Holder of any Note to receive payment of the principal of,
premium, if any, and interest, if any, on such Note, on or after the maturity thereof, or to institute suit for the enforcement of any such payment on or after such respective dates shall not be impaired or affected without the consent of such
Holder. 
 Section 5.07. Proceedings by Trustee. In case of an Event of Default hereunder, the Trustee may in its discretion
proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either by suit in equity or by action at law or by
proceedings in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law. 

  
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 Section 5.08. Remedies Cumulative and Continuing. All powers and remedies given by
this Article 5 to the Trustee or to the Holders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any thereof or of any other powers and remedies available to the Trustee or the Holders, by judicial proceedings or
otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture, and no delay or omission of the Trustee or of any Holder to exercise any right or power accruing upon any default occurring and
continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such default or an acquiescence therein; and, subject to the provisions of Section 5.06, every power and remedy given by this Article 5 or
by law to the Trustee or to the Holders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Holders. 

Section 5.09. Undertaking to Pay Costs. All parties to this Indenture agree, and each Holder of any Note by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require, or in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the cost of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees and expenses, against any party litigant in such
suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section 5.09 shall not apply to any suit instituted by the Trustee, to any suit instituted by any Holder, or
group of Holders, holding in the aggregate more than 10% in principal amount of the then outstanding Notes, or to any suit instituted by any Holders for the enforcement of the payment of the principal of, premium, if any, or interest, if any, on any
Note against the Issuer on or after the due date of such Note. 
 Section 5.10. Notice of Defaults. (a) The Company is
required to deliver to the Trustee an annual statement regarding compliance with this Indenture, and include in such statement, if any officer of the Company is aware of any Default or Event of Default, a statement specifying such Default or Event
of Default and what action the Company is taking or proposes to take with respect thereto. In addition, the Company is required to deliver to the Trustee prompt written notice of the occurrence of any Default or Event of Default. 

(b) The Trustee shall, within 90 days after the occurrence of a default known to the Trustee, with respect to the Notes, mail to all Holders of
Notes, as the names and the addresses of such Holders appear upon the Register, notice of all defaults, unless such defaults shall have been cured before the giving of such notice (the term “default” for the purpose of this
Section 5.10(b) being hereby defined to be the events specified in clauses (i), (ii), (iii), (iv), (v), (vi), (vii), (viii), (ix) and (x) of Section 5.01, not including periods of grace, if any, provided for therein and
irrespective of the giving of the written notice specified in said clause (iii) but in the case of any default of the character specified in said clause (iii) no such notice to Holders shall be given until at least 60 days after the giving
of 

  
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written notice thereof to the Company pursuant to said clause (iii)); provided, however, that, except in the case of default in the payment of the principal of, premium, if any, or
interest, if any, on any of the Notes, or in the payment or satisfaction of a purchase obligation, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee, a trust committee of
directors or a Responsible Officer of the Trustee in good faith determines that the withholding of such notice is in the best interests of the Holders. Notice to Holders under this Section shall be given in the manner and to the extent provided in
Trust Indenture Act Section 313(c). 
 Section 5.11. Waiver of Stay, Extension or Usury Laws. The Company, the Issuer and each
Guarantor covenants, to the extent permitted by applicable law, that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or any usury law or other law that
would prohibit or forgive the Company, the Issuer or the Guarantor from paying all or any portion of the principal of, premium, if any, or interest, if any, on the Notes as contemplated herein, wherever enacted, now or at any time hereafter in
force, or that may affect the covenants or the performance of this Indenture. The Company, the Issuer and each Guarantor hereby expressly waives, to the extent that it may lawfully do so, all benefit or advantage of any such law and covenants that
it will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 

Section 5.12. Trustee May File Proof of Claim. The Trustee may file proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any claim for the compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee hereunder) and the
Holders allowed in any judicial proceedings relating to the Company, the Issuer or any Guarantor or their respective creditors or property, and is entitled and empowered to collect, receive and distribute any money, securities or other property
payable or deliverable upon conversion or exchange of the Notes or upon any such claims. Any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, if the Trustee consents to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agent and counsel, and any other amounts due the Trustee hereunder. Nothing in this Indenture will be deemed to empower the Trustee to authorize or consent to, or accept or adopt on behalf of any Holder, any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 

  
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 Section 5.13. Payment of Notes on Default; Suit Therefor. The Issuer covenants that
(a) if default shall be made in the payment of any installment of interest upon the Notes as and when the same shall become due and payable, and such default shall have continued for a period of 30 days, or (b) if default shall be made in
the payment of the principal of, and premium, if any, on the Notes as and when the same shall have become due and payable, whether at maturity of the Notes or upon redemption or by declaration or otherwise, then, upon demand of the Trustee, the
Issuer will pay to the Trustee, for the benefit of the Holders, the whole amount that then shall have become due and payable on all such Notes for principal, and premium, if any, or interest, if any, or both, as the case may be, with interest upon
the overdue principal and (to the extent that payment of such interest is enforceable under applicable law) upon the overdue installments of interest, if any, at the rate borne by the Notes; and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including a reasonable compensation to the Trustee, its agent, attorneys and counsel, and any expenses or liabilities incurred by the Trustee hereunder other than through its negligence or
bad faith. 
 If the Issuer shall fail forthwith to pay such amounts upon such demand, the Trustee, in its own name and as trustee of an
express trust, shall be entitled and empowered to institute any actions or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce
any such judgment or final decree against the Issuer or any other obligor on the Notes and collect in the manner provided by law out of the property of the Issuer or any other obligor on the Notes, wherever situated, the moneys adjudged or decreed
to be payable. 
 If there shall be pending proceedings for the bankruptcy or for the reorganization of the Issuer or any other obligor on
the Notes under any bankruptcy, insolvency or other similar law now or hereafter in effect, or if a receiver or trustee or similar official shall have been appointed for the property of the Issuer or such other obligor, or in the case of any other
similar judicial proceedings relative to the Issuer or other obligor on the Notes, or to the creditors or property of the Issuer or such other obligor, the Trustee, irrespective of whether the principal of the Notes shall then be due and payable as
therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand pursuant to the provisions of this Section 5.13, shall be entitled and empowered by intervention in such proceedings or
otherwise to file and prove a claim or claims for the whole amount of principal, premium, if any, and interest, if any, owing and unpaid in respect of the Notes, and, in case of any judicial proceedings, to file such proofs of claim and other papers
or documents as may be necessary or advisable in order to have the claims of the Trustee and of the Holders allowed in such judicial proceedings relative to the Issuer or any other obligor on the Notes, its or their creditors, or its or their
property, and to collect and receive any moneys or other property payable or deliverable on any such 

  
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claims, and to distribute the same after the deduction of its charges and expenses, and any receiver, assignee or trustee or similar official in bankruptcy or reorganization is hereby authorized
by each of the Holders to make such payments to the Trustee, and, if the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for compensation and expenses or otherwise pursuant to
Section 7.07, including counsel fees and expenses incurred by it up to the date of such distribution. To the extent that such payment of reasonable compensation, expenses and counsel fees and expenses out of the estate in any such proceedings
shall be denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out of, any and all distributions, dividends, moneys, securities and other property which the Holders of Notes may be entitled to receive in such
proceedings, whether in liquidation or under any plan of reorganization or arrangement or otherwise. 
 All rights of action and of
asserting claims under this Indenture, or under any of the Notes, may be enforced by the Trustee without the possession of any of the Notes, or the production thereof at any trial or other proceeding relative thereto, and any such suit or proceeding
instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall be for the ratable benefit of the Holders of Notes in respect of which such judgment has been recovered. 

ARTICLE 6 

GUARANTEES; RELEASE OF GUARANTOR 

Section 6.01. Guarantee. Each of the Guarantors hereby unconditionally guarantees, jointly and severally with each other
Guarantor, to each Holder and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of this Indenture, the Notes or the obligations of the Issuer hereunder or thereunder, that: (i) the due and punctual
payment of the principal of, premium, if any, and interest on the Notes, whether at maturity or on an interest payment date, by acceleration, pursuant to an Offer to Purchase or otherwise, to the extent lawful, and all other obligations of the
Issuer to the Holders or the Trustee hereunder or thereunder shall be promptly paid in full when due, all in accordance with the terms hereof and thereof, including all amounts payable to the Trustee under Section 7.07 hereof, and (ii) in
case of any extension of time of payment or renewal of any Notes or any of such other obligations, the same shall 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. 

  
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 If the Issuer fails to make any payment when due of any amount so guaranteed for whatever reason,
each Guarantor shall be obligated, jointly and severally with each other Guarantor, to pay the same immediately. Each Guarantor hereby agrees that its obligations hereunder shall be continuing, absolute and unconditional, irrespective of, and shall
be unaffected by, the validity, regularity or enforceability of the Notes, this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder or the Trustee with respect to any provisions hereof or thereof, the
recovery of any judgment against the Issuer, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of such Guarantor. If any Holder or the Trustee is required by any court
or otherwise to return to the Issuer or any Guarantor, or any custodian, trustee, liquidator or other similar official acting in relation to the Issuer or such Guarantor, any amount paid by the Issuer or any Guarantor to the Trustee or such Holder,
this Article 6, to the extent theretofore discharged with respect to any Guarantee, shall be reinstated in full force and effect. Each Guarantor agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect
of any obligations guaranteed hereby by such Guarantor until payment in full of all such obligations. Each Guarantor further agrees that, as between such Guarantor, on the one hand, and the Holders of Notes and the Trustee on the other hand,
(i) the maturity of the obligations guaranteed hereby may be accelerated as provided in Article 5 hereof for the purposes of such Guarantee, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of
the obligations guaranteed hereby and (ii) in the event of any acceleration of such obligations as provided in Article 5 hereof such obligations (whether or not due and payable) shall forthwith become due and payable by such Guarantor, jointly
and severally with each other Guarantor, for the purpose of this Article 6. In addition, without limiting the foregoing, upon the effectiveness of an acceleration under Article 5, the Trustee may make a demand for payment on the Notes under any
Guarantee provided hereunder and not discharged. 
 The Guarantee set forth in this Section 6.01 and as annexed to any Note shall not
be valid or become obligatory for any purpose with respect to a Note until the certificate of authentication on such Note shall have been signed by the Trustee or any duly appointed agent. 

Section 6.02. Obligations of each Guarantor Unconditional. Nothing contained in this Article 6 or elsewhere in this Indenture or
in any Note is intended to or shall impair, as between each Guarantor and the Holders, the obligations of such Guarantor which are absolute and unconditional, to pay to the Holders the principal of, premium, if any, and interest on the Notes as and
when the same shall become due and payable in accordance with the provisions of their Guarantee or is intended to or shall affect the relative rights of the Holders and creditors of such Guarantor, nor shall anything herein or therein prevent the
Trustee or any Holder from exercising all remedies otherwise permitted by applicable law upon any Default under this Indenture in respect of cash, property or securities of such Guarantor received upon the exercise of any such remedy. 

  
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 Upon any distribution of assets of a Guarantor referred to in this Article 6, the Trustee,
subject to the provisions of Article 7, and the Holders shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which such dissolution, winding up, liquidation or reorganization proceedings are pending, or a
certificate of the liquidating trustee or agent or other person making any distribution to the Trustee or to such Holders for the purpose of ascertaining the persons entitled to participate in such distribution, the holders of other indebtedness of
such Guarantor, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article 6. 

Section 6.03. Release of a Guarantor. (a) If (i) all or substantially all of the assets of any Guarantor other than the
Company or all of the Capital Stock of any Guarantor other than the Company is sold (including by consolidation, merger, issuance or otherwise) or disposed of (including by liquidation, dissolution or otherwise) by the Company or any of its
Subsidiaries, (ii) unless the Company elects otherwise, any Guarantor other than the Company is designated an Unrestricted Subsidiary in accordance with the terms of this Indenture or becomes an Excluded Subsidiary, (iii) the Indenture is
discharged or defeased in accordance with Article 8, or (iv) in accordance with Article 9, then in each case such Guarantor or Person acquiring such assets (in the event of a sale or other disposition of all or substantially all of the assets
of a Guarantor), as the case may be, shall be deemed automatically and unconditionally released and discharged from any of its obligations under this Indenture without any further action on the part of the Trustee or any Holder of the Notes. 

(b) An Unrestricted Subsidiary or Excluded Subsidiary that is a Guarantor shall be deemed automatically and unconditionally released and
discharged from all obligations under its Guarantee upon notice from the Company to the Trustee to such effect, without any further action required on the part of the Trustee or any Holder. 

Section 6.04. Execution and Delivery of Guarantee. The execution by each Guarantor of this Indenture (or a supplemental indenture
in the form of Exhibit B) together with an executed guarantee substantially in the form included in Exhibit A evidences the Guarantee of such Guarantor, whether or not the person signing as an officer of the Guarantor still holds that office at
the time of authentication of any Note. The delivery of any Note by the Trustee after authentication constitutes due delivery of the Guarantee on behalf of each Guarantor. 

Section 6.05. Limitation on Guarantor Liability. Notwithstanding anything to the contrary in this Article 6, each Guarantor, and
by its acceptance of a Note, each Holder, hereby confirms that it is the intention of all such parties that the Guarantee of such Guarantor not constitute a fraudulent conveyance under 

  
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applicable fraudulent conveyance provisions of the United States Bankruptcy Code or any comparable provision of state law. To effectuate that intention, the Trustee, the Holders and the
Guarantors hereby irrevocably agree that the obligations of each Guarantor under its Guarantee are limited to the maximum amount that would not render the Guarantor’s obligations subject to avoidance under applicable fraudulent conveyance
provisions of the United States Bankruptcy Code or any comparable provision of state law. 
 Section 6.06. Article 6 not to Prevent
Events of Default. The failure to make a payment on account of principal, premium, if any, or interest, if any, on the Notes by reason of any provision in this Article 6 shall not be construed as preventing the occurrence of any Event of Default
under Section 5.01. 
 Section 6.07. Waiver by the Guarantors. To the extent permitted by applicable law, each Guarantor hereby
irrevocably waives diligence, presentment, demand of payment, demand of performance, filing of claims with a court in the event of insolvency of bankruptcy of the Issuer, any right to require a proceeding first against the Issuer, the benefit of
discussion, protest, notice and all demand whatsoever and covenants that this Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes, in this Indenture and in this Article 6. 

Section 6.08. Subrogation and Contribution. Upon making any payment with respect to any obligation of the Issuer under this
Article, the Guarantor making such payment shall be subrogated to the rights of the payee against the Issuer with respect to such obligation; provided, that the Guarantor may not enforce either any right of subrogation, or any right to receive
payment in the nature of contribution, or otherwise, from any other Guarantor, with respect to such payment so long as any amount payable by the Issuer hereunder or under the Notes remains unpaid. 

Each Guarantor that makes a payment under its Guarantee shall be entitled, upon payment in full of all guaranteed obligations under this
Indenture, to seek and receive contribution from and against each other Guarantor in an amount equal to such other Guarantor’s pro rata portion of such payment based on the respective net assets of all the Guarantors at the time of such payment
determined in accordance with GAAP. 
 Section 6.09. Stay of Acceleration. If acceleration of the time for payment of any amount
payable by the Issuer under this Indenture or the Notes is stayed upon the insolvency, bankruptcy or reorganization of the Issuer, all such amounts otherwise subject to acceleration under the terms of this Indenture are nonetheless payable by the
Guarantors hereunder forthwith on demand by the Trustee or the Holders. 

  
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 ARTICLE 7 

THE TRUSTEE 

Section 7.01. General. (a) The duties, rights and responsibilities of the Trustee are as provided by the Trust Indenture Act
and as set forth herein. Whether or not expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of, or affording protection to, the Trustee is subject to this Article. 

(b) Except during the continuance of an Event of Default, the Trustee need perform only those duties that are specifically set forth in this
Indenture and no others, and no implied covenants or obligations shall be read into this Indenture against the Trustee and the permissive rights of the Trustee set forth herein shall not be construed as duties. In case an Event of Default has
occurred and is continuing, the Trustee shall exercise those rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise as a prudent man would exercise or use under the circumstances in the conduct
of his own affairs. 
 Section 7.02. Certain Rights of the Trustee. Subject to and inclusive of Trust Indenture Act Sections
315(a) through (d): 
 (a) The Trustee may rely, and shall be protected in acting or refraining from acting, upon any
resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed or
presented by the proper Person. The Trustee need not investigate any fact or matter stated in the document, but the Trustee, in its discretion, may make further inquiry or investigation into such facts or matters as it sees fit. 

(b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an Opinion of Counsel
conforming to Section 12.05 and the Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such a certificate or opinion. Unless otherwise specifically provided in this Indenture, any demand, request,
direction or notice from the Issuer or the Company, as applicable, shall be sufficient if signed by an Officer of the Issuer or the Company, as applicable. 

(c) The Trustee may act through its attorneys and agents and shall not be responsible for the misconduct or negligence of any
agent appointed with due care. 

  
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 (d) The Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Indenture at the request or direction of any of the Holders, unless such Holders have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities that might be incurred by it in
compliance with such request or direction. 
 (e) The Trustee shall not be liable for any action it takes or omits to take in
good faith that it believes to be authorized or within its rights or powers or for any action it takes or omits to take in accordance with the direction of the Holders in accordance with Section 5.04 relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture. 

(f) The Trustee may consult with counsel, and the written advice of such counsel or any Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon. 

(g) No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of its duties hereunder, or in the exercise of its rights or powers, unless it receives indemnity satisfactory to it against any loss, liability or expense. 

(h) The Trustee may request that the Company (on behalf of itself and the Issuer) deliver an Officers’ Certificate setting
forth the name of the individuals and/or titles of Officers authorized at such time to take specific actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person authorized to sign an Officers’ Certificate,
including any person specified as so authorized in any such Officers’ Certificate previously delivered and not superseded. 

(i) In no event shall the Trustee be liable, directly or indirectly, for any special, indirect or consequential damages, even
if the Trustee has been advised of the possibility of such damages. 
 (j) The rights, privileges, protections, immunities
and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder, and to each agent, custodian and other Person employed to
act hereunder. 

  
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 (k) In no event shall the Trustee be responsible or liable for any failure or
delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God, and, except in the case of failures or delays due to the Trustee’s negligence or bad faith, interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services, it being understood that the Trustee shall use reasonable best efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances. 

Section 7.03. Individual Rights of the Trustee. The Trustee, in its individual or any other capacity, may become the owner or
pledgee of Notes and may otherwise deal with the Company or its Affiliates with the same rights it would have if it were not the Trustee. Any Agent may do the same with like rights. However, the Trustee is subject to Trust Indenture Act Sections
310(b) and 311. For purposes of Trust Indenture Act Section 311(b)(4) and (6): 
 (a) “cash
transaction” means any transaction in which full payment for goods or securities sold is made within seven days after delivery of the goods or securities in currency or in checks or other orders drawn upon banks or bankers and payable upon
demand; and 
 (b) “self-liquidating paper” means any draft, bill of exchange, acceptance or
obligation which is made, drawn, negotiated or incurred for the purpose of financing the purchase, processing, manufacturing, shipment, storage or sale of goods, wares or merchandise and which is secured by documents evidencing title to, possession
of, or a lien upon, the goods, wares or merchandise or the receivables or proceeds arising from the sale of the goods, wares or merchandise previously constituting the security, provided the security is received by the Trustee simultaneously with
the creation of the creditor relationship arising from the making, drawing, negotiating or incurring of the draft, bill of exchange, acceptance or obligation. 

Section 7.04. Trustee’s Disclaimer. The Trustee (a) makes no representation as to the validity or adequacy of this
Indenture or the Notes, (b) is not accountable for the Company’s use or application of the proceeds from the Notes and (c) is not responsible for any statement in the Notes other than its certificate of authentication. 

Section 7.05. Reserved. 

  
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 Section 7.06. Reports by Trustee to Holders. To the extent this Indenture becomes
qualified under the Trust Indenture Act, within 60 days after each May 1, beginning with the first May 1 after this Indenture so becomes qualified under the Trust Indenture Act, the Trustee shall mail to each Holder, as provided in Trust
Indenture Act Section 313(c) a brief report dated as of such May 1, if required by Trust Indenture Act Section 313(a). 

Section 7.07. Compensation and Indemnity. (a) The Company shall pay the Trustee compensation as agreed upon in writing for
its services. The compensation of the Trustee is not limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses, disbursements and advances
incurred or made by the Trustee, including the reasonable compensation and expenses of the Trustee’s agents and counsel. 
 (b) In
addition to any other indemnity provided to the Trustee hereunder, the Company shall indemnify the Trustee for, and hold it harmless against, any loss or liability or expense incurred by it without negligence or bad faith on its part arising out of
or in connection with the acceptance or administration of this Indenture and its duties under this Indenture and the Notes, including the costs and expenses of defending itself against any claim or liability and of complying with any process served
upon it or any of its officers in connection with the exercise or performance of any of its powers or duties under this Indenture and the Notes (regardless of whether brought or initiated by a third party or a party hereto). 

(c) To secure the Company’s payment obligations in this Section or as otherwise provided in this Indenture, the Trustee shall have a lien
prior to the Notes on all money or property held or collected by the Trustee, in its capacity as Trustee, except money or property held in trust to pay principal of, premium, if any, and interest, if any, on particular Notes. 

(d) When the Trustee incurs expenses or renders services after an Event of Default specified in Section 5.01(vii) or
Section 5.01(viii) hereof occurs, the expenses and the compensation for the services (including the fees and expenses of its agents and counsel) are intended, to the extent permitted by law, to constitute expenses of administration under any
Bankruptcy Law. 
 (e) The Company’s obligations and the Trustee’s rights under this Section 7.07 shall survive the
resignation or removal of the Trustee and the termination of this Indenture. 
 Section 7.08. Replacement of Trustee. (a)(i) The
Trustee may resign at any time by written notice to the Issuer. 
 (ii) The Holders of a majority in principal amount of the
outstanding Notes may remove the Trustee by written notice to the Trustee. 

  
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 (iii) If the Trustee is no longer eligible under Section 7.10 or in the
circumstances described in Trust Indenture Act Section 310(b), any Holder that satisfies the requirements of Trust Indenture Act Section 310(b) may petition any court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee. 
 (iv) The Issuer may remove the Trustee if: (A) the Trustee is no longer eligible
under Section 7.10; (B) the Trustee is adjudged bankrupt or an insolvent; (C) a receiver or other public officer takes charge of the Trustee or its property; or (D) the Trustee becomes incapable of acting. 

A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section. 
 (b) If the Trustee has been removed by the Holders, Holders of a majority in principal amount of
the Notes may appoint a successor Trustee with the consent of the Issuer. Otherwise, if the Trustee resigns or is removed, or if a vacancy exists in the office of Trustee for any reason, the Issuer shall promptly appoint a successor Trustee. If the
successor Trustee does not deliver its written acceptance within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Issuer or the Holders of a majority in principal amount of the outstanding Notes may petition, at
the expense of the Issuer, any court of competent jurisdiction for the appointment of a successor Trustee. 
 (c) Upon delivery by the
successor Trustee of a written acceptance of its appointment to the retiring Trustee and to the Issuer, (i) the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in
Section 7.07, (ii) the resignation or removal of the retiring Trustee shall become effective, and (iii) the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. Upon request of any
successor Trustee, the Issuer shall execute any and all instruments for fully and vesting in and confirming to the successor Trustee all such rights, powers and trusts. The Issuer shall give notice of any resignation and any removal of the Trustee
and each appointment of a successor Trustee to all Holders, and include in the notice the name of the successor Trustee and the address of its Corporate Trust Office. 

(d) Notwithstanding replacement of the Trustee pursuant to this Section, Issuer’s obligations under Section 7.07 shall continue for
the benefit of the retiring Trustee. 
 (e) The Trustee agrees to give the notices provided for in, and otherwise comply with, Trust
Indenture Act Section 310(b). 

  
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 Section 7.09. Successor Trustee by Merger. If the Trustee consolidates with, merges
or converts into, or transfers all or substantially all of its corporate trust business to, another corporation or national banking association, the resulting, surviving or transferee corporation or national banking association without any further
act shall be the successor Trustee with the same effect as if the successor Trustee had been named as the Trustee in this Indenture. 

Section 7.10. Eligibility. The Indenture must always have a Trustee that satisfies the requirements of Trust Indenture Act
Section 310(a) and has a combined capital and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition. 

Section 7.11. Money Held in Trust. The Trustee shall not be liable for interest on any money received by it except as it may agree
with the Issuer. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law and except for money held in trust under Article 8. 

ARTICLE 8 

DEFEASANCE AND DISCHARGE 

Section 8.01. Legal Defeasance and Discharge. The Issuer, the Company and the Guarantors shall, subject to the satisfaction of the
conditions set forth in Section 8.03 hereof, be deemed to have been discharged from their respective obligations with respect to the Notes, the Guarantees and under this Indenture (other than the right of Holders to receive interest on and
principal of the Notes when due solely out of the trust referred to below and certain other obligations) on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance
means that the Issuer shall be deemed to have paid and discharged the entire Indebtedness represented by the Notes, which shall thereafter be deemed to be outstanding only for the purposes of Section 8.04 hereof and the other Sections of this
Indenture referred to in clauses (a) through (f) of this Section 8.01, and the Issuer, the Company and the Guarantors shall be deemed to have satisfied all of their respective obligations under the Notes, the Guarantees and this
Indenture (and the Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments delivered to it by the Issuer acknowledging the same), except for the following provisions which shall survive until otherwise terminated or
discharged hereunder: (a) the rights of Holders of Notes to receive payments in respect of the principal, premium, if any, and interest, if any, on the Notes when such payments are due from the trust referred to below; (b) the
Issuer’s obligations with respect to the Notes concerning mutilated, destroyed, lost or stolen Notes and the maintenance of an office or agency for payment and money for security payments held in trust; (c) the rights, powers, trusts,
duties and immunities of the Trustee, and the Issuer’s and the Guarantors’ obligations in connection therewith; (d) the Legal Defeasance provisions of Article 8 of this Indenture; (e) the rights of registration of transfer and
exchange of the Notes; and (f) the rights of Holders that are beneficiaries with respect to property so deposited with the Trustee payable to all or any of them. 

  
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 Section 8.02. Covenant Defeasance. The Issuer, the Company and the Guarantors shall,
subject to the satisfaction of the conditions set forth in Section 8.03 hereof, be released from their obligations with respect to the Notes and the Guarantees under the covenants contained in Sections 4.06, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12
and 4.13, clause (iii) of Section 4.14 and Section 4.15 and Article 6 (except for Section 6.03) and each Guarantor’s obligation under its Guarantee, on and after the date that the conditions set forth in Section 8.03
are satisfied (hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed not outstanding for the purposes of any direction, waiver, consent or declaration or act of Holders (and the consequences of any thereof)
in connection with such covenants, but shall continue to be deemed outstanding for all other purposes hereunder (it being understood that the Notes shall not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means
that, with respect to the Notes and the Guarantees, the Issuer, the Company and the Guarantors may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an
Event of Default under Section 5.01 hereof, but, except as specified above, the remainder of this Indenture and the Notes shall be unaffected thereby. Subject to the satisfaction of the conditions set forth in Section 8.03 hereof, Sections
5.01(iii) (with respect to the covenants so defeased), 5.01(iv), 5.01(v), 5.01(vi) and 5.01(ix) shall not constitute Events of Default or Defaults hereunder. 

Section 8.03. Conditions to Legal or Covenant Defeasance. The following shall be the conditions to the application of either
Section 8.01 or Section 8.02 hereof to the Notes: 
 In order to exercise either Legal Defeasance or Covenant Defeasance: 

(a) the Issuer must irrevocably deposit, or cause to be deposited, with the Trustee, in trust under an irrevocable trust agreement, for the
benefit of the Holders of Notes, cash in U.S. dollars, U.S. Government Obligations, or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay, without
reinvestment, the principal of, premium, if any, and interest, if any, on the Notes on the stated maturity thereof or on the applicable redemption date, as the case may be, and the Issuer must specify whether the Notes are being defeased to maturity
or to a particular redemption date; 

  
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 (b) in the case of Legal Defeasance, the Issuer must deliver to the Trustee an Opinion of Counsel
reasonably acceptable to the Trustee confirming that the Issuer has received from, or there has been published by, the Internal Revenue Service a ruling, or there has been a change in the applicable United States federal income tax law after the
date of this Indenture, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the beneficial owners of the Notes will not recognize income, gain or loss for United States federal income tax purposes as a
result of such Legal Defeasance, and will be subject to United States federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred; 

(c) in the case of Covenant Defeasance, the Issuer must deliver to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee
confirming that the beneficial owners of the Notes will not recognize income, gain or loss for United States federal income tax purposes as a result of such Covenant Defeasance, and such Holders will be subject to United States federal income tax on
the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 
 (d)
no Default or Event of Default shall have occurred and be continuing on the date of such deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit) or insofar as Events of Default from
bankruptcy or insolvency events are concerned, at any time in the period ending on the 91st day after the date of deposit; 

(e) such Legal Defeasance or Covenant Defeasance will not result in a breach or violation of, or constitute a default under, any material
agreement or instrument (other than this Indenture) to which the Issuer or any of its Restricted Subsidiaries is a party or by which the Issuer or any of its Restricted Subsidiaries is bound; 

(f) the Issuer must deliver to the Trustee an Officers’ Certificate stating that the deposit was not made by the Issuer with the intent of
preferring the Holders of Notes over other creditors of the Issuer, or with the intent of defeating, hindering, delaying or defrauding creditors of the Issuer or others; and 

(g) the Issuer must deliver to the Trustee an Officers’ Certificate and an Opinion of Counsel in the United States reasonably acceptable
to the Trustee, each stating that the conditions precedent provided for or relating to Legal Defeasance or Covenant Defeasance, as applicable, in the case of the Officers’ Certificate, in clauses (a) through (f) and, in the case of
the Opinion of Counsel, in clauses (b) and (c) of this Section 8.03, have been complied with. 

  
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 Section 8.04. Deposited Money and Government Securities to be Held in Trust; Other
Miscellaneous Provisions. Subject to Section 8.05 hereof, all money and U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively, and solely for purposes of this
Section 8.04, the “Trustee”) pursuant to Section 8.03 or Section 8.08 hereof in respect of the Notes shall be held in trust and applied by the Trustee, in accordance with the provisions of the Notes and this Indenture, to
the payment, either directly or indirectly or through any paying agent (including the Issuer acting as paying agent) as the Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal,
premium, if any, and interest, but such money need not be segregated from other funds except to the extent required by law. 
 The Company
shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or non-callable U.S. Government Obligations deposited pursuant to Section 8.03 or Section 8.08 hereof or the principal,
premium, if any, and interest, if any, received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of Notes. 

Subject to the preceding paragraph and Section 7.07 herein, anything in this Article 8 to the contrary notwithstanding, the Trustee shall
deliver or pay, solely to the extent available in such trust, to the Issuer from time to time upon the request of the Issuer any money or non-callable U.S. Government Obligations held by it as provided in Section 8.03 or Section 8.08
hereof which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.03(a) hereof), are in
excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance. 

Section 8.05. Repayment to Issuer. Any money deposited with the Trustee or any paying agent, or then held by the Issuer, in trust
for the payment of the principal, premium, if any, and interest on the Notes and remaining unclaimed for two years after such principal, premium, if any, and interest has become due and payable shall be paid to the Issuer on its request or (if then
held by the Issuer) shall be discharged from such trust; and the Holder of such Note shall thereafter, as an unsecured creditor, look only to the Issuer for payment thereof, and all liability of the Trustee or such paying agent with respect to such
trust money, and all liability of the Issuer as trustee thereof, shall thereupon cease. 
 Section 8.06. Reinstatement. If the
Trustee or paying agent is unable to apply any money or non-callable U.S. Government Obligations in accordance with Section 8.01, Section 8.02 or Section 8.08 hereof, as the case may be, by reason of any order or judgment of any court
or governmental authority enjoining, 

  
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restraining or otherwise prohibiting such application, then the Issuer’s obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.01, Section 8.02 or Section 8.08 hereof until such time as the Trustee or paying agent is permitted to apply all such money in accordance with Section 8.01, Section 8.02 or Section 8.08 hereof, as
the case may be; provided, however, that, if the Issuer makes any payment of principal of, premium, if any, or interest, if any, on any Note following the reinstatement of its obligations, the Issuer shall be subrogated to the rights
of the Holders of such Notes to receive such payment from the money held by the Trustee or paying agent. 
 Section 8.07.
Survival. The Trustee’s rights under Article 7 (including, but not limited to, its right to indemnification) and this Article 8 shall survive termination of this Indenture and the resignation or removal of the Trustee. 

Section 8.08. Satisfaction and Discharge of Indenture. If at any time (a) (i) the Issuer shall have paid or caused to be
paid the principal of, premium, if any, and interest on all the outstanding Notes (other than Notes which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.04) as and when the same shall have
become due and payable, or (ii) the Issuer shall have delivered to the Trustee for cancellation all Notes theretofore authenticated (other than Notes which have been destroyed, lost or stolen and which have been replaced or paid as provided in
Section 2.04), or (b) (i) the Notes mature within one year, or all of them are to be called for redemption within one year under arrangements satisfactory to the Trustee for giving the notice of redemption, (ii) the Issuer
irrevocably deposits in trust with the Trustee, as trust funds solely for the benefit of the Holders, money or U.S. Government Obligations or a combination thereof sufficient, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certificate delivered to the Trustee, without consideration of any reinvestment, to pay principal of and premium, if any, and interest on the Notes to maturity or redemption, as the case may be, and to pay all
other sums payable by it hereunder, (iii) no Default has occurred and is continuing on the date of the deposit, (iv) the deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other
agreement or instrument to which the Issuer is a party or by which it is bound, and (v) the Issuer delivers to the Trustee an Officers’ Certificate and an Opinion of Counsel, in each case stating that all conditions precedent provided for
herein relating to the satisfaction and discharge of this Indenture have been complied with; and if, in any such case, the Issuer shall also pay or cause to be paid all other sums payable hereunder by the Issuer (including all amounts, payable to
the Trustee pursuant to Section 7.07), then, (x) after satisfying the conditions in clause (a), only the Company’s obligations under Sections 7.07 and 8.04 will survive or (y) after satisfying the conditions in clause (b), only
the Issuer’s or the Company’s, as applicable, obligations in Article 2 and Sections 4.01, 4.02, 7.07, 7.08, 8.04, 8.05 and 8.06 will survive, and, in either 

  
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case, the Trustee, on demand of the Issuer accompanied by an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent relating to the satisfaction and
discharge contemplated by this provision have been complied with, and at the cost and expense of the Issuer, shall execute proper instruments acknowledging such satisfaction and discharging of this Indenture. The Issuer agrees to reimburse the
Trustee for any costs or expenses thereafter reasonably incurred, and to compensate the Trustee for any services thereafter reasonably rendered, by the Trustee in connection with this Indenture or the Notes. 

ARTICLE 9 

AMENDMENTS, SUPPLEMENTS AND WAIVERS 

Section 9.01. Amendments Without Consent of Holders. The Company, the Issuer, the Guarantors and the Trustee, as applicable, may
amend, supplement or waive this Indenture, the Notes or the Guarantees without notice to or the consent of any Holder: 
 (a) to evidence the
succession of another Person to the Issuer or the Company or successive successions, and the assumption by the successor Person of the covenants, agreements and obligations of the Issuer or the Company herein and in the Notes or the Guarantees; 

(b) to add to the covenants of the Issuer or the Company such further covenants, restrictions, conditions or provisions for the
protection of the Holders of Notes, or to surrender any right or power herein conferred upon the Issuer or the Company, and to make the occurrence, or the occurrence and continuance, of a default in any such additional covenants, restrictions,
conditions or provisions an Event of Default permitting the enforcement of all or any of the several remedies provided in this Indenture as herein set forth; provided, however, that in respect of any such additional covenants,
restrictions, conditions or provisions such amendment, supplemented indenture or waiver may provide for a particular period of grace after default (which period may be shorter or longer than that allowed in the case of other defaults) or may provide
for an immediate enforcement upon such an Event of Default or may limit the remedies available to the Trustee upon such an Event of Default or may limit the right of the Holders of a majority in aggregate principal amount of the Notes to waive such
an Event of Default; 
 (c) to cure any ambiguity, defect or inconsistency in this Indenture, the Notes or the Guarantees; 

(d) to comply with any requirements of the Commission in connection with the qualification of this Indenture under the Trust Indenture Act;

  
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 (e) to evidence and provide for the acceptance of appointment hereunder by a successor or
replacement Trustee; 
 (f) to provide for uncertificated Notes in addition to, or in place of, Certificated Notes; 

(g) to provide for any Guarantee of the Notes; 

(h) to add security to or for the benefit of the Notes or to confirm and evidence the release, termination or discharge of any Guarantee of the
Notes; 
 (i) to provide for, or confirm the issuance of, Additional Notes; 

(j) to evidence compliance with Section 4.14; 

(k) to make any other change that does not adversely affect the legal rights of any Holder; or 

(l) to conform any provision of this Indenture, the Notes or the Guarantees to the ‘‘Description of Notes’’ contained in
the Offering Circular to the extent that the ‘‘Description of Notes’’ was intended to be a verbatim recitation of a provision in this Indenture, the Notes or the Guarantees. 

Section 9.02. Amendments with Consent of Holders. (a) Except as otherwise provided in Sections 5.01, 5.03 and 5.06 or
Section 9.02(b) of this Section, the Company, the Issuer, the Guarantors and the Trustee, as applicable, may amend or supplement this Indenture, the Notes and the Guarantees with the consent of the Holders of a majority in principal amount of
the outstanding Notes (which may include written consents obtained in connection with a tender offer or exchange offer for Notes), and the Holders of a majority in principal amount of the outstanding Notes by written notice to the Trustee may waive
future compliance by the Company, the Issuer and the Guarantors with any provision of this Indenture, the Notes or the Guarantees (which may include waivers obtained in connection with a tender offer or exchange offer for Notes). 

(b) Notwithstanding the provisions of paragraph (a) of this Section 9.02, without the consent of each Holder affected, an amendment
or waiver may not: 
 (i) reduce the amount of Notes whose Holders must consent to an amendment, supplement or waiver, 

(ii) reduce the rate of, or extend the time for payment of, any interest, including default interest, on any Note, 

  
 103 

 (iii) reduce principal of, or change the fixed maturity of, any Note or alter the
provisions (including related definitions, except amendments to the definitions of “Asset Disposition,” “Change of Control” and “Permitted Hovnanian Holders”) with respect to redemptions described under Article 3 or
with respect to mandatory offers to repurchase Notes described under Section 4.10 and Section 4.12, 
 (iv) make
any Note payable in money other than that stated in the Note, 
 (v) modify the ranking of the Notes or any Guarantee, 

(vi) make any change in Sections 5.03 or Section 5.06, 

(vii) release any Guarantor from any of its obligations under its Guarantee or this Indenture otherwise than in accordance with
this Indenture, or 
 (viii) waive a continuing Default or Event of Default in the payment of principal of, premium, if any,
or interest, if any, on the Notes (except a rescission of acceleration of the Notes by the Holders of at least a majority in aggregate principal amount of the then outstanding Notes with respect to a nonpayment default and a waiver of the payment
default that resulted from such acceleration). 
 (c) It is not necessary for Holders to approve the particular form of any proposed
amendment, supplement or waiver, but is sufficient if their consent approves the substance thereof. 
 (d) An amendment, supplement or waiver
under this Section 9.02 shall become effective on receipt by the Trustee of written consents from the Holders of the requisite percentage in principal amount of the outstanding Notes. After an amendment, supplement or waiver under this
Section 9.02 becomes effective, the Issuer (or the Trustee at the request and expense of the Issuer) will send to the Holders affected thereby a notice briefly describing the amendment, supplement or waiver. The Issuer will send supplemental
indentures to Holders upon request. Any failure of the Issuer to send such notice, or any defect therein, will not, however, in any way impair or affect the validity of any such supplemental indenture, amendment or waiver. 

Section 9.03. Effect of Consent. (a) After an amendment, supplement or waiver becomes effective, it will bind every Holder
unless it is of the type requiring the consent of each Holder affected. If the amendment, supplement or waiver is of the type requiring the consent of each Holder affected, the amendment, supplement or waiver will bind each Holder that has consented
to it and every subsequent Holder of a Note that evidences the same debt as the Note of the consenting Holder. 

  
 104 

 (b) If an amendment, supplement or waiver changes the terms of a Note, the Trustee may require
the Holder to deliver it to the Trustee so that the Trustee may place an appropriate notation of the changed terms on the Note and return it to the Holder, or exchange it for a new Note that reflects the changed terms. The Trustee may also place an
appropriate notation on any Note thereafter authenticated. However, the effectiveness of the amendment, supplement or waiver shall not be affected or impaired by any failure to annotate or exchange Notes in this fashion. 

Section 9.04. Trustee’s Rights and Obligations. The Trustee is entitled to receive, in addition to the documents required by
Section 12.04, and will be fully protected in relying upon, an Opinion of Counsel stating (i) that the execution of any amendment, supplement or waiver authorized pursuant to this Article is authorized or permitted by this Indenture and
(ii) in the case of an amendment, supplement or waiver in connection with Section 9.01(k) that such amendment, supplement or waiver does not adversely affect the legal rights of any Holder of Notes affected by such change. If the Trustee
has received such Opinion of Counsel, it shall sign the amendment, supplement or waiver so long as the same does not adversely affect the rights of the Trustee. The Trustee may, but is not obligated to, execute any amendment, supplement or waiver
that affects the Trustee’s own rights, duties or immunities under this Indenture. 
 ARTICLE 10 

[RESERVED] 
 ARTICLE
11 
 RELEASE OF ISSUER AND GUARANTORS 

Section 11.01. Release of Issuer. (a) The Issuer shall be released from its obligations under this Indenture and the Notes,
without the consent of the Holders, if: (1) the Company or any successor to the Company has assumed the obligations of the Issuer under this Indenture and the Notes, by supplemental indenture executed and delivered to the Trustee and
satisfactory in form to the Trustee, (2) the Company delivers an Opinion of Counsel to the Trustee to the effect that beneficial owners of Notes will not recognize income, gain or loss for United States federal income tax purposes as a result
of such release and such beneficial owners of Notes will be subject to United States federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such release had not occurred and (3) the
Issuer shall (w) become a Guarantor at such time subject to the provisions of Article 6 and Section 4.11 hereof, (x) execute a Guarantee, (y) execute a supplemental indenture evidencing its Guarantee and (z) deliver an
Opinion of Counsel to the Trustee to the effect that the supplemental indenture has been duly authorized, executed and delivered by the Issuer and constitutes a valid and binding obligation of the Issuer, enforceable against the Issuer in accordance
with its terms (subject to customary exceptions), until such time, if any, as such Guarantee may be released as described above under Section 4.18 and Article 6. 

  
 105 

 (b) A Guarantor may be released from its obligations under this Indenture, the Notes and its
Guarantee in accordance with the provisions contained in Section 6.03 herein. 
 ARTICLE 12 

MISCELLANEOUS 

Section 12.01. [Reserved] 

Section 12.02. Holder Actions. (a) Any act by the Holder of any Note binds that Holder and every subsequent Holder of a Note
that evidences the same debt as the Note of the acting Holder, even if no notation thereof appears on the Note. Subject to paragraph (b), a Holder may revoke an act as to its Notes, but only if the Trustee receives the notice of revocation before
the date the amendment or waiver or other consequence of the act becomes effective. 
 (b) The Issuer may, but is not obligated to, fix a
record date (which need not be within the time limits otherwise prescribed by Trust Indenture Act § 316(c)) for the purpose of determining the Holders entitled to act with respect to any amendment or waiver or in any other regard, except that
during the continuance of an Event of Default, only the Trustee may set a record date as to notices of Default, any declaration or acceleration or any other remedies or other consequences of the Event of Default. If a record date is fixed, those
Persons that were Holders at such record date and only those Persons shall be entitled to act, or to revoke any previous act, whether or not those Persons continue to be Holders after the record date. No act shall be valid or effective for more than
90 days after the record date. 
 Section 12.03. Notices. (a) Any notice or communication to the Issuer or the Company
shall be deemed given if in writing (i) when delivered in person or (ii) five days after mailing when mailed by first class mail or (iii) when sent by facsimile transmission, with transmission confirmed. Notices or communications to a
Guarantor shall be deemed given if given to the Company. Any notice to the Trustee shall be effective only upon receipt. In each case the notice or communication should be addressed as follows: 

  
 106 

 if to the Issuer or the Company: 

K. Hovnanian Enterprises, Inc. 

110 West Front Street 
 P.O. Box
500 
 Red Bank, New Jersey 07701 

Facsimile: (732) 383-2945 

Attention: Corporate Counsel 

if to the Trustee: 

Wilmington Trust, National Association 

Rodney Square North 
 1100 North
Market Street 
 Wilmington, DE 19890-1600 

Facsimile: 302-636-4145 

Attention: Corporate Client Services 
 The Issuer
or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications. 
 (b) Except
as otherwise expressly provided with respect to published notices, any notice or communication to a Holder shall be deemed given when mailed to the Holder at its address as it appears on the Register by first class mail or, as to any Global Note
registered in the name of DTC or its nominee, as agreed by the Issuer, the Trustee and DTC. Copies of any notice or communication to a Holder, if given by the Issuer or the Company, shall be mailed to the Trustee at the same time. Defect in mailing
a notice or communication to any particular Holder shall not affect its sufficiency with respect to other Holders. 
 (c) Where this
Indenture provides for notice, the notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and the waiver will be the equivalent of the notice. Waivers of notice by Holders must be filed with
the Trustee, but such filing is not a condition precedent to the validity of any action taken in reliance upon such waivers. 

Section 12.04. Certificate and Opinion as to Conditions Precedent. Upon any request or application by the Issuer or the Company to
the Trustee to take any action under this Indenture, the Issuer or the Company shall furnish to the Trustee: 
 (a) an
Officers’ Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and 

  
 107 

 (b) an Opinion of Counsel stating that all such conditions precedent relating to
the proposed action have been complied with. 
 Section 12.05. Statements Required in Certificate or Opinion. Each certificate or
opinion with respect to compliance with a condition or covenant provided for in this Indenture must include: 
 (a) a
statement that each person signing the certificate or opinion has read the covenant or condition and the related definitions; 

(b) a brief statement as to the nature and scope of the examination or investigation upon which the statement or opinion
contained in the certificate or opinion is based; 
 (c) a statement that, in the opinion of each such person, that person
has made such examination or investigation as is necessary to enable the person to express an informed opinion as to whether or not such covenant or condition has been complied with; and 

(d) a statement as to whether or not, in the opinion of each such person, such condition or covenant has been complied with,
provided, that an Opinion of Counsel may rely on an Officers’ Certificate or certificates of public officials with respect to matters of fact. 

Any certificate, statement or opinion of an Officer of the Issuer or the Company, as applicable, may be based, insofar as it relates to legal
matters, upon a certificate or opinion of or representations by counsel, unless such Officer knows that the certificate or opinion or representations with respect to the matters upon which such certificate, statement or opinion may be based as
aforesaid are erroneous, or in the exercise of reasonable care should know that the same are erroneous. Any certificate, statement or Opinion of Counsel may be based, insofar as it relates to factual matters on information with respect to which is
in the possession of the Issuer, or the Company, as applicable, upon the certificate, statement or opinion of or representations by an officer or officers of the Issuer, or the Company, as applicable, unless such counsel knows that the certificate,
statement or opinion or representations with respect to the matters upon which such certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise of reasonable care should know that the same are erroneous. 

Any certificate, statement or opinion of an Officer of the Issuer or the Company, as applicable, or of counsel may be based, insofar as it
relates to accounting matters, upon a certificate or opinion of or representations by an accountant or firm of accountants in the employ of the Issuer or the Company, as applicable, unless such Officer or counsel, as the case may be, knows that the
certificate or opinion or representations with respect to the accounting matters upon which such certificate, statement or opinion may be based as aforesaid are erroneous, or in the exercise of reasonable care should know that the same are
erroneous. 

  
 108 

 Any certificate or opinion of any independent firm of public accountants filed with and directed
to the Trustee shall contain a statement that such firm is independent. 
 Section 12.06. Payment Date Other Than a Business
Day. If any payment with respect to a payment of any principal of, premium, if any, or interest on any Note (including any payment to be made on any date fixed for redemption or purchase of any Note) is due on a day which is not a Business Day,
then the payment need not be made on such date, but may be made on the next Business Day with the same force and effect as if made on such date, and no interest shall accrue for the intervening period. 

Section 12.07. Governing Law. This Indenture, the Guarantees and the Notes shall be governed by, and construed in accordance with,
the laws of the State of New York. 
 Section 12.08. No Adverse Interpretation of Other Agreements. The Indenture may not be
used to interpret another indenture or loan or debt agreement of the Issuer, the Company or any Subsidiary of the Company, and no such indenture or loan or debt agreement may be used to interpret this Indenture. 

Section 12.09. Successors. All agreements of the Issuer, the Company or any Guarantor in this Indenture and the Notes shall bind
its successors. All agreements of the Trustee in this Indenture shall bind its successor. 
 Section 12.10. Duplicate Originals.
The parties may sign any number of copies of this Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 

Section 12.11. Separability. To the extent permitted by applicable law, in case any provision in this Indenture or in the Notes is
invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 12.12. Table of Contents and Headings. The Table of Contents, Cross-Reference Table and headings of the Articles and
Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part of this Indenture and in no way modify or restrict any of the terms and provisions of this Indenture. 

  
 109 

 Section 12.13. No Liability of Directors, Officers, Employees, Partners, Incorporators
and Stockholders. No recourse under or upon any obligation, covenant or agreement contained in this Indenture, or in the Notes, or because of any indebtedness evidenced thereby, shall be had against any incorporator, as such or against any past,
present or future stockholder, officer, director or employee, as such, of the Issuer, the Company or the Guarantors or any partner of the Issuer, the Company or the Guarantors or of any successor, either directly or through the Issuer, the Company
or the Guarantors or any successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by
the acceptance of the Notes by the Holders thereof and as part of the consideration for the issue of the Notes. 
 Section 12.14.
Provisions of Indenture for the Sole Benefit of Parties and Holders of Notes. Nothing in this Indenture or in the Notes, expressed or implied, shall give or be construed to give to any Person, other than the parties hereto and their
successors and the Holders of Notes, any legal or equitable right, remedy or claim under this Indenture or under any covenant or provision herein contained, all such covenants and provisions being for the sole benefit of the parties hereto and their
successors and of the Holders of Notes. 
 [Signature page follows] 

  
 110 

 SIGNATURES 

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

 

					
	 K. HOVNANIAN ENTERPRISES, INC.,
as Issuer

		
	By:	 	 /s/ J. Larry Sorsby

		 	Name:	 	J. Larry Sorsby
		 	Title:	 	Executive Vice President and Chief Financial Officer

  

					
	 HOVNANIAN ENTERPRISES, INC.,
as the Company and a Guarantor

		
	By:	 	 /s/ J. Larry Sorsby

		 	Name:	 	J. Larry Sorsby
		 	Title:	 	Executive Vice President and Chief Financial Officer

  

					
	 K. HOV IP, II, INC.,
as a Guarantor

		
	By:	 	 /s/ David Valiaveedan

		 	Name:	 	David Valiaveedan
		 	Title:	 	Chief Executive Officer and Treasurer

  

					
	 On behalf of each other entity named in Schedule A
hereto, as a Guarantor

		
	By:	 	 /s/ J. Larry Sorsby

		 	Name:	 	J. Larry Sorsby
		 	Title:	 	Executive Vice President and Chief Financial Officer

 [Signature page to the Indenture] 

					
	 WILMINGTON TRUST, NATIONAL
ASSOCIATION, as Trustee

		
	By:	 	 /s/ Joseph B. Feil

		 	Name:	 	Joseph B. Feil
		 	Title:	 	Vice President

 [Signature page to the Indenture] 

 SCHEDULE A 

GUARANTORS 
 ARBOR TRAILS, LLC 

AUDDIE ENTERPRISES, L.L.C. 
 BUILDER SERVICES NJ, L.L.C. 

BUILDER SERVICES PA, L.L.C. 
 DULLES COPPERMINE, L.L.C. 

EASTERN NATIONAL TITLE AGENCY, LLC 
 EASTERN TITLE AGENCY, INC.

 F&W MECHANICAL SERVICES, L.L.C. 
 FOUNDERS TITLE AGENCY
OF MARYLAND, L.L.C. 
 FOUNDERS TITLE AGENCY, INC. 
 GLENRISE
GROVE, L.L.C. 
 GOVERNOR’S ABSTRACT CO., INC. 
 HOMEBUYERS
FINANCIAL SERVICES, L.L.C. 
 HOVNANIAN DEVELOPMENTS OF FLORIDA, INC. 

HOVNANIAN LAND INVESTMENT GROUP OF FLORIDA, L.L.C. 
 HOVNANIAN
LAND INVESTMENT GROUP OF MARYLAND, L.L.C. 
 HOVNANIAN LAND INVESTMENT GROUP, L.L.C. 

K. HOV IP, II, INC. 
 K. HOVNANIAN ABERDEEN, LLC 

K. HOVNANIAN ACQUISITIONS, INC. 
 K. HOVNANIAN AT 4S, LLC 

K. HOVNANIAN AT ACQUA VISTA, LLC 
 K. HOVNANIAN AT ALISO, LLC 

K. HOVNANIAN AT ALLENTOWN, L.L.C. 
 K. HOVNANIAN AT ANDALUSIA, LLC

 K. HOVNANIAN AT ARBOR HEIGHTS, LLC 
 K. HOVNANIAN AT ASBURY
PARK, LLC 
 K. HOVNANIAN AT AVENUE ONE, L.L.C. 
 K. HOVNANIAN
AT BAKERSFIELD 463, L.L.C. 
 K. HOVNANIAN AT BARNEGAT I, L.L.C. 

K. HOVNANIAN AT BARNEGAT II, L.L.C. 
 K. HOVNANIAN AT BELLA LAGO,
LLC 
 K. HOVNANIAN AT BERKELEY, L.L.C. 
 K. HOVNANIAN AT
BLACKSTONE, LLC 
 K. HOVNANIAN AT BLUE HERON PINES, L.L.C. 
 K.
HOVNANIAN AT BRANCHBURG, L.L.C. 
 K. HOVNANIAN AT BRENFORD STATION, LLC 

K. HOVNANIAN AT BRIDGEPORT, INC. 
 K. HOVNANIAN AT BRIDGEWATER I,
L.L.C. 
 K. HOVNANIAN AT BURCH KOVE, LLC 
 K. HOVNANIAN AT CAMP
HILL, L.L.C. 

  
 Sch. A-1 

 K. HOVNANIAN AT CAPISTRANO, L.L.C. 

K. HOVNANIAN AT CARLSBAD, LLC 
 K. HOVNANIAN AT CEDAR GROVE III,
L.L.C. 
 K. HOVNANIAN AT CEDAR GROVE V, L.L.C. 
 K. HOVNANIAN
AT CEDAR GROVE VI, LLC 
 K. HOVNANIAN AT CHADDS FORD, LLC 
 K.
HOVNANIAN AT CHARTER WAY, LLC 
 K. HOVNANIAN AT CHESTER I, L.L.C. 

K. HOVNANIAN AT CHESTERFIELD, L.L.C. 
 K. HOVNANIAN AT CIELO,
L.L.C. 
 K. HOVNANIAN AT CLIFTON, L.L.C. 
 K. HOVNANIAN AT
COASTLINE, L.L.C. 
 K. HOVNANIAN AT COOSAW POINT, LLC 
 K.
HOVNANIAN AT CORTEZ HILL, LLC 
 K. HOVNANIAN AT CRANBURY, L.L.C. 

K. HOVNANIAN AT DENVILLE, L.L.C. 
 K. HOVNANIAN AT DEPTFORD
TOWNSHIP, L.L.C. 
 K. HOVNANIAN AT DOMINGUEZ HILLS, INC. 
 K.
HOVNANIAN AT DOYLESTOWN, LLC 
 K. HOVNANIAN AT EAST BRANDYWINE, L.L.C. 

K. HOVNANIAN AT EAST WINDSOR, LLC 
 K. HOVNANIAN AT EASTLAKE, LLC

 K. HOVNANIAN AT EDGEWATER, L.L.C. 
 K. HOVNANIAN AT EDGEWATER
II, L.L.C. 
 K. HOVNANIAN AT EGG HARBOR TOWNSHIP, L.L.C. 
 K.
HOVNANIAN AT EGG HARBOR TOWNSHIP II, L.L.C. 
 K. HOVNANIAN AT EL DORADO RANCH, L.L.C. 

K. HOVNANIAN AT EL DORADO RANCH II, L.L.C. 
 K. HOVNANIAN AT
ENCINITAS RANCH, LLC 
 K. HOVNANIAN AT ESTATES AT WHEATLANDS, LLC 

K. HOVNANIAN AT EVERGREEN, L.L.C. 
 K. HOVNANIAN AT FIDDYMENT
RANCH, LLC 
 K. HOVNANIAN AT FIFTH AVENUE, L.L.C. 
 K.
HOVNANIAN AT FLORENCE I, L.L.C. 
 K. HOVNANIAN AT FLORENCE II, L.L.C. 

K. HOVNANIAN AT FOREST MEADOWS, L.L.C. 
 K. HOVNANIAN AT FRANKLIN,
L.L.C. 
 K. HOVNANIAN AT FRANKLIN II, L.L.C. 
 K. HOVNANIAN AT
FRANKLIN III, L.L.C. 
 K. HOVNANIAN AT FREEHOLD TOWNSHIP, L.L.C. 

K. HOVNANIAN AT FRESNO, LLC 
 K. HOVNANIAN AT GASLAMP SQUARE,
L.L.C. 
 K. HOVNANIAN AT GILROY 60, LLC 
 K. HOVNANIAN AT
GILROY, LLC 
 K. HOVNANIAN AT GREAT NOTCH, L.L.C. 

  
 Sch. A-2 

 K. HOVNANIAN AT GUTTENBERG, L.L.C. 

K. HOVNANIAN AT HACKETTSTOWN II, L.L.C. 
 K. HOVNANIAN AT HAMBURG,
L.L.C. 
 K. HOVNANIAN AT HAWTHORNE, L.L.C. 
 K. HOVNANIAN AT
HERSHEY’S MILL, INC. 
 K. HOVNANIAN AT HIGHLAND SHORES, L.L.C. 

K. HOVNANIAN AT HOWELL, LLC 
 K. HOVNANIAN AT HOWELL II, LLC 

K. HOVNANIAN AT HUDSON POINTE, L.L.C. 
 K. HOVNANIAN AT HUNTFIELD,
LLC 
 K. HOVNANIAN AT ISLAND LAKE, LLC 
 K. HOVNANIAN AT
JACKSON, L.L.C. 
 K. HOVNANIAN AT JACKSON I, L.L.C. 
 K.
HOVNANIAN AT JAEGER RANCH, LLC 
 K. HOVNANIAN AT JERSEY CITY IV, L.L.C. 

K. HOVNANIAN AT JERSEY CITY V URBAN RENEWAL COMPANY, L.L.C. 
 K.
HOVNANIAN AT KEYPORT, L.L.C. 
 K. HOVNANIAN AT LA COSTA GREENS, L.L.C. 

K. HOVNANIAN AT LA COSTA, LLC 
 K. HOVNANIAN AT LA HABRA KNOLLS,
LLC 
 K. HOVNANIAN AT LA LAGUNA, L.L.C. 
 K. HOVNANIAN AT LAKE
BURDEN, LLC 
 K. HOVNANIAN AT LAKE RANCHO VIEJO, LLC 
 K.
HOVNANIAN AT LAKE RIDGE ESTATES, LLC 
 K. HOVNANIAN AT LAKE TERRAPIN, L.L.C. 

K. HOVNANIAN AT LAWRENCE V, L.L.C. 
 K. HOVNANIAN AT LEE SQUARE
L.L.C. 
 K. HOVNANIAN AT LENAH WOODS, LLC 
 K. HOVNANIAN AT
LILY ORCHARD, LLC 
 K. HOVNANIAN AT LITTLE EGG HARBOR TOWNSHIP II, L.L.C. 

K. HOVNANIAN AT LITTLE EGG HARBOR, L.L.C. 
 K. HOVNANIAN AT LONG
HILL, L.L.C. 
 K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP I, L.L.C. 

K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP II, L.L.C. 
 K. HOVNANIAN
AT LOWER MAKEFIELD TOWNSHIP I, L.L.C. 
 K. HOVNANIAN AT LOWER MORELAND I, L.L.C. 

K. HOVNANIAN AT LOWER MORELAND II, L.L.C. 
 K. HOVNANIAN AT MAHWAH
VI, INC. 
 K. HOVNANIAN AT MALAN PARK, L.L.C. 
 K. HOVNANIAN AT
MANALAPAN III, L.L.C. 
 K. HOVNANIAN AT MANSFIELD I, L.L.C. 

K. HOVNANIAN AT MANSFIELD II, L.L.C. 
 K. HOVNANIAN AT MANSFIELD
III, L.L.C. 
 K. HOVNANIAN AT MANTECA, LLC 
 K. HOVNANIAN AT
MAPLE AVENUE, L.L.C. 

  
 Sch. A-3 

 K. HOVNANIAN AT MARLBORO TOWNSHIP V, L.L.C. 

K. HOVNANIAN AT MARLBORO TOWNSHIP VIII, L.L.C. 
 K. HOVNANIAN AT
MARLBORO TOWNSHIP IX, L.L.C. 
 K. HOVNANIAN AT MARLBORO VI, L.L.C. 

K. HOVNANIAN AT MARLBORO VII, L.L.C. 
 K. HOVNANIAN AT MELANIE
MEADOWS, LLC 
 K. HOVNANIAN AT MENDHAM TOWNSHIP, L.L.C. 
 K.
HOVNANIAN AT MENIFEE, LLC 
 K. HOVNANIAN AT MIDDLE TOWNSHIP, L.L.C. 

K. HOVNANIAN AT MIDDLE TOWNSHIP II, L.L.C. 
 K. HOVNANIAN AT
MIDDLETOWN, LLC 
 K. HOVNANIAN AT MIDDLETOWN II, L.L.C. 
 K.
HOVNANIAN AT MIDDLETOWN III, LLC 
 K. HOVNANIAN AT MILLVILLE I, L.L.C. 

K. HOVNANIAN AT MILLVILLE II, L.L.C. 
 K. HOVNANIAN AT MONROE II,
INC. 
 K. HOVNANIAN AT MONROE IV, L.L.C. 
 K. HOVNANIAN AT
MONROE NJ II, LLC 
 K. HOVNANIAN AT MONROE NJ, L.L.C. 
 K.
HOVNANIAN AT MONTGOMERY, LLC 
 K. HOVNANIAN AT MONTVALE, L.L.C. 

K. HOVNANIAN AT MONTVALE II, LLC 
 K. HOVNANIAN AT MORRIS TWP, LLC

 K. HOVNANIAN AT MOSAIC, LLC 
 K. HOVNANIAN AT MUIRFIELD, LLC

 K. HOVNANIAN AT NEUSE RIVER, LLC 
 K. HOVNANIAN AT NEW
WINDSOR, L.L.C. 
 K. HOVNANIAN AT NORTH BERGEN. L.L.C. 
 K.
HOVNANIAN AT NORTH BRUNSWICK VI, L.L.C. 
 K. HOVNANIAN AT NORTH CALDWELL II, L.L.C. 

K. HOVNANIAN AT NORTH CALDWELL III, L.L.C. 
 K. HOVNANIAN AT NORTH
CALDWELL IV, L.L.C. 
 K. HOVNANIAN AT NORTH HALEDON, L.L.C. 

K. HOVNANIAN AT NORTH WILDWOOD, L.L.C. 
 K. HOVNANIAN AT
NORTHAMPTON, L.L.C. 
 K. HOVNANIAN AT NORTHERN WESTCHESTER, INC. 

K. HOVNANIAN AT NORTHFIELD, L.L.C. 
 K. HOVNANIAN AT OCEAN
TOWNSHIP, INC. 
 K. HOVNANIAN AT OCEAN WALK, INC. 
 K.
HOVNANIAN AT OCEANPORT, L.L.C. 
 K. HOVNANIAN AT OLD BRIDGE, L.L.C. 

K. HOVNANIAN AT OLDE ORCHARD, LLC 
 K. HOVNANIAN AT ORCHARD
MEADOWS, LLC 
 K. HOVNANIAN AT PALM VALLEY, L.L.C. 
 K.
HOVNANIAN AT PARK LANE, LLC 

  
 Sch. A-4 

 K. HOVNANIAN AT PARKSIDE, LLC 

K. HOVNANIAN AT PARSIPPANY, L.L.C. 
 K. HOVNANIAN AT
PARSIPPANY-TROY HILLS, L.L.C. 
 K. HOVNANIAN AT PAVILLION PARK, LLC 

K. HOVNANIAN AT PIAZZA D’ORO, L.L.C. 
 K. HOVNANIAN AT PIAZZA
SERENA, L.L.C. 
 K. HOVNANIAN AT PICKETT RESERVE, LLC 
 K.
HOVNANIAN AT PITTSGROVE, L.L.C. 
 K. HOVNANIAN AT PLANTATION LAKES, L.L.C. 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL IV, L.L.C. 
 K.
HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL V, L.L.C. 
 K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VI, L.L.C. 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VII, L.L.C. 
 K.
HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VIII, L.L.C. 
 K. HOVNANIAN AT POSITANO, LLC 

K. HOVNANIAN AT PRADO, L.L.C. 
 K. HOVNANIAN AT PRAIRIE POINTE,
LLC 
 K. HOVNANIAN AT QUAIL CREEK, L.L.C. 
 K. HOVNANIAN AT
RANCHO CABRILLO, LLC 
 K. HOVNANIAN AT RANCHO SANTA MARGARITA, LLC 

K. HOVNANIAN AT RANDOLPH I, L.L.C. 
 K. HOVNANIAN AT RAPHO, L.L.C.

 K. HOVNANIAN AT RESERVES AT WHEATLAND, LLC 
 K. HOVNANIAN AT
RESIDENCE AT DISCOVERY SQUARE, LLC 
 K. HOVNANIAN AT RIDGEMONT, L.L.C. 

K. HOVNANIAN AT RIVERBEND, LLC 
 K. HOVNANIAN AT RODERUCK, L.L.C.

 K. HOVNANIAN AT ROSEMARY LANTANA, L.L.C. 
 K. HOVNANIAN AT
SAGE, L.L.C. 
 K. HOVNANIAN AT SANTA NELLA, LLC 
 K. HOVNANIAN
AT SAUGANASH GLEN, LLC 
 K. HOVNANIAN AT SAWMILL, INC. 
 K.
HOVNANIAN AT SAYREVILLE, L.L.C. 
 K. HOVNANIAN AT SCOTCH PLAINS, L.L.C. 

K. HOVNANIAN AT SEASONS LANDING, LLC 
 K. HOVNANIAN AT SHELDON
GROVE, LLC 
 K. HOVNANIAN AT SHREWSBURY, LLC 
 K. HOVNANIAN AT
SILVER SPRING, L.L.C. 
 K. HOVNANIAN AT SKYE ISLE, LLC 
 K.
HOVNANIAN AT SMITHVILLE, INC. 
 K. HOVNANIAN AT SOMERS POINT, L.L.C. 

K. HOVNANIAN AT SOUTH BRUNSWICK, L.L.C. 
 K. HOVNANIAN AT SOUTH
BRUNSWICK II, LLC 
 K. HOVNANIAN AT STANTON, LLC 
 K. HOVNANIAN
AT STATION SQUARE, L.L.C. 

  
 Sch. A-5 

 K. HOVNANIAN AT SUNRIDGE PARK, LLC 

K. HOVNANIAN AT SYCAMORE, INC. 
 K. HOVNANIAN AT THE CROSBY, LLC

 K. HOVNANIAN AT THE GABLES, LLC 
 K. HOVNANIAN AT THE
MONARCH, L.L.C. 
 K. HOVNANIAN AT THE PRESERVE, LLC 
 K.
HOVNANIAN AT THOMPSON RANCH, LLC 
 K. HOVNANIAN AT THORNBURY, INC. 

K. HOVNANIAN AT TRAIL RIDGE, LLC 
 K. HOVNANIAN AT UPPER FREEHOLD
TOWNSHIP II, L.L.C. 
 K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP III, L.L.C. 

K. HOVNANIAN AT UPPER MAKEFIELD I, INC. 
 K. HOVNANIAN AT UPPER
PROVIDENCE, LLC 
 K. HOVNANIAN AT UPPER UWCHLAN, L.L.C. 
 K.
HOVNANIAN AT UPPER UWCHLAN II, L.L.C. 
 K. HOVNANIAN AT VALLE DEL SOL, LLC 

K. HOVNANIAN AT VERONA ESTATES, LLC 
 K. HOVNANIAN AT VERONA URBAN
RENEWAL, L.L.C. 
 K. HOVNANIAN AT VICTORVILLE, L.L.C. 
 K.
HOVNANIAN AT VINELAND, L.L.C. 
 K. HOVNANIAN AT VISTA DEL SOL, L.L.C. 

K. HOVNANIAN AT WALDWICK, LLC 
 K. HOVNANIAN AT WALKERS GROVE, LLC

 K. HOVNANIAN AT WARREN TOWNSHIP, L.L.C. 
 K. HOVNANIAN AT
WASHINGTON, L.L.C. 
 K. HOVNANIAN AT WATERSTONE, LLC 
 K.
HOVNANIAN AT WAYNE, VIII, L.L.C. 
 K. HOVNANIAN AT WAYNE IX, L.L.C. 

K. HOVNANIAN AT WEST VIEW ESTATES, L.L.C. 
 K. HOVNANIAN AT WEST
WINDSOR, L.L.C. 
 K. HOVNANIAN AT WESTSHORE, LLC 
 K. HOVNANIAN
AT WHEELER RANCH, LLC 
 K. HOVNANIAN AT WILDWOOD BAYSIDE, L.L.C. 

K. HOVNANIAN AT WILLOW BROOK, L.L.C. 
 K. HOVNANIAN AT WINCHESTER,
LLC 
 K. HOVNANIAN AT WOODCREEK WEST, LLC 
 K. HOVNANIAN AT
WOOLWICH I, L.L.C. 
 K. HOVNANIAN BELDEN POINTE, LLC 
 K.
HOVNANIAN CAMBRIDGE HOMES, L.L.C. 
 K. HOVNANIAN CENTRAL ACQUISITIONS, L.L.C. 

K. HOVNANIAN CLASSICS, L.L.C. 
 K. HOVNANIAN COMMUNITIES, INC.

 K. HOVNANIAN COMPANIES OF CALIFORNIA, INC. 
 K. HOVNANIAN
COMPANIES OF MARYLAND, INC. 
 K. HOVNANIAN COMPANIES OF NEW YORK, INC. 

  
 Sch. A-6 

 K. HOVNANIAN COMPANIES OF PENNSYLVANIA, INC. 

K. HOVNANIAN COMPANIES OF SOUTHERN CALIFORNIA, INC. 
 K. HOVNANIAN
COMPANIES, LLC 
 K. HOVNANIAN CONSTRUCTION II, INC 
 K.
HOVNANIAN CONSTRUCTION III, INC 
 K. HOVNANIAN CONSTRUCTION MANAGEMENT, INC. 

K. HOVNANIAN CRAFTBUILT HOMES OF SOUTH CAROLINA, L.L.C. 
 K.
HOVNANIAN CYPRESS KEY, LLC 
 K. HOVNANIAN DEVELOPMENTS OF ARIZONA, INC. 

K. HOVNANIAN DEVELOPMENTS OF CALIFORNIA, INC. 
 K. HOVNANIAN
DEVELOPMENTS OF D.C., INC. 
 K. HOVNANIAN DEVELOPMENTS OF DELAWARE, INC. 

K. HOVNANIAN DEVELOPMENTS OF GEORGIA, INC. 
 K. HOVNANIAN
DEVELOPMENTS OF ILLINOIS, INC. 
 K. HOVNANIAN DEVELOPMENTS OF KENTUCKY, INC. 

K. HOVNANIAN DEVELOPMENTS OF MARYLAND, INC. 
 K. HOVNANIAN
DEVELOPMENTS OF MINNESOTA, INC. 
 K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY II, INC. 

K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY, INC. 
 K. HOVNANIAN
DEVELOPMENTS OF NEW YORK, INC. 
 K. HOVNANIAN DEVELOPMENTS OF NORTH CAROLINA, INC. 

K. HOVNANIAN DEVELOPMENTS OF OHIO, INC. 
 K. HOVNANIAN
DEVELOPMENTS OF PENNSYLVANIA, INC. 
 K. HOVNANIAN DEVELOPMENTS OF SOUTH CAROLINA, INC. 

K. HOVNANIAN DEVELOPMENTS OF TEXAS, INC. 
 K. HOVNANIAN
DEVELOPMENTS OF VIRGINIA, INC. 
 K. HOVNANIAN DEVELOPMENTS OF WEST VIRGINIA, INC. 

K. HOVNANIAN DFW BELMONT, LLC 
 K. HOVNANIAN DFW LIBERTY CROSSING,
LLC 
 K. HOVNANIAN DFW RIDGEVIEW, LLC 
 K. HOVNANIAN EASTERN
PENNSYLVANIA, L.L.C. 
 K. HOVNANIAN EDGEBROOK, LLC 
 K.
HOVNANIAN ESTATES AT REGENCY, L.L.C. 
 K. HOVNANIAN ESTATES AT WEKIVA, LLC 

K. HOVNANIAN FALLS POINTE, LLC 
 K. HOVNANIAN FIRST HOMES, L.L.C.

 K. HOVNANIAN FLORIDA REALTY, L.L.C. 
 K. HOVNANIAN FOUR
SEASONS @ HISTORIC VIRGINIA, LLC 
 K. HOVNANIAN FOUR SEASONS AT GOLD HILL, LLC 

K. HOVNANIAN GRAND CYPRESS, LLC 
 K. HOVNANIAN GREAT WESTERN
BUILDING COMPANY, LLC 
 K. HOVNANIAN GREAT WESTERN HOMES, LLC 

K. HOVNANIAN HAMPTONS AT OAK CREEK II, L.L.C. 
 K. HOVNANIAN
HIDDEN HOLLOW, LLC 
 K. HOVNANIAN HIGHLAND RIDGE, LLC 

  
 Sch. A-7 

 K. HOVNANIAN HOLDINGS NJ, L.L.C. 

K. HOVNANIAN HOMES — DFW, L.L.C. 
 K. HOVNANIAN HOMES AT
BROOK MANOR, LLC 
 K. HOVNANIAN HOMES AT CAMERON STATION, LLC 

K. HOVNANIAN HOMES AT CAMP SPRINGS, L.L.C. 
 K. HOVNANIAN HOMES AT
CREEKSIDE, LLC 
 K. HOVNANIAN HOMES AT FAIRWOOD, L.L.C. 
 K.
HOVNANIAN HOMES AT FOREST RUN, L.L.C. 
 K. HOVNANIAN HOMES AT GREENWAY FARM PARK TOWNS, L.L.C. 

K. HOVNANIAN HOMES AT GREENWAY FARM, L.L.C. 
 K. HOVNANIAN HOMES
AT JONES STATION 1, L.L.C. 
 K. HOVNANIAN HOMES AT MAXWELL PLACE, L.L.C. 

K. HOVNANIAN HOMES AT REEDY CREEK, LLC 
 K. HOVNANIAN HOMES AT
RENAISSANCE PLAZA, L.L.C. 
 K. HOVNANIAN HOMES AT RUSSETT, L.L.C. 

K. HOVNANIAN HOMES AT ST. JAMES PLACE, LLC 
 K. HOVNANIAN HOMES AT
THE ABBY, LLC 
 K. HOVNANIAN HOMES AT THE HIGHLANDS, LLC 
 K.
HOVNANIAN HOMES AT THE PADDOCKS, LLC 
 K. HOVNANIAN HOMES AT WILLOWSFORD GRANT, LLC 

K. HOVNANIAN HOMES NORTHERN CALIFORNIA, INC. 
 K. HOVNANIAN HOMES
OF D.C., L.L.C. 
 K. HOVNANIAN HOMES OF DELAWARE, L.L.C. 
 K.
HOVNANIAN HOMES OF GEORGIA, L.L.C. 
 K. HOVNANIAN HOMES OF HOUSTON, L.L.C. 

K. HOVNANIAN HOMES OF LONGACRE VILLAGE, L.L.C. 
 K. HOVNANIAN
HOMES OF MARYLAND, L.L.C. 
 K. HOVNANIAN HOMES OF MINNESOTA AT AUTUMN MEADOWS, LLC 

K. HOVNANIAN HOMES OF MINNESOTA AT CEDAR HOLLOW WEST, LLC 
 K.
HOVNANIAN HOMES OF MINNESOTA AT CEDAR HOLLOW, LLC 
 K. HOVNANIAN HOMES OF MINNESOTA AT FOUNDER’S RIDGE, LLC 

K. HOVNANIAN HOMES OF MINNESOTA AT REGENT’S POINT, LLC 
 K.
HOVNANIAN HOMES OF MINNESOTA, L.L.C. 
 K. HOVNANIAN HOMES OF NORTH CAROLINA, INC. 

K. HOVNANIAN HOMES OF PENNSYLVANIA, L.L.C. 
 K. HOVNANIAN HOMES OF
SOUTH CAROLINA, LLC 
 K. HOVNANIAN HOMES OF VIRGINIA, INC. 
 K.
HOVNANIAN HOMES OF WEST VIRGINIA, L.L.C. 
 K. HOVNANIAN INDIAN TRAILS, LLC 

K. HOVNANIAN JUPITER FARMS, LLC 
 K. HOVNANIAN LADUE RESERVE, LLC

 K. HOVNANIAN LIBERTY ON BLUFF CREEK, LLC 
 K. HOVNANIAN
MANALAPAN ACQUISITION, LLC 
 K. HOVNANIAN MONARCH GROVE, LLC 

K. HOVNANIAN NORTH CENTRAL ACQUISITIONS, L.L.C. 

  
 Sch. A-8 

 K. HOVNANIAN NORTH JERSEY ACQUISITIONS, L.L.C. 

K. HOVNANIAN NORTHEAST SERVICES, L.L.C. 
 K. HOVNANIAN OF HOUSTON
II, L.L.C. 
 K. HOVNANIAN OHIO REALTY, L.L.C. 
 K. HOVNANIAN
OSTER HOMES, L.L.C. 
 K. HOVNANIAN PA REAL ESTATE, INC. 
 K.
HOVNANIAN PENNSYLVANIA ACQUISITIONS, L.L.C. 
 K. HOVNANIAN PORT IMPERIAL URBAN RENEWAL, INC. 

K. HOVNANIAN PROPERTIES OF RED BANK, INC. 
 K. HOVNANIAN
RIVENDALE, LLC 
 K. HOVNANIAN RIVERSIDE, LLC 
 K. HOVNANIAN
SCHADY RESERVE, LLC 
 K. HOVNANIAN SHORE ACQUISITIONS, L.L.C. 

K. HOVNANIAN SOUTH FORK, LLC 
 K. HOVNANIAN SOUTH JERSEY
ACQUISITIONS, L.L.C. 
 K. HOVNANIAN SOUTHERN NEW JERSEY, L.L.C. 

K. HOVNANIAN STERLING RANCH, LLC 
 K. HOVNANIAN SUMMIT HOLDINGS,
L.L.C. 
 K. HOVNANIAN SUMMIT HOMES OF KENTUCKY, L.L.C. 
 K.
HOVNANIAN SUMMIT HOMES OF PENNSYLVANIA, L.L.C. 
 K. HOVNANIAN SUMMIT HOMES OF WEST VIRGINIA, L.L.C. 

K. HOVNANIAN SUMMIT HOMES, L.L.C. 
 K. HOVNANIAN T&C HOMES AT
FLORIDA, L.L.C. 
 K. HOVNANIAN T&C HOMES AT ILLINOIS, L.L.C. 

K. HOVNANIAN TIMBRES AT ELM CREEK, LLC 
 K. HOVNANIAN VENTURE I,
L.L.C. 
 K. HOVNANIAN WATERBURY, LLC 
 K. HOVNANIAN WHITE ROAD,
LLC 
 K. HOVNANIAN WINDWARD HOMES, LLC 
 K. HOVNANIAN WOODLAND
POINTE, LLC 
 K. HOVNANIAN WOODRIDGE PLACE, LLC 
 K. HOVNANIAN
WYNDFALL ESTATES AT REGENCY, LLC 
 K. HOVNANIAN’S FOUR SEASONS AT BAKERSFIELD, L.L.C. 

K. HOVNANIAN’S FOUR SEASONS AT BEAUMONT, LLC 
 K.
HOVNANIAN’S FOUR SEASONS AT CHARLOTTESVILLE, L.L.C. 
 K. HOVNANIAN’S FOUR SEASONS AT HEMET, LLC 

K. HOVNANIAN’S FOUR SEASONS AT KENT ISLAND CONDOMINIUMS, L.L.C. 

K. HOVNANIAN’S FOUR SEASONS AT KENT ISLAND, L.L.C. 
 K.
HOVNANIAN’S FOUR SEASONS AT LOS BANOS, LLC 
 K. HOVNANIAN’S FOUR SEASONS AT MORENO VALLEY, L.L.C. 

K. HOVNANIAN’S FOUR SEASONS AT NEW KENT VINEYARDS, L.L.C. 

K. HOVNANIAN’S FOUR SEASONS AT PALM SPRINGS, LLC 
 K.
HOVNANIAN’S FOUR SEASONS AT RENAISSANCE, L.L.C. 
 K. HOVNANIAN’S FOUR SEASONS AT RUSH CREEK, L.L.C. 

K. HOVNANIAN’S FOUR SEASONS AT RUSH CREEK II, LLC 

  
 Sch. A-9 

 K. HOVNANIAN’S FOUR SEASONS AT SILVER MAPLE FARM, L.L.C. 

K. HOVNANIAN’S FOUR SEASONS AT ST. MARGARETS LANDING, L.L.C. 

K. HOVNANIAN’S FOUR SEASONS, LLC 
 K. HOVNANIAN’S
PARKSIDE AT TOWNGATE, L.L.C. 
 KHH SHELL HALL LOAN ACQUISITION, LLC 

LANDARAMA, INC. 
 M&M AT CHESTERFIELD, LLC 

M&M AT CRESCENT COURT, L.L.C. 
 M&M AT WEST ORANGE, L.L.C.

 M&M AT WHEATENA URBAN RENEWAL, L.L.C. 
 MATZEL &
MUMFORD AT EGG HARBOR, L.L.C. 
 MATZEL & MUMFORD AT SOUTH BOUND BROOK URBAN RENEWAL, L.L.C. 

MCNJ, INC. 
 MIDWEST BUILDING PRODUCTS & CONTRACTOR
SERVICES OF PENNSYLVANIA, L.L.C. 
 MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF WEST VIRGINIA, L.L.C. 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES, L.L.C. 

NEW HOME REALTY, LLC 
 NEW LAND TITLE AGENCY, L.L.C. 

PADDOCKS, L.L.C. 
 PARK TITLE COMPANY, LLC 

PINE AYR, LLC 
 RIDGEMORE UTILITY, L.L.C. 

SEABROOK ACCUMULATION CORPORATION 
 SHELL HALL CLUB AMENITY
ACQUISITION, LLC 
 SHELL HALL LAND ACQUISITION, LLC 
 SHELL
HALL LOAN ACQUISITION, LLC 
 STONEBROOK HOMES, INC. 
 TERRAPIN
REALTY, L.L.C. 
 THE MATZEL & MUMFORD ORGANIZATION, INC 

WASHINGTON HOMES AT COLUMBIA TOWN CENTER, L.L.C. 
 WASHINGTON
HOMES, INC. 
 WESTMINSTER HOMES, INC. 
 WH PROPERTIES, INC 

WOODLAND LAKE CONDOMINIUMS AT BOWIE NEW TOWN, L.L.C. 

  
 Sch. A-10 

 EXHIBIT A 

[FACE OF NOTE] 
 K. HOVNANIAN
ENTERPRISES, INC. 
 7.000% Senior Notes due 2019 
  

			
	No.	  	 CUSIP No.: _______________________
  

	  	$________[, or such other amount as is provided in the schedule of exchanges of interests in global notes attached hereto]

 K. Hovnanian Enterprises, Inc., a California corporation (the “Issuer,” which term includes
any successor under the Indenture hereinafter referred to), for value received, promises to pay to                     , or its registered assigns,
the principal sum of            DOLLARS ($        ), [or such other amount as is provided in the schedule of exchanges of interests in global notes
attached hereto]1, on January 15, 2019. 
 Interest Rate: 7.000% per annum.

 Interest Payment Dates: January 15 and July 15, commencing July 15, 2014. 

Record Dates: January 1 and July 1. 

Reference is hereby made to the further provisions of this Note set forth on the reverse hereof, which will for all purposes have the same
effect as if set forth at this place. 
  
  

	1 	For Global Notes. 

  
 A-1 

 IN WITNESS WHEREOF, the Issuer has caused this Note to be signed manually or by facsimile by its
duly authorized officer. 
 Dated: 
  

			
	K. HOVNANIAN ENTERPRISES, INC.
		
	By:	 	 
		 	Name:
		 	Title:

  
 A-2 

 [Form of] Trustee’s Certificate of Authentication 

This is one of the 7.000% Senior Notes due 2019 described in the Indenture referred to in this Note. 

 

			
	 WILMINGTON TRUST, NATIONAL

    ASSOCIATION, as Trustee

		
	By:	 	 
		 	Authorized Signatory

  
 A-3 

 [REVERSE SIDE OF NOTE] 

K. HOVNANIAN ENTERPRISES, INC. 

7.000% Senior Notes due 2019 

Capitalized terms used herein are used as defined in the Indenture referred to below unless otherwise indicated. 

1. Principal and Interest. 
 K. Hovnanian
Enterprises, Inc. (the “Issuer,” which term includes any successor under the Indenture hereinafter referred to), a California corporation, promises to pay the principal of this Note on January 15, 2019. 

The Issuer promises to pay interest on the principal amount of this Note on each interest payment date, as set forth on the face of this Note,
at the rate of 7.000% per annum. 
 Interest will be payable semiannually (to the holders of record of the Notes at the close of
business on the January 1 or July 1 immediately preceding the interest payment date) on each interest payment date, commencing July 15, 2014. 

Interest on this Note will accrue from the most recent date to which interest has been paid on this Note or the Note surrendered in exchange
for this Note (or, if there is no existing default in the payment of interest and if this Note is authenticated between a regular record date and the next interest payment date, from such interest payment date) or, if no interest has been paid, from
[the date of issuance]. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 
 2. Paying Agent and Registrar. 

Initially, Wilmington Trust, National Association (the “Trustee”) will act as Paying Agent and Registrar. The Issuer may
change or appoint any Paying Agent, Registrar or co-Registrar without notice to any Holder. The Issuer or any of its Subsidiaries may act as Paying Agent, Registrar or co-Registrar. 

3. Indenture; Guarantees. 
 This is one of
the Notes issued under an Indenture dated as of January 10, 2014 (as amended from time to time, the “Indenture”), among the Issuer, the Guarantors party thereto and the Trustee. The terms of the Notes include those stated in
the Indenture and those made part of the Indenture by reference to the Trust Indenture Act. The Notes are subject to all such terms, and Holders are referred to the Indenture and the Trust Indenture Act for a statement of all such terms. To the
extent permitted by applicable law, in the event of any inconsistency between the terms of this Note and the terms of the Indenture, the terms of the Indenture will control. 

  
 A-4 

 The Notes are general unsecured obligations of the Issuer. The Indenture limits the original
aggregate principal amount of the Notes issued thereunder to $150,000,000 but Additional Notes may be issued pursuant to the Indenture (subject to the conditions stated therein), and the originally issued Notes and all such Additional Notes vote
together for all purposes as a single class. This Note is guaranteed by the Guarantors as set forth in the Indenture and the Guarantee endorsed hereon. 

Reference is hereby made to the Indenture for a statement of the respective rights, duties and obligations thereunder of the Issuer, the
Guarantors, the Trustee and the Holders. 
 This Note is subject to optional redemption, and may be the subject of an Offer to Purchase, as
further described in the Indenture. 
 4. Repurchase Provisions. 

If a Change of Control occurs, each Holder shall have the right, at such Holder’s option, to require the Issuer to purchase all or any
part (equal to $2,000 principal amount or any multiple of $1,000 in excess thereof) of such Holder’s Notes on a date that is no later than 90 days after notice of the Change of Control, at a purchase price equal to 101% of the principal amount
thereof, plus accrued and unpaid interest, if any, to the date of repurchase as provided in, and subject to the terms of, the Indenture. 
 5. Mandatory
Redemption. 
 There is no sinking fund for, or mandatory redemption of, the Notes. 

6. Discharge and Defeasance. 
 If the
Issuer deposits with the Trustee money and/or U.S. Government Obligations sufficient to pay the then outstanding principal of, premium, interest and accrued interest on the Notes to redemption or maturity, as the case may be, the Issuer, the Company
and the Guarantors may in certain circumstances be discharged from the Indenture, the Notes and the Guarantees or may be discharged from certain of their obligations under certain provisions of the Indenture. 

7. Registered Form; Denominations; Transfer; Exchange. 

The Notes are in registered form only without coupons in denominations of $2,000 principal amount and any multiple of $1,000 in excess thereof.
A Holder may register the transfer or exchange of Notes in accordance with the Indenture. The Trustee 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. Pursuant to the Indenture, there are certain periods during which the Trustee will not be required to issue, register the transfer of, or exchange any Note or certain portions of a Note. 

  
 A-5 

 8. Persons Deemed Owners. 

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

9. Defaults and Remedies. 
 If an Event of
Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the Notes may declare all the Notes to be due and payable immediately. If a bankruptcy or insolvency default with respect to the Issuer or the
Company occurs and is continuing, the Notes automatically become immediately due and payable. Holders may not enforce the Indenture or the Notes except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it
enforces the Indenture or the Notes. Subject to certain limitations, Holders of a majority in principal amount of the Notes then outstanding may direct the Trustee in its exercise of remedies. 

10. Amendment, Supplement and Waiver. 

Subject to certain exceptions, the Indenture, the Notes and the Guarantees may be amended or supplemented, or future compliance therewith may
be waived, with the consent of the Holders of a majority in principal amount of the outstanding Notes. Without notice to or the consent of any Holder, the Company, the Issuer, the Guarantors and the Trustee, as applicable, may amend or supplement
the Indenture, the Notes, or the Guarantees to, among other things, cure any ambiguity, defect or inconsistency or if such amendment or supplement does not adversely affect the legal rights of any Holder. 

11. Trustee Dealings With Issuer. 

The Trustee, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the Issuer or
its affiliates, with the same rights as if it were not Trustee; however, if it acquires any conflicting interest (as defined in the Trust Indenture Act), it must eliminate such conflict, apply to the Commission for permission to continue or
resign. 
 12. No Recourse Against Others. 

An incorporator, and any past, present or future director, officer, partner, employee or stockholder, as such, of the Issuer, the Company or
the Guarantors shall not have any liability for any obligations of the Issuer, the Company or the Guarantors under the Notes, the Indenture or the Guarantees or for any claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Notes. 

  
 A-6 

 13. Governing Law. 

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

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

15. Authentication. 
 This Note is not
valid until the Trustee (or Authenticating Agent) manually signs the certificate of authentication on the other side of this Note. 
 16.
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 Gifts to Minors Act). 

The Issuer will furnish a copy of the Indenture to any Holder upon written request and without charge. 

  
 A-7 

 [FORM OF TRANSFER NOTICE] 

FOR VALUE RECEIVED the undersigned registered holder hereby sell(s), assign(s) and transfer(s) unto 

Insert Social Security or Taxpayer Identification No. 
  

 
  

 
 Please
print or typewrite name and address, including zip code, of assignee 
  

 
  

 
 the within
Note and all rights thereunder, hereby irrevocably constituting and appointing 
  

 
 agent to transfer this Note on the books
of the Issuer with full power of substitution in the premises. 
  

			
	Dated:________________________________	  	Signed:                                     
                                        
                                
		  	(sign exactly as name appears on the other side of this Note)

  

			
	Signature Guarantee2:                       
                                         
                                         
                                         
                                         
                            

  
  

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

  
 A-8 

 [THE FOLLOWING PROVISION TO BE INCLUDED ON ALL CERTIFICATES 

BEARING A RESTRICTED LEGEND] 
 In
connection with any transfer of this Note occurring prior to the date which is the date following the first anniversary of the original issuance of this Note, the undersigned confirms that such transfer is made without utilizing any general
solicitation or general advertising in connection with the transfer and further as follows: 
 Check One 

x (1) This Note is being transferred to a “qualified institutional buyer” in
compliance with Rule 144A under the Securities Act of 1933, as amended, and certification in the form of Exhibit F to the Indenture is being furnished herewith. 

x (2) This Note is being transferred to a non-“U.S. Person,” as defined in Rule 902
of Regulation S under the Securities Act in compliance with the exemption from registration under the Securities Act of 1933, as amended, provided by Regulation S thereunder, and certification in the form of Exhibit E to the Indenture is being
furnished herewith. 
 or 

x (3) This Note is being transferred other than in accordance with (1) or (2) above
and documents are being furnished herewith which comply with the conditions of transfer set forth in this Note and the Indenture. 
 If none
of the foregoing boxes is checked, the Trustee is not obligated to register this Note in the name of any Person other than the Holder hereof unless and until the conditions to any such transfer of registration set forth herein and in the Indenture
have been satisfied. 

Dated:                         
            
  

	
	 
	Transferor
	
	Signed:                                     
                                         
          

 NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within-mentioned instrument in every particular, without alteration or any change whatsoever. 

  
 A-9 

 Signature
Guarantee:3                              
                                   

By:_______________________________ 

(To be executed by an executive officer) 
  

 

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

  
 A-10 

 OPTION OF HOLDER TO ELECT PURCHASE 

If you wish to have all of this Note purchased by the Issuer pursuant to Section 4.10 or Section 4.12 of the Indenture, check the
box: x 
 If you wish to have a portion of this Note purchased by the Issuer pursuant to
Section 4.10 or Section 4.12 of the Indenture, state the amount (in original principal amount) below: 

$________________. 
 Date:
__________________ 
 Your Signature: __________________________________ 

(Sign exactly as your name appears on the other side of this Note) 

Signature Guarantee:4 ___________________________ 

 
  

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

  
 A-11 

 SCHEDULE OF EXCHANGES OF INTERESTS IN GLOBAL
NOTES5 
 The following exchanges of a part of this Global Note for Certificated Notes
or an interest in another Global Note, or exchanges of a part of another Global Note or Certificated Note for an interest in this Global Note, have been made: 
  

									
	 Date of Exchange
	 	 Amount of decrease in
principal amount of
this
Global Note
	 	 Amount of increase in
principal amount of
this
Global Note
	  	Principal amount of this
Global Note following
such decrease or increase	  	Signature of authorized
officer of Trustee

  

 

	5 	For Global Notes 

  
 A-12 

 [FORM OF NOTATION ON NOTE RELATING TO 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 the Issuer’s 7.000% Senior Notes due 2019 (the “Notes”), whether at maturity or on an interest payment date, by acceleration or otherwise, on the Notes, to the extent lawful, and of all other obligations of the
Issuer to the Holders or the Trustee all in accordance with the terms set forth in Article 6 of the Indenture and (ii) in case of any extension of time of payment or renewal of any Notes 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, partner or incorporator, as such, of any of the Guarantors shall have any
liability under the Guarantee evidenced hereby by reason of such person’s status as stockholder, officer, director, employee, partner or incorporator. Each Holder of a Note by accepting a Note waives and releases all such liability. This waiver
and release are part of the consideration for the issuance of the Guarantee. 
 Each Holder of a Note by accepting a Note 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 evidenced hereby shall not be valid or obligatory for any purpose until the certificate of authentication on the Notes 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. 

This Guarantee shall be governed by, and construed in accordance with, the laws of the State of New York. 

ARBOR TRAILS, LLC 
 AUDDIE ENTERPRISES, L.L.C. 

BUILDER SERVICES NJ, L.L.C. 
 BUILDER SERVICES PA, L.L.C. 

DULLES COPPERMINE, L.L.C. 
 EASTERN NATIONAL TITLE AGENCY, LLC

 EASTERN TITLE AGENCY, INC. 
 F&W MECHANICAL SERVICES,
L.L.C. 
 FOUNDERS TITLE AGENCY OF MARYLAND, L.L.C. 
 FOUNDERS
TITLE AGENCY, INC. 
 GLENRISE GROVE, L.L.C. 

  
 A-13 

 GOVERNOR’S ABSTRACT CO., INC. 

HOMEBUYERS FINANCIAL SERVICES, L.L.C. 
 HOVNANIAN DEVELOPMENTS OF
FLORIDA, INC. 
 HOVNANIAN ENTERPRISES INC. 
 HOVNANIAN LAND
INVESTMENT GROUP OF FLORIDA, L.L.C. 
 HOVNANIAN LAND INVESTMENT GROUP OF MARYLAND, L.L.C. 

HOVNANIAN LAND INVESTMENT GROUP, L.L.C. 
 K. HOV IP, II, INC. 

K. HOVNANIAN ABERDEEN, LLC 
 K. HOVNANIAN ACQUISITIONS, INC. 

K. HOVNANIAN AT 4S, LLC 
 K. HOVNANIAN AT ACQUA VISTA, LLC 

K. HOVNANIAN AT ALISO, LLC 
 K. HOVNANIAN AT ALLENTOWN, L.L.C.

 K. HOVNANIAN AT ANDALUSIA, LLC 
 K. HOVNANIAN AT ARBOR
HEIGHTS, LLC 
 K. HOVNANIAN AT ASBURY PARK, LLC 
 K. HOVNANIAN
AT AVENUE ONE, L.L.C. 
 K. HOVNANIAN AT BAKERSFIELD 463, L.L.C. 

K. HOVNANIAN AT BARNEGAT I, L.L.C. 
 K. HOVNANIAN AT BARNEGAT II,
L.L.C. 
 K. HOVNANIAN AT BELLA LAGO, LLC 
 K. HOVNANIAN AT
BERKELEY, L.L.C. 
 K. HOVNANIAN AT BLACKSTONE, LLC 
 K.
HOVNANIAN AT BLUE HERON PINES, L.L.C. 
 K. HOVNANIAN AT BRANCHBURG, L.L.C. 

K. HOVNANIAN AT BRENFORD STATION, LLC 
 K. HOVNANIAN AT
BRIDGEPORT, INC. 
 K. HOVNANIAN AT BRIDGEWATER I, L.L.C. 
 K.
HOVNANIAN AT BURCH KOVE, LLC 
 K. HOVNANIAN AT CAMP HILL, L.L.C. 

K. HOVNANIAN AT CAPISTRANO, L.L.C. 
 K. HOVNANIAN AT CARLSBAD, LLC

 K. HOVNANIAN AT CEDAR GROVE III, L.L.C. 
 K. HOVNANIAN AT
CEDAR GROVE V, L.L.C. 
 K. HOVNANIAN AT CEDAR GROVE VI, LLC 

K. HOVNANIAN AT CHADDS FORD, LLC 
 K. HOVNANIAN AT CHARTER WAY,
LLC 
 K. HOVNANIAN AT CHESTER I, L.L.C. 
 K. HOVNANIAN AT
CHESTERFIELD, L.L.C. 
 K. HOVNANIAN AT CIELO, L.L.C. 
 K.
HOVNANIAN AT CLIFTON, L.L.C. 
 K. HOVNANIAN AT COASTLINE, L.L.C. 

K. HOVNANIAN AT COOSAW POINT, LLC 
 K. HOVNANIAN AT CORTEZ HILL,
LLC 

  
 A-14 

 K. HOVNANIAN AT CRANBURY, L.L.C. 

K. HOVNANIAN AT DENVILLE, L.L.C. 
 K. HOVNANIAN AT DEPTFORD
TOWNSHIP, L.L.C. 
 K. HOVNANIAN AT DOMINGUEZ HILLS, INC. 
 K.
HOVNANIAN AT DOYLESTOWN, LLC 
 K. HOVNANIAN AT EAST BRANDYWINE, L.L.C. 

K. HOVNANIAN AT EAST WINDSOR, LLC 
 K. HOVNANIAN AT EASTLAKE, LLC

 K. HOVNANIAN AT EDGEWATER, L.L.C. 
 K. HOVNANIAN AT EDGEWATER
II, L.L.C. 
 K. HOVNANIAN AT EGG HARBOR TOWNSHIP, L.L.C. 
 K.
HOVNANIAN AT EGG HARBOR TOWNSHIP II, L.L.C. 
 K. HOVNANIAN AT EL DORADO RANCH, L.L.C. 

K. HOVNANIAN AT EL DORADO RANCH II, L.L.C. 
 K. HOVNANIAN AT
ENCINITAS RANCH, LLC 
 K. HOVNANIAN AT ESTATES AT WHEATLANDS, LLC 

K. HOVNANIAN AT EVERGREEN, L.L.C. 
 K. HOVNANIAN AT FIDDYMENT
RANCH, LLC 
 K. HOVNANIAN AT FIFTH AVENUE, L.L.C. 
 K.
HOVNANIAN AT FLORENCE I, L.L.C. 
 K. HOVNANIAN AT FLORENCE II, L.L.C. 

K. HOVNANIAN AT FOREST MEADOWS, L.L.C. 
 K. HOVNANIAN AT FRANKLIN,
L.L.C. 
 K. HOVNANIAN AT FRANKLIN II, L.L.C. 
 K. HOVNANIAN AT
FRANKLIN III, L.L.C. 
 K. HOVNANIAN AT FREEHOLD TOWNSHIP, L.L.C. 

K. HOVNANIAN AT FRESNO, LLC 
 K. HOVNANIAN AT GASLAMP SQUARE,
L.L.C. 
 K. HOVNANIAN AT GILROY 60, LLC 
 K. HOVNANIAN AT
GILROY, LLC 
 K. HOVNANIAN AT GREAT NOTCH, L.L.C. 
 K.
HOVNANIAN AT GUTTENBERG, L.L.C. 
 K. HOVNANIAN AT HACKETTSTOWN II, L.L.C. 

K. HOVNANIAN AT HAMBURG, L.L.C. 
 K. HOVNANIAN AT HAWTHORNE,
L.L.C. 
 K. HOVNANIAN AT HERSHEY’S MILL, INC. 
 K.
HOVNANIAN AT HIGHLAND SHORES, L.L.C. 
 K. HOVNANIAN AT HOWELL, LLC 

K. HOVNANIAN AT HOWELL II, LLC 
 K. HOVNANIAN AT HUDSON POINTE,
L.L.C. 
 K. HOVNANIAN AT HUNTFIELD, LLC 
 K. HOVNANIAN AT
ISLAND LAKE, LLC 
 K. HOVNANIAN AT JACKSON, L.L.C. 
 K.
HOVNANIAN AT JACKSON I, L.L.C. 
 K. HOVNANIAN AT JAEGER RANCH, LLC 

  
 A-15 

 K. HOVNANIAN AT JERSEY CITY IV, L.L.C. 

K. HOVNANIAN AT JERSEY CITY V URBAN RENEWAL COMPANY, L.L.C. 
 K.
HOVNANIAN AT KEYPORT, L.L.C. 
 K. HOVNANIAN AT LA COSTA GREENS, L.L.C. 

K. HOVNANIAN AT LA COSTA, LLC 
 K. HOVNANIAN AT LA HABRA KNOLLS,
LLC 
 K. HOVNANIAN AT LA LAGUNA, L.L.C. 
 K. HOVNANIAN AT LAKE
BURDEN, LLC 
 K. HOVNANIAN AT LAKE RANCHO VIEJO, LLC 
 K.
HOVNANIAN AT LAKE RIDGE ESTATES, LLC 
 K. HOVNANIAN AT LAKE TERRAPIN, L.L.C. 

K. HOVNANIAN AT LAWRENCE V, L.L.C. 
 K. HOVNANIAN AT LEE SQUARE
L.L.C. 
 K. HOVNANIAN AT LENAH WOODS, LLC 
 K. HOVNANIAN AT
LILY ORCHARD, LLC 
 K. HOVNANIAN AT LITTLE EGG HARBOR TOWNSHIP II, L.L.C. 

K. HOVNANIAN AT LITTLE EGG HARBOR, L.L.C. 
 K. HOVNANIAN AT LONG
HILL, L.L.C. 
 K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP I, L.L.C. 

K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP II, L.L.C. 
 K. HOVNANIAN
AT LOWER MAKEFIELD TOWNSHIP I, L.L.C. 
 K. HOVNANIAN AT LOWER MORELAND I, L.L.C. 

K. HOVNANIAN AT LOWER MORELAND II, L.L.C. 
 K. HOVNANIAN AT MAHWAH
VI, INC. 
 K. HOVNANIAN AT MALAN PARK, L.L.C. 
 K. HOVNANIAN AT
MANALAPAN III, L.L.C. 
 K. HOVNANIAN AT MANSFIELD I, L.L.C. 

K. HOVNANIAN AT MANSFIELD II, L.L.C. 
 K. HOVNANIAN AT MANSFIELD
III, L.L.C. 
 K. HOVNANIAN AT MANTECA, LLC 
 K. HOVNANIAN AT
MAPLE AVENUE, L.L.C. 
 K. HOVNANIAN AT MARLBORO TOWNSHIP V, L.L.C. 

K. HOVNANIAN AT MARLBORO TOWNSHIP VIII, L.L.C. 
 K. HOVNANIAN AT
MARLBORO TOWNSHIP IX, L.L.C. 
 K. HOVNANIAN AT MARLBORO VI, L.L.C. 

K. HOVNANIAN AT MARLBORO VII, L.L.C. 
 K. HOVNANIAN AT MELANIE
MEADOWS, LLC 
 K. HOVNANIAN AT MENDHAM TOWNSHIP, L.L.C. 
 K.
HOVNANIAN AT MENIFEE, LLC 
 K. HOVNANIAN AT MIDDLE TOWNSHIP, L.L.C. 

K. HOVNANIAN AT MIDDLE TOWNSHIP II, L.L.C. 
 K. HOVNANIAN AT
MIDDLETOWN, LLC 
 K. HOVNANIAN AT MIDDLETOWN II, L.L.C. 
 K.
HOVNANIAN AT MIDDLETOWN III, LLC 
 K. HOVNANIAN AT MILLVILLE I, L.L.C. 

  
 A-16 

 K. HOVNANIAN AT MILLVILLE II, L.L.C. 

K. HOVNANIAN AT MONROE II, INC. 
 K. HOVNANIAN AT MONROE IV,
L.L.C. 
 K. HOVNANIAN AT MONROE NJ II, LLC 
 K. HOVNANIAN AT
MONROE NJ, L.L.C. 
 K. HOVNANIAN AT MONTGOMERY, LLC 
 K.
HOVNANIAN AT MONTVALE, L.L.C. 
 K. HOVNANIAN AT MONTVALE II, LLC 

K. HOVNANIAN AT MORRIS TWP, LLC 
 K. HOVNANIAN AT MOSAIC, LLC 

K. HOVNANIAN AT MUIRFIELD, LLC 
 K. HOVNANIAN AT NEUSE RIVER, LLC

 K. HOVNANIAN AT NEW WINDSOR, L.L.C. 
 K. HOVNANIAN AT NORTH
BERGEN. L.L.C. 
 K. HOVNANIAN AT NORTH BRUNSWICK VI, L.L.C. 

K. HOVNANIAN AT NORTH CALDWELL II, L.L.C. 
 K. HOVNANIAN AT NORTH
CALDWELL III, L.L.C. 
 K. HOVNANIAN AT NORTH CALDWELL IV, L.L.C. 

K. HOVNANIAN AT NORTH HALEDON, L.L.C. 
 K. HOVNANIAN AT NORTH
WILDWOOD, L.L.C. 
 K. HOVNANIAN AT NORTHAMPTON, L.L.C. 
 K.
HOVNANIAN AT NORTHERN WESTCHESTER, INC. 
 K. HOVNANIAN AT NORTHFIELD, L.L.C. 

K. HOVNANIAN AT OCEAN TOWNSHIP, INC. 
 K. HOVNANIAN AT OCEAN WALK,
INC. 
 K. HOVNANIAN AT OCEANPORT, L.L.C. 
 K. HOVNANIAN AT OLD
BRIDGE, L.L.C. 
 K. HOVNANIAN AT OLDE ORCHARD, LLC 
 K.
HOVNANIAN AT ORCHARD MEADOWS, LLC 
 K. HOVNANIAN AT PALM VALLEY, L.L.C. 

K. HOVNANIAN AT PARK LANE, LLC 
 K. HOVNANIAN AT PARKSIDE, LLC

 K. HOVNANIAN AT PARSIPPANY, L.L.C. 
 K. HOVNANIAN AT
PARSIPPANY-TROY HILLS, L.L.C. 
 K. HOVNANIAN AT PAVILLION PARK, LLC 

K. HOVNANIAN AT PIAZZA D’ORO, L.L.C. 
 K. HOVNANIAN AT PIAZZA
SERENA, L.L.C. 
 K. HOVNANIAN AT PICKETT RESERVE, LLC 
 K.
HOVNANIAN AT PITTSGROVE, L.L.C. 
 K. HOVNANIAN AT PLANTATION LAKES, L.L.C. 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL IV, L.L.C. 
 K.
HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL V, L.L.C. 
 K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VI, L.L.C. 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VII, L.L.C. 
 K.
HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VIII, L.L.C. 

  
 A-17 

 K. HOVNANIAN AT POSITANO, LLC 

K. HOVNANIAN AT PRADO, L.L.C. 
 K. HOVNANIAN AT PRAIRIE POINTE,
LLC 
 K. HOVNANIAN AT QUAIL CREEK, L.L.C. 
 K. HOVNANIAN AT
RANCHO CABRILLO, LLC 
 K. HOVNANIAN AT RANCHO SANTA MARGARITA, LLC 

K. HOVNANIAN AT RANDOLPH I, L.L.C. 
 K. HOVNANIAN AT RAPHO, L.L.C.

 K. HOVNANIAN AT RESERVES AT WHEATLAND, LLC 
 K. HOVNANIAN AT
RESIDENCE AT DISCOVERY SQUARE, LLC 
 K. HOVNANIAN AT RIDGEMONT, L.L.C. 

K. HOVNANIAN AT RIVERBEND, LLC 
 K. HOVNANIAN AT RODERUCK, L.L.C.

 K. HOVNANIAN AT ROSEMARY LANTANA, L.L.C. 
 K. HOVNANIAN AT
SAGE, L.L.C. 
 K. HOVNANIAN AT SANTA NELLA, LLC 
 K. HOVNANIAN
AT SAUGANASH GLEN, LLC 
 K. HOVNANIAN AT SAWMILL, INC. 
 K.
HOVNANIAN AT SAYREVILLE, L.L.C. 
 K. HOVNANIAN AT SCOTCH PLAINS, L.L.C. 

K. HOVNANIAN AT SEASONS LANDING, LLC 
 K. HOVNANIAN AT SHELDON
GROVE, LLC 
 K. HOVNANIAN AT SHREWSBURY, LLC 
 K. HOVNANIAN AT
SILVER SPRING, L.L.C. 
 K. HOVNANIAN AT SKYE ISLE, LLC 
 K.
HOVNANIAN AT SMITHVILLE, INC. 
 K. HOVNANIAN AT SOMERS POINT, L.L.C. 

K. HOVNANIAN AT SOUTH BRUNSWICK, L.L.C. 
 K. HOVNANIAN AT SOUTH
BRUNSWICK II, LLC 
 K. HOVNANIAN AT STANTON, LLC 
 K. HOVNANIAN
AT STATION SQUARE, L.L.C. 
 K. HOVNANIAN AT SUNRIDGE PARK, LLC 

K. HOVNANIAN AT SYCAMORE, INC. 
 K. HOVNANIAN AT THE CROSBY, LLC

 K. HOVNANIAN AT THE GABLES, LLC 
 K. HOVNANIAN AT THE
MONARCH, L.L.C. 
 K. HOVNANIAN AT THE PRESERVE, LLC 
 K.
HOVNANIAN AT THOMPSON RANCH, LLC 
 K. HOVNANIAN AT THORNBURY, INC. 

K. HOVNANIAN AT TRAIL RIDGE, LLC 
 K. HOVNANIAN AT UPPER FREEHOLD
TOWNSHIP II, L.L.C. 
 K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP III, L.L.C. 

K. HOVNANIAN AT UPPER MAKEFIELD I, INC. 
 K. HOVNANIAN AT UPPER
PROVIDENCE, LLC 
 K. HOVNANIAN AT UPPER UWCHLAN, L.L.C. 

  
 A-18 

 K. HOVNANIAN AT UPPER UWCHLAN II, L.L.C. 

K. HOVNANIAN AT VALLE DEL SOL, LLC 
 K. HOVNANIAN AT VERONA
ESTATES, LLC 
 K. HOVNANIAN AT VERONA URBAN RENEWAL, L.L.C. 

K. HOVNANIAN AT VICTORVILLE, L.L.C. 
 K. HOVNANIAN AT VINELAND,
L.L.C. 
 K. HOVNANIAN AT VISTA DEL SOL, L.L.C. 
 K. HOVNANIAN
AT WALDWICK, LLC 
 K. HOVNANIAN AT WALKERS GROVE, LLC 
 K.
HOVNANIAN AT WARREN TOWNSHIP, L.L.C. 
 K. HOVNANIAN AT WASHINGTON, L.L.C. 

K. HOVNANIAN AT WATERSTONE, LLC 
 K. HOVNANIAN AT WAYNE, VIII,
L.L.C. 
 K. HOVNANIAN AT WAYNE IX, L.L.C. 
 K. HOVNANIAN AT
WEST VIEW ESTATES, L.L.C. 
 K. HOVNANIAN AT WEST WINDSOR, L.L.C. 

K. HOVNANIAN AT WESTSHORE, LLC 
 K. HOVNANIAN AT WHEELER RANCH,
LLC 
 K. HOVNANIAN AT WILDWOOD BAYSIDE, L.L.C. 
 K. HOVNANIAN
AT WILLOW BROOK, L.L.C. 
 K. HOVNANIAN AT WINCHESTER, LLC 
 K.
HOVNANIAN AT WOODCREEK WEST, LLC 
 K. HOVNANIAN AT WOOLWICH I, L.L.C. 

K. HOVNANIAN BELDEN POINTE, LLC 
 K. HOVNANIAN CAMBRIDGE HOMES,
L.L.C. 
 K. HOVNANIAN CENTRAL ACQUISITIONS, L.L.C. 
 K.
HOVNANIAN CLASSICS, L.L.C. 
 K. HOVNANIAN COMMUNITIES, INC. 

K. HOVNANIAN COMPANIES OF CALIFORNIA, INC. 
 K. HOVNANIAN
COMPANIES OF MARYLAND, INC. 
 K. HOVNANIAN COMPANIES OF NEW YORK, INC. 

K. HOVNANIAN COMPANIES OF PENNSYLVANIA, INC. 
 K. HOVNANIAN
COMPANIES OF SOUTHERN CALIFORNIA, INC. 
 K. HOVNANIAN COMPANIES, LLC 

K. HOVNANIAN CONSTRUCTION II, INC 
 K. HOVNANIAN CONSTRUCTION III,
INC 
 K. HOVNANIAN CONSTRUCTION MANAGEMENT, INC. 
 K. HOVNANIAN
CRAFTBUILT HOMES OF SOUTH CAROLINA, L.L.C. 
 K. HOVNANIAN CYPRESS KEY, LLC 

K. HOVNANIAN DEVELOPMENTS OF ARIZONA, INC. 
 K. HOVNANIAN
DEVELOPMENTS OF CALIFORNIA, INC. 
 K. HOVNANIAN DEVELOPMENTS OF D.C., INC. 

K. HOVNANIAN DEVELOPMENTS OF DELAWARE, INC. 
 K. HOVNANIAN
DEVELOPMENTS OF GEORGIA, INC. 
 K. HOVNANIAN DEVELOPMENTS OF ILLINOIS, INC. 

  
 A-19 

 K. HOVNANIAN DEVELOPMENTS OF KENTUCKY, INC. 

K. HOVNANIAN DEVELOPMENTS OF MARYLAND, INC. 
 K. HOVNANIAN
DEVELOPMENTS OF MINNESOTA, INC. 
 K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY II, INC. 

K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY, INC. 
 K. HOVNANIAN
DEVELOPMENTS OF NEW YORK, INC. 
 K. HOVNANIAN DEVELOPMENTS OF NORTH CAROLINA, INC. 

K. HOVNANIAN DEVELOPMENTS OF OHIO, INC. 
 K. HOVNANIAN
DEVELOPMENTS OF PENNSYLVANIA, INC. 
 K. HOVNANIAN DEVELOPMENTS OF SOUTH CAROLINA, INC. 

K. HOVNANIAN DEVELOPMENTS OF TEXAS, INC. 
 K. HOVNANIAN
DEVELOPMENTS OF VIRGINIA, INC. 
 K. HOVNANIAN DEVELOPMENTS OF WEST VIRGINIA, INC. 

K. HOVNANIAN DFW BELMONT, LLC 
 K. HOVNANIAN DFW LIBERTY CROSSING,
LLC 
 K. HOVNANIAN DFW RIDGEVIEW, LLC 
 K. HOVNANIAN EASTERN
PENNSYLVANIA, L.L.C. 
 K. HOVNANIAN EDGEBROOK, LLC 
 K.
HOVNANIAN ESTATES AT REGENCY, L.L.C. 
 K. HOVNANIAN ESTATES AT WEKIVA, LLC 

K. HOVNANIAN FALLS POINTE, LLC 
 K. HOVNANIAN FIRST HOMES, L.L.C.

 K. HOVNANIAN FLORIDA REALTY, L.L.C. 
 K. HOVNANIAN FOUR
SEASONS @ HISTORIC VIRGINIA, LLC 
 K. HOVNANIAN FOUR SEASONS AT GOLD HILL, LLC 

K. HOVNANIAN GRAND CYPRESS, LLC 
 K. HOVNANIAN GREAT WESTERN
BUILDING COMPANY, LLC 
 K. HOVNANIAN GREAT WESTERN HOMES, LLC 

K. HOVNANIAN HAMPTONS AT OAK CREEK II, L.L.C. 
 K. HOVNANIAN
HIDDEN HOLLOW, LLC 
 K. HOVNANIAN HIGHLAND RIDGE, LLC 
 K.
HOVNANIAN HOLDINGS NJ, L.L.C. 
 K. HOVNANIAN HOMES — DFW, L.L.C. 

K. HOVNANIAN HOMES AT BROOK MANOR, LLC 
 K. HOVNANIAN HOMES AT
CAMERON STATION, LLC 
 K. HOVNANIAN HOMES AT CAMP SPRINGS, L.L.C. 

K. HOVNANIAN HOMES AT CREEKSIDE, LLC 
 K. HOVNANIAN HOMES AT
FAIRWOOD, L.L.C. 
 K. HOVNANIAN HOMES AT FOREST RUN, L.L.C. 

K. HOVNANIAN HOMES AT GREENWAY FARM PARK TOWNS, L.L.C. 
 K.
HOVNANIAN HOMES AT GREENWAY FARM, L.L.C. 
 K. HOVNANIAN HOMES AT JONES STATION 1, L.L.C. 

K. HOVNANIAN HOMES AT MAXWELL PLACE, L.L.C. 
 K. HOVNANIAN HOMES
AT REEDY CREEK, LLC 
 K. HOVNANIAN HOMES AT RENAISSANCE PLAZA, L.L.C. 

  
 A-20 

 K. HOVNANIAN HOMES AT RUSSETT, L.L.C. 

K. HOVNANIAN HOMES AT ST. JAMES PLACE, LLC 
 K. HOVNANIAN HOMES AT
THE ABBY, LLC 
 K. HOVNANIAN HOMES AT THE HIGHLANDS, LLC 
 K.
HOVNANIAN HOMES AT THE PADDOCKS, LLC 
 K. HOVNANIAN HOMES AT WILLOWSFORD GRANT, LLC 

K. HOVNANIAN HOMES NORTHERN CALIFORNIA, INC. 
 K. HOVNANIAN HOMES
OF D.C., L.L.C. 
 K. HOVNANIAN HOMES OF DELAWARE, L.L.C. 
 K.
HOVNANIAN HOMES OF GEORGIA, L.L.C. 
 K. HOVNANIAN HOMES OF HOUSTON, L.L.C. 

K. HOVNANIAN HOMES OF LONGACRE VILLAGE, L.L.C. 
 K. HOVNANIAN
HOMES OF MARYLAND, L.L.C. 
 K. HOVNANIAN HOMES OF MINNESOTA AT AUTUMN MEADOWS, LLC 

K. HOVNANIAN HOMES OF MINNESOTA AT CEDAR HOLLOW WEST, LLC 
 K.
HOVNANIAN HOMES OF MINNESOTA AT CEDAR HOLLOW, LLC 
 K. HOVNANIAN HOMES OF MINNESOTA AT FOUNDER’S RIDGE, LLC 

K. HOVNANIAN HOMES OF MINNESOTA AT REGENT’S POINT, LLC 
 K.
HOVNANIAN HOMES OF MINNESOTA, L.L.C. 
 K. HOVNANIAN HOMES OF NORTH CAROLINA, INC. 

K. HOVNANIAN HOMES OF PENNSYLVANIA, L.L.C. 
 K. HOVNANIAN HOMES OF
SOUTH CAROLINA, LLC 
 K. HOVNANIAN HOMES OF VIRGINIA, INC. 
 K.
HOVNANIAN HOMES OF WEST VIRGINIA, L.L.C. 
 K. HOVNANIAN INDIAN TRAILS, LLC 

K. HOVNANIAN JUPITER FARMS, LLC 
 K. HOVNANIAN LADUE RESERVE, LLC

 K. HOVNANIAN LIBERTY ON BLUFF CREEK, LLC 
 K. HOVNANIAN
MANALAPAN ACQUISITION, LLC 
 K. HOVNANIAN MONARCH GROVE, LLC 

K. HOVNANIAN NORTH CENTRAL ACQUISITIONS, L.L.C. 
 K. HOVNANIAN
NORTH JERSEY ACQUISITIONS, L.L.C. 
 K. HOVNANIAN NORTHEAST SERVICES, L.L.C. 

K. HOVNANIAN OF HOUSTON II, L.L.C. 
 K. HOVNANIAN OHIO REALTY,
L.L.C. 
 K. HOVNANIAN OSTER HOMES, L.L.C. 
 K. HOVNANIAN PA
REAL ESTATE, INC. 
 K. HOVNANIAN PENNSYLVANIA ACQUISITIONS, L.L.C. 

K. HOVNANIAN PORT IMPERIAL URBAN RENEWAL, INC. 
 K. HOVNANIAN
PROPERTIES OF RED BANK, INC. 
 K. HOVNANIAN RIVENDALE, LLC 
 K.
HOVNANIAN RIVERSIDE, LLC 
 K. HOVNANIAN SCHADY RESERVE, LLC 

K. HOVNANIAN SHORE ACQUISITIONS, L.L.C. 
 K. HOVNANIAN SOUTH FORK,
LLC 

  
 A-21 

 K. HOVNANIAN SOUTH JERSEY ACQUISITIONS, L.L.C. 

K. HOVNANIAN SOUTHERN NEW JERSEY, L.L.C. 
 K. HOVNANIAN STERLING
RANCH, LLC 
 K. HOVNANIAN SUMMIT HOLDINGS, L.L.C. 
 K.
HOVNANIAN SUMMIT HOMES OF KENTUCKY, L.L.C. 
 K. HOVNANIAN SUMMIT HOMES OF PENNSYLVANIA, L.L.C. 

K. HOVNANIAN SUMMIT HOMES OF WEST VIRGINIA, L.L.C. 
 K. HOVNANIAN
SUMMIT HOMES, L.L.C. 
 K. HOVNANIAN T&C HOMES AT FLORIDA, L.L.C. 

K. HOVNANIAN T&C HOMES AT ILLINOIS, L.L.C. 
 K. HOVNANIAN
TIMBRES AT ELM CREEK, LLC 
 K. HOVNANIAN VENTURE I, L.L.C. 
 K.
HOVNANIAN WATERBURY, LLC 
 K. HOVNANIAN WHITE ROAD, LLC 
 K.
HOVNANIAN WINDWARD HOMES, LLC 
 K. HOVNANIAN WOODLAND POINTE, LLC 

K. HOVNANIAN WOODRIDGE PLACE, LLC 
 K. HOVNANIAN WYNDFALL ESTATES
AT REGENCY, LLC 
 K. HOVNANIAN’S FOUR SEASONS AT BAKERSFIELD, L.L.C. 

K. HOVNANIAN’S FOUR SEASONS AT BEAUMONT, LLC 
 K.
HOVNANIAN’S FOUR SEASONS AT CHARLOTTESVILLE, L.L.C. 
 K. HOVNANIAN’S FOUR SEASONS AT HEMET, LLC 

K. HOVNANIAN’S FOUR SEASONS AT KENT ISLAND CONDOMINIUMS, L.L.C. 

K. HOVNANIAN’S FOUR SEASONS AT KENT ISLAND, L.L.C. 
 K.
HOVNANIAN’S FOUR SEASONS AT LOS BANOS, LLC 
 K. HOVNANIAN’S FOUR SEASONS AT MORENO VALLEY, L.L.C. 

K. HOVNANIAN’S FOUR SEASONS AT NEW KENT VINEYARDS, L.L.C. 

K. HOVNANIAN’S FOUR SEASONS AT PALM SPRINGS, LLC 
 K.
HOVNANIAN’S FOUR SEASONS AT RENAISSANCE, L.L.C. 
 K. HOVNANIAN’S FOUR SEASONS AT RUSH CREEK, L.L.C. 

K. HOVNANIAN’S FOUR SEASONS AT RUSH CREEK II, LLC 
 K.
HOVNANIAN’S FOUR SEASONS AT SILVER MAPLE FARM, L.L.C. 
 K. HOVNANIAN’S FOUR SEASONS AT ST. MARGARETS LANDING, L.L.C. 

K. HOVNANIAN’S FOUR SEASONS, LLC 
 K. HOVNANIAN’S
PARKSIDE AT TOWNGATE, L.L.C. 
 KHH SHELL HALL LOAN ACQUISITION, LLC 

LANDARAMA, INC. 
 M&M AT CHESTERFIELD, LLC 

M&M AT CRESCENT COURT, L.L.C. 
 M&M AT WEST ORANGE, L.L.C.

 M&M AT WHEATENA URBAN RENEWAL, L.L.C. 
 MATZEL &
MUMFORD AT EGG HARBOR, L.L.C. 
 MATZEL & MUMFORD AT SOUTH BOUND BROOK URBAN RENEWAL, L.L.C. 

MCNJ, INC. 

  
 A-22 

 MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF PENNSYLVANIA, L.L.C. 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF WEST VIRGINIA, L.L.C. 

MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES, L.L.C. 

NEW HOME REALTY, LLC 
 NEW LAND TITLE AGENCY, L.L.C. 

PADDOCKS, L.L.C. 
 PARK TITLE COMPANY, LLC 

PINE AYR, LLC 
 RIDGEMORE UTILITY, L.L.C. 

SEABROOK ACCUMULATION CORPORATION 
 SHELL HALL CLUB AMENITY
ACQUISITION, LLC 
 SHELL HALL LAND ACQUISITION, LLC 
 SHELL
HALL LOAN ACQUISITION, LLC 
 STONEBROOK HOMES, INC. 
 TERRAPIN
REALTY, L.L.C. 
 THE MATZEL & MUMFORD ORGANIZATION, INC 

WASHINGTON HOMES AT COLUMBIA TOWN CENTER, L.L.C. 
 WASHINGTON
HOMES, INC. 
 WESTMINSTER HOMES, INC. 
 WH PROPERTIES, INC 

WOODLAND LAKE CONDOMINIUMS AT BOWIE NEW TOWN, L.L.C. 
  

			
	By:	 	 
		 	Name:
		 	Title: Authorized Officer

 [This Guarantee relates to K. Hovnanian Enterprises, Inc.’s 7.000% Senior Notes due 2019 – CUSIP
No.:             ] 

  
 A-23 

 EXHIBIT B 

SUPPLEMENTAL INDENTURE 
 dated as
of             ,          

among 
 K. HOVNANIAN ENTERPRISES,
INC., 
 HOVNANIAN ENTERPRISES, INC., 

The Other Guarantors Party Hereto 

and 
 WILMINGTON TRUST, NATIONAL
ASSOCIATION 
 as Trustee 
  

 
 7.000% Senior
Notes due 2019 

  
 B-1 

 THIS [            ]
SUPPLEMENTAL INDENTURE (this “[            ] Supplemental Indenture”), entered into as of             ,
            , among K. Hovnanian Enterprises, Inc., a California corporation (the “Issuer”), Hovnanian Enterprises, Inc., a Delaware corporation (the
“Company”), [list each new guarantor and its jurisdiction of incorporation] (each an “Undersigned”) and Wilmington Trust, National Association, a national banking association, as Trustee (the
“Trustee”). 
 RECITALS 

WHEREAS, the Issuer, Company, the other Guarantors party thereto and the Trustee entered into an indenture, dated as of
January 10, 2014 (the “Indenture”), relating to the Issuer’s 7.000% Senior Notes due 2019 (the “Notes”);  

WHEREAS, as a condition to the purchase of the Notes by the Holders, the Company agreed pursuant to the Indenture to cause any newly acquired
or created Restricted Subsidiaries to provide Guarantees. 
 AGREEMENT 

NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and intending to be legally bound, the parties hereto
hereby agree as follows: 
 SECTION 1. Capitalized terms used herein and not otherwise defined herein are used as
defined in the Indenture. 
 SECTION 2. Each Undersigned, by its execution of this
[            ] Supplemental Indenture, agrees to be a Guarantor under the Indenture and to be bound by the terms of the Indenture applicable to Guarantors, including, but not limited to,
Article 6 thereof. 
 SECTION 3. This [            ]
Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York. 

SECTION 4. This [            ] Supplemental Indenture may be
signed in various counterparts which together shall constitute one and the same instrument. 
 SECTION 5. This
[            ] Supplemental Indenture is an amendment supplemental to the Indenture and the Indenture and this [            ]
Supplemental Indenture shall henceforth be read together. 
 SECTION 6. The Trustee shall not be responsible in any
manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the Recitals contained herein, all of which are made solely by the Issuer, the Company and each of the undersigned. 

  
 B-2 

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

			
	 K. HOVNANIAN ENTERPRISES, INC.,
as Issuer

		
	By:	 	  

		 	Name:
		 	Title:
	
	HOVNANIAN ENTERPRISES, INC.
		
	By:	 	  

		 	Name:
		 	Title:
	
	[GUARANTOR]
		
	By:	 	  

		 	Name:
		 	Title:
	
	 WILMINGTON TRUST, NATIONAL
ASSOCIATION, as Trustee

		
	By:	 	  

		 	Name:
		 	Title:

  
 B-3 

 EXHIBIT C 

RESTRICTED LEGEND 
 THIS NOTE (OR
ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHIN THE UNITED STATES OR TO, OR FOR
THE ACCOUNT OR BENEFIT OF, U.S. PERSONS, EXCEPT AS SET FORTH IN THE NEXT SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE HOLDER: 

(1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) (A
“QIB”), (B) IT HAS ACQUIRED THIS NOTE IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH REGULATION S UNDER THE SECURITIES ACT OR (C) IT IS AN INSTITUTIONAL “ACCREDITED INVESTOR” (AS DEFINED IN RULE 501(a)(1), (2),
(3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT) (AN “IAI”), 
 (2) AGREES THAT IT WILL NOT RESELL OR
OTHERWISE TRANSFER THIS NOTE OR ANY BENEFICIAL INTEREST HEREIN, EXCEPT (A) TO THE ISSUER, THE COMPANY OR ANY OF ITS SUBSIDIARIES, (B) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QIB PURCHASING FOR ITS OWN ACCOUNT OR FOR THE
ACCOUNT OF A QIB IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (C) IN AN OFFSHORE TRANSACTION MEETING THE REQUIREMENTS OF RULE 903 OR 904 OF REGULATION S OF THE SECURITIES ACT, (D) IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144 UNDER THE SECURITIES ACT, (E) TO AN IAI THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF THIS NOTE (THE FORM OF WHICH CAN BE OBTAINED FROM
THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES LESS THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE ISSUER AND THE TRUSTEE THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT, (F) IN
ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL ACCEPTABLE TO THE ISSUER AND THE TRUSTEE) OR (G) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE,
IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND 

  
 C-1 

 (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS NOTE OR AN INTEREST HEREIN IS
TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. 
 AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTIONS” AND
“UNITED STATES” HAVE THE MEANINGS GIVEN TO THEM BY RULE 902 OF REGULATION S UNDER THE SECURITIES ACT. THE INDENTURE CONTAINS A PROVISION REQUIRING THE TRUSTEE TO REFUSE TO REGISTER ANY TRANSFER OF THIS NOTE IN VIOLATION OF THE FOREGOING.

  
 C-2 

 EXHIBIT D 

DTC LEGEND 
 UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS A BENEFICIAL INTEREST HEREIN. 

THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED. TRANSFERS OF THIS GLOBAL NOTE ARE LIMITED TO TRANSFERS IN
WHOLE, BUT NOT IN PART, BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER NOMINEE OF DTC OR BY DTC OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY AND TRANSFERS OF PORTIONS OF THIS GLOBAL
NOTE ARE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE TRANSFER PROVISIONS OF THE INDENTURE. 

  
 D-1 

 EXHIBIT E 

Regulation S Certificate 

            ,          

 

	To:	Wilmington Trust, National Association 

 Rodney Square North 

1100 North Market Street 

Wilmington, DE 19890-1600 

Facsimile: 302-636-4149 

Attention: Corporate Client Services 
  

	 	Re:	K. Hovnanian Enterprises, Inc. 

 7.000% Senior Notes due 2019 (the “Notes”)

 Issued under the Indenture (the “Indenture”) dated as 

as of January 10, 2014 relating to the Notes

Dear Sirs: 
 Terms are used in this
Certificate as used in Regulation S (“Regulation S”) under the Securities Act of 1933, as amended (the “Securities Act”), except as otherwise stated herein. 

[CHECK A OR B AS APPLICABLE.] 
  

	 	x  A.	This Certificate relates to our proposed transfer of $        principal amount of Notes issued under the Indenture. We hereby certify as follows: 

 

	 	1.	The offer and sale of the Notes was not and will not be made to a person in the United States (unless such person is excluded from the definition of “U.S. person” pursuant to Rule 902(k)(2)(vi) or the account
held by it for which it is acting is excluded from the definition of “U.S. person” pursuant to Rule 902(k)(2)(i) under the circumstances described in Rule 902(g)(3)) and such offer and sale was not and will not be specifically targeted at
an identifiable group of U.S. citizens abroad. 

  
 E-1 

	 	2.	Unless the circumstances described in the parenthetical in paragraph 1 above are applicable, either (a) at the time the buy order was originated, the buyer was outside the United States or we and any person acting
on our behalf reasonably believed that the buyer was outside the United States or (b) the transaction was executed in, on or through the facilities of a designated offshore securities market, and neither we nor any person acting on our behalf
knows that the transaction was pre-arranged with a buyer in the United States. 

  

	 	3.	Neither we, any of our affiliates, nor any person acting on our or their behalf has made any directed selling efforts in the United States with respect to the Notes. 

 

	 	4.	The proposed transfer of Notes is not part of a plan or scheme to evade the registration requirements of the Securities Act. 

  

	 	5.	If we are a dealer or a person receiving a selling concession, fee or other remuneration in respect of the Notes, and the proposed transfer takes place during the Restricted Period (as defined in the Indenture), or we
are an officer or director of the Company or an Initial Purchaser (as defined in the Indenture), we certify that the proposed transfer is being made in accordance with the provisions of Rule 904(b) of Regulation S. 

 

	 	x  B.	This Certificate relates to our proposed exchange of $        principal amount of Notes issued under the Indenture for an equal principal amount of Notes to be held by us. We
hereby certify as follows: 

  

	 	1.	At the time the offer and sale of the Notes was made to us, either (i) we were not in the United States or (ii) we were excluded from the definition of “U.S. person” pursuant to Rule 902(k)(2)(vi) or
the account held by us for which we were acting was excluded from the definition of “U.S. person” pursuant to Rule 902(k)(2)(i) under the circumstances described in Rule 902(g)(3); and we were not a member of an identifiable group of U.S.
citizens abroad. 

  

	 	2.	Unless the circumstances described in paragraph 1(ii) above are applicable, either (a) at the time our buy order was originated, we were outside the United States or (b) the transaction was executed in, on or
through the facilities of a designated offshore securities market and we did not pre-arrange the transaction in the United States. 

  
 E-2 

	 	3.	The proposed exchange of Notes is not part of a plan or scheme to evade the registration requirements of the Securities Act. 

You and the Issuer are entitled to rely upon this Certificate and are irrevocably authorized to produce this Certificate or a copy hereof to
any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby. 
  

			
	Very truly yours,
	
	[NAME OF SELLER (FOR TRANSFERS) OR OWNER (FOR EXCHANGES)]
		
	By:	 	  

		 	Name:
		 	Title:
		 	Address:

 Date:
                                 

Upon transfer of certificated Notes, the Notes would be registered in the name of the new beneficial owner as follows: 

 

			
	 By:
	 	 
		
	 Date: 
	 	 

  

			
	 Taxpayer ID
number:                                        
            

  
 E-3 

 EXHIBIT F 

Rule 144A Certificate 

            ,          

 

	To:	Wilmington Trust, National Association 

 Rodney Square North 

1100 North Market Street 

Wilmington, DE 19890-1600 

Facsimile: 302-636-4149 

Attention: Corporate Client Services 
  

	 	Re:	K. Hovnanian Enterprises, Inc. 

 7.000% Senior Notes due 2019 (the “Notes”)

 Issued under the Indenture (the “Indenture”) dated as 

as of January 10, 2014 relating to the Notes

Ladies and Gentlemen: 
 This Certificate relates
to: 
 [CHECK A OR B AS APPLICABLE.] 
  

	 	x  A.	Our proposed purchase of $         principal amount of Notes issued under the Indenture. 

  

	 	x  B.	Our proposed transfer or exchange of $         principal amount of Notes issued under the Indenture for an equal principal amount of Notes to be held by us. 

We and, if applicable, each account for which we are acting, are a qualified institutional buyer within the meaning of Rule 144A
(“Rule 144A”) under the Securities Act of 1933, as amended (the “Securities Act”). If we are acting on behalf of an account, we exercise sole investment discretion with respect to such account. We are aware that the
transfer of Notes to us, or such exchange, as applicable, is being made in reliance upon the exemption from the provisions of Section 5 of the Securities Act provided by Rule 144A. Prior to the date of this Certificate we have received such
information regarding the Company as we have requested pursuant to Rule 144A(d)(4) or have determined not to request such information. 

  
 F-1 

 You and the Issuer are entitled to rely upon this Certificate and are irrevocably authorized to
produce this Certificate or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby. 

 

			
	Very truly yours,
	
	 [NAME OF PURCHASER (FOR TRANSFERS) OR OWNER (FOR EXCHANGES)]

		
	By:	 	  

		 	Name:
		 	Title:
		 	Address:

 Date:
                                 

Upon transfer of certificated Notes, the Notes would be registered in the name of the new beneficial owner as follows: 

 

			
	 By:
	 	 
		
	 Date: 
	 	 

  

			
	 Taxpayer ID
number:                                        
            

  
 F-2 

 EXHIBIT G 

Institutional Accredited Investor Certificate 
  

	To:	Wilmington Trust, National Association 

 Rodney Square North 

1100 North Market Street 

Wilmington, DE 19890-1600 

Facsimile: 302-636-4149 

Attention: Corporate Client Services 
  

	 	Re:	K. Hovnanian Enterprises, Inc. 

 7.000% Senior Notes due 2019 (the “Notes”)

 Issued under the Indenture (the “Indenture”) dated as 

as of January 10, 2014 relating to the Notes

Ladies and Gentlemen: 
 This Certificate relates
to: 
 [CHECK A, B OR C AS APPLICABLE.] 
  

	 	x  A.	Our proposed purchase of $        principal amount of Notes issued under the Indenture. 

  

	 	x  B.	Our proposed purchase of $        principal amount of a beneficial interest in a Global Note 

 

	 	x  C.	Our proposed transfer or exchange of $        principal amount of Notes issued under the Indenture for an equal principal amount of Notes to be held by us. 

We hereby confirm that: 
  

	 	1.	We are an institutional “accredited investor” as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) (an
“Institutional Accredited Investor”). 

  

	 	2.	Any acquisition of Notes by us will be for our own account or for the account of one or more other Institutional Accredited Investors as to which we exercise sole investment discretion. 

  
 G-1 

	 	3.	We have such knowledge and experience in financial and business matters that we are capable of evaluating the merits and risks of an investment in the Notes and we and any accounts for which we are acting are able to
bear the economic risks of and an entire loss of our or their investment in the Notes. 

  

	 	4.	We are not acquiring the Notes or beneficial interest therein with a view to any distribution thereof in a transaction that would violate the Securities Act or the securities laws of any State of the United States or
any other applicable jurisdiction; provided, that the disposition of our property and the property of any accounts for which we are acting as fiduciary will remain at all times within our and their control. 

 

	 	5.	We acknowledge that the Notes have not been registered under the Securities Act and that the Notes may not be offered or sold within the United States or to or for the benefit of U.S. persons except as set forth below.

  

	 	6.	The principal amount of Notes to which this Certificate relates is at least equal to $250,000. 

We agree for the benefit of the Issuer and the Guarantors, on our own behalf and on behalf of each account for which we are acting, that we
will not resell or otherwise transfer this Note or any beneficial interest herein except (A) to the Issuer, the Company or any of its subsidiaries, (B) to a person whom we reasonably believe is a QIB purchasing for its own account or for
the account of a QIB in a transaction meeting the requirements of Rule 144A, (C) in an offshore transaction meeting the requirements of Rule 903 or 904 of Regulation S of the Securities Act, (D) in a transaction meeting the requirements of
Rule 144 under the Securities Act, (E) to an Institutional Accredited Investor that, prior to such transfer, furnishes the Trustee a signed letter containing certain representations and agreements relating to the transfer of the Notes (the form
of which can be obtained from the Trustee) and, if such transfer is in respect of an aggregate principal amount of Notes less than $250,000, an opinion of counsel acceptable to the Issuer and the Trustee that such transfer is in compliance with the
Securities Act, (F) in accordance with another exemption form the registration requirements of the Securities Act (and based upon an opinion of counsel acceptable to the Issuer and the Trustee) or (G) pursuant to an effective Registration
Statement and, in each case, in accordance with the applicable securities laws of any state of the United States or any other applicable jurisdiction. 

  
 G-2 

 Prior to the registration of any transfer or exchange, we acknowledge that the Issuer reserves
the right to require the delivery of such legal opinions, certifications or other evidence as may reasonably be required in order to determine that the proposed transfer or exchange is being made in compliance with the Securities Act and applicable
state securities laws. We acknowledge that no representation is made as to the availability of any Rule 144 exemption from the registration requirements of the Securities Act. 

We understand that the Trustee will not be required to accept for registration of transfer or exchange any Notes acquired by us, except upon
presentation of evidence satisfactory to the Issuer and the Trustee that the foregoing restrictions on transfer have been complied with. We further agree to deliver to each person acquiring any of the Notes or any beneficial interest therein from us
a notice advising such person that resales of the Notes are restricted as stated herein. 
 We agree to notify you promptly in writing if
any of our acknowledgments, representations or agreements herein ceases to be accurate and complete. 
 We represent to you that we have
full power to make the foregoing acknowledgments, representations and agreements on our own behalf and on behalf of any account for which we are acting. 

You and the Issuer are entitled to rely upon this Certificate and are irrevocably authorized to produce this Certificate or a copy hereof to
any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby. 
  

			
	Very truly yours,
	
	 [NAME OF PURCHASER (FOR TRANSFERS) OR OWNER (FOR EXCHANGES)]

		
	By:	 	  

		 	Name:
		 	Title:
		 	Address:

 Date:
                                     

  
 G-3 

 Upon transfer of certificated Notes, the Notes would be registered in the name of the new
beneficial owner as follows: 
  

			
	 By:
	 	 
		
	 Date: 
	 	 

  

			
	 Taxpayer ID
number:                                        
            

  
 G-4 

 EXHIBIT H 

[COMPLETE FORM I OR FORM II AS APPLICABLE.] 

[FORM I] 
 Certificate
of Beneficial Ownership 
  

	To:	Wilmington Trust, National Association 

 Rodney Square North 

1100 North Market Street 

Wilmington, DE 19890-1600 

Facsimile: 302-636-4149 

Attention: Corporate Client Services 

[Euroclear Bank S.A./N.V., as operator of the Euroclear System] OR 

[Clearstream Banking, société anonyme] 
  

	 	Re:	K. Hovnanian Enterprises, Inc. 

 7.000% Senior Notes due 2019 (the “Notes”)

 Issued under the Indenture (the “Indenture”) dated as 

as of January 10, 2014 relating to the Notes

Ladies and Gentlemen: 
 We are the beneficial
owner of $            principal amount of Notes issued under the Indenture and represented by a Regulation S Temporary Global Note (as defined in the Indenture). 

[CHECK A OR B AS APPLICABLE.] 
  

	 	 ̈  A.	We are a non-U.S. person (within the meaning of Regulation S under the Securities Act of 1933, as amended). 

  

	 	 ̈  B.	We are a U.S. person (within the meaning of Regulation S under the Securities Act of 1933, as amended) that purchased the Notes in a transaction that did not require registration under the Securities Act of 1933, as
amended. 

 You and the Issuer are entitled to rely upon this Certificate and are irrevocably authorized to produce this
Certificate or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby. 

  
 H-1 

 
			
	Very truly yours,
	
	[NAME OF BENEFICIAL OWNER]
		
	By:	 	  

		 	Name:
		 	Title:
		 	Address:

Date:                         
                
 [FORM II] 

Certificate of Beneficial Ownership 
  

	To:	Wilmington Trust Company 

 Rodney Square North 

1100 North Market Street 

Wilmington, DE 19890-1600 

Facsimile: 302-636-4149 

Attention: Corporate Client Services 
  

	 	Re:	K. Hovnanian Enterprises, Inc. 

 7.000% Senior Notes due 2019 (the “Notes”)

 Issued under the Indenture (the “Indenture”) dated as 

as of January 10, 2014 relating to the Notes

Ladies and Gentlemen: 
 This is to certify
that based solely on certifications we have received in writing, by tested telex or by electronic transmission from member organizations (“Member Organizations”) appearing in our records as persons being entitled to a portion of the
principal amount of Notes represented by a Regulation S Temporary Global Note issued under the above-referenced Indenture, that as of the date hereof, $            principal amount of Notes
represented by the Regulation S Temporary Global Note being submitted herewith for exchange is beneficially owned by persons that are either (i) non-U.S. persons (within the meaning of Regulation S under the Securities Act of 1933, as amended)
or (ii) U.S. persons that purchased the Notes in a transaction that did not require registration under the Securities Act of 1933, as amended. 

  
 H-2 

 We further certify that (i) we are not submitting herewith for exchange any portion of such
Regulation S Temporary Global Note excepted in such Member Organization certifications and (ii) as of the date hereof we have not received any notification from any Member Organization to the effect that the statements made by such Member
Organization with respect to any portion of such Regulation S Temporary Global Note submitted herewith for exchange are no longer true and cannot be relied upon as of the date hereof. 

You and the Issuer are entitled to rely upon this Certificate and are irrevocably authorized to produce this Certificate or a copy hereof to
any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby. 
  

			
	Yours faithfully,
	
	 [EUROCLEAR BANK S.A./N.V., as
operator of the Euroclear System]

 
 OR

 
 [CLEARSTREAM BANKING, société anonyme]

		
	By:	 	  

		 	Name:
		 	Title:
		 	Address:

Date:                         
                

  
 H-3 

 EXHIBIT I 

THIS NOTE IS A TEMPORARY GLOBAL NOTE. PRIOR TO THE EXPIRATION OF THE RESTRICTED PERIOD APPLICABLE HERETO, BENEFICIAL INTERESTS HEREIN MAY NOT BE HELD BY ANY
PERSON OTHER THAN (1) A NON-U.S. PERSON OR (2) A U.S. PERSON THAT PURCHASED SUCH INTEREST IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). BENEFICIAL
INTERESTS HEREIN ARE NOT EXCHANGEABLE FOR CERTIFICATED NOTES OTHER THAN A PERMANENT GLOBAL NOTE IN ACCORDANCE WITH THE TERMS OF THE INDENTURE. TERMS IN THIS LEGEND ARE USED AS USED IN REGULATION S UNDER THE SECURITIES ACT. 

  
 I-1 

 EXHIBIT J 

UNRESTRICTED SUBSIDIARIES 
 77 HUDSON
STREET JOINT DEVELOPMENT, L.L.C. 
 AG/HOV DELRAY HOLDINGS, L.L.C. 

AG/HOV DELRAY, L.L.C. 
 AL TAHALUF AL AQARY LLC 

AMBER RIDGE, LLC 
 COBBLESTONE SQUARE DEVELOPMENT, L.L.C. 

FAIR LAND TITLE COMPANY, INC. 
 FIRST MORTGAGE LENDERS OF FLORIDA,
L.L.C. 
 GTIS-HOV DULLES PARKWAY PARENT LLC 
 GTIS-HOV FESTIVAL
LAKES LLC 
 GTIS-HOV GREENFIELD CROSSING PARENT LLC 
 GTIS-HOV
HOLDINGS LLC 
 GTIS-HOV LEELAND STATION LLC 
 GTIS-HOV POSITANO
LLC 
 GTIS-HOV RANCHO 79 LLC 
 GTIS-HOV RESIDENCES AT DULLES
PARKWAY LLC 
 GTIS-HOV RESIDENCES AT GREENFIELD CROSSING LLC 

GTIS-HOV VILLAGES AT PEPPER MILL LLC 
 GTIS-HOV WARMINSTER LLC

 HERITAGE PINES, L.L.C. 
 HOMEBUYERS FINANCIAL USA, LLC 

HOVSITE CATALINA LLC 
 HOVSITE CHURCHILL CLUB LLC 

HOVSITE CIDER GROVE LLC 
 HOVSITE FIRENZE LLC 

HOVSITE FLORIDA HOLDINGS LLC 
 HOVSITE GREENWOOD MANOR LLC 

HOVSITE HOLDINGS LLC 
 HOVSITE HUNT CLUB LLC 

HOVSITE ILLINOIS HOLDINGS LLC 
 HOVSITE IRISH PRAIRIE LLC 

HOVSITE LIBERTY LAKES LLC 
 HOVSITE MONTEVERDE 1 & 2 LLC 

HOVSITE MONTEVERDE 3 & 4 LLC 
 HOVSITE PROVIDENCE LLC 

HOVSITE SOUTHAMPTON LLC 
 HOVWEST LAND ACQUISITION, LLC 

K. HOVNANIAN 77 HUDSON STREET INVESTMENTS, L.L.C. 
 K. HOVNANIAN
AMERICAN MORTGAGE, L.L.C. 
 K. HOVNANIAN AT 77 HUDSON STREET URBAN RENEWAL COMPANY, L.L.C. 

  
 J-1 

 K. HOVNANIAN AT AMBERLY WOODS, LLC 

K. HOVNANIAN AT CEDAR LANE ESTATES, LLC 
 K. HOVNANIAN AT
COBBLESTONE SQUARE CONDOMINIUMS, L.L.C. 
 K. HOVNANIAN AT DELRAY BEACH, L.L.C. 

K. HOVNANIAN AT DOMINION CROSSING, LLC 
 K. HOVNANIAN AT EAGLE
HEIGHTS, LLC 
 K. HOVNANIAN AT EMBREY MILL, LLC 
 K. HOVNANIAN
AT MANALAPAN II, L.L.C. 
 K. HOVNANIAN AT PELHAM’S REACH, LLC 

K. HOVNANIAN AT PHILADELPHIA I, L.L.C. 
 K. HOVNANIAN AT PORT
IMPERIAL URBAN RENEWAL II, L.L.C. 
 K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL III, L.L.C. 

K. HOVNANIAN AT RAYMOND FARM, LLC 
 K. HOVNANIAN AT RIVER HILLS,
LLC 
 K. HOVNANIAN AT SILVERWOOD GLEN, LLC 
 K. HOVNANIAN AT
TRENTON II, L.L.C. 
 K. HOVNANIAN AT TRENTON URBAN RENEWAL, L.L.C. 

K. HOVNANIAN AT VILLAGE OF ROUND HILL, LLC 
 K. HOVNANIAN AT
WATERFORD, LLC 
 K. HOVNANIAN BUILDING COMPANY, LLC 
 K.
HOVNANIAN COMPANIES OF ARIZONA, LLC 
 K. HOVNANIAN CYPRESS CREEK, LLC 

K. HOVNANIAN GT INVESTMENT, L.L.C. 
 K. HOVNANIAN HOMES AT
WILLOWSFORD GRANGE, LLC 
 K. HOVNANIAN HOMES OF DELAWARE I, LLC 

K. HOVNANIAN HOMES OF FLORIDA I, LLC 
 K. HOVNANIAN HOMES OF
MARYLAND I, LLC 
 K. HOVNANIAN HOMES OF VIRGINIA I, LLC 
 K.
HOVNANIAN HOVWEST HOLDINGS, L.L.C. 
 K. HOVNANIAN INVESTMENTS, L.L.C. 

K. HOVNANIAN JV HOLDINGS, L.L.C. 
 K. HOVNANIAN JV SERVICES
COMPANY, L.L.C. 
 K. HOVNANIAN M.E. INVESTMENTS, LLC 
 K.
HOVNANIAN MONTCLAIRE ESTATES, LLC 
 K. HOVNANIAN NASSAU GROVE HOLDINGS, L.L.C. 

K. HOVNANIAN TBD, LLC 
 K. HOVNANIAN TERRA LAGO INVESTMENT, LLC

 K. HOVNANIAN TERRALARGO, LLC 
 K. HOVNANIAN’S FOUR
SEASONS AT VINT HILL, L.L.C. 
 M&M AT MONROE WOODS, L.L.C. 

MILLENNIUM TITLE AGENCY, LTD. 
 MM-BEACHFRONT NORTH I, L.L.C. 

MM-BEACHFRONT NORTH II, L.L.C. 
 MSHOV HOLDING COMPANY, L.L.C.

 NASSAU GROVE ENTERPRISES, L.L.C. 

  
 J-2 

 NORTH MANATEE, L.L.C. 

PRESTON GRANDE HOMES, INC. 
 TERRA LAGO INDIO, LLC 

WHI-REPUBLIC, LLC 
 WOODMORE RESIDENTIAL, L.L.C. 

WTC VENTURES, L.L.C. 

  
 J-3

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